Bombardier CEO Éric Martel told analysts the company is giving “strong consideration” to capital investments that could include a new airplane.
The Story
Bombardier Inc. is considering a potential production ramp-up that could involve a new business-jet program, as it weighs how to use a cash-flow increase, according to remarks from CEO Éric Martel.
On a conference call Thursday to discuss the company’s latest results, Martel said he is giving “strong consideration” to capital investments aimed at allowing the Montreal-based manufacturer to “churn out more business jets,” citing a strong backlog and continued demand.
Martel said about half of Bombardier’s capital spending would be directed to product improvement and “staying competitive,” which he said could include a new airplane. He said the company will decide based on competitor actions, customer demand and what new technology could be offered.
Bombardier currently makes mid-size and large jets under its Challenger series, along with three ultra-long-range Global jets. The company said it is the second-largest business jet manufacturer by revenue, behind Georgia-based Gulfstream, and that it holds a 20 per cent market share, citing S&P Global.
For 2026, Bombardier raised its forecast for free cash flow to more than US$1.3 billion, compared with roughly US$1 billion previously, while reaffirming its outlook for revenue and adjusted earnings. The company said its backlog increased 34 per cent year-over-year to US$22.2 billion, with a book-to-bill ratio climbing to 1.7.
Martel said demand remains “sturdy across the board” in North America, Europe and Asia, and that the only slowdown Bombardier has seen is in the Middle East, which he linked to the Iran war while adding that long-term demand in the region remains.
In the quarter ended Sept. 30, Bombardier delivered 33 jets and said it remains on track to furnish clients with more than 157 planes for the full year. Martel said much of the demand comes from private charter airlines, a segment Bombardier began courting about three years ago.
Bombardier also reported that its services revenue rose to a new high of US$701 million last quarter, representing 29 per cent of total revenue. The company said net income fell five per cent year-over-year in the third quarter to US$81 million, while revenue rose three per cent to US$2.37 billion, and that its adjusted earnings were US$1.72 per share versus an adjusted profit of US$1.21 per share a year earlier.
← More stories