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Bombardier Q3 just shy of estimates; hikes FCF forecast

By Reuters News


Overview

  • Canada business jet maker's Q3 revenue rose 3% yr/yr, slight miss to analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Company raised 2026 free cash flow guidance to over $1.3 bln, citing strong demand


Outlook

  • Bombardier raises 2026 free cash flow guidance to greater than $1.3 bln

  • Company reaffirms 2026 revenue guidance at $10.0 bln and adjusted EBITDA at $1.625 bln

  • Bombardier expects net additions to PP&E and intangible assets of about $300 mln in 2026


Result Drivers

  • RECORD SERVICES REVENUE - Co said Q3 revenue growth was driven by all-time high Services revenue of $701 mln, up 19% yr/yr, supported by network growth and focus on customer experience

  • ORDER MOMENTUM - Co said sustained demand led to a unit book-to-bill of 1.7x and backlog of $22.2 bln, up $4.7 bln since year-end 2025

  • DEFENSE MARKET ACTIVITY - Co cited growing momentum in defense market, with GlobalEye platform selected by NATO and Canadian government


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$2.37 bln

$2.38 bln (13 Analysts)

Q3 Adjusted EPS

Miss

$1.72

$1.73 (10 Analysts)

Q3 EPS

$0.73

Q3 Free Cash Flow

$183 mln

Q3 Order Backlog

$22.20 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for Bombardier Inc. is C$368.00, about 7.6% above its November 4 closing price of C$341.97

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago


Reuters Recommended Reads

  • Nov 5 - Leonardo’s record backlog, accelerated deliveries to boost new plan targets, CEO says

  • Nov 4 - Rheinmetall cuts 2026 sales forecast again as Boxer order slips

  • Nov 5 - RENK Group 9M order intake jumps on defense segment demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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