Bombardier Third-Quarter Services Revenue Rises $111m to $701m as Aircraft Deliveries Dip; 2026 Free Cash Flow Guidance Raised

Bombardier reported third-quarter services revenue of $701m, up $111m, which pushed total revenue to $2.37bn. Manufacturing and other revenue fell to $1.67bn on lower deliveries, partly offset by higher prices. The company delivered 33 aircraft against 34 in the same quarter last year: medium aircraft deliveries declined to 12, while large-cabin deliveries held steady at 21.

Adjusted EBITDA rose 7% to $382m, and the margin gained 70 basis points to 16.1%. Adjusted EBIT margin rose 150 basis points to 11.3%, which Bombardier attributed to higher contributions from services and lower R&D expense. Net income from continuing operations declined to $81m from $85m, as higher financing expense, mainly a non-cash change in the fair value of embedded derivatives, offset operating gains. Adjusted net income rose 41% to $182m from $129m, equal to adjusted earnings per share of $1.72.

Backlog reached $22.2bn at quarter-end, with a unit book-to-bill ratio of 1.7 times. Free cash flow rose 20% to $183m from $152m, and operating cash flow rose 36% to $259m from $190m. Bombardier raised its 2026 free cash flow guidance for the second time this year, to more than $1.3bn from more than $1bn. Other targets were left unchanged: more than 157 deliveries during the year, revenue above $10bn and adjusted EBITDA above $1.625bn. Those targets imply a heavier fourth quarter, with more than 68 deliveries and revenue above $3.89bn.

Long-term debt fell to $4.05bn from $5.15bn at the end of 2025 after Bombardier repaid its 2028 and 2029 senior notes. Cash fell 26% to $1.62bn from $2.18bn, while available liquidity stood at $2.37bn.

The quarter shows how a business jet manufacturer's earnings profile shifts as its in-service fleet grows. Services revenue rose by $111m while new-aircraft revenue fell, and the margin gains were credited to services and lower R&D spending, not to delivery volume. For the segment, that means a maker with a large installed base earns a growing share of profit from maintenance, parts and support, which tend to be steadier than handover timing.

The full-year targets leave a large amount of work for the final quarter. Delivering more than 68 aircraft and booking revenue above $3.89bn would be a sharp step up from the 33 aircraft handed over in the third quarter. The fourth-quarter delivery count is the figure that will show whether the unchanged 157-aircraft target holds, and it is also what the raised free cash flow guidance of more than $1.3bn depends on.

The balance sheet moved in the same direction as the operating results. Repaying the 2028 and 2029 senior notes cut long-term debt by about $1.1bn, at the cost of a 26% drop in cash to $1.62bn, with liquidity of $2.37bn still in place. A unit book-to-bill ratio of 1.7 times and a $22.2bn backlog mean production slots are already spoken for, which is why deliveries, not demand, set the pace of revenue.