Bombardier (BBD-B) Q1 2026 earnings summary

Executive summary

• Revenues rose 5% year-over-year to $1.6 billion, driven by a 25% increase in services revenue to $617 million, and adjusted net income surged to $189 million.

• Free cash flow reached $360 million, a $664 million year-over-year improvement, marking the strongest Q1 in nearly two decades.

• Order backlog reached $20.3 billion, up 16% since the start of the year and 43% year-over-year, with a unit book-to-bill of 3.6.

• Market conditions remain favorable, with strong customer engagement and demand across regions, though some slowdown in the Middle East due to geopolitical tensions.

• Supply chain disruptions have improved but remain a focus, with recent issues resolved and less impact expected than last year.

Financial highlights

• Adjusted EBITDA was $246 million (15.4% margin), slightly down from $248 million last year.

• Adjusted net income rose 177% year-over-year to $189 million; adjusted EPS nearly tripled to $1.81.

• Net income from continuing operations was $53 million, up 20% year-over-year.

• Free cash flow improved by $664 million year-over-year to $360 million, with cash flows from operating activities at $393 million.

• Liquidity exceeded $2 billion, with net leverage reduced to 1.8x.

Outlook and guidance

• 2026 free cash flow guidance raised to over $1 billion, up from the previous $600 million–$1 billion range.

• Aircraft deliveries expected to exceed 157 units; revenues and adjusted EBITDA guidance remain above $10 billion and $1,625 million, respectively.

• Delivery profile remains heavily weighted to the second half, especially Q4.

• CapEx expected to remain near CAD 300 million for the year.