Bombardier delays 2025 forecast ‘in light of US tariff threat’

Montreal — Canadian plane maker Bombardier on Thursday beat quarterly profit estimates on aftermarket business strength, and delayed its 2025 forecast, citing uncertainty related to US President Donald Trump’s tariffs.

Resilient demand for private flying has boosted jet makers’ order books and their aftermarket businesses, despite challenges in the aerospace supply chain.

But Trump’s 25% tariff on Canadian and Mexican imports has created uncertainty, even though the duties were delayed by 30 days.

Bombardier CEO Eric Martel told analysts he was disappointed at not providing guidance and does not see a slowdown in the market, but stressed the company has to be cautious due to the prospect of tariffs and retaliatory duties. Bombardier has more than 2,800 US-based suppliers across 47 states and its defence unit is based in Wichita, Kansas.

“The team and I were well prepared to confirm our 2025 objectives today but in light of the current tariff threat, not providing guidance is the most responsible and transparent thing for us to do,” Martel said.

The stakes are high for business aviation due to the industry’s global supply chain and key US market, the world’s largest for private jets.

Of the estimated 140 business jets that Bombardier delivered in 2023, 112 were powered by US-made engines, which represent more than a third of the value of the jet, according to a note from Morningstar.

Aerospace major RTX’s Pratt & Whitney Canada unit produces jet engines for business jets made by US-based Textron and General Dynamics’ Gulfstream.

Plane makers, including Bombardier, continue wrestling with supply-chain snags that affect deliveries.

Bombardier delivered 57 aircraft during the quarter ended December 31, compared with 56 a year earlier. But the company’s 146 aircraft deliveries in 2024 fell short of its November forecast of 150-155 jets.

Supply-chain giant Honeywell, which provides engines to Bombardier, on Thursday announced a deal to split into three independently listed companies.

For the fourth quarter, Montreal-based Bombardier posted a 1.5% rise in revenue to $3.11bn, compared with analysts’ estimate of $3.18bn, according to data compiled by LSEG.

On an adjusted basis, it earned $3.01 per share in the fourth quarter, compared with analysts’ estimate of $2.04.

Its full-year revenue rose 8% to $8.67bn. The company's services business generated $2.04bn in annual revenue, hitting a company target a year earlier than expected.

The company reported $232m in full-year free cash flow, a metric closely watched by investors, in line with its targets.

Reuters