Bombardier reports higher revenue, puts off 2025 forecast on US tariff uncertainty

Reuters
02-06
Bombardier reports higher revenue, puts off 2025 forecast on US tariff uncertainty

By Allison Lampert and Aatreyee Dasgupta

MONTREAL, Feb 6 (Reuters) - Canadian planemaker Bombardier BBDb.TO on Thursday reported a 1.5% rise in quarterly revenue on aftermarket business strength, and delayed its 2025 forecast, citing uncertainty related to U.S. President Donald Trump's tariffs.

Resilient demand for private flying has boosted jet makers' order books and their aftermarket businesses, despite a slower-than-expected recovery in the aerospace supply chain.

But Trump's 25% tariff on Canadian and Mexican imports is creating uncertainty for planemakers, even though the duties have been delayed by 30 days.

Bombardier sells most of its Canadian-assembled jets to U.S. customers, while aerospace major RTX's RTX.N Pratt & Whitney Canada unit produces jet engines for U.S.-based Textron TXT.N and General Dynamics's GD.N Gulfstream.

For the fourth quarter, Montreal-based Bombardier posted revenue of $3.11 billion, compared with $3.06 billion a year earlier.

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

In 2024, Bombardier delivered 146 aircraft, up from 138 in 2023, but below its November forecast of 150-155 jets.

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

On an adjusted basis, it earned $3.01 per share in the fourth quarter, compared with $1.37 a year earlier.

The planemaker's backlog grew 1% from $14.2 billion to $14.4 billion in 2024.

(Reporting by Allison Lampert in Montreal and Aatreyee Dasgupta in Bengaluru; Editing by Shinjini Ganguli)

((Aatreyee.Dasgupta@thomsonreuters.com;))

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