Bombardier Raises Free Cash Flow Forecast Again
The Montreal aerospace maker now expects more than US$1.3 billion in free cash flow this year after a strong third quarter.
Updated on Nov. 5, 2026 in Corporate Finance
Bombardier reported quarterly revenue up 3 percent to US$2.37 billion and delivered 33 jets, lifting its full-year free cash flow outlook for the second time this year. Free cash flow climbed US$31 million from the prior year to US$183 million in the quarter ended September 30.
Why it matters
The second upgrade in one year signals stronger cash generation for Canada's largest aerospace manufacturer, which is expanding its service business and U.S. footprint. The moves could support future shareholder returns and growth in Canadian aerospace employment.
Quarterly adjusted EBITDA rose 7 percent to US$382 million and adjusted earnings per share reached US$1.72, while diluted EPS fell to 73 U.S. cents from 77 U.S. cents a year earlier. Analysts have not yet been given details on how the higher cash forecast will be allocated.
The players
Bombardier
A Montreal-headquartered aerospace and rail manufacturer known for its business jets and regional aircraft, with about 3,500 direct employees in the U.S. and a network of 2,800 suppliers.
Cameron Doerksen
A National Bank analyst who follows Bombardier and has suggested the company could reinstate a dividend or expand its share buyback program.
Mitsubishi Heavy Industries
A major Japanese industrial conglomerate that owns MHI Canada Aerospace Inc., the unit Bombardier agreed to acquire.
The details
Bombardier's aircraft service business surpassed US$700 million in revenue for the first time, and the company agreed in September to buy the assets of MHI Canada Aerospace Inc. from Mitsubishi Heavy Industries, bringing its roughly 750 employees in-house. The company also plans to hire hundreds of workers in the United States as part of US$270 million in infrastructure spending.
Timeline
September 2026: Bombardier agreed to buy the MHI Canada Aerospace assets.
Quarter ended September 30, 2026: Revenue, deliveries and free cash flow were reported.
November 5, 2026: Bombardier raised its free cash flow forecast.
Market Landscape
Bombardier's push into aircraft services and the MHI Canada Aerospace acquisition positions it to capture more recurring maintenance revenue in a market where manufacturers increasingly rely on after-sales work. The company is competing against larger rivals by building a stronger service base alongside its jet deliveries.
Investors holding Bombardier shares may see future dividend or buyback decisions, since the higher cash forecast gives the company more room to return capital. Anyone tracking the stock should watch for formal announcements on those plans rather than analyst speculation.
The takeaway
A rising free cash flow forecast gives a company options, but whether shareholders benefit depends on how management chooses to use that cash. Investors should track the next capital allocation decision closely.
Further reading
For more on how companies manage cash and capital returns, see Corporate Finance coverage across Canada.
