Bombardier Inc Series B BBD-B Earnings Beat Estimates by 2.4%

Bombardier’s third-quarter adjusted EPS came in slightly above estimates. But record services revenue and a second increase to its 2026 free-cash-flow target gave investors more to consider than the narrow beat.

Bombardier Inc. (TSX: BBD.B) reported its third-quarter 2026 results before markets opened on November 5. Adjusted EPS was US$1.72, compared with the calendar estimate of US$1.68, a 2.38% beat. The company also posted record services revenue, wider margins and a larger backlog. It raised its 2026 free-cash-flow target to more than US$1.3 billion and reaffirmed its other key guidance metrics.

Recent earnings trend

Analyst coverage: 10 analyst(s) cover this name; upcoming EPS consensus is available.

Beat estimates in 4 of the last 4 comparable quarter(s).

Investor takeaway: The EPS beat was modest, but several operating measures improved. Services revenue rose 19% to US$701 million, adjusted EBITDA margin reached 16.1%, and backlog grew to US$22.2 billion. Free cash flow was US$183 million for the quarter, and management raised its full-year target to more than US$1.3 billion. Still, deliveries were slightly lower than a year ago, supply-chain pressures persist, and reported net income fell 5%.

US$701 million

Quarterly services revenue hit a record US$701 million, up 19% from a year earlier and the first time it topped US$700 million. The growth helped lift adjusted EBITDA margin to 16.1%, even as aircraft deliveries edged lower.

Analysis

Bombardier reported adjusted EPS of US$1.72 for the quarter ended September 30, 2026, above the calendar estimate of US$1.68. That’s a 2.38% beat. Adjusted EPS was US$1.21 a year earlier. Reported diluted EPS, however, was US$0.73, down from US$0.77 in the third quarter of 2025. The adjusted and reported figures tell different stories.

Revenue rose 3% year over year to US$2.4 billion. Services revenue set a quarterly record of US$701 million, up 19%. Bombardier delivered 33 aircraft, one fewer than a year earlier. Adjusted EBITDA increased 7% to US$382 million, and its margin widened to 16.1% from 15.4%. Reported EBIT rose 17% to US$266 million, with the EBIT margin up 140 basis points.

Adjusted net income climbed 41% to US$182 million, while reported net income fell 5% to US$81 million. Free cash flow was US$183 million, up 20% from a year earlier, and operating cash flow reached US$259 million. For the first nine months of 2026, free cash flow totalled US$771 million, compared with cash outflow of US$316 million in the same period last year.

Bombardier raised its 2026 free-cash-flow target for the second time this year, to more than US$1.3 billion, and reaffirmed its other key guidance metrics. Backlog stood at US$22.2 billion at quarter-end, up 27% from year-end 2025. The quarterly book-to-bill ratio was 1.7 times. The automatically inserted earnings trend table and chart show the longer-term EPS context: the last four comparable reported quarters all came in above estimates.

Analysis

The clearest operating positives were record services revenue and a larger backlog. Services growth can reduce the company’s reliance on aircraft deliveries, while the backlog and 1.7-times book-to-bill ratio show that orders exceeded deliveries during the quarter. Bombardier also reported about US$2.4 billion in available liquidity, including US$1.6 billion in cash. Net leverage improved to 1.5 times.

Execution remains the main challenge. Management said supply-chain constraints continue to affect the industry, with an estimated 150-basis-point impact on margins. It expects conditions to improve gradually. Higher SG&A partly offset services growth and lower research and development expenses. The company also expects temporary costs from integrating MHI Canada Aerospace, while it continues to invest in manufacturing and service capabilities.

For the next reported quarter, the calendar consensus in the supplied data is EPS of US$1.85, with estimates ranging from US$1.16 to US$2.42 from 10 analysts. The revenue estimate is US$2.59 billion from 11 analysts. These are analyst estimates, not company guidance. The EPS estimate rose from US$1.83 to US$1.85 over the past 30 days, with one upward revision and no downward revisions. The year-ago EPS figure is US$1.21, and the listed estimated growth rate is 52.8%. You can follow Bombardier’s earnings and other key metrics on the Bombardier stock page.

Analysis

The supplied analyst data puts the average price target at C$356.32, compared with the last close of C$313.18. That implies 13.8% upside to the average target. The consensus is described as moderately bullish based on the average target and last close. A formal rating isn’t available for Canadian listings. Price targets are estimates, not guarantees. See the analyst ratings section for more details.

Wealth Awesome’s statistical 90-day price model, which isn’t financial advice, gives a mean forecast of C$273.68, below the C$313.18 reference price on November 5, 2026. The model’s 68% range is C$206.69 to C$362.39, and its 95% range is C$156.09 to C$479.86. It uses an annualized drift of -37.7% and 30-day volatility of 47.0%. The wide ranges reflect considerable uncertainty. This statistical model isn’t a price target or a recommendation. See the price prediction section for more context.