Core Insights - Bombardier has successfully completed its multi-year turnaround plan, entering 2026 with strong momentum and a diversified revenue base, particularly in services and defense [5][7][18] Financial Performance - Bombardier reported full-year revenue of approximately $9.6 billion for 2025, with free cash flow of $1.072 billion and adjusted EBITDA of $1.56 billion, reflecting a 16.3% margin [4][7] - The company achieved a net leverage of 1.9x by the end of 2025, below its target range of 2–2.5x, and received credit upgrades from Moody's (Ba3) and S&P Global Ratings (BB-) [3][7] - For 2026, Bombardier projects revenue exceeding $10 billion, adjusted EBITDA greater than $1.625 billion, and free cash flow between $600 million and $1 billion [6][15] Revenue Breakdown - Services revenue reached a record $2.3 billion, up 13% year-over-year, while defense revenue surpassed $1 billion, contributing to a 22% increase in backlog to $17.5 billion [7][8] - Combined, services and defense accounted for 35% of total revenue in 2025, up from approximately 30% the previous year [8] Operational Highlights - Bombardier delivered 157 aircraft in 2025, an increase of 11 units year-over-year, driven by higher deliveries, pricing, and increased defense content [2] - The company achieved several operational milestones, including the entry into service of the Global 8000 and the delivery of the 1,000th Challenger 300 series aircraft [9][10] Supply Chain and Production - Supply chain disruptions remain a challenge, with shortages reduced from around 5,000 to approximately 500 by the end of 2025, although critical shortages continue to impact efficiency [17] - The company is preparing to increase production capacity in response to strong demand, while addressing supply chain issues [19] Capital Allocation and Future Strategy - Bombardier is transitioning from a deleveraging phase to a capital allocation phase, prioritizing debt reduction and monitoring for potential mergers and acquisitions [18] - The company plans to increase capital expenditures to around $300 million in 2026, focusing on product and facility investments [16]