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

Bombardier’s adjusted EPS came in slightly above estimates. The bigger story was record services revenue, stronger margins and a second increase to its 2026 free-cash-flow target.

Bombardier Inc. (TSX: BBD.B) reported third-quarter 2026 results after markets closed on November 4. Adjusted EPS was US$1.72, above the US$1.68 estimate by 2.38%. Revenue rose 3% from a year earlier to US$2.4 billion, and adjusted EBITDA increased 7% to US$382 million. The company also raised its 2026 free-cash-flow guidance to more than US$1.3 billion. For Canadian investors, this marks four straight quarters of EPS beats, though the narrow margin is only one part of the results.

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: Bombardier paired a small adjusted-EPS beat with stronger operating results. Services revenue hit a record US$701 million, adjusted EBITDA margin rose to 16.1%, and backlog reached US$22.2 billion. Free cash flow was US$183 million for the quarter and US$771 million year to date, leading the company to raise its full-year target to more than US$1.3 billion. Risks include supply-chain pressure, which management estimates reduced margins by about 150 basis points, and geopolitical uncertainty affecting demand in some markets. The EPS comparison uses adjusted EPS; reported diluted EPS was US$0.73.

US$701 million in quarterly services revenue

Services revenue rose 19% from a year earlier, passing US$700 million for the first time. That growth helped lift adjusted EBITDA margins, though supply-chain pressure and higher SG&A costs offset some of the gains.

Analysis

Bombardier’s adjusted EPS of US$1.72 was US$0.04 above the US$1.68 estimate, a 2.38% beat. It was the fourth consecutive comparable quarter in which EPS topped estimates, but the margin was much smaller than in the previous three quarters. Adjusted EPS rose from US$1.21 a year earlier. Reported diluted EPS, a separate measure, was US$0.73, down from US$0.77 in Q3 2025.

Revenue rose 3% year over year to US$2.4 billion, supported by 33 aircraft deliveries and record services revenue of US$701 million, up 19%. 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. Adjusted net income grew 41% to US$182 million, while reported net income fell 5% to US$81 million.

Orders and cash flow add context to the EPS result. Backlog reached US$22.2 billion, up US$4.7 billion from the end of 2025, and the quarterly unit book-to-bill ratio was 1.7 times. Free cash flow rose 20% year over year to US$183 million. For the first nine months, free cash flow totalled US$771 million, compared with cash use of US$316 million in the same period last year. Bombardier raised its 2026 free-cash-flow guidance to more than US$1.3 billion and reaffirmed its other key guidance metrics.

Analysis

Services are becoming a more important part of Bombardier’s business. The company said revenue from services topped US$700 million for the first time, as its support network continued to grow. Bombardier also pointed to developments in the defense market, including NATO and the Canadian government selecting its GlobalEye platform. These developments provide business context, but they don’t guarantee future orders or earnings.

Execution remains the key test. Management called supply-chain challenges an industry-wide issue and estimated their current impact at about 150 basis points, with improvement expected to take time. Aircraft deliveries were slightly lower than a year ago, and higher SG&A costs offset some margin gains. Follow Bombardier’s stock page and analyst ratings for more company and coverage information.

Analysis

The average analyst price target is C$365.31, compared with the supplied last closing price of C$334.29. That implies 9.3% upside to the average target. The consensus label is Moderately Bullish, based on the average target and last close. A formal rating isn’t available for Canadian listings. Price targets are estimates, not guaranteed outcomes. See the analyst ratings section for details.

Wealth Awesome’s statistical 90-day price model is not financial advice. It gives a mean forecast of C$322.17, with a 68% range of C$240.32 to C$431.91 and a 95% range of C$179.26 to C$579.03. The model’s annualized drift is -10.3%, and its 30-day volatility is 49.1%. These wide ranges highlight uncertainty; they don’t predict a specific trading result. See the price forecast section for details.