Bombardier saw demand for new business jets slacken for several weeks earlier this year amid uncertainty caused newly imposed tariffs.
But company executives say demand has since rebounded and paint an overall rosy picture for Bombardier’s 2025 performance.
Additionally, Bombardier says it is on track to achieve certification and first delivery of its Global 8000 ultra-long-range business jet this year.
“A number of order discussions stalled around the March timeframe,” Bombardier chief executive Eric Martel said on 1 May during the Montreal company’s first-quarter earnings call. “Today, we are seeing much better traction and activity… Things are back to normal.”
US President Donald Trump on 4 March imposed 25% tariffs on imported Canadian and Mexican goods, leading business jet buyers to step back, upsetting Bombardier’s sales campaigns.
Lack of clarity also delayed Bombardier’s release of 2025 financial guidance until 1 May. Trump has also slapped tariffs on imported aluminium and steel.
Martel says his team has now quantified the tariffs’ expected financial impact and confirmed that new Bombardier jets are exempt from the 25% tax, as per the United States-Mexico-Canada Agreement (USMCA), a trade deal Trump negotiated during his first time. So far, Trump has left the USMCA exemptions in place.
“Some deals did shift to the right amid the economic uncertainty of the first quarter,” says Bombardier chief financial officer Bart Demosky.
“There was a bit of a pause and we lost a bit of momentum, and then it came back,” adds Martel, noting that Bombardier did not lose existing orders due to cancellations.
“The whole process” of navigating the tariffs, he adds, “has been taxing”.
Uncertainty aside, Bombardier turned a $44 million profit in the first quarter of 2025, down 66% from a $110 million profit in the same period of 2024. The company’s first-quarter revenue jumped 19% year on year to $1.5 billion, reflecting Bombardier delivering 23 business jets during the first quarter, up from 20 during the prior-year period.
Bombardier has now issued 2025 guidance that accounts for the impact of new tariffs on aluminium, steel and products that do not meet exemption requirements under the USMCA, the company says.
The guidance calls for Bombardier to deliver 150 aircraft this year, up from 146 in 2024. It expects to generate $9.25 billion in revenue, up from $8.7 billion last year.
Also, Bombardier expects to generate $500-800 million in free cash flow this year, down from a previous estimate, released last year, of more than $900 million in free cash flow this year.
Bombardier revised the figure downward due to ongoing shortages of parts including engines, which are causing some production delays, says Demosky.
