By Dan Catchpole and Aatreyee Dasgupta
(Reuters) -Canadian business jet manufacturer Bombardier reported higher first-quarter revenue on Thursday, owing to increased aircraft deliveries and growth in aftermarket services, but the company’s gains fell slightly short of investor expectations.
Its shares were down 5% in early trading.
Bombardier President and CEO Eric Martel said he sees more opportunities than dangers amid the economic uncertainty kicked off by U.S. President Donald Trump’s trade war with Canada and other nations. But the turmoil has softened new orders, he acknowledged.
The Montreal-based bizjet maker reported a 19% year-over-year rise in first-quarter revenue to $1.52 billion. Wall Street analysts had expected $1.56 billion in revenue, according to LSEG. It posted earnings per share of 61 cents, versus a consensus expectation of 66 cents.
The higher revenue was driven in part by the delivery of 23 aircraft, three more than in the same quarter last year, the company said.
Bombardier now expects to deliver more than 150 business jets this year, compared to 146 in 2024.
Economic uncertainty caused some order discussions to stall in March, Martel said during an earnings call on Thursday.
The company still expects new order activity to be slower through the first half of the year and to pick up after that, but with an annual book-to-bill rate possibly below one, resulting in lower free cash flow projections than investment analysts had hoped for.
Its business jets, which are produced in Canada, are exempt from U.S. tariffs, Martel said.
Bombardier released projections for its 2025 performance. Due to the economic and political turmoil, it had held off on issuing a forecast when it reported fourth-quarter results in February.
It now forecasts revenue exceeding $9.25 billion and between $500 million and $800 million in free cash flow, versus $8.67 billion in revenue and $232 million in free cash flow last year.
For the quarter ended March 31, adjusted profit was $68 million, up from $44 million during the first quarter last year.
Talking to investment analysts on Thursday, Bombardier Executive Vice President and Chief Financial Officer Bart Demosky said that travelled work due to engine supply chain turbulence has been a drag on its free cash flow.
The company said it sees opportunities for growth in defense and services, which have the highest profit margins among the company’s divisions. In February, it announced plans to open a new paint facility near London in 2026. It also plans to start construction of a new aftermarket services facility in Abu Dhabi later this year.
