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Bombardier Upgraded to BB- on Strong Cash Flows and Aftermarket Revenue
June 18, 2025
Montreal-based jet manufacturer Bombardier Inc has been upgraded to BB- from B+ by S&P Global Ratings. S&P has cited strong earnings growth, robust free cash flow and a healthy backlog order for this upgrade. Bombardier is expected to deliver about 150 jets annually over the next few years while maintaining annual adjusted EBITDA in high-single digits.
Bombardier’s aftermarket services segment has doubled since 2020 and generated more than $2bn of revenue in 2024 (23% of consolidated revenue). S&P expects Bombardier to maintain $1.0-1.3bn in cash reserves and generate free cash flow of more than $700mn. This would be used to safeguard the company against tariff uncertainty, operating disruptions and weaker demand. S&P forecasts that Bombardier might use free operating cash flow to issue dividends and buyback shares, while refinancing upcoming debt.
Bombardier’s 8.75% 2030s have been trending higher by 0.6 points to 108.06 over the past month, currently yielding 5.72%.
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