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Bombardier Raises Outlook as Jet Services Revenue Surges 25%

Wall Street Journal US Business •
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Bombardier raised its full-year outlook after a strong first quarter driven by demand for maintenance and support services. The Montreal-based company reported Thursday that overall sales rose 5% to $1.6 billion, with services revenue jumping 25% year-over-year.

The services segment, which handles maintenance, repair, overhaul and customer support for Bombardier's business-jet fleet, generated $617 million in the quarter. This unit has become one of the company's fastest-growing and highest-margin businesses, providing a steady stream of recurring revenue.

The performance marks a sharp rebound in free cash flow for the aircraft manufacturer. Investors have been watching closely as Bombardier works to stabilize its balance sheet following years of debt restructuring and market challenges in the business jet sector. The services division's growth provides a counterweight to the cyclicality of new aircraft sales.