Bombardier Scores $1.7B Contract Win For Business Jets, Services

Bombardier’s (BDRAF) U.S.-shares rose 2.2% in extended trading on Monday after the Canadian firm said it has received orders for 50 aircraft, alongside a service agreement, valued at $1.7 billion.

The aircraft maker stated that an undisclosed customer will purchase the Challenger and Global series of aircraft, holding options to acquire 70 more, bringing the total deal value to $4 billion if all the planes are purchased. The deliveries of business jets, used by both government and private entities, are scheduled to begin in 2027.

“This significant order underscores the competitive advantage Bombardier’s full scope of products and services brings to customers throughout the entire aircraft lifecycle, from design to delivery, then throughout the in-service journey,” said CEO Éric Martel in a statement.

In May, the company said it expects to deliver more than 150 aircraft in 2025. It is ramping up operations globally, with service centers and other facilities set to open in the United Arab Emirates, the UK, and Australia.

However, the company will look forward to a trade deal between Canada and the U.S. to mitigate tariff uncertainty.

Retail sentiment on Stocktwits was in the ‘neutral’ (50/100) territory, while retail chatter was ‘normal.’

“The company is well-positioned in the large and medium cabin business jet categories, with its flagship Global and Challenger series aircraft experiencing strong order demand. In particular, we consider its Global series best-in-class in the ultra-long-range jet market,” S&P Global analysts said in June before upgrading the company’s credit rating.

The rating agency also projected annual adjusted core profit growth to average in the high-single-digit percentage points over the next three years.

Bombardier’s U.S. shares have risen nearly 25% this year.

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