By Adriano Marchese

Bombardier said it is reinstating its full-year guidance now that it has gained clarity on tariffs after suspending its outlook earlier this year.

Chief Executive Eric Martel said the company has spent recent weeks conducting "multiple deep dives" into operations after a potential 25% tariff across the board sent jitters through the sector. With exemptions under the U.S.-Mexico-Canada agreement confirmed, the company said it feels confident to resume forecasts.

Shares fell 4.9% to 86.67 Canadian dollars ($62.80), bridging the stock down 11% since the start of the year. Shares are still up by about 29% over the past 12 months.

The Canadian business-jet maker now expects 2025 revenue to grow by at least 6.7% from 2024 to $9.25 billion, ahead of analyst expectations of $9.17 billion. Adjusted earnings before interest, taxes, depreciation and amortization is also expected to rise to $1.55 billion from $1.36 billion, missing analyst expectations of $1.6 billion.

"Uncertainty added a small speed bump to orders [in the first quarter]," he said Thursday. But now, the executive said order activity continues to grow, and that it hasn't seen any cancellations, helping drive "meaningful increases in revenues."

Bombardier said it anticipates delivering more than 150 aircraft this year, in line with previous plans for it to maintain a steady pace of about 150 to 155 a year, which support contributions from its defense unit, higher pricing and continued growth in services.

In February, Bombardier suspended its guidance for the year to consider the changing landscape stemming from President Trump's executive orders on tariffs and fears of possible retaliatory tariffs and other trade-protectionist measures.

U.S. tariffs have been a point of concern for the Canadian company, given that many of its parts are sourced from across the U.S., Mexican and Canadian supply chain. However, Bombardier said despite global economic uncertainty, order activity has remained stable, allowing it to maintain a competitive advantage within the industry.

In the first quarter, revenue grew 19% to $1.52 billion, shy of forecasts for growth of $1.56 billion. Aircraft deliveries rose to 23 in the period, alongside an $18 million services gain, bringing services revenue to $495 million.

Net income fell to $44 million, from $110 million. Adjusted earnings were 61 cents a share. Analysts were expecting 67 cents a share.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 01, 2025 10:32 ET (14:32 GMT)

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