Canadian aircraft manufacturer Bombardier (BBD.B) has raised its financial targets as the outlook for the global business jet market improves.
Bombardier, which reports its earnings in U.S. dollars, said it now expects $9 billion U.S. in revenue for 2025, up from a previous estimate of $7.5 billion U.S.
The Montreal-based company also raised its target for free cash flow to more than $900 million U.S., up from $500 million U.S. previously.
Bombardier said it plans to make 138 business jets this year and as many as 150 by 2025. The company manufactured 123 private aircraft in 2022.
Bombardier grew its order backlog by 38% to $14.8 billion U.S. last year from $10.7 billion U.S. in 2020 during the pandemic.
Bombardier said it had $4.69 billion U.S. in net debt at the end of last year, more than five times its annual earnings. However, the company said it plans to focus on paying down debt in coming years.
Executives at Bombardier said that cancellations for jet orders are infrequent, and that demand is improving worldwide.
The global business jet market is expected to grow to $23.7 billion U.S. by 2028, up from $18.4 billion U.S. in 2022, according to industry data.
Increased flight delays and growing wealth among the superrich are driving demand for private aircraft, said Bombardier executives.
Bombardier’s stock has risen 70% in the last 12 months to trade at $63.56 per share.
