Bombardier Refrains from Providing Financial Forecast Amid US Tariff Threat
Bombardier Inc. held off on giving investors a financial forecast for the year, citing the uncertainty posed by U.S. President Donald Trump’s tariff threats.
Chief executive Éric Martel expressed his disappointment that the business jet maker could not provide targets.
“We need to exercise caution until we see how this all unfolds,” he told analysts on a conference call Thursday.
“We are still geared up to meet the 2025 objectives,” he added. “But this being said, we still have to be responsible and not provide guidance.”
The absence of predictions reflects the significant uncertainty still looming over aerospace, manufacturing, and numerous other industries after Trump promised sweeping 25 percent duties on Canadian and Mexican imports, then decided last-minute on Monday to defer them for a month. Before the pause, Canada also promised retaliatory tariffs on $155 billion worth of American goods.
The tariffs could present significant challenges for Bombardier, which relies on more than 2,800 suppliers across 47 states in the U.S. as its core customer base.
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Operations to convert some of the company’s ultra-long-range Global 6500 jets into military patrol planes take place in Wichita, Kan. Bombardier manufactures the wings for its larger Global 7500 just south of Dallas.
“The vast majority of our platforms consist of more U.S. parts and systems than any other country,” Martel noted.
“Given the global nature of the aviation manufacturing industry, these proposed tariffs as well as potential reciprocating tariffs could have significant repercussions with many unintended consequences.”
On Thursday, Bombardier reported a fourth-quarter profit of US$124 million, down from US$215 million a year earlier as its revenue inched higher.
The Montreal-based private jet maker, which keeps its books in U.S. dollars, stated that revenue for the quarter was US$3.11 billion, up from US$3.06 billion in the final three months of 2023.
On an adjusted basis, Bombardier earned US$3.01 per share in its latest quarter compared to an adjusted profit of US$1.37 per share a year earlier. The result exceeded analysts’ projections of US$2.01 per share.
