Bombardier Secures S&P Upgrade as It Expands into Defense with Safran Partnership

Key Highlights:

• S&P upgrades Bombardier’s credit rating to BB- from B+ with a stable outlook
• CFO Bart Demosky cites strong execution, growing backlog, and diversified revenue
• Solid demand across Services, Defense, and flagship jets drives future confidence
• Shares edge up 0.74% to CAD $107.25 post announcement

Bombardier Earns Credit Upgrade to BB- as Market Confidence Grows: CFO Points to Strategic Gains and Future Visibility

Montréal, June 18, 2025 – Bombardier Inc. (TSX: BBD.B) continues its upward financial trajectory after S&P Global Ratings upgraded the company’s credit rating to BB- from B+, citing a stable outlook and affirming the company’s improved financial standing. The move marks another milestone for the iconic Canadian aerospace manufacturer, which has demonstrated consistent execution, growing liquidity, and disciplined deleveraging in recent quarters.

In a statement released today, Executive Vice President and CFO Bart Demosky emphasized that the upgrade reflects Bombardier’s “robust financial performance and strategic management,” pointing to the company’s steady delivery on financial objectives, expansion of its Services and Defense divisions, and strong market demand for its business jet portfolio.

CFO Speaks: “We Look to the Future with Confidence”

Bart Demosky’s full comments underscore the company's sense of financial control and operational momentum:

“This upgrade underscores Bombardier’s robust financial performance and strategic management, reflecting our solid execution across business segments, effective deleveraging efforts, and increase in liquidity.

Over the past years, Bombardier has maintained a positive financial trajectory and unwavering discipline, leading to consistent credit upgrades. We have steadily reached our objectives and grew the company in line with our plan.

We now look to the future with confidence, knowing we have solid financial foundations, a strong backlog providing visibility on future deliveries, diversification through growth of Services and Defense businesses, as well as a market-leading product portfolio that continues to see strong demand.

Our positive results reflect our focus on what we control and meeting commitments. We will continue to diversify our revenue streams, grow our bottom line, and invest with a return-on-capital mindset. I want to extend my heartfelt gratitude to our team members, whose dedication and passion have been instrumental in bringing our plan to life to ensure Bombardier’s sustainable growth and stability.”

S&P’s Take: Financial Discipline Yields Results

According to S&P Global Ratings, Bombardier’s stable cash generation, enhanced free cash flow, and liquidity position underpin the improved rating. The agency noted Bombardier’s continued focus on high-margin segments and its ability to maintain balance sheet improvements despite macroeconomic headwinds and high interest rates.

With this BB- rating, Bombardier moves further away from speculative-grade risk territory, boosting investor confidence and potentially lowering its cost of capital in future bond issues or financing arrangements.

Growth Anchored in Services, Defense, and Jet Backlog

The upgrade comes on the back of notable strategic advances. Bombardier has made inroads into defense technology partnerships, including a collaboration with French aerospace leader Safran, aimed at developing advanced defense solutions.

Its global fleet of over 5,100 aircraft is supported by a 10-facility service network spanning six countries, positioning Bombardier well to capitalize on recurring service revenue while increasing visibility in defense markets.

With recent accolades including the Red Dot: Best of the Best for brand and communication design, Bombardier is also cementing its identity as an industry innovator—not just in aviation technology but in customer experience.

Market Reaction and Investor Outlook

Bombardier’s shares responded positively to the credit upgrade. On Wednesday, June 18, the stock rose 0.74% to CAD $107.25, trading near the upper end of its 52-week range of $71.79 to $113.60.

With a P/E ratio of 28.68 and an EPS of 3.74, Bombardier’s valuation reflects optimism around upcoming earnings and management’s ability to further expand margins. The company is scheduled to report earnings in late July, where investors will look for continued revenue diversification and order book strength.

With debt pressures easing, order books filled, and global expansion into defense and services under way, Bombardier appears well-positioned for sustainable long-term growth. The S&P upgrade validates years of strategic realignment and offers shareholders a reinforced sense of confidence heading into FY2026.