Good morning, everyone, and welcome to Bombardier's earnings call for the fourth quarter and full year 2025. I wish to remind you that during the course of this call, we may make projections or other forward-looking statements regarding future events or the financial performance of the corporation.

There are risks that actual events or results may differ materially from these statements. For additional information on forward-looking statements and underlying assumptions, please refer to the MD&A.

I'm making this cautionary statement on behalf of each speaker on this call. With me today is our President and Chief Executive Officer, Éric Martel, and our Executive Vice President and Chief Financial Officer, Bart Demosky, to review our operations and financial results for the fourth quarter and full year ended December 31st, 2025.

I would now like to turn over the discussion to Éric.

Alors, merci, Francis. Bonjour et bienvenue à toutes et à tous.

Good morning, everyone, and welcome. Each year when we come together to reflect on our achievements, I am reminded that it is our people who drive our success.

To all Bombardier colleagues listening from around the world this morning, your engagement and skill make everything possible, and I want to thank you for that. 2025 was a landmark year for Bombardier.

We successfully completed our turnaround plan. For those who follow us closely, you will remember that in 2021, we set ambitious financial objectives for where we wanted to be in 2025, and further lay out the foundation for our future.

Our targets included $7.5 billion in revenue, over $500 million in free cash flow, and approximately $1.5 billion in EBITDA, and a net leverage of about 3. I must say at the time we were met with some skepticism.

Looking at where we are today, I am so proud to say that we've delivered top to bottom, even on metrics we reset upward in 2023 halfway through the journey. Whether it's deliveries, revenue, more than $900 million of free cash flow, or our 2 to 2.5 net leverage ratio targets, the entire team can take pride knowing the results are on the board.

Clearly, our strategy is working, and our disciplined approach has set Bombardier apart from its peers. We have transformed the business, reinforced our competitive position, and established a clear and disciplined track record for growth, which will carry forward.

The results of our historical turnaround have drawn global attention and also external recognition. I am proud to say that we have become the subject of a case study for both Harvard Business School and also Columbia University.

As we look forward, we are entering our chapter with a lot of momentum, supported by strong 2026 guidance. I am pleased with the outlook we are sharing today, focusing on growth, profitability, and sustainable cash flow generation.

When it comes to the immediate future, Bart will cover the 2026 details and financial results in a moment. Before that, it's important that I share some color on our overall mindset and plan going forward.

Our guidance this year sets the tone for a new Bombardier. Our transformation has set the foundation to approach each year with a consistently bullish year-over-year growth mindset.

We will push the envelope on top lines, revenues, margins, and cash generation thanks to new growth phases for the services business as well as our manufacturing footprint overall capacity. It's a future that will be diversified and opportunistic thanks to our defense business and also M&A opportunities, and we will, of course, keep a very active focus on continuous product improvement with the high return on invested capital mindset we outlined at our Investor Day in 2024.

When it comes to free cash flow generation, our transformation has given us the ability to be a consistent cash flow-generating engine. We now have a solid and recurring cash generation base that can better handle inherent variability from market seasonality or geopolitics.

With this, we have given ourselves the luxury of optionality on cash allocation and can shift our mindset away from being purely focused on debt. I would also like to highlight some major accomplishments from the past year that paved the way for what comes next.

The Global 8000 entered into service in December, setting a new benchmark by reaching a top speed of Mach 0.95 and lowest cabin altitude in the industry at 2,691 feet. Achieving these performance targets while securing approvals from Transport Canada and the FAA, and as well as EASA starting this year, shows that we can deliver the best product without compromise and on time.

We also delivered the 1,000th Challenger 300 series aircraft, reinforcing the reliability and consistency of one of the most successful platforms in business aviation. Bombardier Defense continued to gain momentum on the global stage as more nations strengthened their defense capabilities and turned to our solutions.

We achieved record defense sales and further expanded our role as a trusted partner to governments all around the world. We were honored to be selected by the Canadian government to support critical national missions with a contract to deliver six Global 6500 multi-role aircraft to the Royal Canadian Air Force.

As I said, this year has really been about momentum. Key partners who have chosen Bombardier products to build next-generation capabilities have also notched impressive milestones based on the Global 6500.

One highlight was the Republic of Korea choosing the L3Harris, which is a real vote of confidence in the work our teams are doing together. Saab continued to succeed around the world with the GlobalEye, which celebrated another new strategic customer, France.

Finally, we celebrated major milestones with our partners, HENSOLDT and Lufthansa Technik, on the PEGASUS program for Germany with the platform leaving our Wichita facility on its way to further testing and full operational readiness. In the US, we continued to deepen our collaboration with Sierra Nevada Corporation, who signed a 10-year Smart Services agreement this year for two Global 6500 aircraft equipped with the RAPCON-X technology.

At the same time, we are continuing to develop new opportunities through partnerships and collaborations. The agreements with Leonardo and Safran will pave the way for new capabilities.

When it comes to our record service performance, it came on the heels of expanding our network to meet growing customer demand, and we will continue to do so. To give you an idea of scale, we have more than 5,200 aircraft in service, record customer visits across our network, and centers operating at full capacity.

We achieved the highest business aviation service revenue in our history, reaching $2.3 billion, which represents a growth of 13% compared to the year before. In 2025, we began a large-scale expansion of our US service network, rolling out plans for new centers in key regions, including a major new service center in Fort Wayne International Airport in Indiana.

We also continue projects around the world and will continue to be where our customers fly and it is most convenient for them. A perfect example of our agile and strategic approach is the acquisition of Velocity Maintenance Solutions in the US.

Adding their team, mobile resources, and hangars to our network is aligned with our desire to continuously improve our customer responsiveness. Our industry recognition reflects these efforts.

Bombardier earned the number one ranking for product support in both the Aviation International News and Professional Pilot corporate aircraft product support surveys. We are now seeing the compounding benefits of our service expansion with higher capture rate, a larger worldwide footprint with more technicians added each day, and an increasing program enrollment, which all translate into record revenue and resilient margins through the aircraft life cycle.

For fleet operators who rely on our service and reliable products, overall demand continues to grow, and flight hours are also increasing across the market. Notably, we achieved a historic milestone with our first-of-a-kind agreement with BOND for a 50-aircraft firm order and service agreement valued at $1.7 billion with deliveries starting in 2027.

The order also includes 70 new aircraft purchase options, and if all options are exercised, the total aircraft and service value would reach more than $4 billion. Our strong sales momentum has also carried through the first quarter of 2026, as you recently saw with the order from our long-time customer, VistaJet.

Overall, the team at Bombardier really executed well despite a difficult global supply chain. The amazing work we have done to address issues proactively is paying off.

As I've said many times, we have taken proactive steps to reduce the impact of supplier disruptions. While we see benefits, further recovery will take time.

In the second half of 2026, we anticipate more improvements, although challenges, particularly some headwinds that I've alluded to that are deeper issues, will persist for the immediate future. We will keep our teams embedded within our supply chain to continue managing this proactively.

Overall, our focus on stability also carried through our order activity, supported by strong and consistent execution of our sales team. Demand and market conditions remain strong across our portfolio, with a backlog reaching $17.5 billion at year-end and a unit book-to-bill of 1.4 with disciplined order intake, strong customer engagement, and a backlog mix that continues to support margin durability.

Deliveries grew year-over-year at a measured pace, bringing us to a comfortable operating volume. We delivered 157 aircraft, an increase of 11 units compared to last year.

At the same time, we are now evolving our manufacturing footprint through disciplined phase investment that will provide greater flexibility across our portfolio for 2027 and beyond. From a financial standpoint, revenue increased 10% year-over-year to approximately $9.6 billion driven by solid execution across the board, which resulted in historic cash generation for the company with a free cash flow reaching $1.072 billion for the full year.

We also continued to lead the industry in profitability margin with adjusted EBITDA margin reaching 16.3% and adjusted EBITDA increasing 15% year-over-year to $1.56 billion. I am very happy with where we are and where we are going.

There is clear upside for many of our business segments, which we can explore with disciplined capital allocation and the right strategies. With that, I'll turn it over to Bart to walk through our 2025 results in more detail and provide additional color on how we are thinking about 2026 guidance in today's landscape.

Bart, over to you.

Thank you, Éric, and good morning, everyone. It's truly a privilege to speak with you today on behalf of all Bombardier employees who have banded together to deliver another exceptional year for the company.

This represents more than simply exceeding a set of targets. 2025 was a defining moment that capped off an exceptional five-year turnaround, and the financial results speak for themselves.

Starting with our balance sheet, net leverage finished at 1.9 times, even better than the low end of the 2 to 2.5 times range we had set for 2025. For the first time in more than a decade, we achieved a Ba3 rating from Moody's and BB- rating from S&P Global Ratings, clear recognition of our disciplined execution, the strength of our balance sheet, and the strong path ahead of us.

Speaking of the path forward, the fundamentals of the business aviation market remain strong, and our $17.5 billion backlog extends well into the future, providing us visibility on revenues, earnings, and cash flows for years to come, with an added opportunity to further increase production to meet pre-sold demand. Our P&L also shines bright.

Our EBITDA margin of 16.3% leads the industry, and our adjusted net income, which was negative just a few years ago, now drives an EPS of $7.72 per share. Of course, as I've said on these calls many times, cash is king.

On that front, we've generated $2.4 billion of free cash flow from continuing operations over the past five years, including almost $1.1 billion in 2025, which is the highest cash performance the company has achieved in over 15 years. Even better, all the tools are now in place to continue generating meaningful and repeatable free cash flow going forward.

Focusing on the 2025 results, we delivered double-digit year-over-year growth in backlog, revenues, EBITDA, EBIT, net income, and EPS. We also generated almost five times more free cash flow than in 2024.

We continued to diversify our top line with services and defense revenues both reaching new all-time highs. On the balance sheet, we repaid or called over $900 million of debt, including the $500 million that will be redeemed on February 17th, as well as refinancing another $750 million at more favorable terms.

Our liquidity stands strong at $2.5 billion and provides us with flexibility as we begin our strategic transition from a deleveraging phase to a capital allocation phase. We have several great capital allocation options ahead of us, and we also have a robust and carefully thought-through ROIC-focused framework for making those capital allocation decisions.

Our team will continue to stick to this framework and act with the same discipline that we have demonstrated over the past five years. Now, I'll provide a bit more color on our capital allocation plans for 2026 shortly, but first, let's take a closer look at the 2025 financial results, beginning with our revenues.

Full-year revenues came in at close to $9.6 billion, surpassing our guidance of greater than $9.25 billion for a growth of 10% versus the prior year. We delivered 157 aircraft in 2025, which is an 11-delivery, or 7.5%, year-over-year increase.

The growth in deliveries, along with increased pricing and greater defense content, largely explains the $617 million year-over-year growth in our aircraft manufacturing and other revenues. Our defense business took a giant leap forward last year, crossing the $1 billion in revenue threshold on the back of 16 deliveries, putting us several years ahead of our growth plan and well on our way to our long-term objectives for this business segment.

Our services business also delivered with another year of double-digit revenue growth, setting a new record of $2.3 billion for the full year 2025. This represents an impressive 13% increase from the prior year and highlights both the success of our expansion strategy and the growing service offerings we are providing to our customers.

Combined, our services and defense businesses accounted for 35% of total revenues last year, up from approximately 30% a year earlier, which is an important step forward in our objective to further diversify our top line. Our backlog of $17.5 billion increased by an impressive $3.1 billion, or 22%, versus the end of '24.

This growth stems from a 1.4-times unit book-to-bill supported by additional momentum from services and defense modification orders, and provides us with a solid forward-looking visibility into both our top and bottom lines. Shifting to profitability, full-year adjusted EBITDA totaled $1.56 billion, in line with our guidance and representing a 15% year-over-year increase.

Our EBITDA margin was 16.3%, which is an increase of 60 basis points compared to the prior year. Our margins grew in 2025 despite facing the highest supplier disruption costs we've seen over the past five years, which pressured our margins by more than 150 basis points.

We were able to offset some of these headwinds through strong incremental revenue conversion in services, better performance in defense, and utilizing our R&D investment credits. A special note on the fourth quarter, where we delivered 64 aircraft, which is an all-time record number of Globals and Challengers delivered in a single quarter.

We also had an all-time record in defense and services revenues. The combination of these items resulted in an adjusted EBITDA of $658 million and a margin of 17.8%, which is 130 basis points higher than in Q4 of the prior year, and is in itself another new record, making it Bombardier's highest-margin quarter since the launch of our turnaround plan in 2021.

Congratulations are certainly in order to all of our teams for this outstanding achievement. Looking at our other profitability metrics, our adjusted EBIT for the year also surpassed our guidance and finished at just under $1.1 billion, up 20% from the $915 million reported last year.

Our adjusted net income was $805 million, a 47% increase from the previous year, driving an impressive increase of adjusted earnings per share of 50%, or $2.56, reaching $7.72 for the year. We expect our EPS to continue growing at an accelerated pace as we leverage our significant tax attributes to convert EBITDA growth directly into net income with very little leakage.

Moving on to cash, this year was just outstanding. Our free cash flow for the year exceeded the upper end of our guidance range, driven by robust performance in the fourth quarter.

In Q4, we generated $1.388 billion in free cash flow, resulting in just under $1.1 billion for the full year. This is a remarkable performance, and it also highlights how certain working capital items can meaningfully influence our results relative to cash flow guidance.

Bridging our 2025 free cash flow from the $1.56 billion in EBITDA, our main uses of cash were net cash interest of $423 million, CapEx of $153 million, and an investment in inventory, net of accounts payable, of $272 million. This was largely offset by an increase in customer advances of $579 million, which is the result of higher progress payments and deposits on new orders led by higher Global 8000 orders in particular.

As we look ahead to our 2026 guidance, the fundamentals of the business aviation market remain strong, and the progress we've made across the board positions us well for another solid year. We expect to deliver more than 157 aircraft in 2026 as we deliver our backlog, and we expect to continue to see a strong growth trajectory in our services business.

Pricing should also be a tailwind to revenues. Combined, we expect these factors will push revenues to greater than $10 billion.

Turning to profitability, we are expecting adjusted EBITDA to be greater than $1.625 billion. This outlook reflects a strong margin conversion on our incremental revenues as well as a partial recovery of supplier disruption costs starting in the second half of the year.

These positives will be partially offset by some incremental strategic investments to improve our operations, as well as support our expanding defense and services businesses and some higher R&D investments year-over-year. Moving to free cash flow, we expect to have strong generation again in 2026.

Our guidance of $600 million to $1 billion provides for a range of outcomes mostly around working capital. As we've explained over the years, order activity, order mix between Challengers and Globals, supply chain performance, and production rates can all affect our working capital in a given year.

Overall, our cash plan is based on a normalized order environment versus 2025, continued strong conversion of EBITDA into cash flow, and decreasing cash interest payments and higher CapEx. Regarding CapEx, we've been managing this below $200 million for the past few years.

In 2026, we will start making incremental investments in our products, in our facilities, and to support our growth. As such, we expect CapEx to be closer to the $300 million mark.

In terms of other capital allocation priorities for the year, we will remain focused and opportunistic on interest expense reduction, which will give us even more capital allocation flexibility. We are very pleased with crossing below the 2 times net leverage level, and we believe that there is more opportunity to strengthen our balance sheet and transfer additional equity value towards shareholders by reducing our net leverage towards 1.5 times over time.

We will also be monitoring for opportunistic M&A, focusing on the tuck-in variety. The recently announced acquisition of Velocity fits this approach perfectly as a strategic acquisition that enhances our customer service offering and fits perfectly into our US services expansion plans.

Finally, a quick note on quarterly profile. Again, this year, we expect our quarterly aircraft delivery profile to be similar to last year, with deliveries skewed to Q4.

For the first quarter of the year, we expect similar deliveries to last year, although aircraft and customer mix may somewhat negatively affect our year-over-year quarterly EBITDA profile. This is simply a timing event only that is fully reflected in our full-year guidance numbers.

To conclude, 2025 was another year of meaningful progress for Bombardier. We executed on our plan, delivered strong financial performance, advanced our strategic priorities, strengthened our balance sheet, and continued to build a more resilient, diversified, and profitable company.

I am extremely proud of what our team has achieved this year, and we look forward to continuing this momentum as we enter 2026. Thank you, everyone, and with that, I'll turn it back over to Francis to begin the Q&A session.

Francis?

Thanks, Bart. I'd like to remind you that the Bombardier investor relations team is available following the call and in the coming days to answer any questions you may have.

For the Q&A period, please limit yourself to one question and one follow-up. With that, we'll open it up for questions.

Operator, please go ahead.

Hey, yeah, thanks for having me on and congrats on another strong quarter here. I just wanted to ask kind of on margins, you talked about the 150 basis point headwind in '25.

Can you just give us some color on what level of supply chain costs are embedded in your 2026 guidance, and then anything you can share on the visibility you have into those costs eventually exiting your cost base in the back half of the year?

Great question, James. Thank you.

This is definitely top of mind here for us as a challenge that's been carried on for a few years now. Let me characterize this a little bit, okay?

We are still building the aircraft with what we call in the industry shortages. A shortage is a part number that should be available to build in the right sequence that is not.

Just to characterize it, about three years ago, we were operating with about 5,000 shortages. We've been successful decreasing it at the end of '24 to around 2,000, and even further this year, we ended up with about 500 shortages.

Which is 10 times less than three years ago. This being said, your shortages need to be characterized in two different groups: one that is non-critical and one critical.

The one we call non-critical are the one that will not really affect your build or very likely. The critical one are the one that will continue to affect you and will, either you're going to have to stop production completely, and then this is when the inefficiencies comes in.

We've made great progress in terms of the overall number. We have made progress with most of the engine OEM, except one, and I won't name, but except one.

This one still carries a lot of impact on our assembly line. I'm telling you, we are extremely focused.

We've put more people supporting them in their Tier 2, Tier 3, Tier 3 Tier 4 supplier, and it's been a challenge, but we are all over this. This is costing us today millions and millions of dollars, okay, which were impacted with last year.

Which gave me good comfort that if we can fix that issue, we're going to see definitely our margin improving here, because we're not talking about small dollars, again, those are millions and millions. It gives me comfort that along the way, if we fix the problem, you're going to see our margin improving across the board.

I would say this is the biggest issue we have right now. Everything else pretty much deliver where we wanted to be online, so that's the real focus of the team right now.

James, good morning. Bart here.

Just to kind of on a numbers basis, I mentioned 150 basis points. On $10 billion of revenue, that's $150 million of EBITDA.

Now we are expecting to start recovering some of that in the back half of this year. That is built into our greater than $1.625 billion guidance.

We're going to have a half a billion more of revenues, we'll have good margin conversion on that. As Éric just described, we'll continue to recover on supply chain, although offsetting that, we do have some strategic investments and higher R&D expense, as you'd expect, as we start to deploy capital here.

Those investments are to support our growth areas. It'll help us with cost reduction as well, as well as some IT projects to even drive greater efficiency for the company.

We're putting the dollars to work in the right areas.

Appreciate the color. Then as my follow-up, just on the services segment, obviously, things are going really well there.

You had your guide out there from the Investor Day, obviously things are trending well above that. Just given where activity levels are now, potentially higher production longer-term, your recent acquisition, bringing on new operators like BOND, are you still kind of guiding to that high-single-digit type of range longer term?

Or do you kind of see some near-term upside to that into 2026 and 2027? I'll turn over the line after that.

Thank you.

I think in the near term, the continuation of around or just under double-digit growth year-over-year is the right way to be thinking about the services business, particularly as we start to deploy some capital into tuck-in M&A. There's opportunities out there.

We do have a pipeline of these small tuck-ins that we're looking at regularly. As we just also brought on Sandy Hutchison, who's bringing a ton of experience in the M&A area, who's going to be leading this effort with us along with Paul Sislian, who heads up our services business.

We were up 13% in 2025. We're up to almost 25% of our total revenues now coming from the services business.

We talked at our last Investor Day of a range of $2.8 to $3.5 billion potential, and I think as Éric and I are looking at each other, we're excited about the opportunities to be aiming for the upper end of that range, or maybe even higher as we continue to work on developing the business through the end of this decade.

I think, James, despite we've grown significantly over the last few years, that the opportunity remain extremely interesting ahead of us. It's not, we understand the organic growth, of course.

We know we have 5,200 airplane. We know when they need to go to maintenance in two years, three years, four years, five years down the road and what they will need pretty much, and it makes our business very predictable there.

On top of it, there is potentially through acquisition or building new capability ourselves, to go even deeper in what we can do today in the maintenance scope of every single plane.

Appreciate it. Thank you.

Welcome. Thanks, James.

Good morning. Congrats on the strong finish last year.

A couple of questions. One, does share buyback or dividend enter the capital allocation framework this year, or you're still kind of focused on deleveraging in the near term?

The second question is, you highlighted defense being a $1.5 billion opportunity, I think by 2030, that was at a recent analyst day, I think it was a couple of years ago. Clearly, a lot of changes in the macro of the defense business, and obviously you're on a strong footing now with $1 billion already in this year.

When you look at the pipeline, you look what's kind of happening in that business, what do you think the opportunity is in defense three or five years down the road? How big can this business become?

Maybe I can take that one first, and then maybe I'll get you on for the other one, Bart. Good morning, Fadi.

On the defense business, I am extremely pleased to where we are. We grew this last year contributing significantly last year faster than I thought three years ago.

That's exactly what you're saying, when you look at the environment, of course, there's more dynamic. This being said, that pace of growth was great to achieve it earlier and will continue, but we have also to remind ourselves that every one of these contract are complex, they take time despite the willingness of every country right now to go faster.

I think we're still thinking of the 1.5 by 2030, but I think there's some potential also to maybe do better there. I think I would not be able to declare this today, but I think the potential upside is there.

Again, I said three years ago, I didn't know we were going to be at that point for 2025. It went for 2025, it went faster than I thought.

The opportunity is there too, but I think clearly the 1.5 is in reach.

Fadi, on capital allocation, we're not in a position today to declare that we're going to start returning cash to shareholders this year. What I would say is we're right at that beginning of the transition from the deleveraging phase to capital allocation.

I mentioned in my prepared comments that we are going to continue to reduce debt. That is a priority for us.

We feel that is a good way to transition equity to our equity shareholders. We're going to deploy and are deploying a very ROIC-focused framework for making our capital allocation decisions.

That will allow us to look through the lens of the shareholder as well when it comes to returning cash, and we'll make announcements at the right time as to what that might look like. Very excited now about starting to deploy capital in a very disciplined way, and we'll remain focused on being opportunistic as we move forward.

Thank you, Fadi.

Thank you. Good morning.

Morning, Gavin.

At the Investor Day, you talked about 150 aircraft deliveries sort of through the end of the decade. Obviously, demand has been really strong.

You're already a little bit above that 150, I'd love to hear how you think about kind of where the underlying demand is now and where maybe you think you can take production rates. Thanks.

Yeah. No, fully.

The market has been strong. I think our backlog illustrate that.

We've been successful also and excited about capturing some of the fleet operator opportunity that were available. We've just announced early this year an investment of increasing our ability to build more planes.

We're definitely getting ready for that. I think it was a question for us to make sure that the supply chain is robust enough so that it's not just assembling the plane, but we need to make sure we get all the parts on time for doing that.

Clearly, I think the opportunity is there. The proof is that we've built more than 150 last year, and we're guiding for a even more this year.

I think the opportunity is there. It's a question of making sure we're solid, making sure the supply chain follows, but clearly the market is giving us that opportunity.

Thank you. Apologies if I missed this, but what is the defense revenue expectation in 2026?

Thanks, Gavin, but we don't guide on revenues for that particular business segment. It's built into the base part of the business.

Understood. Thank you.

Yeah. Thank you, Gavin.

Hey, good morning. You have Louis Raffetto on for

Louis. Hello.

Good morning,

Louis.

Morning. I guess you guys did have this benefit in the fourth quarter on the tax credits, just curious, as we look ahead to the EBITDA margins, have they peaked or are you still going to have a headwind next year as this comes down?

Is the question whether our EBITDA margins have peaked?

I think it was $155. You had $155 million of tax credit benefits that flowed through from R&D.

How do we think about that going into next year?

I think as everybody probably on the call knows, Louis, we've got over $12 billion of tax attributes and significant R&D tax credits. The thing about R&D is we're in a business that requires us to constantly spend on R&D, so that's an area where we'll continue to replenish tax credits.

When we look at our business, we're now in a position because of the strong and high growth in net income and profitability of the company to on an annual basis take advantage of these tax credits. You should think about us having kind of a base amount built into our earnings and EPS per share each year going forward.

We don't talk specifically about how much that will be, but generally will be somewhere in line with how those tax credits have come into the P&L over the last two years, if you think of it in those terms. In terms of overall EBITDA and EBITDA margin growth, we certainly see more potential.

We're talking about EBITDA growth this year greater than $66 million versus '25. As well, we see opportunity to grow our EBITDA margins overall because we'll be working, as Éric described, to start to take out costs that's been caused by the supply chain.

That's another tailwind for us to grow both EBITDA and EBITDA margins in the coming years.

Great. Thank you for that, Bart.

Any way to think of the Velocity Okay. Thank you, Lou.

Sorry?

Any way to think of the Velocity impact for the year? The acquisition of

Velocity. Velocity.

Acquisition of

Velocity. No, Velocity is a strategic acquisition for us in terms of contributing to better customer support and giving access to more of our parts and everything.

It's part of the rollout right now in terms of what we're planning for services and part of our growth plan.

It'll have some EBITDA accretion, Louis, but that'll start probably more in 20 2027 than 2026.

Yeah.

Thank you. Thank you.

Thanks. Morning, everyone, and congrats on a great quarter.

Just maybe first one to begin with on Q4 free cash. Clearly, you guys exceeded your own expectations for the quarter and the year.

There's some nuances around R&D, ITCs, etc., that you've flagged, but was it anything outsized in nature that led to that strong free cash generation in Q4? I see the book-to-bill seems to have exceeded 1-time in Q4, but anything else besides the book-to-bill that would have contributed, mix maybe or defense or something?

Look, the free cash flow generation was extremely strong, almost $1.1 billion. Yes, a fair chunk above the high end of our guidance.

As I was describing in my comments, Konark, we do have what I would characterize as a fairly consistent amount of variability year-over-year in free cash flow due to working capital items. In any given quarter, depending on the pace of activity, you could see a little bit higher release of working capital, inventory depending on how we're doing things.

Obviously, mix of sales in the fourth quarter, I mentioned, was very strong towards Globals, particularly 8000s. They attract a higher upfront deposit than any other aircraft.

It's all of those things combined, but there was no one-timer items in free cash flow. It was just very strong performance across the entire business and very strong performance by our sales team on new order activity.

It was a combination of all of those things.

I think, Konark, if I may, I think that's why we're guiding this year from $600 to a billion. There's always, as Bart just said, a little bit of variation.

We were successful in Q4 to pretty much bring everything home before year-end. You're just one transaction away to have a differential of $150 million, or two transaction.

Actually, about three months ago, we were evaluating as our ability to close it for year-end as low, ended up happening, okay? Here you are, hundreds of millions better, but that's why our guidance range is a little bit more wide right now because this variation is the nature of our business.

That makes sense. Thanks.

If I can follow up, more sort of a strategic question on the capacity side of things. Clearly, the demand is there today, and you can, I don't know, maybe hit 160 aircraft or whatnot soon enough, perhaps.

I always thought you guys have more capacity than the demand is in the current context. The recent investment you announced at Dorval to expand Challenger capacity, I guess is it more sort of speculative capacity expansion on your part, meaning you are anticipating more demand down the road, whether it's business jets or defense, or you're spending money just on the basis of the demand or the orders you have seen?

Are you building more flex in the system or you're just meeting the demand?

It's actually clearly based on our backlog and our demand forecasting right now. Believe me, I'm building this building because I know I'm going to need it.

We are all aligned right now to get ready. The backlog is solid, the demand is solid, and again, the fleet order are important.

We anticipate that fleet will be probably where the demand is going to grow the most in the next five years significantly. We know high-net-worth individual, all not want to have to buy their own plane.

A lot of them wants to go and operate and use a fleet operator. We believe growth will be significant on the fleet operator side.

We're well-positioned, as you know. We own majority of that market.

We like that market also because then after they fly more, it's more maintenance business. That's how we've been thinking about it.

Clearly right now our investment is aligned with pretty much what we already have in the backlog, what we are anticipating with the fleet operator, and how we foresee the market for the next five to 10, actually, for the next 10 years.

Thanks for that. Thank you.

Thanks, Konark.

Thanks. Good morning.

Just wanted to touch again on the free cash flow guidance. Just if you can talk a little bit about the wide range.

Obviously, working capital is a swing factor, as you noted. Just wondering what your assumption is here for order activity, or a book-to-bill that gets you to the free cash flow guide.

Good morning, Cameron, and thank you. As we do every year from a planning basis point of view, we start with an assumption of a book-to-bill of 1 times.

Baked in there with the $600 million to a billion is an assumption of what I'll call a normalization of order activity from 2025, where we were at 1.4 times. Obviously, if the market is more robust and the mix is right, there's a good opportunity to do well on free cash flow generation overall.

The range is entirely based on what we now know or have known for some time is a normal amount of working capital variability for us based on all those factors we just described, whether that's order activity and mix itself, the supply chain performance, and then where we land on production rates and the need to build inventory if we are growing our production, as we've done every year since 2022.

No, that's helpful. If I could just follow up.

I think in the past there's sort of been a discussion around the potential to kind of smooth out that working capital, or perhaps smooth out some of the deliveries, it's not quite so back-end loaded. Sounds like we're going to have kind of a similar profile in 2026.

Just wondering your thoughts about whether it's eventually going to be possible to smooth out some of these working capital swings or smooth out the delivery profile during the year.

The working capital, particularly around inventory, has been impacted by two things, and pushed us in a way where we're delivering more aircraft in the fourth quarter than we would ultimately desire to. The first one is supply chain that Éric described.

When we have lateness to line of key components, you can't deliver the aircraft without them. That's one of the reasons.

The second one simply is that we've been increasing production every year, and so we've had to add inventory to build more planes. Those have been uses.

Stabilization will come to when we get back to I'll call it normal profile for delivery of those key components, and we take the lateness to line out of the system. If we reach a position where we're not growing production anymore, then we'll get even more stability out of those two things.

The nature of our business is we'll always have a greater number of deliveries in the fourth quarter than in other quarters, partly because we have such a strong customer base in the US, many of whom want to have their aircraft delivered in the fourth quarter to take advantage of the accelerated capital depreciation that they can do in the United States.

Great. No, that's helpful.

Thanks very much.

Super. Thanks, Cameron.

Thanks, Cameron.

Hey, good morning. Thanks for taking my question.

On the Global 8000, received EASA certification early in January. How should we think about the delivery cadence for the 8000?

On the same vein of certification, how are you guys engaging with the FAA post the President's social media post about decertifying Bombardier jets, and has it changed how you're engaging with them, and what are you hearing? Thanks.

That's a great question, and of course there was quite a bit of noise in the last two weeks around that. I think I'll summarize it that this was clearly an issue that Bombardier is not involved in right now.

It is between Transport Canada, somehow the FAA, and our competitor, that they need to work together to get this to the bottom line. I guess you've seen the same information.

I think there was some public comment yesterday made by the FAA that things are tracking, we saw that as maybe a threat against us, but I think that situation is going to soon get resolved, and we're going to be back to normal business. Between now and then anyway, it's been a regular business, we've been delivering airplane, and our airplane are flying, so that's how we've been looking into that.

Got it. Thank you.

Thanks, Jordan.

Okay. Thank you all for joining us today.

2025 clearly has been a strong year for Bombardier on the global stage. Our results reflect the resilience of our business model, the unmatched quality of our product and also services, and the dedication of our people all around the world.

We enter 2026 with clarity and momentum and also confidence. Our strategy is working, and our teams are engaged.

Bombardier is exceptionally well-positioned to continue shaping the future of business aviation, delivering long-term value for our shareholders, elevating the experience for our customers, and creating also a meaningful opportunities for our people. Thank you again for following our story, and I look forward to speaking with you all throughout the year.