*

Bombardier's challenges with one enginemaker costing

millions of

dollars

*

Planemaker forecasts more than $10 billion in revenue in

2026

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USMCA trade agreement set to be reviewed this year

(Adds CEO remarks to analysts)

By Allison Lampert and Aatreyee Dasgupta

Feb 12 (Reuters) - Bombardier said on Thursday

it expected to generate higher revenues ​and deliver more private

jets in 2026 after reporting quarterly ‌earnings per share ahead

of analysts' estimates.

Montreal-based Bombardier

is forecasting more than $10 billion in revenue and free

cash flow between $600 million and $1 ⁠billion this year, along

with the delivery of more than 157 planes.

The company has benefited from ⁠strong demand from affluent

buyers as well as tariff-free delivery of ‌its aircraft to the

U.S., ‌the world's largest market for private aviation, under the

United States-Mexico-Canada trade deal, despite ongoing

U.S.-Canada trade friction.

That's helped the company ​deliver on its turnaround plan,

CEO Eric Martel said, ‌after nearly going bankrupt about a decade

ago while bleeding cash by trying to bring multiple planes to

market at the same time.

"Our guidance sets the ​tone for a new Bombardier," Martel

told analysts.

But Bombardier's ​manufacturing ambitions ‌still face

pressure from industry-wide supply chain disruptions, including

one enginemaker that is having an impact on the company's

assembly line and costing millions of dollars, Martel said.

"It's been ⁠a challenge but we are all over this," he said.

"If we can fix that ⁠issue we're going to see definitely our

margin improving here."

In the fourth quarter, Bombardier delivered 64 jets,

compared with 57 planes a year ago, driving revenue up almost

19% to $3.69 billion.

On an adjusted basis, it posted a quarterly profit of $4.80

per share, compared with $3.01 a year earlier. Analysts, on

average, ⁠had estimated ‌a profit of $3.40 per share, according to

data compiled by LSEG.

Free ‌cash flow, a metric closely watched for planemakers,

rose to $1.07 billion in 2025 from $840 million in 2024.

But ⁠the company faces tariff risks, as the USMCA agreement,

which U.S. President Donald Trump recently called "irrelevant"

for the U.S., is set to be reviewed later this year.

Earlier this year, Trump also threatened to decertify

Bombardier's large cabin Global jets and slap 50% import tariffs

on all Canadian-made aircraft until the country's regulator

certified a number of planes produced by U.S. rival Gulfstream.

The head of the U.S. Federal Aviation Administration said on

Tuesday ​that he expects the issue will be resolved soon, with

Transport Canada set to certify Gulfstream jets.

"We saw that as maybe a threat against us, but I think that

situation ... is going ​to soon get resolved," Martel said.