Bombardier Sees Gulfstream Approval in Canada Soon After Trump Threat

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(Bloomberg) — The head of private jet maker Bombardier Inc. said he expects Canada’s aviation regulator to approve Gulfstream jets soon, which would resolve a dispute with the Trump administration.

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President Donald Trump said on Jan. 29 that Canada had “wrongfully, illegally” refused to certify certain jets made by Gulfstream, a unit of General Dynamics Corp. Unless the matter was fixed, he said, the US would decertify all aircraft made in Canada — targeting Bombardier directly — and levy a 50% tariff against Canadian-made aircraft.

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Bombardier, headquartered near Montreal, manufactures its Challenger and Global jet models in Canada, but relies on thousands of US-based suppliers. Almost two-third of its sales in 2024 came from the US.

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“I think that the situation is going to get resolved soon, and we’re going to be back to normal business between now and then,” Chief Executive Officer Eric Martel told analysts. “It’s been a regular business. You know, we’ve been delivering airplanes and our airplanes are flying.”

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The Canadian regulator, Transport Canada, said it continues to work with Gulfstream and the Federal Aviation Administration on the certification of aircraft, without giving further details. Earlier this week, FAA Administrator Bryan Bedford said he thought Canada’s approval of the Gulfstream jets was imminent. 

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Martel said the situation is seen by Bombardier executives “as maybe a threat against us.”

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Bombardier shares were little changed as of 9:55 a.m. in Toronto.

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Any decertification or tariff on Bombardier’s aircraft would be a huge blow to the company, which has just completed a five-year turnaround plan. The company was on the brink of bankruptcy in 2020 after its decision to challenge Boeing Co. and Airbus SE with the C Series commercial aircraft program. The project became a sinkhole and the program was offloaded to Airbus, which renamed the jet the A220.

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Bombardier reported that its adjusted net debt to earnings before interest, taxes, depreciation and amortization improved to 1.9 times, from 2.9 times in 2024. Revenue grew by 10% to $9.6 billion in 2025, and the company delivered 157 aircraft, 11 more than the previous year. 

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Bombardier’s order backlog rose by 22% to $17.5 billion.

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“As we look ahead to our 2026 guidance, the fundamentals of the business aviation market remain strong,” Chief Financial Officer Bart Demosky said, adding that growth should be helped by the expansion of its defense and services businesses. The company expects to earn more $10 billion in revenue and deliver more than 157 aircraft this year.

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Free cash flow should come in at $600 million to $1 billion, the company said. 

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Desjardins analyst Benoit Poirier said in a note to clients he believes the 2026 guidance may prove conservative, leaving room for an upside surprise. 

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Bombardier won a 40-plane order from Vista Global Holding Ltd., one of the world’s biggest operators of business jets. The purchase agreement is worth about $1.2 billion at list price, although buyers tend to get large discounts for bulk purchases, and includes purchase options for a further 120 aircraft.

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