Bombardier Inc.

Thank you. Thank you. Thank you. Good morning, ladies and gentlemen, and welcome to the Bombardier first quarter 2026 earnings conference call. Please be advised that this call is being recorded. At this time, I would like to turn the discussion over to Mr. Francis Richer de la Fleche, Vice President, FP&A and Investor Relations for Bombardier. Please go ahead, Mr. Richer de la Fleche.

Good morning, everyone. Welcome to Bombardier's earnings call of 2026. I wish to remind you that during the course of this call, we may make projections or other forward-looking statements regarding future events of 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, Eric Martel, and our Executive Vice President and Chief Financial Officer, Bart Demoski, to review our operations and financial results for the first quarter ended March 31, 2026. I would now like to turn over the discussion to Eric.

Alors, merci et bonjour à toutes et à tous. Good morning, everyone, and thank you for joining us today. I want to start by thanking our Bombardier team members all around the world. Your focus Your discipline and your commitment to our customers is really what continues to make strong results possible. The first quarter of 2026 was a very strong start to the year for Bombardier. We delivered unprecedented positive free cash flow for a first quarter, and at the same time, we saw exceptional momentum on orders that gives us again and again trust in our strategy, in our people and in our products. Most importantly, our performance on free cash flow this quarter gives us confidence that we will exceed the upper end of what we previously guided. Bart and I will both come back to this in more detail as we move through the call this morning. Even though we had a very strong start of the year, There were also some operational realities which impacted us. In Q1, we faced a supplier snag that temporarily slowed us down operationally. As a result, some deliveries did not land in time for the quarter. This challenge has now been resolved and we expect to progressively catch up over the coming quarters as we move through the year. What matters most is that our diversification, especially in services, help offset some of the lost revenue and margin from this headwind. This resilience in our business model reinforces our confidence as we look ahead. Now, going deeper into the first quarter results. Revenue increased 5% year over year to approximately $1.6 billion. driven by continued strength in services, which grew to 717 million, representing 25% year-over-year growth. Adjusted EBITDA reached 246 million with a 15.4 margin, reflecting the impact from delivery timing and mix, but more importantly, it keeps us on track with our plan for the year, with positive momentum building over the next few quarters. Adjusted net income reached $189 million, up 177% year over year, and adjusted EPS rose $1.81, nearly tripling versus the same period of last year. As I mentioned when we started the call, free cash flow is a particularly important highlight this quarter. We generated $360 million of free cash flow in the quarter. To put that in perspective, it represents a $664 million year-over-year improvement and marks the strongest first quarter free cash flow in nearly two decades for Bombardier. We remain firmly focused on our debt reduction journey. Earlier this month, S&P revised our outlook to positive, and our net leverage is now down to approximately 1.8 times. In this quarter alone, we repaid $750 million of debt. And just this morning, we've announced the repayment of another $150 million Canadian dollar, which was due in December 2026. It's clear we have set ourselves up for meaningful and consistent success through our strong operational execution, improved working capital discipline, and proactive debt management. That said, this quarter over performance is also driven by how well our global aircraft are doing on the market. The Global 8000 is selling as fast as it flies, and I don't need to remind you that it's the fastest civil aircraft in the world, but I will. Demand across our product remains strong, and our backlog has generated a spike of progress payments in Q1, which also contributed to our great start on free cash flow. The backlog reached $20.3 billion at quarter end, increasing by $2.8 billion versus the end of 2025. It is up 16% since the start of the year and 43% on a year-over-year basis. Finally, we achieve a unit book to bill of 3.6 in Q1, supported by broad-based demand and strong orders across all platforms. This level of backlog provides strong visibility for future financial performance, support margin durability, and position us well for sustained growth. And as I look at the start of Q2, the broader market environment remained positive. Overall market conditions remained favorable for business aviation, and we do have the right product in that market. Customer engagement continues to be strong across regions, and demands remain supported by fleet modernization needs, higher utilization trend, and a clear preference for high-performance aircraft reliable platforms backed by a strong service capabilities. Importantly, while we continue to operate in a very dynamic geopolitical environment, our performance this quarter demonstrates the resilience and diversification of our business with balanced contribution from the entire team. When it comes to order, our first quarter performance was supported by a strong customer demand I mentioned across our portfolio, including continued momentum from large high volume customer. Fleet operator were a meaningful contributor to our order momentum this quarter, reinforcing our diversification strategy. And the value extends well beyond the initial aircraft sale. Fleet demand drives recurring aftermarket services over the life of the aircraft, business we earn every day through reliable performance, strong execution, and the depth of our service offering. It's important to note that while fleet transactions brought a meaningful contribution, our book-to-bill was approaching two for traditional customer, which for a first quarter is not insignificant. This is an excellent start of the year on all fronts. As I mentioned, we continue to see very strong customer interest in the Global 8000, which has been recognized as the industry flagship and continue to perform exceptionally well, supporting both deliveries and service revenue over the lifecycle of the aircraft. Our financial position remains very strong with liquidity at over $2 billion. This balance sheet strength gives us flexibility as we continue to invest in growth, service, our customer and allocate capital in a disciplined way. Based on our strong start of the year and our confidence in execution, we are increasing our full year 2026 free cash flow guidance. We now expect free cash flow of over a billion dollars in 2026 while reaffirming guidance on all other financial metrics. It also reinforced our conviction that Bombardier is now a consistent and a resilient cash-generating business. We continue to be resilient and proactive in navigating the geopolitical and supply chain landscape. Certain issues persist, but as you see in the results, we have built this into our reality, and my team and I are very active in ensuring parts are available. Clearly, we'd like to produce more, and we've taken steps to address our footprint and capacity, as you know. we continue to hyper-focus on what we control and meet our short-term commitment. The entire team is aligned on growing responsibly, maintaining our bottom line and not overarching on the pace that our supply chain can sustain. In summary, Q1 2026 shows that we entered the year with strong momentum, with discipline and confidence. We delivered exceptional free cash flow, an outstanding service performance, and a robust backlog. Our strategy is working, our teams are executing, and we are well positioned for the remainder of 2026. With that, I'll turn it over to Bart to walk through the financial results in more detail.