MONTREAL: Bombardier said on Thursday it is betting on demand for aftermarket services to help hit an estimated $7.5 billion revenue target in 2025, as the company holds its first investor day since becoming a pure play business jet maker.

Bombardier said in a statement it expects to generate more than $500 million in free cash and $1.5 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, while growing margins and slashing debt.

Bombardier said its flagship Global 7500 jet, which lists for $75 million, is expected to be the company's biggest contributor to EBITDA over the next five years, as production costs decline.

Montreal-based Bombardier plans to cut costs and diversify earnings by capturing a greater share of sales of aircraft products and maintenance packages, at a time when jet deliveries could take years to recover to 2019 levels due to the pandemic.

Bombardier said it expects to grow its aftermarket services from roughly 18% of revenue in 2020 to 27% by 2025.

The company has evolved in recent years from a plane and train maker to a business jet manufacturer with revenue of $6.5 billion in 2020. It shed assets after facing a cash crunch in 2015.

Bombardier, which disclosed a long-term debt of $10.1 billion as of Jan. 29, said it plans to use $3.6 billion in net proceeds from the recent sale of its rail division to France's Alstom SA to pay off near-term maturities, focusing on 2021 and 2022 tranches.

The company said last month it would lay off 1,600 and halt Learjet aircraft production.

Bombardier, which had previously planned to break even on free cash flow in 2020, now expects to turn cash flow-positive in 2022, the company said.