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Bombardier Cl A MV (TSE:BBD.A)
TSX:BBD.A
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Bombardier Cl A MV
(TSX:BBD.A)
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Rating:60Neutral
Price Target:
C$250.00
▲(11.22% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by improving operating performance and strong 2025 free cash flow, offset by significant balance-sheet risk from negative equity and high debt. Technical signals are neutral-to-mildly supportive over longer timeframes, while valuation appears average based on the provided P/E and lack of dividend yield.
Positive Factors
Improved cash generation
Sustained free cash flow of ~ $1.09B in 2025 and strong operating cash flow boost Bombardier's ability to pay down debt, fund capital expenditure and aftermarket investments, and support execution. Durable FCF reduces reliance on external financing and strengthens strategic optionality.
Revenue and margin improvement
Consistent top-line growth and materially improved margins indicate better pricing, product mix, and operational execution. Higher and steadier margins increase earnings resiliency across cycles, supporting internal reinvestment and the durability of operating profits over the medium term.
Diversified business model
A dual revenue stream—aircraft sales plus recurring aftermarket services—provides structural diversification. Aftermarket demand yields higher visibility and recurring cash flows across aircraft lifecycles, helping stabilize revenue and margins even when deliveries fluctuate.
Negative Factors
Weak balance sheet
Negative equity and still-elevated debt materially constrain financial flexibility, increase refinancing and covenant risk, and limit capacity to absorb shocks or pursue growth. Even with deleveraging since 2020, the capital structure remains a structural overhang on long-term stability.
Cyclical cash flow history
Historic swings between negative and positive cash flow show the business is execution- and cycle-sensitive. The 2025 improvement is encouraging, but prior volatility implies future downturns or delivery delays could rapidly erode liquidity and slow deleveraging.
Earnings volatility
Material volatility in reported earnings reflects sensitivity to program execution, deliveries and one-offs. This inconsistent profitability undermines predictability of long-term earnings and complicates planning for capital allocation, investment, and stakeholder commitments.
Bombardier Cl A MV (BBD.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$25.14B
Dividend YieldN/A
Average Volume (3M)9.33K
Price to Earnings (P/E)18.1
Beta (1Y)1.85
Revenue Growth6.60%
EPS Growth-1.71%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)6.53
Shares Outstanding12,132,215
10 Day Avg. Volume8,298
30 Day Avg. Volume9,327
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)-18.91
Price to Sales (P/S)1.76
P/FCF Ratio15.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)10.77
Revenue Forecast (FY)C$13.73B
Bombardier Cl A MV Business Overview & Revenue Model
Company DescriptionBombardier Cl A MV (BBD.A) is a Canadian multinational aerospace and transportation company that specializes in the design and manufacture of business jets, commercial aircraft, and rail transportation equipment. The company operates primarily in two segments: Aerospace and Transportation, offering a diverse range of products including the Learjet, Challenger, and Global business jets, as well as rail vehicles and systems for urban transit and freight. Bombardier is recognized for its innovation and commitment to sustainability in both aviation and rail solutions.
How the Company Makes MoneyBombardier generates revenue through multiple streams within its Aerospace and Transportation segments. In the Aerospace sector, the company makes money primarily from the sale of aircraft, providing maintenance services, and selling parts and components. The company also benefits from long-term contracts and support services for its business jets. In the Transportation segment, Bombardier earns revenue from the manufacture and sale of rail vehicles, signaling systems, and rail maintenance services. Significant partnerships with various governments and transit authorities contribute to its earnings, particularly in the rail sector where Bombardier often secures multi-year contracts for large-scale projects. Additionally, Bombardier's focus on innovation, including investments in electric and hybrid technology, positions it to capture emerging market opportunities, thereby enhancing its revenue potential.
Bombardier Cl A MV Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance by Bombardier, highlighted by a significant aircraft order, service revenue growth, and improved financial metrics. Despite some challenges with supply chain and free cash flow usage, the company shows strong execution against its strategic initiatives, particularly in services and defense. The balance sheet improvements and credit rating upgrades further underscore a positive outlook.Q2-2025 Updates
Positive Updates
Significant Aircraft Order
Bombardier received a firm order for 50 aircraft, contributing to a large backlog jump and a unit book-to-bill ratio of 2.3.
Service Revenue Growth
Service revenue reached $590 million, up 16% year-over-year, contributing 29% of total revenue, demonstrating success in revenue diversification and aftermarket expansion.
Backlog and Financial Stability
Backlog grew past $16 billion, ending Q2 at $16.1 billion. Bombardier also successfully refinanced $500 million of senior notes, improving its debt maturity profile and reducing the average coupon by 11 basis points.
Credit Rating Upgrades
S&P Global upgraded Bombardier's credit rating to BB- from B+, while Moody's changed their outlook from stable to positive, reflecting strong earnings and cash flow growth.
Defense Segment Achievements
Bombardier Defense received an order for 2 Global 6500 jets and announced an MOU with Italy's Leonardo for maritime patrol missions, showcasing strong defense market capabilities.
Global 7500 Speed Record
The Global 7500 achieved its 135th speed record, becoming the business jet type with the most city pair speed records.
Negative Updates
Supply Chain Challenges
Continued supply chain disruption costs, including some tariff-related costs, which are impacting operations but are accounted for in guidance.
Free Cash Flow Usage
Free cash flow usage in the quarter totaled $164 million, primarily driven by a $280 million investment in inventory to support higher deliveries in the second half of the year.
Decrease in Adjusted EBITDA
Adjusted EBITDA for the quarter was $297 million, a year-over-year decrease of $38 million, largely due to delivering fewer Global 7500s and a delivery mix skewed towards Challengers.
Company Guidance
In the Bombardier Second Quarter 2025 earnings call, the company expressed confidence in meeting its 2025 guidance, highlighting several key metrics and achievements. Bombardier reported a strong book-to-bill ratio of 2.3, driven by a firm order for 50 aircraft and a significant backlog of $16.1 billion. The company's revenue for the quarter reached $2 billion, with services contributing $590 million, up 16% year-over-year. Bombardier delivered 36 aircraft in Q2, maintaining its delivery pace from 2024, and expects a more back-loaded delivery schedule in the second half of the year. Adjusted EBITDA was $297 million, with a margin of 14.6%, while adjusted net income increased by 5% to $117 million. The company also successfully refinanced $500 million in debt, securing credit rating upgrades from S&P Global Ratings and Moody's. Looking forward, Bombardier plans to generate over $1 billion in EBITDA in the second half of the year, with an increased focus on the U.S. market for service expansion.Bombardier Cl A MV Financial Statement Overview
Summary
Operationally improving (Income Statement 76; Cash Flow 71) with solid 2025 margins and strong positive free cash flow, but the balance sheet is a major drag (Balance Sheet 38) due to negative equity and still-elevated debt, limiting financial flexibility.Income Statement
Revenue has grown steadily from 2022–2025 (2025 up ~6.5% YoY), and profitability has improved meaningfully versus earlier years: 2025 delivered solid margins (gross margin ~20%, EBIT margin ~13%, net margin ~9.7%) with net income rising sharply from 2024. The main weakness is historical volatility—losses in 2020 and 2022 and an unusually high 2021 net margin suggest prior results were not consistently driven by core operations.76
Positive
Balance Sheet
Leverage remains a key overhang. Total debt is still high (about $5.15B in 2025) and shareholders’ equity is negative across all years shown (e.g., about -$0.89B in 2025), which limits balance-sheet flexibility and makes debt-to-equity less informative (it is negative due to negative equity). Positively, debt has trended down materially since 2020, and total assets have been relatively stable, but the capital structure is still the clear weak point.38
Negative
Cash Flow
Cash generation has improved materially: operating cash flow and free cash flow are strongly positive in 2025 (about $1.25B and $1.09B, respectively), and free cash flow jumped sharply versus 2024. Free cash flow also covers a large portion of net income in 2025 (~87%), supporting earnings quality. The main weakness is past inconsistency (negative operating and free cash flow in 2020–2021 and weaker conversion in 2023–2024), indicating cash flows can be cyclical and execution-dependent.71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.55B | 8.66B | 8.05B | 6.91B | 6.08B |
| Gross Profit | 1.91B | 1.78B | 1.63B | 1.26B | 924.00M |
| EBITDA | 1.75B | 1.07B | 933.00M | 608.00M | 336.00M |
| Net Income | 928.00M | 370.00M | 445.00M | -148.00M | 5.04B |
Balance Sheet | |||||
| Total Assets | 13.56B | 12.66B | 12.37B | 12.44B | 12.64B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 1.65B | 1.58B | 1.30B | 1.66B |
| Total Debt | 5.15B | 5.96B | 6.01B | 6.49B | 7.25B |
| Total Liabilities | 14.45B | 14.65B | 14.76B | 15.23B | 15.70B |
| Stockholders Equity | -889.00M | -1.99B | -2.39B | -2.79B | -3.06B |
Cash Flow | |||||
| Free Cash Flow | 1.09B | 220.86M | 261.17M | 695.66M | -517.17M |
| Operating Cash Flow | 1.25B | 385.55M | 633.10M | 1.04B | -284.15M |
| Investing Cash Flow | -192.31M | -137.09M | 119.91M | -315.33M | 2.46B |
| Financing Cash Flow | -520.96M | -193.25M | -445.10M | -1.10B | -2.92B |
Bombardier Cl A MV Technical Analysis
Positive
224.78
Price Trends
255.78
Negative
236.83
Positive
196.80
Positive
Market Momentum
-2.00
Positive
49.37
Neutral
44.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.A, the sentiment is Positive. The current price of 224.78 is below the 20-day moving average (MA) of 263.38, below the 50-day MA of 255.78, and above the 200-day MA of 196.80, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BBD.A.
Bombardier Cl A MV Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$1.27B | 18.44 | 5.52% | 0.93% | 8.84% | 131.58% | |
71 Outperform | C$5.52B | 30.51 | 8.88% | ― | 57.77% | 57.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $25.14B | 18.12 | -61.55% | ― | 6.60% | -1.71% | |
60 Neutral | C$25.14B | 18.12 | -61.55% | ― | 6.60% | -1.71% | |
58 Neutral | C$12.40B | 30.69 | 7.50% | ― | 9.12% | ― |
* Industrials Sector Average
TSE:BBD.A
Bombardier Cl A MV
255.00
172.21
208.01%
TSE:CAE
CAE
38.53
3.78
10.88%
TSE:BBD.B
Bombardier
253.80
171.08
206.82%
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Magellan Aerospace
22.20
11.44
106.36%
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58.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.