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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:63Neutral
Price Target:
C$243.00
▲(8.11% Upside)
Bombardier's overall stock score reflects strong financial performance in terms of revenue growth and cash flow, but is tempered by high leverage and a negative equity position. Technical analysis indicates bullish momentum, while valuation concerns arise from a high P/E ratio and lack of dividend yield.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a positive sales trajectory and strong market demand, enhancing long-term business sustainability.
Cash Flow Generation
Significant improvement in free cash flow generation strengthens financial flexibility and supports future investments and debt reduction.
Profitability Improvements
Enhanced profitability through improved margins suggests effective cost control and operational efficiency, supporting long-term financial health.
Negative Factors
High Leverage
High leverage and negative equity position increase financial risk, potentially limiting the company's ability to invest and grow sustainably.
Negative Equity Position
A negative equity position indicates financial instability, posing challenges in attracting investment and sustaining long-term growth.
Debt Reliance
Dependence on debt financing can strain cash flows and limit strategic flexibility, impacting long-term financial resilience and growth potential.
Bombardier Cl A MV (BBD.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$23.02B
Dividend YieldN/A
Average Volume (3M)9.33K
Price to Earnings (P/E)38.9
Beta (1Y)1.60
Revenue Growth6.60%
EPS Growth-1.71%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.71
Shares Outstanding12,206,365
10 Day Avg. Volume8,298
30 Day Avg. Volume9,327
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)-3.36
Price to Sales (P/S)0.77
P/FCF Ratio30.31
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)N/A
Revenue Forecast (FY)N/A
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:Feb 12, 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
Bombardier's financial performance is challenged by negative revenue growth and high financial leverage. While operational efficiencies have improved, the negative equity position and declining cash flow generation pose significant risks.Income Statement
Bombardier's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 20% over the years, indicating consistent cost management. However, the net profit margin is relatively low at 5.3% TTM, reflecting challenges in converting revenue into profit. The revenue growth rate has turned negative in the TTM, suggesting potential market or operational challenges. Despite this, EBIT and EBITDA margins have improved over the years, showing operational efficiency gains.75
Positive
Balance Sheet
The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -3.22 TTM, indicating high reliance on debt financing. The negative stockholders' equity suggests financial instability and potential risk. Return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting a weak capital structure.45
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -30.79% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.065, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively healthier at 0.57, indicating some ability to generate cash from operations.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.84B | 8.66B | 8.05B | 6.91B | 6.08B | 6.49B |
| Gross Profit | 1.80B | 1.78B | 1.63B | 1.26B | 924.00M | 516.00M |
| EBITDA | 1.26B | 1.07B | 933.00M | 608.00M | 336.00M | -92.00M |
| Net Income | 399.00M | 370.00M | 445.00M | -148.00M | 5.04B | -868.00M |
Balance Sheet | ||||||
| Total Assets | 13.33B | 12.66B | 12.37B | 12.44B | 12.64B | 23.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.65B | 1.58B | 1.30B | 1.66B | 1.78B |
| Total Debt | 8.24B | 5.96B | 6.01B | 6.49B | 7.25B | 10.29B |
| Total Liabilities | 20.72B | 14.65B | 14.76B | 15.23B | 15.70B | 29.69B |
| Stockholders Equity | -1.56B | -1.99B | -2.39B | -2.79B | -3.06B | -9.31B |
Cash Flow | ||||||
| Free Cash Flow | 518.82M | 220.86M | 261.17M | 695.66M | -517.17M | -3.35B |
| Operating Cash Flow | 686.59M | 385.55M | 633.10M | 1.04B | -284.15M | -2.96B |
| Investing Cash Flow | -183.70M | -137.09M | 119.91M | -315.33M | 2.46B | 1.42B |
| Financing Cash Flow | -74.56M | -193.25M | -445.10M | -1.10B | -2.92B | 1.39B |
Bombardier Cl A MV Technical Analysis
Positive
224.78
Price Trends
210.63
Positive
191.63
Positive
148.14
Positive
Market Momentum
3.34
Positive
56.65
Neutral
63.34
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 225.55, above the 50-day MA of 210.63, and above the 200-day MA of 148.14, indicating a bullish trend. The MACD of 3.34 indicates Positive momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 63.34 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$13.36B | 30.51 | 9.00% | ― | 9.12% | ― | |
72 Outperform | C$1.04B | 23.35 | 5.64% | 0.96% | 8.84% | 131.58% | |
70 Outperform | C$3.26B | 28.98 | 8.88% | ― | 57.77% | 57.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$23.02B | 38.92 | ― | ― | 6.60% | -1.71% | |
62 Neutral | $23.02B | 39.20 | ― | ― | 6.60% | -1.71% |
* Industrials Sector Average
TSE:BBD.A
Bombardier Cl A MV
228.00
130.99
135.03%
TSE:CAE
CAE
41.56
7.38
21.59%
TSE:BBD.B
Bombardier
229.64
133.01
137.65%
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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.