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Bombardier Cl A MV (TSE:BBD.A)
:BBD.A
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Bombardier Cl A MV
(TSX:BBD.A)
Rating:68Neutral
Price Target:
C$178.00
▲(7.96%Upside)
Bombardier Cl A MV (BBD.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$16.58B
Dividend YieldN/A
Average Volume (3M)9.85K
Price to Earnings (P/E)42.8
Beta (1Y)1.76
Revenue Growth16.31%
EPS Growth4.12%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength90
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.84
Shares Outstanding12,349,278
10 Day Avg. Volume10,417
30 Day Avg. Volume9,847
Financial Highlights & Ratios
PEG Ratio-1.40
Price to Book (P/B)-6.03
Price to Sales (P/S)0.00
P/FCF Ratio37.61
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit9.01
Enterprise Value/Ebitda3.52
Forecast
1Y Price Target
C$121.00Price Target Upside-26.61% Downside
Rating ConsensusHold
Number of Analyst Covering0
Bombardier Cl A MV Business Overview & Revenue Model
Company DescriptionBombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.
How the Company Makes MoneyBombardier Inc. generates revenue primarily through the sale of business jets and related services. The company's key revenue streams include the manufacturing and sale of new aircraft, providing maintenance, repair, and overhaul (MRO) services, and offering customer support solutions. Bombardier also earns income from specialized aircraft services, such as fleet management and training programs. Strategic partnerships and a global network of service centers enhance its aftermarket services, contributing significantly to its earnings by ensuring long-term customer engagement and recurring revenue from maintenance contracts.
Bombardier Cl A MV Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 79.90%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Bombardier's strong financial performance and positive guidance for 2025, driven by growth in Services and Defense. However, supply chain challenges and tariff-related uncertainties were notable concerns, impacting production and order activity. Overall, the positive aspects of revenue growth and strategic achievements were somewhat balanced by ongoing challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Bombardier reported a 19% year-over-year revenue increase to $1.5 billion in Q1 2025, with a 21% increase in adjusted EBITDA to $248 million, representing a margin of 16.3%.
Positive Guidance for 2025
Bombardier provided guidance for 2025, expecting revenues to exceed $9.25 billion and adjusted EBITDA to surpass $1.55 billion, driven by strong margin conversion and improved aircraft mix.
Growth in Services and Defense
Bombardier's Services business grew 4% year-over-year, while Defense saw strategic gains, including a recent order for Challenger 650 aircraft in Australia.
Debt Reduction Achievements
Bombardier reduced its gross debt by $400 million over the past 12 months, including $300 million in January, and improved net leverage by 0.6 turns or 17% versus Q1 of last year.
Global 8000 Advancements
The Global 8000 aircraft is on track for on-time delivery in 2025, with increasing interest due to its unmatched speed and performance capabilities.
Negative Updates
Supply Chain Challenges
The supply chain remains challenging despite improvements, with engine availability issues impacting production schedules and cost structures.
Tariff-Related Uncertainty
Tariff-related uncertainty caused a temporary slowdown in order discussions, particularly impacting U.S.-based customers and creating economic uncertainty.
Book-to-Bill Ratio Below 1
The book-to-bill ratio was 0.9 times in Q1 2025, indicating slower order activity, partly due to macroeconomic factors and tariff concerns.
Company Guidance
During Bombardier's first quarter 2025 earnings call, the company provided strong guidance for the year, anticipating significant increases in revenues, profitability, and free cash flow compared to 2024. Key metrics highlighted included a 19% year-over-year revenue increase to $1.5 billion, driven by three additional aircraft deliveries and a 21% jump in adjusted EBITDA to $248 million, representing a 16.3% margin. The company reported a 21% improvement in free cash usage, despite the typically high inventory build-up in the first quarter. Bombardier's guidance for 2025 includes delivering over 150 aircraft, achieving revenues exceeding $9.25 billion, and a double-digit EBITDA growth to more than $1.55 billion. The free cash flow guidance range is set between $500 million and $800 million, with the upper end contingent on a stable book-to-bill ratio of 1 times for the full year. The company emphasized strategic expansions in Services and Defense, with developments such as the Global 8000's anticipated entry into service, and new service centers in Abu Dhabi and Australia. Despite challenges from the tariff landscape and supply chain pressures, Bombardier remains confident in its resilience and growth trajectory.Bombardier Cl A MV Financial Statement Overview
Summary
Bombardier has shown commendable revenue growth and profitability improvements, but faces significant challenges with its balance sheet, including negative equity and high debt levels. Cash flow generation is strengthening, yet capital expenditures and debt servicing remain concerns.Income Statement
Bombardier has demonstrated a strong revenue growth trajectory with a 29% increase from 2022 to 2023 and a TTM revenue of $8.91B. The company improved its gross profit margin to 20.07% and its net profit margin to 3.41% in the TTM period. While EBIT and EBITDA margins remain solid at 8.54% and 12.61% respectively, there was a decline in EBIT from the previous year, indicating potential operational efficiency challenges.75
Positive
Balance Sheet
Bombardier's balance sheet reveals a negative stockholders' equity of -$1.944B, highlighting financial instability. The debt-to-equity ratio is not meaningful due to negative equity, but total debt levels remain substantial at $5.247B. Despite this, the company's equity ratio is negative, indicating high leverage and financial risk.50
Neutral
Cash Flow
Cash flow analysis shows an improvement in free cash flow from $232M in the previous year to $315M in the TTM period, a growth of 35.78%. Operating cash flow to net income ratio of 1.57 indicates efficient cash generation relative to net income. However, continuous negative investing and financing cash flow suggest ongoing capital expenditure and debt servicing pressures.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.66B | 8.05B | 6.91B | 6.08B | 6.49B |
| Gross Profit | 1.78B | 1.63B | 1.26B | 924.00M | 516.00M |
| EBITDA | 1.17B | 933.00M | 722.00M | 635.00M | 87.00M |
| Net Income | 370.00M | 445.00M | -128.00M | -249.00M | -170.00M |
Balance Sheet | |||||
| Total Assets | 12.67B | 12.46B | 12.32B | 12.76B | 23.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.68B | 1.69B | 1.76B | 1.75B | 2.68B |
| Total Debt | 5.54B | 5.61B | 5.98B | 7.05B | 10.07B |
| Total Liabilities | 14.66B | 14.86B | 15.09B | 15.85B | 29.75B |
| Stockholders Equity | -1.99B | -2.40B | -2.76B | -3.09B | -9.32B |
Cash Flow | |||||
| Free Cash Flow | 232.00M | 257.00M | 717.00M | 95.00M | -3.19B |
| Operating Cash Flow | 405.00M | 623.00M | 1.07B | 332.00M | -2.82B |
| Investing Cash Flow | -164.00M | 118.00M | -304.00M | -89.00M | 967.00M |
| Financing Cash Flow | -203.00M | -438.00M | -1.13B | -3.21B | 1.71B |
Bombardier Cl A MV Technical Analysis
Positive
164.88
Price Trends
114.62
Positive
99.20
Positive
97.98
Positive
Market Momentum
15.65
Negative
88.73
Negative
89.98
Negative
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 164.88 is above the 20-day moving average (MA) of 142.25, above the 50-day MA of 114.62, and above the 200-day MA of 97.98, indicating a bullish trend. The MACD of 15.65 indicates Negative momentum. The RSI at 88.73 is Negative, neither overbought nor oversold. The STOCH value of 89.98 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$5.34B | 53.41 | 8.54% | ― | 49.98% | 108.76% | |
73 Outperform | C$1.03B | 25.64 | 5.12% | 1.11% | 8.59% | 242.80% | |
71 Outperform | ¥255.75B | 13.62 | 8.48% | 3.02% | 6.34% | 13.16% | |
68 Neutral | C$16.58B | 42.80 | -23.10% | ― | 16.31% | 4.12% | |
| ― | $9.33B | 32.14 | 8.87% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
TSE:BBD.A
Bombardier Cl A MV
164.88
66.88
68.24%
CAE
CAE
29.10
10.49
56.37%
TSE:MAL
Magellan Aerospace
17.95
9.39
109.70%
TSE:MDA
MDA Ltd
43.42
30.02
224.03%
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.