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Bombardier Cl A MV (TSE:BBD.A)
TSX:BBD.A
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Bombardier Cl A MV (BBD.A) AI Stock Analysis

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TSE:BBD.A

Bombardier Cl A MV

(TSX:BBD.A)

Rating:63Neutral
Price Target:
C$175.00
▲(12.71% Upside)
Bombardier's stock score is primarily influenced by its technical strength and positive earnings call sentiment. However, financial instability due to high leverage and valuation concerns weigh on the overall score. The company's strategic initiatives and strong order backlog provide a positive outlook, but financial health improvements are necessary for a higher score.

Bombardier Cl A MV (BBD.A) vs. iShares MSCI Canada ETF (EWC)

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 makes money through the sale of its business jets, which constitutes the majority of its revenue. The company offers various models tailored to different market needs, from light to large-cabin business jets. Additionally, Bombardier generates income through maintenance services, spare parts, and customer support programs for its aircraft, ensuring long-term relationships with its clients. The company also benefits from significant partnerships and collaborations within the aerospace industry, which help to enhance its technological capabilities and expand its market reach.

Bombardier Cl A MV Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
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 high leverage and negative equity, indicating financial instability. Despite improved operational efficiencies, cash flow generation is under pressure, impacting liquidity. The company needs to address its debt levels and improve profitability.
Income Statement
65
Positive
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.
Balance Sheet
45
Neutral
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.
Cash Flow
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.73B8.66B8.05B6.91B6.08B6.49B
Gross Profit1.76B1.78B1.63B1.26B924.00M516.00M
EBITDA1.26B1.17B933.00M722.00M635.00M87.00M
Net Income463.00M370.00M445.00M-128.00M-249.00M-170.00M
Balance Sheet
Total Assets12.86B12.67B12.46B12.32B12.76B23.09B
Cash, Cash Equivalents and Short-Term Investments881.00M1.68B1.69B1.76B1.75B2.68B
Total Debt5.26B5.54B5.61B5.98B7.05B10.07B
Total Liabilities14.50B14.66B14.86B15.09B15.85B29.75B
Stockholders Equity-1.63B-1.99B-2.40B-2.76B-3.09B-9.32B
Cash Flow
Free Cash Flow218.00M232.00M257.00M717.00M95.00M-3.19B
Operating Cash Flow380.00M405.00M623.00M1.07B332.00M-2.82B
Investing Cash Flow-165.00M-144.00M118.00M-304.00M-89.00M967.00M
Financing Cash Flow-418.00M-203.00M-438.00M-1.13B-3.21B1.71B

Bombardier Cl A MV Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price155.27
Price Trends
50DMA
157.63
Negative
100DMA
125.70
Positive
200DMA
107.79
Positive
Market Momentum
MACD
-0.15
Positive
RSI
39.31
Neutral
STOCH
14.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.A, the sentiment is Neutral. The current price of 155.27 is below the 20-day moving average (MA) of 162.93, below the 50-day MA of 157.63, and above the 200-day MA of 107.79, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BBD.A.

Bombardier Cl A MV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$5.52B46.929.64%57.21%136.79%
64
Neutral
C$919.93M24.264.85%0.78%6.58%121.23%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
63
Neutral
C$15.58B24.62-23.10%6.69%64.89%
$8.56B28.858.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BBD.A
Bombardier Cl A MV
155.27
71.81
86.04%
CAE
CAE
26.62
8.60
47.72%
TSE:MAL
Magellan Aerospace
16.37
7.41
82.70%
TSE:MDA
MDA Space Ltd
44.01
28.69
187.27%
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.Date of analysis: Aug 06, 2025