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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:64Neutral
Price Target:
C$286.00
▲(27.24% Upside)
The score is driven by improving operating performance and cash generation, tempered by meaningful balance sheet leverage/negative equity risk. Technically, the stock shows strong upward momentum, but valuation is expensive (high P/E) with no dividend yield provided.
Positive Factors
Diversified business model across Aerospace and Transportation
Having both aerospace and rail segments plus long-term government and transit contracts provides durable revenue diversification. This reduces reliance on any single market cycle, supports multi-year backlog visibility, and underpins steady service and parts revenue streams over the medium term.
Sustained revenue growth trend
A 12.65% TTM revenue increase signals expanding end-market demand and improved ordering or delivery execution. Sustained top-line growth helps absorb fixed costs, supports investment in new products, and gives management runway to further scale margins and secure longer-term contracts.
Material improvement in free cash flow
A near-200% rise in free cash flow and a healthy FCF-to-net-income ratio materially strengthen funding flexibility. Improved cash generation supports debt reduction, capital investment, and aftermarket services investment, improving structural financial resilience over the medium term.
Negative Factors
Negative equity position
Negative equity reflects cumulative losses or accounting deficits that weaken the balance sheet and constrain capacity to absorb shocks. This structural weakness increases reliance on creditors, limits shareholder recovery in stress, and raises long-term financing vulnerability.
High leverage and reliance on debt financing
A very high (negative) debt-to-equity ratio indicates heavy leverage and dependence on external financing. Over months, elevated leverage raises interest and refinancing risk, limits strategic flexibility, and can force asset sales or cutbacks if cash generation falters.
Low cash conversion efficiency and EPS pressure
Weak operating cash conversion relative to net income plus declining EPS points to persistent earnings-quality and operational conversion issues. Structurally, this can hinder sustained deleveraging and limit ability to fund capex or R&D without increasing leverage.
Bombardier Cl A MV (BBD.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$23.32B
Dividend YieldN/A
Average Volume (3M)9.33K
Price to Earnings (P/E)39.9
Beta (1Y)1.78
Revenue Growth6.60%
EPS Growth-1.71%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.71
Shares Outstanding12,132,215
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
Income statement strength (TTM revenue growth 12.65%, improving net margin to 5.3% and better EBIT/EBITDA margins) and sharply higher free cash flow growth (+199.17%) are offset by balance sheet risk from high leverage and negative equity (debt-to-equity -3.48, negative equity ratio).Income Statement
Bombardier has shown a strong revenue growth rate of 12.65% in the TTM, indicating a positive trajectory in sales. The gross profit margin is stable at around 20%, and the net profit margin has improved to 5.3%, reflecting better cost management and profitability. EBIT and EBITDA margins have also improved, suggesting operational efficiency. However, the company needs to maintain this growth to offset past volatility.75
Positive
Balance Sheet
The balance sheet reveals significant leverage with a negative equity position, as indicated by a high debt-to-equity ratio of -3.48. This poses a risk, as the company is heavily reliant on debt financing. Return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting financial instability.45
Neutral
Cash Flow
Cash flow analysis shows a remarkable improvement in free cash flow growth at 199.17% in the TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is healthy at 51.8%, showing good cash flow relative to earnings.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.96B | 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 | 6.09B | 5.96B | 6.01B | 6.49B | 7.25B | 10.29B |
| Total Liabilities | 14.89B | 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
Negative
224.78
Price Trends
237.72
Negative
214.93
Positive
170.66
Positive
Market Momentum
3.45
Positive
42.06
Neutral
30.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.A, the sentiment is Negative. The current price of 224.78 is below the 20-day moving average (MA) of 253.45, below the 50-day MA of 237.72, and above the 200-day MA of 170.66, indicating a neutral trend. The MACD of 3.45 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $14.03B | 32.04 | 9.00% | ― | 9.12% | ― | |
72 Outperform | C$1.19B | 26.58 | 5.64% | 0.93% | 8.84% | 131.58% | |
70 Outperform | C$4.85B | 43.13 | 8.88% | ― | 57.77% | 57.55% | |
64 Neutral | C$23.32B | 39.95 | ― | ― | 6.60% | -1.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $23.32B | 39.71 | ― | ― | 6.60% | -1.71% |
* Industrials Sector Average
TSE:BBD.A
Bombardier Cl A MV
234.00
151.99
185.33%
TSE:CAE
CAE
43.64
10.02
29.80%
TSE:BBD.B
Bombardier
232.61
149.85
181.07%
TSE:MAL
Magellan Aerospace
20.82
11.78
130.28%
TSE:MDA
MDA Space Ltd
38.43
16.39
74.36%
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.