Bombardier Cl A MV (BBD.A) AI Stock Analysis

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Bombardier Cl A MV

(TSX:BBD.A)

Rating:63Neutral

Price Target:

C$175.00

▲(6.73% 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)

Market Cap

C$16.47B

Dividend YieldN/A

Average Volume (3M)11.89K

Price to Earnings (P/E)26.0

Beta (1Y)1.66

Revenue Growth6.69%

EPS Growth64.89%

CountryCA

Employees17,900

SectorIndustrials

Sector Strength84

IndustryAerospace & Defense

Share Statistics

EPS (TTM)1.53

Shares Outstanding12,349,278

10 Day Avg. Volume10,215

30 Day Avg. Volume11,895

Financial Highlights & Ratios

PEG Ratio-0.62

Price to Book (P/B)-3.34

Price to Sales (P/S)0.77

P/FCF Ratio28.63

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$187.33

Price Target Upside14.25% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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: 0.87%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

Bombardier showed strong performance with significant aircraft orders, defense segment achievements, and service revenue growth. However, they faced challenges with revenue decline, supply chain disruptions, and inventory management. The positives, especially the large aircraft order and strategic initiatives, outweigh the negatives.

Q2-2025 Updates

Positive Updates

Significant Aircraft Order

Bombardier received a firm order for 50 aircraft, contributing to a large backlog increase and a book-to-bill ratio of 2.3.

Strong Defense Segment Performance

Bombardier Defense received an order for 2 Global 6500 jets and announced an MOU for maritime patrol missions with Italy's Leonardo.

Service Revenue Growth

Services revenue reached $590 million, up 16% year-over-year, contributing 29% of total revenue.

Credit Rating Upgrades

Bombardier's credit rating was upgraded by S&P Global to BB- and Moody's outlook changed to positive, reflecting strong earnings and cash flow growth.

Debt Refinancing Success

Successfully refinanced $500 million of senior notes, extending maturities to 2033 and reducing average coupon by 11 basis points.

Record Speed Achievements

The Global 7500 achieved its 135th speed record, owning the most city pair speed records of any business jet type.

Negative Updates

Year-Over-Year Revenue Decline

Total revenues reached $2 billion, representing an 8% year-over-year decline attributed to delivering 3 fewer aircraft compared to the previous year.

Supply Chain Challenges

Continued supply chain disruptions, including tariff-related costs, impacted profitability despite being factored into guidance.

Inventory Build-Up

Bombardier invested nearly $850 million in inventory in the first half to support higher deliveries in the second half.

Company Guidance

During the Bombardier Second Quarter 2025 Earnings Conference Call, the company provided an optimistic outlook, reaffirming its commitment to meet 2025 guidance. A significant highlight was the receipt of a firm order for 50 aircraft, contributing to a 2.3 unit book-to-bill ratio and a backlog exceeding $16 billion. Bombardier reported $2 billion in revenue, with services contributing $590 million, marking a 16% year-over-year increase. The company delivered 36 aircraft in Q2, with 59 total deliveries in the first half of 2025. Adjusted EBITDA was $297 million, while the adjusted EBIT was $205 million. Bombardier also achieved a credit rating upgrade, reflecting strong earnings and cash flow growth. The company remains on track to generate over $1 billion in EBITDA in the second half of the year, supported by a robust delivery schedule and a positive outlook for orders, particularly with the introduction of the Global 8000 aircraft.

Bombardier Cl A MV Financial Statement Overview

Summary

Bombardier shows strong revenue growth and profitability improvements, but faces significant challenges with a negative equity balance sheet and high debt levels. Cash flow generation is improving, though capital expenditures and debt servicing are concerns.

Income Statement

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.73B	8.66B	8.05B	6.91B	6.08B	6.49B
Gross Profit	1.76B	1.78B	1.63B	1.26B	924.00M	516.00M
EBITDA	1.26B	1.17B	933.00M	722.00M	635.00M	87.00M
Net Income	463.00M	370.00M	445.00M	-128.00M	-249.00M	-170.00M
Balance Sheet
Total Assets	12.86B	12.67B	12.46B	12.32B	12.76B	23.09B
Cash, Cash Equivalents and Short-Term Investments	881.00M	1.68B	1.69B	1.76B	1.75B	2.68B
Total Debt	5.26B	5.54B	5.61B	5.98B	7.05B	10.07B
Total Liabilities	14.50B	14.66B	14.86B	15.09B	15.85B	29.75B
Stockholders Equity	-1.63B	-1.99B	-2.40B	-2.76B	-3.09B	-9.32B
Cash Flow
Free Cash Flow	218.00M	232.00M	257.00M	717.00M	95.00M	-3.19B
Operating Cash Flow	380.00M	405.00M	623.00M	1.07B	332.00M	-2.82B
Investing Cash Flow	-165.00M	-144.00M	118.00M	-304.00M	-89.00M	967.00M
Financing Cash Flow	-418.00M	-203.00M	-438.00M	-1.13B	-3.21B	1.71B

Bombardier Cl A MV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price163.97

Price Trends

50DMA

134.93

Positive

100DMA

110.42

Positive

200DMA

101.87

Positive

Market Momentum

MACD

7.82

Positive

RSI

66.46

Neutral

STOCH

85.55

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 163.97 is above the 20-day moving average (MA) of 162.63, above the 50-day MA of 134.93, and above the 200-day MA of 101.87, indicating a bullish trend. The MACD of 7.82 indicates Positive momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAE	78 Outperform	$12.61B	30.98	8.87%	―	7.89%	―
MDA	73 Outperform	C$5.25B	44.67	9.64%	―	57.21%	136.79%
MAL	70 Outperform	C$974.21M	24.36	5.12%	0.73%	8.59%	242.80%
Sector *	64 Neutral	$10.70B	16.30	6.50%	2.13%	2.67%	-20.48%
BBD.A	63 Neutral	C$16.47B	26.00	-23.10%	―	6.69%	64.89%

* Industrials Sector Average

Performance Comparison

TSE:BBD.A

Bombardier Cl A MV

163.97

79.36

93.80%

TSE:CAE

CAE

39.33

16.71

73.87%

TSE:MAL

Magellan Aerospace

17.05

8.33

95.53%

TSE:MDA

MDA Ltd

42.09

27.84

195.37%

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