Bombardier (BBD.B) AI Stock Analysis

• Market Cap: C$27.86B
• Dividend Yield: N/A
• Average Volume (3M): 348.19K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.83
• Revenue Growth: 6.60%
• EPS Growth: -1.71%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 6.56
• Shares Outstanding: 86,860,680
• 10 Day Avg. Volume: 472,704
• 30 Day Avg. Volume: 348,186
• PEG Ratio: 0.11
• Price to Book (P/B): -18.91
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 15.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$276.11
• Price Target Upside: -2.05% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 7.88
• Revenue Forecast (FY): C$10.07B

• Rating: 61 Neutral
• Price Target: C$256.00 ▼(-9.18% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving operating performance and a sharp rebound in cash generation, tempered significantly by balance-sheet risk from high debt and negative equity. Technical indicators are neutral-to-mixed, and valuation appears moderate based on the provided P/E.

Positive Factors

Strengthened cash generation

Material improvement in operating and free cash flow in 2025 provides durable internal funding for working capital, service network investment, and debt reduction. Sustained cash conversion enhances flexibility to fund aftermarket growth and capital needs without relying solely on external financing.

Revenue and profit recovery

Steady revenue growth coupled with a jump in EBIT demonstrates operational recovery and improved margin delivery versus prior years. Higher sustainable operating profits support reinvestment in programs, dealer/service capabilities and provide a stronger earnings base across the business jet cycle.

High-margin recurring aftermarket

A substantial services business monetizes the installed fleet through maintenance, parts, upgrades and service plans, generating recurring, higher-margin revenue. This structural mix dampens volatility from aircraft deliveries and builds long-term customer ties and predictable cash flows.

Negative Factors

High leverage & negative equity

Significant debt and negative shareholders' equity constrain financial flexibility and elevate refinancing and covenant risk. Even with deleveraging from earlier years, the capital structure limits strategic optionality, increases interest sensitivity, and can restrict investment during downturns.

Earnings and margin volatility

Historic swings in margins and episodic losses indicate earnings are influenced by one-offs and cycle effects, reducing predictability of profitability. This volatility complicates planning, weakens trend reliability for stakeholders, and raises execution risk for sustaining recent gains.

Cyclicality of aircraft demand

New aircraft sales depend on the business aviation cycle and customer financing; downturns or tighter credit can sharply reduce deliveries and order rates. Because a large revenue component is delivery-based, the company remains exposed to structural swings despite more stable aftermarket revenue.

Bombardier Business Overview & Revenue Model

Company Description

Bombardier Inc. engages in the manufacture and sale of business aircraft in Europe, North America, the Asia Pacific, and internationally. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, smart services, service centers, 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 headquartered in Dorval, Canada.

How the Company Makes Money

Bombardier primarily generates revenue through the sale of aircraft and rail transport equipment, along with after-sales services and maintenance contracts. The aerospace division earns income from the manufacturing and delivery of business jets and regional aircraft, with significant contributions coming from high-margin aftermarket services, including spare parts and maintenance. In the transportation sector, Bombardier makes money by selling rail vehicles and systems, as well as providing ongoing support and service contracts. Key partnerships with governments and private sector clients for infrastructure projects also enhance its income stream. Additionally, the company may benefit from strategic alliances and joint ventures that expand its market reach and innovation capabilities.

Bombardier Financial Statement Overview

Summary

Income statement and cash flow show a material turnaround (revenue growth into 2025, EBIT rising to 1.107B, and operating cash flow up to 1.225B with 1.071B free cash flow). However, the balance sheet is a major constraint with high debt (~5.15B) and persistently negative shareholders’ equity (-0.889B), keeping financial risk elevated.

Income Statement

Operations have improved materially versus 2020–2022: revenue grew steadily into 2025 (annual growth of ~6.5% in 2025 and ~7.7% in 2024) and profitability strengthened with EBIT rising from 471M (2022) to 1.107B (2025). Net income also accelerated to 928M in 2025 from 370M in 2024. Offsetting this, margins have shown some variability over the cycle (including losses in 2020 and 2022), and the 2021 profit appears unusually high relative to the rest of the series, suggesting earnings volatility/non-recurring impacts.

Balance Sheet

Leverage remains a key overhang: total debt is still high at ~5.15B in 2025, and while it has come down meaningfully from ~10.29B in 2020, the capital structure is constrained by persistently negative shareholders’ equity (improving to -0.889B in 2025 from -1.99B in 2024 and -9.31B in 2020). Total assets are relatively stable (~13.6B in 2025), but the negative equity position limits financial flexibility and increases balance-sheet risk despite the deleveraging trend.

Cash Flow

Cash generation strengthened significantly in the most recent year: operating cash flow increased to 1.225B in 2025 from 0.386B in 2024, and free cash flow improved to 1.071B (up sharply year over year). The multi-year picture is more mixed—cash flow was negative in 2020–2021 and free cash flow declined in 2023–2024—so execution consistency is still a watch item, but 2025 reflects a clear step-up in cash performance.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.55B	8.66B	8.05B	6.91B	6.08B
Gross Profit	1.91B	1.78B	1.63B	1.26B	924.00M
EBITDA	1.75B	1.07B	933.00M	608.00M	336.00M
Net Income	928.00M	370.00M	445.00M	-148.00M	5.04B
Balance Sheet
Total Assets	13.56B	12.66B	12.37B	12.44B	12.64B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.65B	1.58B	1.30B	1.66B
Total Debt	5.15B	5.96B	6.01B	6.49B	7.25B
Total Liabilities	14.45B	14.65B	14.76B	15.23B	15.70B
Stockholders Equity	-889.00M	-1.99B	-2.39B	-2.79B	-3.06B
Cash Flow
Free Cash Flow	1.09B	220.86M	261.17M	695.66M	-517.17M
Operating Cash Flow	1.25B	385.55M	633.10M	1.04B	-284.15M
Investing Cash Flow	-192.31M	-137.09M	119.91M	-315.33M	2.46B
Financing Cash Flow	-520.96M	-193.25M	-445.10M	-1.10B	-2.92B

Bombardier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.B, the sentiment is Positive. The current price of 281.89 is above the 20-day moving average (MA) of 256.04, above the 50-day MA of 249.90, and above the 200-day MA of 186.81, indicating a bullish trend. The MACD of 8.34 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 90.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BBD.B.

Bombardier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAL	72 Outperform	C$1.40B	31.28	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$5.00B	44.38	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.B	61 Neutral	C$27.86B	21.19	―	―	6.60%	-1.71%
CAE	57 Neutral	C$13.02B	34.50	7.63%	―	9.12%	―

Bombardier Corporate Events

Bombardier Completes Turnaround as 2025 Results Beat Targets and Backlog Surges

Bombardier reported 2025 revenue of $9.55 billion, up 10% year-over-year, fueled by record services revenue, stronger defense performance, and 157 aircraft deliveries, while adjusted EBITDA rose 15% and net income surged, underscoring improved profitability. The company expanded its backlog to $17.5 billion with a unit book-to-bill of 1.4, reduced debt and improved leverage ratios, and declared its five-year turnaround plan complete as it issued 2026 guidance aimed at sustaining top-line growth, margins, and free cash flow.

Management highlighted that consistent execution since 2021 has transformed Bombardier into a more resilient, customer-centric business with a reinforced competitive position. The stronger balance sheet, robust demand across its aircraft portfolio, and expanding services and defense lines suggest enhanced financial flexibility and industry standing heading into 2026, with implications for continued deleveraging and potentially greater shareholder value over time.

The most recent analyst rating on ($TSE:BBD.B) stock is a Buy with a C$294.00 price target. To see the full list of analyst forecasts on Bombardier stock, see the TSE:BBD.B Stock Forecast page.