Bombardier (BBD.B) AI Stock Analysis

• Market Cap: $21.34B
• Dividend Yield: N/A
• Average Volume (3M): 342.08K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.62
• Revenue Growth: 6.60%
• EPS Growth: -1.71%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.69
• Shares Outstanding: 88,062,390
• 10 Day Avg. Volume: 415,444
• 30 Day Avg. Volume: 342,085
• PEG Ratio: -0.63
• Price to Book (P/B): -3.36
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 28.86
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 15.20
• Enterprise Value/Ebitda: 21.43
• 1Y Price Target: $223.41
• Price Target Upside: 4.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 8.88
• Revenue Forecast (FY): $13.14B

• Rating: 66 Neutral
• Price Target: C$234.00 ▲(9.96% Upside)

Bombardier's overall stock score reflects a balance of strong earnings call outcomes and positive technical indicators against financial challenges and high valuation. The company's ability to secure significant orders and improve financial strategy is promising, but high leverage and revenue decline pose risks.

Positive Factors

Strong Services Revenue Growth

The significant growth in services revenue indicates a robust demand for Bombardier's aftermarket services, which are high-margin and provide a stable income stream, enhancing long-term profitability and financial stability.

Growing Backlog

A growing backlog reflects strong future demand and revenue visibility, allowing Bombardier to plan production efficiently and maintain operational stability over the coming years.

Debt Refinancing and Credit Rating Upgrades

Refinancing debt at lower interest rates and receiving credit rating upgrades improve Bombardier's financial health, reducing interest expenses and enhancing creditworthiness, which supports long-term financial sustainability.

Negative Factors

Year-over-Year Revenue Decline

A decline in year-over-year revenue suggests challenges in maintaining sales growth, which could affect Bombardier's market position and financial performance if not addressed.

Supply Chain Challenges

Ongoing supply chain disruptions can lead to increased costs and operational inefficiencies, potentially affecting Bombardier's ability to meet demand and maintain profitability.

Free Cash Flow Usage

Negative free cash flow indicates challenges in cash generation, which could limit Bombardier's ability to invest in growth opportunities and manage debt effectively, impacting long-term financial flexibility.

Bombardier Business Overview & Revenue Model

Company Description

Bombardier Inc. (BBD.B) is a global leader in the aerospace and transportation sectors, headquartered in Montreal, Canada. The company operates through two main divisions: Bombardier Aerospace and Bombardier Transportation. Bombardier Aerospace manufactures business jets, regional jets, and specialized aircraft, while Bombardier Transportation focuses on rail transport, providing products such as trains, signaling systems, and services for urban and intercity transit solutions. The company's commitment to innovation and sustainability is evident in its advanced technology and design capabilities, catering to a diverse clientele worldwide.

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

Bombardier's financial statements reflect challenges in revenue growth and financial leverage. Improvements in profitability margins are offset by high debt levels and negative equity, posing significant risks. Cash flow generation is concerning, though there is some ability to convert earnings into cash.

Income Statement

Bombardier's income statement shows a mixed performance. The company has maintained a positive gross profit margin, but it has slightly decreased from the previous year. The net profit margin has improved, indicating better cost management. However, the revenue growth rate has turned negative in the TTM period, suggesting challenges in sales growth. EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio due to negative equity. This poses a risk to financial stability. Return on equity is negative, indicating challenges in generating returns for shareholders. The equity ratio is also negative, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to earnings. However, the free cash flow to net income ratio is relatively healthy, indicating some ability to convert earnings into cash.

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	1.75B	1.78B	1.63B	1.26B	924.00M	516.00M
EBITDA	1.24B	1.07B	933.00M	608.00M	336.00M	-92.00M
Net Income	463.00M	370.00M	445.00M	-148.00M	5.04B	-868.00M
Balance Sheet
Total Assets	12.84B	12.66B	12.37B	12.44B	12.64B	23.04B
Cash, Cash Equivalents and Short-Term Investments	809.27M	1.65B	1.58B	1.30B	1.66B	1.78B
Total Debt	5.68B	5.96B	6.01B	6.49B	7.25B	10.29B
Total Liabilities	14.47B	14.65B	14.76B	15.23B	15.70B	29.69B
Stockholders Equity	-1.63B	-1.99B	-2.39B	-2.79B	-3.06B	-9.31B
Cash Flow
Free Cash Flow	173.42M	220.86M	261.17M	695.66M	-517.17M	-3.35B
Operating Cash Flow	335.08M	385.55M	633.10M	1.04B	-284.15M	-2.96B
Investing Cash Flow	-164.50M	-137.09M	119.91M	-315.33M	2.46B	1.42B
Financing Cash Flow	-414.02M	-193.25M	-445.10M	-1.10B	-2.92B	1.39B

Bombardier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 212.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 212.8 is above the 20-day moving average (MA) of 201.73, above the 50-day MA of 193.03, and above the 200-day MA of 132.68, indicating a bullish trend. The MACD of 5.94 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 74.43 is Neutral, 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
CAE	69 Neutral	C$11.74B	26.80	9.00%	―	9.12%	―
MDA	69 Neutral	C$3.28B	27.54	8.88%	―	57.77%	57.55%
MAL	67 Neutral	C$967.93M	25.52	5.64%	0.88%	8.84%	131.58%
BBD.B	66 Neutral	$21.34B	36.33	―	―	6.60%	-1.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Bombardier Corporate Events

Bombardier Reports Strong Q3 2025 Financial Growth

Bombardier Inc., a leading manufacturer of business jets, has reported robust financial results for the third quarter of 2025, showcasing significant growth in several key areas. The company, known for its innovative aircraft designs and strong service network, continues to expand its footprint in the aerospace industry.

Bombardier’s Q3 2025: Strong Growth and Strategic Expansion

Bombardier reported strong financial results for the third quarter of 2025, with an 11% increase in revenues to $2.3 billion and a significant rise in services revenue and aircraft deliveries. The company achieved a 16% increase in adjusted EBITDA and a substantial improvement in free cash flow, highlighting robust demand and efficient operations. Bombardier’s backlog reached $16.6 billion, and the company is on track to meet its full-year guidance, with notable growth in its service network and defense deliveries. The recent certification of the Global 8000 business jet further strengthens its industry position.

The most recent analyst rating on ($TSE:BBD.B) stock is a Hold with a C$204.00 price target. To see the full list of analyst forecasts on Bombardier stock, see the TSE:BBD.B Stock Forecast page.