Bombardier (BBD.B) AI Stock Analysis

• Market Cap: $23.32B
• Dividend Yield: N/A
• Average Volume (3M): 321.96K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.81
• Revenue Growth: 6.60%
• EPS Growth: -1.71%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.65
• Shares Outstanding: 88,053,215
• 10 Day Avg. Volume: 453,082
• 30 Day Avg. Volume: 321,965
• PEG Ratio: -0.64
• Price to Book (P/B): -3.36
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 30.31
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 12.14
• Enterprise Value/Ebitda: 17.38
• 1Y Price Target: $264.33
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 10.38
• Revenue Forecast (FY): $13.30B

• Rating: 62 Neutral
• Price Target: C$282.00 ▲(21.23% Upside)

Bombardier's overall stock score is driven by strong revenue growth and profitability, despite high leverage and negative equity concerns. The technical analysis shows a positive trend, but the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue growth trend

Sustained revenue growth at ~12.65% TTM indicates expanding market penetration across aerospace and transportation. Over 2-6 months this underpins capacity to invest in product development, scale aftermarket services, and absorb sector cyclicality while supporting long-term top-line momentum.

Margin sustainability

Healthy gross and operating margins (EBIT ~11%, EBITDA ~14%) point to durable operational efficiency and pricing power. These margins support reinvestment in R&D and services, help absorb raw material or labor cost swings, and enhance long-term profitability resilience.

Improved free cash flow generation

A near 200% improvement in free cash flow TTM signals stronger cash conversion from operations. Structurally better FCF supports deleveraging, funds capex and aftermarket investments, and reduces reliance on external financing over the medium term, strengthening financial flexibility.

Negative Factors

High leverage and negative equity

Negative shareholders' equity and a debt-to-equity of -3.48 reflect a stretched capital structure. This constrains strategic flexibility, raises refinancing and covenant risk, and can increase cost of capital, impairing the company's ability to fund long-term initiatives without restructuring.

Cash flow volatility

Documented volatility in cash flows undermines predictability of funding for operations and capex. Over months this can force precautionary liquidity measures, hamper steady debt reduction, and complicate long-term planning for large aerospace and rail project cycles.

Earnings volatility history

Prior fluctuations in net income suggest exposure to cyclical project timing, warranty or aftermarket swings, and demand variability. Persistent earnings variability can weaken stakeholder confidence, make multi-year planning harder, and increase sensitivity to downturns in core markets.

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

Bombardier shows strong revenue growth and profitability in the income statement, but faces challenges with high leverage and negative equity in the balance sheet. The cash flow statement indicates improvement, but historical volatility remains a concern. The company needs to focus on strengthening its financial position to ensure long-term stability and growth.

Income Statement

Bombardier's income statement shows a strong revenue growth rate of 12.65% TTM, indicating robust sales performance. The gross profit margin of 20.08% and net profit margin of 5.30% TTM are healthy, reflecting effective cost management and profitability. EBIT and EBITDA margins are also solid at 11.01% and 14.24% respectively, suggesting efficient operations. However, the company has experienced fluctuating net income in previous years, which could pose a risk to consistent profitability.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio of -3.48 TTM, indicating high leverage and potential financial risk. The negative stockholders' equity suggests financial instability, although the company has managed to improve its return on equity from previous years. The equity ratio is also negative, highlighting the need for improved financial health and capital structure.

Cash Flow

Bombardier's cash flow statement shows a significant improvement in free cash flow growth of 199.17% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.06 and free cash flow to net income ratio of 0.52 suggest moderate cash flow efficiency. However, historical volatility in cash flow metrics indicates potential challenges in maintaining consistent cash flow performance.

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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 232.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 232.61 is below the 20-day moving average (MA) of 252.66, below the 50-day MA of 237.59, and above the 200-day MA of 170.60, indicating a neutral trend. The MACD of 3.14 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BBD.B.

Bombardier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAE	72 Outperform	C$14.03B	32.04	9.00%	―	9.12%	―
MAL	72 Outperform	C$1.19B	26.58	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$4.85B	43.13	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.B	62 Neutral	$23.32B	39.71	―	―	6.60%	-1.71%

Bombardier Corporate Events

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.