Bombardier (TSE:BBD.B)
TSX:BBD.B
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Bombardier
(TSX:BBD.B)
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Rating:61Neutral
Price Target:
C$250.00
▲(5.32% Upside)
Action:ReiteratedDate: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
Cash generation rebound
A sharp increase in operating and free cash flow in 2025 demonstrates the company can generate internal funding to support operations, service the business, and invest in aftermarket capabilities. Durable FCF improves resilience versus cyclical new‑aircraft revenue and supports deleveraging over time.
Negative Factors
High leverage & negative equity
Material debt and persistently negative equity limit financial flexibility and increase refinancing and covenant risk. Even with deleveraging from prior years, elevated leverage constrains capital allocation, raises interest burden sensitivity, and reduces resilience to industry downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation rebound
A sharp increase in operating and free cash flow in 2025 demonstrates the company can generate internal funding to support operations, service the business, and invest in aftermarket capabilities. Durable FCF improves resilience versus cyclical new‑aircraft revenue and supports deleveraging over time.
Read all positive factors
Bombardier (BBD.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$23.51B
Dividend YieldN/A
Average Volume (3M)349.73K
Price to Earnings (P/E)18.1
Beta (1Y)1.87
Revenue Growth6.60%
EPS Growth-1.71%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)6.64
Shares Outstanding86,860,680
10 Day Avg. Volume339,656
30 Day Avg. Volume349,728
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)-18.91
Price to Sales (P/S)1.76
P/FCF Ratio15.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$272.03Price Target Upside14.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)7.84
Revenue Forecast (FY)C$10.08B
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 aft...
How the Company Makes Money
Bombardier primarily makes money by selling new business jets and by providing higher-margin aftermarket services over the life of those aircraft. Its main revenue stream is Aircraft sales: it markets, produces, and delivers business jets to corpo...
Bombardier Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The earnings call revealed strong achievements in securing significant aircraft orders, growth in services revenue, and improvements in the financial strategy through debt refinancing and credit rating upgrades. However, these positives were somewhat offset by the year-over-year revenue decline, ongoing supply chain challenges, and negative free cash flow. Overall, the positive aspects seem to outweigh the negative ones, but the challenges still present notable concerns.Positive Updates
Significant Aircraft Order
Bombardier secured a firm order for 50 aircraft in one transaction, which significantly contributed to the backlog jump and resulted in a unit book-to-bill ratio of 2.3.
Negative Updates
Year-over-Year Revenue Decline
Total revenues reached $2 billion, representing an 8% decline year-over-year due to delivering 3 fewer aircraft compared to last year.
Read all updates
Q2-2025 Updates
Positive
Negative
Significant Aircraft Order
Bombardier secured a firm order for 50 aircraft in one transaction, which significantly contributed to the backlog jump and resulted in a unit book-to-bill ratio of 2.3.
Read all positive updates
Company Guidance
In the second quarter of 2025, Bombardier reported strong financial performance, with revenues reaching $2 billion, featuring a notable 16% year-over-year increase in service revenues to $590 million. The company achieved a unit book-to-bill ratio of 2.3, thanks in part to a significant order for 50 aircraft, contributing to a backlog of $16.1 billion. Bombardier delivered 36 aircraft in the quarter, maintaining the same level as the previous year, and plans to deliver over 91 aircraft in the second half of the year. Adjusted EBITDA stood at $297 million, with an EBITDA margin of 14.6%. The company successfully refinanced $500 million of senior notes, reducing its average long-term debt coupon by 11 basis points, and received credit rating upgrades from S&P Global Ratings and Moody's. Bombardier anticipates generating more than $1 billion in EBITDA in the second half of the year, supported by a favorable delivery mix and strong demand for its aircraft, including the upcoming first delivery of the Global 8000.Bombardier Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
38
Negative
Cash Flow
72
Positive
| 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
Negative
237.37
Price Trends
253.88
Negative
239.91
Negative
202.23
Positive
Market Momentum
-4.99
Positive
43.70
Neutral
47.04
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 237.37 is below the 20-day moving average (MA) of 248.57, below the 50-day MA of 253.88, and above the 200-day MA of 202.23, indicating a neutral trend. The MACD of -4.99 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 47.04 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$1.17B | 18.44 | 5.52% | 0.93% | 8.84% | 131.58% | |
71 Outperform | C$4.37B | 30.51 | 8.88% | ― | 57.77% | 57.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$11.54B | 30.69 | 7.50% | ― | 9.12% | ― | |
61 Neutral | C$23.51B | 18.12 | -61.55% | ― | 6.60% | -1.71% |
* Industrials Sector Average
TSE:BBD.B
Bombardier
237.37
156.39
193.12%
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35.86
0.48
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Bombardier Corporate Events
Business Operations and StrategyFinancial Disclosures
Bombardier Completes Turnaround as 2025 Results Beat Targets and Backlog Surges
Positive
Feb 12, 2026
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 pro...
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.