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Bombardier (TSE:BBD.B)
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Bombardier (BBD.B) AI Stock Analysis

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TSE:BBD.B

Bombardier

(OTC:BBD.B)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
C$350.00
▼(-4.43% Downside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving fundamentals and strong recent cash generation, which support the deleveraging story. The biggest offset is elevated balance-sheet risk from negative equity, which limits flexibility despite debt reduction. Technically, longer-term momentum looks constructive but near-term price action is softer versus the 20-day average, and valuation is less attractive with a ~26.9 P/E and no dividend yield data.
Positive Factors
Strong cash generation
TTM operating cash flow and free cash flow have risen materially, providing durable internal funding for operations, capex, and debt reduction. Sustained FCF near net income improves financial flexibility, supports deleveraging efforts and funds recurring service investments over multiple quarters.
Negative Factors
Negative equity
Negative shareholders' equity is a structural constraint that limits financial flexibility, complicates capital allocation and makes returns metrics misleading. It raises recapitalization risk, can pressure credit terms and reduces the company's ability to pursue opportunistic investments or M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
TTM operating cash flow and free cash flow have risen materially, providing durable internal funding for operations, capex, and debt reduction. Sustained FCF near net income improves financial flexibility, supports deleveraging efforts and funds recurring service investments over multiple quarters.
Read all positive factors

Bombardier (BBD.B) vs. iShares MSCI Canada ETF (EWC)

Bombardier Business Overview & Revenue Model

Company Description
Bombardier Inc. is a global aerospace company primarily involved in the design, production, and distribution of business jets. Its operational reach extends across Europe, North America, the Asia Pacific region, and other international territories...
How the Company Makes Money
Bombardier primarily makes money through two major sources: (1) selling business aircraft and (2) providing higher-frequency aftermarket services over the life of those aircraft. Aircraft revenue is generated when Bombardier delivers newly manufac...

Bombardier Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
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% Change Since: |
Next Earnings Date:Nov 05, 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
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
Operating results and cash generation are improving, but balance-sheet risk is significant. Income statement strength (Score 74) is supported by higher revenue (9.6B in 2025; 9.7B TTM) and solid TTM margins (gross ~19.5%, operating ~12.1%, net ~9.7%). Cash flow is a major positive (Score 81) with very strong TTM operating cash flow (2.45B) and free cash flow (2.21B). Offsetting this, the balance sheet is the main constraint (Score 34) due to negative equity (TTM -0.65B) despite debt reduction to ~4.05B TTM.
Income Statement
74
Positive
Balance Sheet
34
Negative
Cash Flow
81
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.72B9.55B8.66B8.05B6.91B6.08B
Gross Profit1.88B1.91B1.78B1.63B1.26B924.00M
EBITDA1.53B1.75B864.24M1.04B405.23M397.35M
Net Income933.13M928.00M370.00M445.00M-148.00M5.04B
Balance Sheet
Total Assets14.15B13.56B12.66B12.37B12.44B12.64B
Cash, Cash Equivalents and Short-Term Investments1.57B2.25B1.65B1.58B1.30B1.66B
Total Debt4.05B5.15B5.96B6.01B6.49B7.25B
Total Liabilities14.80B14.45B14.65B14.76B15.23B15.70B
Stockholders Equity-651.00M-889.00M-1.99B-2.39B-2.79B-3.06B
Cash Flow
Free Cash Flow2.21B1.09B220.86M261.17M695.66M-517.17M
Operating Cash Flow2.45B1.25B385.55M633.10M1.04B-284.15M
Investing Cash Flow-296.54M-192.31M-137.09M119.91M-315.33M2.46B
Financing Cash Flow-1.33B-520.96M-193.25M-445.10M-1.10B-2.92B

Bombardier Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
C$1.98B43.665.48%0.57%10.42%12.81%
64
Neutral
C$6.88B51.137.24%42.91%2.84%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
C$33.56B30.69-93.00%10.95%111.91%
58
Neutral
C$11.63B36.906.12%4.38%-23.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BBD.B
Bombardier
341.25
175.24
105.56%
TSE:CAE
CAE
37.93
-1.69
-4.27%
TSE:MAL
Magellan Aerospace
40.36
23.57
140.40%
TSE:MDA
MDA Space Ltd
48.22
6.15
14.62%
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: Jul 31, 2026