Bombardier (BBD.B) AI Stock Analysis

• Market Cap: $16.47B
• Dividend Yield: N/A
• Average Volume (3M): 683.37K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.62
• Revenue Growth: 6.69%
• EPS Growth: 64.89%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.53
• Shares Outstanding: 87,872,910
• 10 Day Avg. Volume: 485,711
• 30 Day Avg. Volume: 683,371
• 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: 1.15
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 10.78
• Enterprise Value/Ebitda: 14.97
• 1Y Price Target: $173.55
• Price Target Upside: 5.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: C$178.00 ▲(8.27% Upside)

Bombardier's overall stock score is driven by strong technical indicators and positive earnings call sentiment, despite financial leverage concerns. The company's ability to secure large orders and improve credit ratings supports a positive outlook, though challenges in revenue growth and high debt levels remain significant risks.

Positive Factors

Aftermarket Revenues

F2024 aftermarket revenues at $2,036m (+16.5% y/y) exceeded management target of $2.0b a year ahead of plan.

Earnings and Cash Flow

A combination of improving end market demand post pandemic, cost restructuring program, maturing production rate on Global 7500 aircraft program, alongside deleveraging and lowered interest costs will support significant improvement in earnings and cash flow.

Negative Factors

Supply Chain Challenges

Supply chain remains challenged, particularly in terms of engine deliveries.

Tariff Risks

Tariff risk remains top of mind for investors.

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 generates revenue primarily through the sale of business aircraft and rail transport solutions. The Business Aircraft segment contributes significantly to the company's earnings by selling both new aircraft and offering aftermarket services, including maintenance, repairs, and parts sales to existing customers. In the Transportation segment, Bombardier earns revenue through the design, manufacturing, and servicing of rail vehicles and systems, often through long-term contracts with governments and transit authorities. The company also benefits from strategic partnerships and joint ventures with other firms in the aerospace and rail industries, enhancing its market reach and operational capabilities. Additionally, Bombardier's focus on innovation, particularly in electric and hybrid technologies for both aviation and rail, positions it well for future growth and revenue opportunities.

Bombardier Financial Statement Overview

Summary

Bombardier's financial performance is characterized by strong revenue growth and improving profitability metrics, but it faces challenges with high leverage and negative equity, presenting risks to financial stability. Positive cash flow trends indicate improved cash management despite some volatility.

Income Statement

Bombardier's income statement shows a strong Gross Profit Margin of approximately 20.1% and an improving Net Profit Margin of 3.4% in the TTM period. The company has demonstrated consistent revenue growth over the past few years, with a notable increase from $6.91 billion in 2022 to $8.91 billion in the TTM. EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency. However, net income has fluctuated, highlighting some volatility in bottom-line performance.

Balance Sheet

The balance sheet reveals a high leverage situation with a negative stockholders' equity of approximately $-1.94 billion and a substantial total debt of $5.25 billion. The Debt-to-Equity Ratio is not meaningful due to negative equity, but the trend shows efforts in reducing debt levels. The Equity Ratio remains negative due to the persistent negative equity, posing a risk to financial stability. Despite these challenges, the company has managed to maintain a stable asset base.

Cash Flow

Operating cash flow has improved significantly to $477 million in the TTM, with a steady increase in free cash flow, reaching $315 million. This reflects better cash management and operational efficiency. The Operating Cash Flow to Net Income Ratio indicates strong cash generation relative to reported net income. Despite these improvements, fluctuations in free cash flow growth suggest some volatility in cash generation capabilities.

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	1.76B	1.78B	1.63B	1.26B	924.00M	516.00M
EBITDA	1.26B	1.17B	933.00M	722.00M	635.00M	87.00M
Net Income	463.00M	370.00M	445.00M	-128.00M	-249.00M	-170.00M
Balance Sheet
Total Assets	12.86B	12.67B	12.46B	12.32B	12.76B	23.09B
Cash, Cash Equivalents and Short-Term Investments	881.00M	1.68B	1.69B	1.76B	1.75B	2.68B
Total Debt	5.26B	5.54B	5.61B	5.98B	7.05B	10.07B
Total Liabilities	14.50B	14.66B	14.86B	15.09B	15.85B	29.75B
Stockholders Equity	-1.63B	-1.99B	-2.40B	-2.76B	-3.09B	-9.32B
Cash Flow
Free Cash Flow	218.00M	232.00M	257.00M	717.00M	95.00M	-3.19B
Operating Cash Flow	380.00M	405.00M	623.00M	1.07B	332.00M	-2.82B
Investing Cash Flow	-165.00M	-144.00M	118.00M	-304.00M	-89.00M	967.00M
Financing Cash Flow	-418.00M	-203.00M	-438.00M	-1.13B	-3.21B	1.71B

Bombardier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 164.41 is above the 20-day moving average (MA) of 162.85, above the 50-day MA of 135.06, and above the 200-day MA of 101.90, indicating a bullish trend. The MACD of 7.85 indicates Positive momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 89.05 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
BBD.B	67 Neutral	$16.47B	26.07	-18.58%	―	6.69%	64.89%
Sector *	62 Neutral	C$7.21B	-0.69	-4.20%	2.35%	10.95%	-26.96%
CAE	―	$9.17B	31.55	8.87%	―	―	―
MDA	73 Outperform	C$5.25B	44.67	9.64%	―	57.21%	136.79%
MAL	70 Outperform	C$974.21M	24.36	5.12%	0.73%	8.59%	242.80%

Bombardier Corporate Events

Bombardier’s Strong Q2 Performance Bolsters Market Position

Bombardier reported its financial results for the second quarter of 2025, highlighting a significant increase in its order backlog to $16.1 billion, marking the highest business jet unit order volume in over a decade. The company delivered 36 aircraft and saw a 16% year-over-year increase in services revenue, supporting its trajectory to meet full-year guidance. A credit rating upgrade and strategic expansions in service infrastructure, including new facilities in Abu Dhabi and the UK, underscore Bombardier’s robust market positioning and growth potential.

The most recent analyst rating on ($TSE:BBD.B) stock is a Buy with a C$129.00 price target. To see the full list of analyst forecasts on Bombardier stock, see the TSE:BBD.B Stock Forecast page.