Bombardier Inc. T.BBD.A

Alternate Symbol(s): BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Industrials Aerospace & Defense

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.

TSX:BBD.A - Post by User

Bombardier Inc. > The turnaround

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Comment by bicenteon Jan 17, 2022 2:06pm

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Post# 34325318

RE:RE:RE:RE:RE:RE:The turnaround

you're still replying to Johnney ??? ... it like talking to your cat ... GLTA

clubhouse19 wrote: Good realistic description of what is to come in the next few years...
But hey..why care ?? you might not be here tomorrow as Johnney with the rose colored glasses would say LOL

thelostarc wrote: Many businesses are resilient market cycles. Unfortunately, Bombardier is not one of them. As a long term shareholder, I have to candidly admit that the company and sector is sensitive to economic swings. However, the rich are getting richer and ultimately, they are the end costumer of Bombardier's products. Furthermore, what is the average age of business jets in the sky, what is the distribution around that average? If it's normal, tight and with a mean of 10+ years, then the maintenance business will be good to go regardless of the aircraft production business.

Bombardier will be a two business company: the first a leading business jet design and manufacturing house and the second a stable aircraft maintenance operation. When this seperation occurs on paper (say full segment reporting), sum of the parts analysis will take the stock much higher, but also give the company stability int erms of cash flows.

We will get through 2022, have no doubt! Another 130 aircraft deliveries and ~$2Bn of service revenue. We will also start reducing the debt load, which despite being extended, still presents crosswinds to an otherwise smooth flight!

2023 and 2024, we should be delivering 130-150 jets per year, again with service revenue circa $2Bn and growing. We should be reaching a full year of free cash flow this year. I expect 2022 FCF to be $300MM, given the majority of CAPEX for the G7500 and the Mississauga/Pearson plant is behind us.

What does all this mean for the stock? Sure, $8 by the end of 2024 doesn't seem like an unreasonable bull case! Though my base case remains at $6 by 2025.