Last few daysBombardier stock climbed after good pre q numbers. Actual was close to pre q, dont know if some investors thought the actual would be much more better and thats why sp fell.
Bombardier delivered 3 more airplanes then target. So that 3 extra came from 2023 numbers. 2023 target is still higher then 2022 but less then previous 2023 target. Did that cause the sp to go down? Keep in mind there is more deliveries in 2023 in tough economic time. And backlog grew more tben before.
Debt has been coming down and Bombardier is very aggressive on paying it down. They have demonstrated the ability to pay debt. This should improve Bombardier rating. Besides Pearson and minor R&D on global 8000 there isn't any major cash burn issues.
Aftermarket sales is still booming and will continue to grow as Bombardier new jet numbers grow in service.
Maybe there was big expectation on military side but to me this is not a big cash generator and industry and market knows it. Bombardier is limited in this market and only providing airframer to 2nd party to stuff it with technology for surveillance, SAR etc. The former Learjet site is mostly airframe mods for all the military jets external sensors etc. and retro/maintenance work on existing fleet.
There was no red flag, no cash burn that needed explanation. Cost of Pearson going up is understandable due to inflation. And all new tech is going in the site which will improve productivity.
While Bombardier is set for takeoff, all the baggage from previous failures are weighing it down. Bombardier needs to lighten the load by paying more debt off, and by 2025 will have enough paid down for nice sp takeoff.