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.

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Bombardier Inc.

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Post by Tempo1on Jul 28, 2024 5:45pm

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Post# 36151897

NBF: 900 M$ + FCF sustainable till 2030

Note by Tempo 1: Finally, I found the trick

Q2/24 results beat; no change to guidance

Q2 results ahead of expectations

Bombardier reported Q2 results this morning that were ahead of NBF and consensus forecasts while also maintaining its full-year 2024 guidance. For more detail, see our Q2 results Flash (link to BBD Q2/24 results Flash).

Aircraft deliveries beat forecast

Jet deliveries came in at 39 in Q2, handily beating our 32 forecast (mid-size Challenger deliveries ahead of our estimate) and the 20 delivered in Q2 last year. Aftermarket, which is an important driver of long-term growth and margin expansion for Bombardier, saw revenue growth over 18% y/y in Q2, well ahead of our forecast for 8% growth. Backlog was $14.9 billion at the end of Q2, stable versus Q1 with a Q2 unit book-to-bill of 1.0x. Bombardier management indicates that demand for new jets remains healthy with notable strength in the quarter from the Middle East, Africa, and APAC.

2024 guidance unchanged

Bombardier maintained its 2024 guidance for 150-155 deliveries, $8.4-$8.6 billion in revenue with EBITDA forecasted in a range of $1.30-$1.35 billion and EBIT of $850-$900 million. We also continue to believe that Bombardier is tracking towards its 2025 targets for $1.625 billion in EBITDA and free cash flow of $900+ million. Assuming ongoing growth in the company’s aftermarket and Defense businesses, and management’s expectation that it will not need to invest in an all-new business jet program before the 2030 timeframe, we see $900 million or greater free cash flow as sustainable through the end of the decade.

Maintain OP; target increased to C$117.00

We maintain our Outperform rating on Bombardier shares and have increased our target to C$117.00 from C$114.00 previously. Our thesis on Bombardier is unchanged: we see steady progress towards the company’s 2025 financial targets underpinned by still healthy business jet end market conditions and an expectation for solid free cash flow generation through the end of the decade supported by growth in the company’s aftermarket and Defense segments.