Bombardier Inc. T.BBD.B

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

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. > Bombardier: The Strongest Business Jet Buy You Ever Saw

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Post by Jacques4444on Aug 17, 2024 12:50pm

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Post# 36184251

Bombardier: The Strongest Business Jet Buy You Ever Saw

Most amazing article read recently. If you have 1 article to read, thats the one. Explaining how is the ''15 ways'' to bolster results and marging. Bombardier: The Strongest Business Jet Buy You Ever Saw (BDRAF) | Seeking Alpha My cherry picking:

Bombardier has impressively turned around with increased revenues, improved margins, and positive free cash flow, reducing debt by $4.5 billion.
The company expects stable business jet deliveries for 2025, with revenue growth to over $9 billion and EBITDA of $1.625 billion, focusing on defense sales and aftermarket services.
Growth drivers include larger body business jets, defense portfolio expansion, aftermarket sales growth, and margin improvements, aiming for a 2.0x-2.5x net leverage by 2025.
Interesting to note is that analysts are less upbeat on EBITDA with a consensus of $1.59 billion, but that would still indicate more than 15% year-on-year growth.
So, the defense market offers several hundreds of millions worth of growth opportunities, and it should be noted that those defense projects come with very strong margins for Bombardier.
Apart from that, the company is also increasing prices in excess of inflation, which should bolster results and margins.
Bombardier has also stepped away from the light business jet segment and that might have been a good decision as that market is expected to shrink by half a percent between 2019 and 2030 while the medium and large business jet market will grow by 2.8% annually.
So, the growth drivers are basically drivers that were already in play and those are a focus on larger body business jets, maturing margins on new jets, and growing the defense portfolio while the bigger aftermarket footprint will continue to add to the results.
Furthermore, with a much cleaner balance sheet, the company can also refinance at a lower interest rate compared to years ago.
I am maintaining my price target of $81 (US = 111$ Can) per share for 2025 (the only point Im not agree, like Poirier from Desjardins, I m expecting around 145$ in the next 10 months and 165$ for next september, still predict 200$ 1st Q of 2026, WHY? because I think BBD will start to offer dividend and a bigger buyback plan as soon as december 2025 or late january 2026)