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. > RBC Report

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Post by retiredcfon Dec 03, 2024 9:52am

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Post# 36342641

RBC Report

December 3, 2024

Bombardier Inc.
Enters into strategic agreement with Honeywell, pending litigation resolved

TSX: BBD.B | CAD 97.26 | Outperform | Price Target CAD 133.00

Sentiment: Positive

Our view. We view the strategic agreement announced last night between Honeywell and Bombardier as a positive as it highlights increased access to Honeywell's technology set, collaborative R&D on next-generation engines, and opens aftermarket opportunities for the current installed base. We caught up with management after the release and note there are no changes to Bombardier's 2025 guide or capex plans on account of this agreement, with focus remaining on upgrades and derivatives. Additionally, the agreement resolves all pending litigation (Bombardier was seeking ~U$330 million in damages from Honeywell over claims it overpaid for engines between 2012 and 2017 + future discounts), and while the settlement terms remain confidential, we flag Honeywell lowered its 2024 guide on investments related to the agreement. We flag that if the settlement (U$330 million) represents a cash payment it compares to Bombardier's net debt of C$4.7B and our 2024 EBITDA estimate of C$1.36B.

What happened? Honeywell last night, announced the signing of a strategic agreement with Bombardier to provide advanced technology for current and future Bombardier aircraft in avionics, propulsion and satellite communications technologies. Additionally, all legacy pending litigation between the companies has been resolved.

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