Bombardier Inc. T.BBD.A

What is wrong with the margin ?

[Tempo1]

The target for 2025 (all year) is a 18% margin for adjusted EBITDA. 

We are at 15,5% for the two first quarters, down slightly Y/Y from 15,6%. 

There is a long road to be at 18%. 

Management could have explanations and confidence but it is clearly challenging. Balance that with the Spirit file :  What will be the additional supply costs for the parts from Spirit ?  Don't expect that all will be the same as before for that supplier. 

Markets are pitiless, These stellar results had some parts of shadow. Market focus on them.

[BBDB859]

Temp, the rise in costs for parts is indicative of what's happening world wide, Parts inflation, hasn't come down  Labor isn't either. Especially in industries that are going strong like BJ's. There is a learning curve as well for the newer designs. But I'm confident that they'll be able to reach the 18% next year. It'll happen partially because of the OE reduction

[PabloLafortune]

Adjusted for the loss on LTD redemption, results are similar to LY.  I don't see much profit "catch up" that has to miraculously happen in the 2nd half. A very little disappointment but nowadays, that's all it takes. Spirit also creates some unwanted uncertainty for investors.

[BBDB859]

Hey Pablo. Have you had a chance to read the FS? I haven't even looked yet? Except the 1 pager they gave us with the call this morning. Is something unusual going on? I know you posted something earlier.

[PabloLafortune]

Hey 859, numbers seem solid, balance sheet getting a little cleaner each successive quarter.  Only negative to me is the big expense on refinancing LTD not sure I understand what happened there. One time thing. I have to say, Martel is doing an awesome job. We all know the swampco he inherited and has and continues to clean up yet he has the foresight to pursue expansion and growth at the

[BBDB859]

Thanks Pablo. Sorry I've had some fires to put out today, I'll get to reading them on the weekend. Thanks for this. I just got too shakes to check posts. it's great that the FS are solid, and getting cleaned up Quarterly. I'll check out that expense you're referring to on the LTD. We were lucky with Martel to get someone with BJ experience. I'm glad Hydro got him first. PB