Bombardier Inc. T.BBD.A

Quick look at F/S

[BBDB859]

Finally had a quick look at the financial statements.

We've increased our "shareholders Equity" by close to $1B from 2022/Q2. Our current S/H deficit sits at $2.1B. So according to this pattern then we should reduce our S/H deficit by another $1B in the next few years? We should have around $1B deficit by 2026. This pattern is great given where were, at around $9B deficit in Dec 2020.

My feeling is that if we can bring the LTD down by another $1.5B by the middle of 2026. We should be at close PAR/EVEN in "Shareholder Equity". At worse $500M defecit. I know that's not a lot. But given where we were at $9B in the hole in 2020, we're doing fine. This is a must given that we want achieve Investment Grade.We still won't have any equity for the B shares in 2026. But at least we'll start to get some stronger S/H Equity from 2026 on. This is going to come from both LTD reduction efforts and build up of PP&E. Some small acquisitions could help in that regard.

I also noticed that Y/Y we've increased our Inventory by close to $600M annually, and we've reduced contract liabilities by $100M. This slow reduction in C/L is in part due to the higher costs of trades and parts Inflation persisting. The other notable was that while we've increased our Inventory by $600M from Y/Y as mentioned above. So this shows us that we now know where our $600M in Inventory Investment is, for Q1 & Q2 of 2024. Finally I'm seeing things starting to balance, and make sense in these categories.

[stockitnow]

Martel made a comment that all Global 7500 that are to be delivered in 2024 are already at completion center.  That's a lot on inventory cost sitting right there. Bombardier is spending on inventory to safe guard it's delivery commitment.  If they didn't then delivery numbers would be much less. Hitting delivery target is not only great for predictable revenue generation

[BBDB859]

Hey stock. The Inventory sitting at the completion centre is great and the right place for it. Especially the expensive G7500. Our profit is in the G7500's. Hopefully the supply chain on the Engines doesn't slow down the deliveries. 

[Shamhorish]

 supply chain on the Engines!!  yes this what cause bbd to loose the C series when P&W said they are having problems with....and can only deliver one or two engin per month while they were delivering to Air bus same engins at much higher rate,,,Till Ed...air bus Ceo came on the  media to say that thhey haveover 25 engins sitting in airbus warehouse  i hope it is not the

[smush74]

If BBD still had the CSeries they would be drowning in more debt as opposed to todays BBD. It still isn't profitable and won't be at best for another couple of years, AirBus timetable. You must have missed the news of the Quebec government infusing another US$300 million and AirBus another US$900 million. As for the engines: Airbus A220: PW1500G (exclusive) Airbus A320neo: PW1100G

[vonSachsenanhal]

And let's not forget that Airbus actually paid Bombardier 591 million dollars for the remaining 49% of the C-Series just beforre COVID struck. Imagine if we hadn't got that cash to begin with!!

[johnney]

Let's not hope at all, that this may I say happen! Yes I remember and others two, for the C-Ceries engines as it was yesterday! Glta!

[Tempo1]

Some observations: I think that your comparaison is not y/y but with the dec 31 balance sheet, isn't it? Your're right to weatch closely the stock and the contracts liabilities. I look at these numbers in june 23, dec 23 and june 24.    The inventories stood at 4200 M$ in june 23 and the C/L at 3586 M$ . That tell me that these stocks are financed by the clients for 3,586M

[johnney]

Tempo1, thanks for posting this, sure makes  a difference all this! Gita!

[BBDB859]

Yes you're 100% right it was Dec. 31 2021 that I looked at for comparison. I checked the print out I made. And I wrote Y/Y. Thanks for catching that.  I'm glad you decided to break down the C/L further Temp. Now you've explained the working capital dedication a bit better too. The deposits for these orders are strong & hopefully they'll stay strong, that way we use less

[PabloLafortune]

859, I have nothing to add really. What I see is slow but sure continuous improvement of the balance sheet. They probably could have generated more cash by not choosing the growth path and by not cautiously refinancing early. They made the right decisions. Btw, Bombardier is another example of invest in management. If Martel is not 2024 Canadian CEO of the year, then I want to know who is.

[johnney]

Yes Martel saved the company! We would of been bankrupt if P.B. continued to run the company! His the only one to be blamed, if the company has reached a $10B Debt in 2020! Not all his Family but him personally! Even if Martel has made a miracle, I'd say, but some investors still remain sceptical because of their past, especially from 2010 to 2020, terrible!! Glta!

[BBDB859]

Thanks Pablo. EM definitely deserves that honor. We'll see what transpires.