Bombardier Inc. T.BBD.B

FREE CASH FLOW

[Snowey]

Negative free cash flow in Q3 was my concern. So, what about full year guidance?
I pulled out some of the quotes from the Bombardier management team in earnings call on FCF:

• “Looking at free cash flow, we had $127 million of cash usage in the quarter. This usage includes investments of $149 million in inventories and $46 million in CapEx. Our cash interest expense is $60 million and advances reduced by $33 million, simply as the result of normal order and delivery mix fluctuations.”

 

• “Turning to free cash flow, the cash profile so far this year has been right in line with our expectations. Much like Q4 2023, where we delivered almost $650 million of positive free cash flow on 56 deliveries and $482 million in aftermarket revenues, we expect even stronger cash flow generation this year as we deliver more aircraft, as well as incremental aftermarket growth. We expect the cash flow generation to be driven by a significant reversal in inventory, combined with strong EBITDA contribution and continued stable order activity.”

 

• “When we look at free cash flow for the year, Benoit, really all the guidance I can give you right now is what we’ve said so far that we expect to meet our guidance for the year. That if you look at last year relative to the first three quarters, how the fourth quarter performed, we’re expecting another strong free cash flow performance in the fourth quarter.”

 

• We expect the cash flow generation to be driven by a significant reversal in inventory, combined with strong EBITDA contribution and continued stable order activity.

 

 
Did you notice: Q4 2023 delivered $650 million of FCF, we expect better for Q4 2024.

Good luck to all

Snowey

[Shamhorish]

THANK YOU SNOWEY SO IF "Q4 2023 delivered $650 million of FCF, we expect better for Q4 2024."  THEN WHY THIS HUG DROP IN SH PRIC -7.17(-6.76%)

[Snowey]

I guess Mr. Market has no patience. Me, I trust this management team. Good luck to all Snowey