Bombardier stock will come under pressure when markets reopen after the long weekend as investors react to the new threat from President Donald Trump. This comes at a time when it remains in a bear market after falling by 27% from its highest point this year.
Bombardier Inc. is executing a focused strategy in business jets, aftermarket services, and defense, driving operational turnaround and backlog growth. I reiterate a Buy rating with a 12-month price target of U$250 (C$350), reflecting confidence in management's disciplined capital deployment and vertical integration progress. Q2 saw record aftermarket revenue, improved leverage to 1.6x net debt/EBITDA, and a $21.8Bn backlog, supporting sustained multiple expansion near 14x EV/EBITDA.
Trump threatened to stop Bombardier from selling its aircraft to the US. He said the Canadian manufacturer needs to build jets in the US to win business from US customers.
Donald Trump has warned Canadian aircraft company Bombardier that it will be no longer be permitted to sell its planes in the US unless it moves its manufacturing to the country.
Trump escalated his trade dispute with Canada, saying plane maker Bombardier should build aircraft in the U.S. or lose access to the American market.
President Donald Trump said Monday that Canadian aerospace company Bombardier can no longer sell in the U.S. unless it starts making its products there. The move comes amid an escalating trade war between the two nations.
Here is how Bombardier Inc. (BDRBF) and Leonardo DRS, Inc. (DRS) have performed compared to their sector so far this year.
Here is how Bombardier Inc. (BDRBF) and Redwire Corporation (RDW) have performed compared to their sector so far this year.
Bombardier maintains a buy rating, driven by robust Q2 results and improved financial flexibility. Q2 saw revenue up 6% to $2.15B, adjusted EBITDA up 9%, and free cash flow of $228M despite lower deliveries, with backlog rising to $21.8B. BDRAF's balance sheet strength enables investments in output, Services, Defense, and potential M&A, while net leverage declined to 1.6x.
Bombardier's Global 8000 is the fastest civil aircraft since Concorde. The world's newest private jet flies just shy of the speed of sound, at Mach 0.95.
Bombardier TSE: BBD.A reported higher second-quarter revenue, profit and free cash flow, with its services business reaching a quarterly record and management pointing to continued demand for large-cabin aircraft and defense platforms.
Bombardier logged a slight decline in second-quarter profit, despite strong revenue from aftermarket service growth and soaring demand for its flagship Global 8000 jet.