Bombardier on Thursday reported positive free cash flow for the second quarter, reversing its cash burn a year earlier, as strong demand for flying in private jets helped the Canadian business planemaker expand its order backlog.
Bombardier Inc. is rated Buy, with a 12% upside to a $262 price target, driven by operational focus and cash flow improvements. BDRAF growth is underpinned by higher-margin aircraft mix, expanding services, defense opportunities, and significant deleveraging, with margins expected to reach 17.5% by 2028. Free cash flow is set to consistently exceed $1 billion, enabling share repurchases and potential dividends as net debt leverage drops below 1x by 2028.
Bombardier Inc. (BBD.B:CA) Shareholder/Analyst Call Prepared Remarks Transcript
Bombardier maintains a Buy rating, supported by robust free cash flow and a successful turnaround driving deleveraging. Q1 2026 revenues rose 5% to $1.6B, with services up 25% and free cash flow guidance upgraded to over $1B for 2026. A $20.3B backlog, streamlined cash collection, and defense/services expansion underpin stable growth and future shareholder returns.
Eric Martel is navigating the Canadian jet maker through some turbulence to seize on the next leg of growth in the booming defense market.
Bombardier (BBD.B:CA) remains attractive with a $215.57 price target, implying 16% upside and a buy rating despite macroeconomic headwinds. Supply chain fragility and cost inflation present risks, but BBD.B:CA's backlog supports deliveries into 2028-2029, with growth tapering yet stable. Analyst estimates for revenue, EBITDA, and free cash flow have seen minimal downward revision, reflecting resilience in BBD.B:CA's financial outlook.
Bombardier: A Buy As The Free Cash Flow Flywheel Accelerates
Bombardier Inc. (BBD.B:CA) Q4 2025 Earnings Call Transcript
Bombardier has surged 36.7%, surpassing my price target and prompting a downgrade from 'Strong Buy' to 'Buy.' Valuation risk is rising as BDRAF now trades near its median EV/EBITDA multiple, with further upside hinging on multiple expansion. Q4 2025 is expected to show strong revenue and margin growth, supported by a favorable delivery mix and prudent debt management.
Bombardier has outperformed the S&P 500, exceeding my price target, and remains a strong buy after robust Q3 2025 results. BDRAF's growth drivers include strong demand for large cabin jets, expanding services, defense opportunities, and proactive debt reduction, enhancing free cash flow. Despite modest sales growth, operating leverage and efficiency improvements are driving higher EBITDA margins, with leverage expected to drop below 1x by 2027.
Bombardier Inc. ( BBD.B:CA ) Q3 2025 Earnings Call November 6, 2025 8:00 AM EST Company Participants Francis Richer de La Fleche - Vice President of Financial Planning & Investor Relations Eric Martel - President, CEO & Director Bart Demosky - Executive VP & CFO Conference Call Participants Tim James - TD Cowen, Research Division Myles Walton - Wolfe Research, LLC Benoit Poirier - Desjardins Securities Inc., Research Division Gavin Parsons - UBS Investment Bank, Research Division Cameron Doerksen - National Bank Financial, Inc., Research Division Jordan Lyonnais - BofA Securities, Research Division Alexander Ladd - JPMorgan Chase & Co, Research Division Noah Poponak - Goldman Sachs Group, Inc., Research Division Presentation Operator Good morning, ladies and gentlemen, and welcome to the Bombardier's Third Quarter 2025 Earnings Conference Call. Please be advised that this call is being recorded.
Bombardier stock has outperformed, but near-term upside is limited after reaching my previous price target; I now rate it a "Buy," not "Strong Buy." Despite recent sales and margin declines, strong services growth, inventory build, and the Global 8000 launch support future cash flow and margin recovery. Major new orders, defense opportunities, and services expansion position Bombardier for long-term growth, while debt refinancing improves financial flexibility.