Bombardier reports strong Q4 earnings but defers providing outlook

Published 06/02/2025, 13:24
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Investing.com -- Bombardier (OTC:BDRBF) reported fourth-quarter earnings, which surpassed market expectations. BBD reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $513 million, topping the consensus estimate of $508 million. EBITDA margins were also higher than anticipated, coming in at 16.5% compared to the expected 15.9%.

Despite delivering fewer units than projected, with 57 deliveries against the consensus of 61, the company’s revenue reached $3.1 billion. Free cash flow (FCF) was another highlight, reported at $814 million, exceeding the consensus forecast of $759 million. The order backlog remained relatively stable at $14.4 billion, reflecting a balanced demand environment with a book-to-bill ratio of 1.0x.

RBC analysts commented on the results, highlighting the company’s decision to delay providing guidance for 2025 due to the current uncertain trade environment. The analyst stated, "Key for us from Q4 results was that management elected to defer providing 2025 guidance until it ’has had the opportunity to further assess the direct and indirect impacts to its business of such tariffs, retaliatory tariffs or other trade protectionist measures implemented as this situation develops’.

While we view this as prudent given the uncertain backdrop, we believe the uncertainty will negatively weigh on sentiment until more clarity is provided. Important though is that unit book-to-bill came in at 1x and the backlog remained stable YoY at $14.4B suggesting demand is strong absent the risk of tariffs (in line with commentary from GD last week).

Turning to the Q4 results, they looked good with EBITDA and FCF coming in above consensus (details below) but which we view as less impactful to sentiment."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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