Stock price when the opinion was issued
In his momentum mandate. Best planes out there in medium- and long-range heavy aircraft. Sells to the rich, who keep getting richer, so there's an appetite for their planes. Sold off, probably due to fears of tariff vulnerability. Lots of manufacturing in Canada, though most customers are in US.
Order backlog is good. Supply chains problems are being ironed out. Executing very well. Going after defense and maintenance markets. Good cashflow and de-leveraging to support the shares.
Very focused on a single segment, private aviation. Increasingly, more revenues are coming from after-market parts and service. Bigger addressable market opportunities with the bigger installed base of its planes.
Growing opportunity in small, but high-margin, segment where they adapt a plane's chassis to reconnaissance planes of NATO allies. Deleveraging, big free cashflow. No dividend.
Continues to be an accretive growth story with deleveraging. Tariff noise was unexpected. Still, showing solid execution. Forward 2025 guidance appears achievable. Impressive ability to improve margins. Not expensive at 11x PE for 2026, growing at 17%. Not for the faint of heart.
Demand is off the charts. Bump in the road right now is about tariffs on parts, steel, aluminum. Much different business than before. Generating lots of free cash, balance sheet improving rapidly. Manufacturing is a tough business, and he'd rather a segment with more certainty with a stock like TDG.
The new managers look intriguing after improving operations and the balance sheet as they lower high debt levels. Business sales are strong. So they plan to diversify away from business jets into after-market services. But BBD is so volatile. Buy on a downswing.