Bombardier Inc (B) (BBD.B-T)

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.

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.

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. 

The question was on Bombardier being a good company for manufacturing military equipment and are there others in this field in Canada. He is not aware of other companies in Canada and although Bombardier does have a defense component it would be affected by tariffs.

Will be impacted if tariffs come through. In the aerospace sector, she'd rather own (and does) a more diversified company like RTX.

It has been in a trading pattern and has pulled back. Tariffs could be more troubling than the troubles it has had in the past years. It should have sold off more than it has considering the risk. Otherwise it is a solid business and doing well.

The tariffs could be more troubling than their troubles in recent years. Half of each plane built includes US content. So, 25% tariffs would hurt their new orders. Is surprised shares have not pulled back more. It is a solid business, though.

The names on this list are plenty. Start with the industrials, for instance. He's a big fan of BBD.B, but they make everything here in Canada.

An aerospace name like CAE, the rails, auto components like LNR and MG.

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.

Believes fundamentals will remain sound for 2025, so makes sense to add. Not looking at an imminent recession, at least not one that will impact this name. Reasonable value here.

A win for BBD.B, half a win for HON. 

BBD.B as a standalone is a very good business, improving margins, focusing on the more predictable and sustainable after-market business. Also growing defense business. Backlog is good. Executed really well, and this can continue. Some concern about how they might be affected by tariffs, but that's overstated. 

Good chance to accumulate, but you need a 2-5 year horizon because the stock's done so well and much of the good news has been priced in.

2023 was a bottom-cup formation that broke out. It's rising, but not parabolically. Pretty healthy-looking chart. Fine on pullbacks.

Strong company that has been under owned lately. Recent quarterly earnings not as good as expected. Working capital and supply chain issues also concerning. Riskier name given lately results. Would not buy at this time. 

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.