This investor loves Bombardier right now

Barometer Capital Management CEO and CIO David Burrows says Bombardier (Bombardier Stock Quote, Chart, News, Analysts, Financials TSXV:BBD.B) is no longer a turnaround story, but a business jet leader with improving fundamentals and potential catalysts ahead.

Speaking on BNN Bloomberg’s Market Call on June 3, Burrows said Bombardier is operating in a strong industry and has already done the work of simplifying its business and repairing its balance sheet.

“We don’t like to buy turnaround situations,” Burrows said. “We like to buy companies that are good, getting better, where there are catalysts for positive change. They already went through a period where they paid down debt and became really a pure-play business jet leader.”

Burrows said Bombardier now has a strong balance sheet, rising jet deliveries, expanding margins and optionality for future growth.

“Their businesses really are lifting,” he said. “Jet delivery growth is strong. Their margins are expanding. They have a lot of optionality given their strong balance sheet.”

Burrows pointed to Bombardier’s order momentum, noting that its book-to-bill ratio reached 3.6 times, meaning the company received $3.60 in new orders for every dollar delivered. He said the company’s new order book grew 43% over the past year, while services revenue rose 25% year-over-year.

“They’re going to generate a billion dollars in cash in 2026,” he said. “So they’re winning.”

Burrows said future catalysts could include a potential NATO order for 10 to 12 GlobalEye aircraft, used for airborne early warning. He said Bombardier has already received an order from the Government of Canada for the same aircraft.

“We think there are a lot of things that can add to the story as we go along, and the multiple can continue to expand alongside it,” he said.

-30-