Should we be looking at Bombardier (bbd.b) again?

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They seem to be on fire with considerable tailwinds, but I don’t understand the significance of their negative 580 debt to equity ratio? Insolvency? I am not the best at interpreting their balance sheet.

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Asked on March 6, 2026 8:06 am
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The debt to equity would be old wounds for sure. The negative debt to equity is just piled on losses from years of bad results, including a lot of programs they've now just gotten rid of.

Debt to EBITDA is probably the better ratio to look at and it's fairly healthy at 1.9x. The company is generating $1 billion+ in free cash flow and the debt is manageable At this point in time it's a healthy, well run business.

Backlog is growing, and overall it looks like there are a ton of tailwinds. It's a business that has kind of gone from "will they survive" to "how much can they earn"

My main concern here though is a lot of forward growth is priced in. There is upside here if they execute and if the global economy doesn't slow to a halt because of this war.

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Posted by Dan Kent
Answered on March 9, 2026 1:48 pm