DUAVF - Bombardier Sees Aftermarket Recovery And Margin Improvements

• Deliveries aren't rocketing, likely due to Russia troubles, but the backlog is at least growing now.
• Aftermarket making a recovery now that mobility is restoring, and this has improved the margin profile.
• The 7500 line is continuing to benefit from substantial learning economies, although they are naturally decelerating.
• Pricing environment is pretty good due to low availability, and the company should see strong margins throughout the year even once deliveries grow in the mix.
• Deleveraging happening fast at 5% QoQ providing an extra return lever. The forward multiple looks pretty reasonable, but Dassault remains better value.

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