Bombardier (TSX: BBD.B) has been one of Canada’s comeback stories over the past few years. The company faced near collapse earlier in the decade. However, it reinvented itself, shedding commercial aviation and rail divisions to focus entirely on business jets. Now, with shares trading around $90, investors are asking a big question: is Bombardier stock a buy, sell, or hold in 2025?
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Recent performance
Looking at its recent performance, Bombardier stock is showing impressive momentum. In 2024, revenue reached $8.7 billion, an 8% increase compared to 2023. That came from stronger aircraft deliveries and a surge in services revenue, which crossed $2.04 billion. Hitting its long-term services target a year ahead of schedule gave investors another reason to cheer. Aircraft deliveries hit 146 for the year, up from 138 in 2023, and the backlog climbed to $14.4 billion. A growing backlog gives Bombardier stock breathing room and confidence that future earnings should stay strong even if the market gets a little choppy.
On profitability, Bombardier stock also delivered the goods. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $1.36 billion, up 11% year over year. Adjusted net income rose to $547 million, while adjusted earnings per share (EPS) increased to $5.16. Those numbers reflect not only better revenue but also strong cost control. Management has been laser-focused on getting more out of every dollar earned, and it shows. Bombardier stock also managed to lower its net leverage ratio to 2.9 times EBITDA, hitting its 2025 target a full year early.
Analysts aren’t convinced
But even with all the good news, not everyone is completely sold. Analyst targets have come down slightly in recent weeks. However, these still represent a nice upside of about 19% from today’s price. Yet, it shows that expectations are being trimmed a little. While analysts see Bombardier stock doing well, they are factoring in a bit more caution around the broader economic environment and potential risks to margins.
Bombardier itself seems pretty confident about the future. In April, the company received approval from the TSX to launch a new share buyback program, allowing it to repurchase up to 4.3 million Class B shares between now and April 2026. Share buybacks usually signal that management believes the stock is undervalued, and it’s a shareholder-friendly move that could help support the share price over the next year.
Considerations
Still, there are a few risks that investors need to keep in mind. One of the biggest unknowns right now is tariffs. Bombardier stock held off giving full financial guidance for 2025 because of worries about potential new tariffs that could hit its operations or raise costs. Supply chain challenges are another issue. Like a lot of companies, Bombardier stock has been facing higher costs and delays when it comes to getting parts and materials. If problems worsen, it could pressure profits and force the company to adjust its pricing or delivery schedules.
Another thing to watch is that business jets, while a high-margin product, are not immune to economic downturns. If the global economy weakens or corporate spending tightens, new jet orders could slow. That backlog of $14.4 billion is a cushion, but it might not last forever if recession risks increase.
Bottom line
In the end, Bombardier stock looks like a stronghold and maybe even a buy for long-term investors who are comfortable with a little bit of turbulence. The company has done a lot of heavy lifting to clean up its balance sheet, streamline operations, and focus on a profitable niche. The improving financials, backlog strength, and share buyback plan all point to a company that believes it is in a much better place than it was just a few years ago.
If you’re looking for a steady, boring dividend payer, Bombardier stock is probably not the stock for you. But if you want exposure to the business jet market and believe in management’s ability to keep delivering, Bombardier offers compelling upside. It is not without risk, but after years of turbulence, Bombardier is finally starting to cruise at a comfortable altitude. In 2025, buying or holding Bombardier stock could very well turn out to be a rewarding decision.
