Most Canadian industrial stocks have remained mixed so far in 2025 as investors juggle concerns over slowing global growth, sticky inflation, and renewed trade tensions. While the sector hasn’t been the strongest performer this year, that’s where the opportunity lies.
Despite the recent weakness, many industrial companies remain focused on long-term growth initiatives. With $5,500 to invest today, I see a chance to tap into these underappreciated growth stocks before the market fully wakes up to their potential.
Let me break down exactly where I’d put $5,500 to work right now and why Canadian industrials could be a great driver of exponential portfolio growth over the next few years.
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Bombardier stock
Bombardier (TSX: BBD.B) is the first Canadian industrial stock that I’m really bullish about. The Dorval-based business jet manufacturer operates across North America, Europe, and Asia with a global service network supporting over 5,000 aircraft.
After rallying by around 45% over the last year, Bombardier stock currently trades at $92.37 per share with a market cap of about $9.2 billion.
In 2024, Bombardier continued its impressive growth streak, with its total revenues climbing 8% YoY (year over year) to US$8.7 billion. This strong growth was mainly supported by its record-breaking services revenue of US$2.04 billion and higher aircraft deliveries. Meanwhile, the company’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 11% YoY due mainly to a better delivery mix and strong aftermarket services.
While Bombardier has yet to announce its March 2025 quarter results (expected on May 1), at the end of the previous quarter, it had a strong order backlog of US$14.4 billion, reflecting healthy demand for its business aircraft ahead.
Besides these positive factors, the company’s continued focus on strategic moves, like expanding its services business ahead of schedule and consistently paying down debt, could help it accelerate its growth further in the long run, which should help its share price continue soaring.
Finning International stock
Another Canadian industrial stock I’d put my money on right now is Finning International (TSX: FTT). If you don’t know it already, it’s the world’s largest Caterpillar dealer, providing heavy equipment, parts, and services across Canada, South America, and the United Kingdom. FTT stock currently trades at $39.30 per share, giving it a market cap of around $5.3 billion. On top of that, it rewards investors with a quarterly dividend, offering an annualized yield of about 2.8%.
In 2024, Finning posted a record $10.1 billion in net revenue, reflecting a 6% YoY increase with the help of higher new equipment sales and solid demand for product support services. However, its adjusted EBITDA for the year slipped slightly due to a heavier mix of lower-margin mining equipment deliveries, especially in its home market. Nevertheless, the company’s adjusted earnings hit a new quarterly record in the fourth quarter, climbing to $1.02 per share with higher order intake and a leaner cost structure.
Finning is currently focusing on expanding its power systems, growing its used and rental equipment businesses, and keeping a tight grip on costs, which could help its stock deliver even stronger returns once market conditions fully turn in its favour.
