As the TSX Composite continues to reach new highs in 2025, industrial stocks are leading the way. Many companies in this sector are outperforming the broader market due mainly to strong demand, disciplined cost management, and exposure to long-term infrastructure. While some investors might think the rally is already priced in, the truth is there’s still plenty of room to run, especially for companies with strong fundamentals.
In this article, I’ll walk you through two of my top industrial stock picks that I think are still worth buying right now.
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Finning International stock
Having risen nearly 50% in the last year, Finning International (TSX: FTT) could be one of the top industrial stocks you can consider right now. The company, which is the world’s largest Caterpillar dealer, plays an important role in supporting the mining, construction, and power systems sectors. Currently, FTT stock trades at $56.80 per share with a market cap of nearly $7.6 billion, and it offers an annualized dividend yield of about 2.2%.
Finning’s recent first-quarter results show exactly why long-term investors love this TSX-listed industrial stock. For the quarter, its revenue rose 7% YoY (year-over-year) to $2.5 billion, with product support revenue jumping 11%, especially in mining-heavy regions like South America and Western Canada.
In addition, it posted a record $2.8 billion equipment order backlog, driven by strong orders from mining clients. That included more than 100 ultra-class trucks spread across Canada and South America, which clearly reflects the healthy demand. As a result, Finning’s adjusted quarterly earnings jumped 18% YoY to $0.99 per share.
The company also generated $135 million in free cash flow last quarter, marking a strong rebound from its cash outflows in the same period a year ago. Interestingly, Finning is now focusing on improving capital returns further by selling off its non-core businesses like 4Refuel and ComTech.
Overall, with strong execution, improving margins in key regions, and a growing focus on higher-return areas, FTT stock could continue to soar in the long run.
Bombardier stock
Let’s now take a closer look at Bombardier (TSX: BBD.B), a stock that’s been gradually gaining altitude in 2025. In the first quarter of 2025, this business jet manufacturer delivered strong results, with its revenue climbing 19% YoY to US$1.5 billion with the help of more aircraft deliveries and a steady boost in its services revenue. The company’s adjusted earnings also surged 69% from a year ago to US$0.61 per share, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 16.3%.
Bombardier stock has already jumped over 24% in the last 12 months and is now trading at around $111.80 per share with a market cap near $11.2 billion. While it doesn’t currently offer a dividend, I find the company’s solid growth outlook really appealing, especially as it expects to deliver over 150 aircraft this year and grow its revenue beyond US$9.3 billion.
With a backlog of US$14.2 billion and growing traction in international markets like Saudi Arabia, Bombardier could keep building on its bullish momentum for years to come.
