Bombardier (TSX: BBD.B) is a global aviation leader specializing in designing, manufacturing, and servicing business jets. The company operates two primary revenue streams: aircraft sales, featuring its renowned Challenger and Global jet families, which are renowned for their exceptional performance, and aftermarket services, including maintenance, repairs, overhauls, and parts sales.
Bombardier serves a worldwide customer base, providing comprehensive support throughout the aircraft lifecycle from initial sale through ongoing maintenance and service operations.
Valued at a market capitalization of $16 billion, the TSX stock has returned 72% over the last 12 months and has surged more than 1,400% over the last five years. Here’s why the aerospace stock remains a top investment option in July 2025.
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How did the aerospace stock perform in Q1 of 2025?
Bombardier delivered impressive results in the first quarter (Q1), demonstrating remarkable resilience amid global trade uncertainties. In the March quarter, Bombardier reported revenue of $1.5 billion, representing a 19% year-over-year increase. Its top-line growth was driven by three additional aircraft deliveries and stronger pricing.
Moreover, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 21% to $248 million, indicating a healthy margin of 16.3% despite ongoing supply chain challenges.
Bombardier continues to navigate tariff uncertainties in 2025. During the earnings call, it confirmed that its aircraft are United States-Mexico-Canada Agreement (USMCA)- compliant and exempt from U.S. tariffs.
This clarity enabled the management to project revenue of more than $9.25 billion in 2025 with adjusted EBITDA of over $1.55 billion. In 2024, the company reported revenue of $8.66 billion, while EBITDA stood at $1.36 billion.
Bombardier expects to deliver more than 150 aircraft this year while maintaining strong momentum in services and defence segments. Bombardier’s financial position continues to strengthen, with net leverage improving 17% year over year to three times.
It reduced gross debt by $400 million over 12 months, including $300 million in January, while maintaining robust liquidity of $1.4 billion. Management plans to reduce debt by $600 million this year, targeting a leverage ratio of less than 2.5 times.
What’s next for the TSX stock?
The highly anticipated Global 8000, positioned as the world’s fastest civilian jet, remains on track for certification and entry into service this year. Early customer reception has been overwhelmingly positive, with strong demand building for this flagship aircraft that combines unprecedented speed, range, and cabin comfort.
Defence opportunities are accelerating amid heightened geopolitical tensions, with management citing “tens of different campaigns” currently underway. Bombardier’s agility and ability to deliver customized solutions quickly position it well for growing defence spending globally.
Free cash flow guidance of $500-800 million reflects varying scenarios for order activity, with the range dependent on book-to-bill ratios. Bombardier’s diversified revenue streams, industry-leading margins, and strong backlog visibility position the company well for sustained growth despite economic uncertainties.
Analysts tracking the TSX stock expect adjusted earnings to expand from $5.16 per share in 2024 to $12 per share in 2029. During this period, free cash flow is expected to increase from $232 million to $1.17 billion.
If Bombardier stock is priced at 20 times forward earnings, it should trade at $240 in early 2029, indicating an upside potential of 50% from current levels.
