Trade tensions, rising tariffs, and geopolitical surprises can wreak havoc on a portfolio that leans too hard on U.S. exposure. For Canadian investors who want some shelter, Bombardier (TSX:BBD.B) might sound like a bold pick, but there’s a surprising amount of substance behind the splashy name. Especially while it’s still down 63% from all-time highs.
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A wild ride
This is a Canadian stock that’s been to the brink, and back. In fact, it’s gone from hitting all-time highs of about $442 in August, 2000 to lows of $5.26 in 2020, adjusted for the stock merger. Yet here it is in 2025, delivering profits, beating earnings, and confidently guiding for future growth. That’s no accident. And it’s why the Canadian stock, which remains well below its all-time highs, could be one of the more underrated long-term plays on the TSX today.
Bombardier recently reported first-quarter 2025 results that added fuel to its turnaround story. The Canadian stock posted revenue of US$1.6 billion, up 10% year over year. Earnings before interest and taxes (EBIT) rose to US$243 million, and adjusted EBITDA reached US$318 million, with a healthy margin of 20.4%. This kind of profitability was once unthinkable for Bombardier, but it’s quickly becoming the norm. Net income was US$110 million or US$1.03 per diluted share, compared to US$302 million in losses a year earlier. Free cash flow was negative for the quarter, which is expected due to seasonality, but full-year guidance still calls for US$250 million to US$500 million in free cash flow.
More to come
What’s most impressive is how it got here. Bombardier is now laser-focused on its business jet segment, after shedding its commercial and rail operations. It’s streamlined, leaner, more agile, and that’s paying off. The Global 7500 continues to lead its class, and Bombardier’s aftermarket services are a growing source of high-margin revenue. In fact, aftermarket revenue was up 11% year over year to US$424 million.
There’s no pretending this is a safe haven Canadian stock like a utility or a grocer. Bombardier still carries debt of US$4.7 billion at quarter-end, and the stock can be volatile. But it’s also a pure-play aviation business with a growing order backlog. As of the end of Q1, the backlog stood at US$14.9 billion. That kind of visibility isn’t easy to find in the industrial space, especially for a name once written off as a penny stock.
Where it stands
From a valuation standpoint, the case gets even stronger. The Canadian stock currently trades around $162, well off its 2000 peak, despite dramatically stronger fundamentals today. And with expected full-year revenue of US$8.4 billion and adjusted EBITDA guidance of US$1.5 billion, the Canadian stock’s forward-looking metrics suggest plenty of room to run.
Bombardier is not for the faint of heart. There are risks tied to global demand for business jets, potential delays, and inflation in parts and labour. Plus, there’s no dividend, so investors are betting purely on capital appreciation. But for those willing to hold through the cycles, this is a business that’s gaining real traction.
Bottom line
If you’re looking for a Canadian stock to tuck into your portfolio and forget for the next decade, Bombardier might not be the obvious choice, but that could be exactly what makes it so compelling. Down more than 60% from its peak, profitable, and projecting solid growth in a tough economy, Bombardier offers a contrarian bet with real upside. The trade tensions may rage on, but this is one Canadian company charting its own flight path, and investors might want a seat onboard.
