Valued at a market cap of almost $18 billion, Bombardier (TSX: BBD.B) stock is up a staggering 1,740% in the last five years. It means a $500 investment in the TSX stock five years back would be worth more than $9,000 today.
Bombardier designs, manufactures, and sells business aircraft and related structural components worldwide. It also offers various services, including parts, service centres, smart services, training, and technical publications. The company serves multinational corporations, charter and fractional ownership providers, governments, and private individuals.
As past returns don’t matter much to current and future investors, let’s see if Bombardier stock is still a good buy right now.
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The bull case for Bombardier stock
Bombardier’s second-quarter (Q2) 2025 results showcase a business aviation manufacturer firing on multiple cylinders, as a landmark 50-aircraft fleet order highlights its strong market position. The confidential customer order, scheduled for delivery starting in 2027, contributed to a robust 2.3 times unit book-to-bill ratio and pushed Bombardier’s backlog past US$16 billion for the first time.
Bombardier reported revenue of US$2 billion in Q2, despite supply chain headwinds. While aircraft deliveries of 36 units were three fewer than the prior year, this was entirely by design as Bombardier front-loads medium aircraft deliveries in the first half to accommodate a Global-heavy delivery schedule in the second half. It delivered 59 aircraft in the first six months, matching 2024 levels and staying on track for full-year guidance.
The Services business continues to perform well, generating nearly US$600 million in sales, representing a 16% year-over-year increase. This segment accounts for 29% of total sales, which showcases diversification beyond aircraft manufacturing.
Strong fleet utilization rates and low availability of pre-owned Challenger and Global aircraft underscore healthy market fundamentals supporting continued aftermarket growth.
Bombardier’s defence business gained momentum with a notable order for the Global 6500 from Sweden’s SAP and a memorandum of understanding with Leonardo for maritime patrol missions. CEO Eric Martel emphasized defence as a key growth avenue, supported by expanding international partnerships and increased industry presence.
Financial health continues to improve with the successful refinancing of US$500 million in senior notes, extending maturities to 2033 while reducing average debt costs. Both S&P and Moody’s upgraded their credit assessments, which indicates confidence in the company’s deleveraging trajectory and operational execution.
Bombardier maintained its 2025 guidance while positioning for a strong second half. Management expects to deliver over 91 aircraft in the final six months, generating more than US$1 billion in earnings before interest, tax, depreciation, and amortization.
The Global 8000’s first delivery in Q4 will command a US$3 million premium over the Global 7500, providing additional margin expansion.
Is the TSX stock still undervalued?
Analysts tracking the TSX stock forecast revenue to rise from US$8.67 billion in 2024 to US$11 billion in 2029. During this period, adjusted earnings per share are expected to increase from US$5.16 to US$12.14.
Today, Bombardier stock trades at 18.6 times forward earnings, which is reasonable, given its growth estimates. If it maintains a similar multiple, it could gain over 65% within the next four years. Despite its monstrous rally, Bombardier stock is well-positioned to deliver outsized gains to shareholders in 2025 and beyond.
