The year 2025 had some surprising winners that had long been off of the growth charts. Leading the 2025 rally was Lundin Gold (TSX:LUG), rising 252% year-to-date, followed by Celestica (TSX:CLS) at 238%, and Bombardier (TSX:BBD.B) at 124%.
Some of the best-performing Canadian stocks of 2025
Lundin stock rose as the gold price made new highs. This is because global central banks have been building gold reserves amidst tariff uncertainty. Celestica’s stock rallied as artificial intelligence (AI) infrastructure investment increased. Bombardier stock rose as it launched its flagship Global 8000 aircraft and secured a US$1.7 billion order for 50 Challenger and Global aircraft, with an option to exercise an order for 70 more aircraft for US$4 billion.
While each stock had a strong upside from its respective tailwinds, one stock will stand to rule them all by sustaining the growth.
One Canadian stock to rule them all in 2025
Celestica is a third-party electronics manufacturer dependent on server demand for its stock price rally. It doesn’t have the niche that Broadcom and Nvidia enjoy with their specific AI chips that help them command a premium price. It could face competition as more companies enter the electronics manufacturing space. Now may be a good time to sell the stock while it trades near record highs.
Lundin Gold’s stock is sensitive to the gold price, which means now is a good time to book profits rather than buy high.
One stock that can sustain its high valuation is Bombardier, as its business jets are in high demand. Passenger plane makers Airbus and Boeing are suffering from supply shortages and quality issues, respectively. Canada had ordered 16 F-35 stealth fighters from US-based Lockheed Martin Corp, but the tariff war has made Canada consider other defence procurement markets to reduce dependence on the United States.
A recent news report confirmed by the Globe and Mail stated that Bombardier is in talks with Sweden’s Saab to assemble Gripen fighter jets in Canada. A shift in global trade could open up opportunities for Bombardier to secure more orders from countries looking beyond the United States.
This makes Bombardier a stock to buy and hold for the long term.
What to expect from Bombardier beyond 2025?
Bombardier could secure more orders for its Global 8000 aircraft. It could also expand its defence aircraft segment, if an opportunity arises. So far, it is refurbishing its Challenger and Global aircraft for defence. They are not fighter jets but are used for surveillance. If the Saab deal materializes, it will open a whole new revenue stream for Bombardier.
In its Investor Day 2024 presentation, Bombardier stated its plans to allocate excess capital beyond 2025. Around US$300 million will be allocated towards product upgrades and organic growth. Any surplus will be allocated to pay dividends, buy back shares, and reduce debt. It will also look for acquisition opportunities in the aftermarket of the defence space and any other partnership deals.
If any of the above announcements around dividends, acquisitions, or partnerships materialize, it will drive up Bombardier’s stock price in 2026. While buying at the high is not recommended, it is a stock to hold in 2026 and beyond.
