Why Bombardier Could Be the Best Stock to Buy in January

Bombardier has quietly become one of the manufacturing powerhouses on the market. Here’s why investors should consider it now.

Key Points
  • Bombardier has transformed over the past decade, focusing solely on profitable business jets and seeing a nearly 200% stock price increase in the last year.
  • The company's new-generation jets, especially the Global 7500 and Global 8000, have set records for speed and range, driving strong demand and increasing order backlogs.
  • Bombardier's revenue grew by 11% in the latest quarter, supported by rising jet deliveries and a substantial backlog, offering significant growth potential for investors.

Bombardier (TSX: BBD.B) is a leading manufacturer of business jets. The company has evolved from where it stood a decade ago, in a very good way. Even better, there’s still meaningful upside for investors looking to position themselves early in the new year.

Here’s a look at the company, what’s changed, and why it matters this month.

Woman in private jet airplane

Source: Getty Images

Business snapshot

First, let’s state the obvious. This is not the Bombardier from a decade ago. The company is no longer burdened with staggering debt or multiple unrelated business lines that weren’t generating a profit.

The stock price has also gone from being a penny stock on the verge of being delisted to a market darling trading over $270 per share. That includes a nearly 200% gain over the trailing 12‑month period.

Today’s Bombardier is focused solely on being an industrial manufacturer of business jets. No more commercial jets or trains.

And demand for business jets continues to surge.

Bombardier’s highly successful Challenger and Global series jets are a key reason for that spike. In recent years, the company released the highly anticipated and refreshed models of those jets, which have not only broken numerous records but also swelled Bombardier’s order book to new levels.

Bombardier’s new generation of jets

Bombardier’s latest jets are often viewed as a new generation of aviation thanks to their growing list of achievements.

That includes the Global 7500 jet, which is widely regarded as one of the most decorated business jets ever. The jet set distance and speed records on long-haul business routes such as New York-London and Tokyo-Los Angeles, averaging speeds above 1,000 km/hour.

In fact, the Global 7500 broke the business-jet speed record from Los Angeles to New York, completing the route in 3 hours and 54 minutes.

The jet also holds an ultra-long-range record, flying nonstop from Sydney to Detroit.

The Global 8000 holds a similar distinction, particularly in speed. The jet carries a top speed near Mach 0.95, making it the fastest civilian aircraft since the Concorde era ended.

Those records are more than bragging rights. They symbolize long-term demand, product differentiation, and brisk deliveries.

What about results?

In the third quarter of 2025, Bombardier delivered 34 jets, up from 30 in the prior year. This is significant because the old Bombardier from a decade ago was known for slipping on deliveries.

That increase in deliveries helped drive 11% revenue growth and allowed Bombardier to beat expectations.

Even better, the company has a whopping $16.1 billion backlog spanning multiple years. Bombardier’s free cash flow is also growing and expected to hit $1.5 billion by the end of the decade.

Why January?

Despite Bombardier’s stellar performance, there’s still meaningful upside for investors. For investors seeking a growth play in a resilient sector that continues to outperform its peers, Bombardier is near the top of any investor’s shopping list.

Throw in the delivery momentum the company has shown and the potential boost from rate cuts expected this year, and you have a solid option for any well-diversified portfolio.

Buy it, hold it, and let Bombardier’s momentum work in your favour this year.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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