2 Canadian Stocks That Could Benefit From a Stronger Loonie

A stronger loonie can boost margins for companies with U.S.-dollar costs, but it can also dampen reported results from foreign sales.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 4, 4:40 pm EDT

| More on: BBD.BCCL.B

Key Points

Bombardier is executing well with rising services revenue, strong free cash flow, and a huge backlog that supports growth.
CCL is a steady global compounder where a stronger loonie can lower input and acquisition costs, even if translation hurts revenue.
Both benefit more from strong operations than currency alone, so the loonie is a tailwind—not the whole thesis.

A stronger loonie can change the math for Canadian investors. It can help companies that buy parts, equipment, raw materials, or services in U.S. dollars, since those costs become cheaper when converted back into Canadian dollars. It can also support companies with global growth plans, especially if they report in U.S. dollars but carry Canadian cost exposure or want to buy assets abroad. The trade-off is simple. A stronger Canadian dollar can weigh on exports, but it can also ease input costs, support margins, and make international expansion less expensive.

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies." — Source: Getty Images

BBD

Bombardier (TSX:BBD.B) is one of Canada’s biggest industrial comeback stories. The company builds business jets, including its Challenger and Global aircraft, and it has spent the last few years cleaning up its balance sheet and focusing on higher-margin aviation. That focus paid off. Bombardier stock completed its turnaround plan in 2025, then entered 2026 with better momentum than many investors expected.

The latest earnings added more fuel. In the first quarter of 2026, revenue rose 5% to US$1.6 billion. Services revenue jumped 25% to US$617 million, helped by higher demand for maintenance and support. Adjusted earnings came in at US$1.81 per share, well ahead of expectations, and free cash flow reached US$360 million. Bombardier stock also raised its 2026 free cash flow outlook to more than US$1 billion, while its backlog climbed to US$20.3 billion.

That backlog gives Bombardier something investors love: visibility. It also has the Global 8000 business jet coming, growing defence opportunities, and steady demand from wealthy buyers and corporate customers. A stronger loonie could help where Bombardier stock faces U.S.-dollar-denominated supply costs, though investors should remember the company reports in U.S. dollars and sells globally. Currency can cut both ways. Bombardier stock has already climbed hard, and the valuation now looks fuller, with a price-to-earnings (P/E) ratio around 22. Still, for investors willing to accept some cycle risk, Bombardier stock remains a strong Canadian growth stock with real operating momentum.

CCL

CCL Industries (TSX:CCL.B) offers a quieter, steadier way to think about a stronger loonie. The company makes labels, specialty packaging, security products, and consumer office products. Its labels end up on everything from food and drinks to health-care products and personal care items. That gives CCL a wide customer base and a business tied to everyday consumption rather than one big trend.

CCL also had a strong 2025. Full-year sales rose 5.8% to $7.7 billion, while operating income climbed 8.7% to $1.2 billion. Adjusted net earnings increased 5.3% to $810.4 million. In the fourth quarter, sales reached nearly $1.9 billion, with adjusted earnings per share (EPS) around $0.99. The dividend is modest, but CCL has a long record of raising it, and that steady compounding profile makes it appealing when markets feel choppy.

A stronger Canadian dollar could help CCL in a few ways. The company operates globally, buys materials across many markets, and continues to use acquisitions to expand. A stronger loonie can make foreign purchases cheaper and ease some imported input costs. Yet CCL also earns a lot outside Canada, so currency translation can reduce reported revenue when foreign sales convert back into Canadian dollars. That’s the risk. The valuation looks reasonable for its quality, with a P/E ratio near 18 and a market cap around $15 billion. For long-term investors, CCL fits as a durable compounder rather than a flashy trade.

Bottom line

A stronger loonie won’t lift every Canadian stock. Export-heavy companies can feel pressure, and global businesses can see mixed currency effects. But Bombardier stock and CCL both have traits that could help them manage that shift. Bombardier stock brings a sharper growth story, backed by strong free cash flow and a deep backlog. CCL brings steadier earnings, global reach, and a reliable dividend-growth record. Together, they offer two different ways to play a stronger Canadian dollar without betting everything on one currency move.