Bombardier (TSX: BBD.B) has been one of the Canadian stock market’s biggest winners over the last year, but its recent pullback may have left some investors wondering what changed. Its shares are still up sharply over the longer term, even after losing some ground in recent weeks. That contrast becomes even more interesting because Bombardier’s underlying business momentum and long-term fundamentals remain strong. So the recent weakness in its shares looks quite different from a business slowdown.
Let’s understand what’s going on with Bombardier stock and why its financials and growth outlook still give long-term investors reasons to stay optimistic.
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Why Bombardier stock is in focus
To put it simply, Bombardier builds and services business aircraft, and its defence business also adapts aircraft for specialized missions. Bombardier shares currently trade at $301.80 apiece, giving the Dorval-based company a market cap of around $30 billion.
Although Bombardier stock has cooled lately, its longer-term performance remains impressive. Its shares have slipped 11% over the last month. Even after that pullback, however, the stock is still up 29% year-to-date and 88% over the last year.
Strong financials support the bigger picture
While Bombardier stock seems to have lost some altitude recently, its second-quarter results suggest the business itself continues to move in the right direction. The aircraft maker’s second-quarter revenue rose 6% year-over-year (YoY) to US$2.2 billion, supported by 32 aircraft deliveries and record services revenue. Its services segment generated US$674 million in revenue, up 14% YoY. That growing operation gives the company another important source of revenue alongside new aircraft deliveries.
On the profitability side, Bombardier’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 9% YoY in the latest quarter to US$325 million. Similarly, its adjusted EBITDA margin expanded by 50 basis points to 15.1%. Adding to the optimism, the company’s adjusted net profit more than doubled to US$257 million from US$117 million a year ago.
Bombardier also delivered a major improvement in cash generation as it produced US$228 million in free cash flow compared with US$164 million of cash usage a year ago.
Why Bombardier stock still has room to run
To understand where Bombardier stock could go from here, you may want to give close attention to its growing backlog, services expansion, and improving balance sheet.
Notably, the company ended the June quarter with a US$21.8 billion backlog, up US$4.3 billion from the end of 2025. Strong demand for the Global 8000 helped it achieve a second-quarter unit book-to-bill ratio of 1.5 times, meaning its new aircraft orders comfortably outpaced deliveries.
Beyond aircraft demand, Bombardier is expanding its Singapore service centre, which is expected to nearly double capacity when operations start in the second half of 2028.
Moreover, Bombardier cut debt by more than US$1.1 billion in the first half of 2026, helping lower its adjusted net debt-to-adjusted EBITDA ratio to 1.6 times from 1.9 times at the end of 2025.
Overall, its large backlog, growing services business, stronger cash generation, and lower leverage continue to support Bombardier’s long-term investment appeal. Given these factors, the recent pullback in Bombardier stock could be an opportunity for long-term investors to buy this amazing Canadian growth stock at a bargain.
