It is easy to get nervous when a high-flying stock suddenly starts losing altitude. Bombardier (TSX: BBD.B) shares have fallen 10% over the last month and are nearly 19% below their 52-week high. But that doesn’t mean the business has suddenly started moving in the wrong direction. In fact, Bombardier’s financial growth trends tell almost the opposite story.
While Bombardier’s underlying growth story may not have changed, the political backdrop has. U.S. President Donald Trump recently threatened to block the company’s aircraft sales in the United States unless it manufactures there, adding fresh uncertainty around a key market. That risk shouldn’t be dismissed, but neither should the Canadian jet maker’s operational progress and solid fundamentals.
In this article, I’ll weigh Bombardier’s new U.S. political risk against its improving financials to see whether the recent decline in its share price could be a buying opportunity.
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Why Bombardier stock is falling
Simply put, Bombardier designs, builds, and maintains business aircraft. Through Bombardier Defence, it also serves governments and militaries with aircraft for specialized missions. At the time of writing, its stock traded at $307.13 per share with a market cap of $30.7 billion.
Despite its recent weakness, Bombardier stock has still delivered impressive longer-term gains. Its shares are up 32% year-to-date and nearly 100% over the last year. However, momentum has changed direction lately.
The latest pressure on Bombardier stock comes as political uncertainty surrounding Bombardier’s U.S. business has intensified. On September 7, Trump threatened to stop Bombardier from selling aircraft in the U.S. market unless it manufactures there.
Bombardier responded by pointing to its already significant American footprint. The company said its operations and supply chain support tens of thousands of U.S. jobs, while it works with about 2,800 American suppliers across 47 states.
Its fundamentals remain strong
While recent political developments could keep Bombardier stock volatile in the near term, the company’s latest operating numbers remain strong. In the second quarter, its revenue rose 6% year-over-year (YoY) to US$2.2 billion, supported by 32 aircraft deliveries and another strong performance from its services business. Notably, its services revenue climbed 14% YoY last quarter to a record US$674 million.
More importantly, the aircraft maker’s profitability continued to expand as its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 9% YoY to US$325 million. Similarly, its adjusted EBITDA margin expanded to 15.1% from 14.6% a year ago.
Adding to the optimism, Bombardier generated US$228 million in free cash flow during the quarter, compared with US$164 million of cash usage a year ago. This turnaround was mainly driven by improving operating cash flow.
Meanwhile, strong demand remains another bright spot for Bombardier as the company ended June with a US$21.8 billion backlog, up 25% from the end of 2025.
Is Bombardier stock a buy now?
For investors considering buying Bombardier stock after its recent decline, its improving balance sheet and long-term investments make it really appealing. In the first half of 2026, Bombardier managed to reduce debt by more than US$1.1 billion.
Earlier this month, Bombardier also agreed to acquire MHI Canada Aerospace assets in Mississauga. The acquisition is expected to add about 750 employees while strengthening Bombardier’s in-house aerostructure manufacturing capabilities, supply-chain resilience, and production flexibility.
Overall, Bombardier stock certainly carries added political risk right now, and the U.S. dispute could keep its shares volatile. That said, strong demand, improving profitability and cash flow, lower leverage, and continued investments in manufacturing make this recent pullback worth watching closely.
That’s why for long-term investors comfortable with the near-term uncertainty, Bombardier could be an attractive stock to consider on the dip.
