Following a strong period of gains, Bombardier (TSX: BBD.B) stock has recently pulled back. The stock is now down about 20% from its 52-week high of 377.8. The decline comes as tensions between the U.S. and Canada intensify, creating uncertainty for the business jet manufacturer.
President Donald Trump’s threat to restrict Bombardier’s jet sales in the U.S. has added risk as the company navigates an increasingly complicated political and trade environment.
Notably, the U.S. is a major market for Bombardier, accounting for more than half of the company’s total revenue. Any disruption to its access to the American market could therefore meaningfully affect its financial performance.
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What’s ahead for Bombardier?
While recent developments have introduced uncertainty around Bombardier’s outlook, President Trump’s statements do not necessarily mean that restrictions will be implemented. At this stage, no executive order has been issued that would legally prohibit the sale of Bombardier aircraft in the U.S.
Bombardier’s extensive footprint in the U.S. could also make sweeping restrictions more difficult to enforce. In a statement, the company highlighted the scale of its American operations, which support tens of thousands of jobs nationwide. Its U.S. supplier base comprises approximately 2,800 companies across 47 states, and Bombardier spends more than $2.5 billion each year on goods and services from American suppliers.
The company is also closely connected to the U.S. aerospace manufacturing ecosystem through its supply chain. A significant portion of Bombardier aircraft consists of U.S.-produced components, including engines, avionics, and other essential systems supplied by major American aerospace manufacturers. These relationships further integrate Bombardier into the broader U.S. industrial base.
Another factor supporting the company’s resilience is its growing aftermarket and services business, which generates a steady stream of recurring revenue. Services currently represent more than 24% of Bombardier’s overall revenue, providing an additional source of financial stability should trade-related uncertainty continue.
Bombardier anticipates that Services revenue will grow at a mid- to high-single-digit annual rate through 2030. This expansion is expected to be supported by a larger installed aircraft fleet, the aging of existing aircraft, rising demand for larger business jets, and Bombardier’s expanding presence in the services market.
If tariff-related pressures on U.S. business intensify, Bombardier may also place greater emphasis on customers and markets outside the U.S. The company is already focusing on geographic diversification, which could help it reduce dependence on any single market and mitigate some of the potential effects of increased trade restrictions.
Is it time to buy the dip in Bombardier stock or run for cover?
Shares of this Canadian company could remain volatile in the short term. However, its fundamentals remain solid. The business aviation sector has demonstrated considerable resilience, while Bombardier has maintained a consistent growth trajectory.
In the second quarter, Bombardier reported revenue of US$2.2 billion, up 6% from the same period a year earlier. Its Services business was a notable contributor, generating a record US$674 million in revenue, up 14% year over year. The company also delivered 32 aircraft during the quarter.
Bombardier’s order pipeline remains robust. As of June 30, 2026, its backlog stood at US$21.8 billion, up US$4.3 billion from the end of 2025. The company also recorded a second-quarter unit book-to-bill ratio of 1.5 times, supported by strong customer demand for the Global 8000.
Bombardier is also diversifying its revenue streams. Its focus on Services, Defence, and Pre-owned aircraft is intended to create more predictable revenue streams while improving profitability. Bombardier has indicated that Services and Defence could eventually account for as much as 50% of total revenue by 2030.
Overall, Bombardier appears to have several factors working in its favour, including a sizeable backlog, steady demand, and growth opportunities across multiple parts of the business. For long-term investors, a pullback in the stock offers an opportunity to buy.
