Bombardier (TSX:BBD.B) Is Up 9.5% After Q3 Sales Growth and M&A Plans - Has The Bull Case Changed?

• Bombardier Inc. reported third-quarter 2025 results showing sales growth to US$2.31 billion and announced the planned redemption of all outstanding 7.875% Senior Notes due 2027, while management reiterated their intention to pursue targeted mergers and acquisitions for component service capabilities.
• The company’s focus on expanding aftermarket services and acquiring key repair and licensing capabilities highlights its effort to drive recurring, high-margin revenue and strengthen its overall operational resilience.
• We’ll examine how Bombardier’s strong quarterly performance and renewed M&A ambitions could influence the outlook for its business jet and service segments.

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Bombardier Investment Narrative Recap

To own Bombardier stock, you need to believe the business jet market can continue to support healthy order flow and recurring aftermarket growth, while supply chain risks and market cyclicality remain manageable. The latest results and management's reaffirmed M&A focus do not materially change the most pressing short-term catalyst, the expansion of Bombardier’s service footprint and capabilities, nor the outsized risk from any reversal in business jet demand.

Of the recent announcements, management’s intention to pursue small, targeted acquisitions for service and component license capability stands out. This move is directly relevant to Bombardier’s push for higher recurring revenue through aftermarket expansion, which is expected to drive improved margin stability in the face of broader industry headwinds.

By contrast, it’s equally important for investors to recognize how quickly things could change if the large backlog of business jet orders faces...

Read the full narrative on Bombardier (it's free!)

Bombardier's outlook forecasts $10.2 billion in revenue and $980.5 million in earnings by 2028. This is based on an expected annual revenue growth rate of 5.4% and a $531.5 million increase in earnings from the current $449.0 million level.

Uncover how Bombardier's forecasts yield a CA$201.35 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community show a wide range from CA$47.40 to CA$342.88 per share. Against this backdrop, supply chain constraints remain a critical factor that could influence how future earnings and cash flow play out.

Explore 10 other fair value estimates on Bombardier - why the stock might be worth less than half the current price!

Build Your Own Bombardier Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bombardier research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Bombardier research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bombardier's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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