Bombardier’s Expanding Abu Dhabi Aftermarket Hub Might Change The Case For Investing In Bombardier (TSX:BBD.B)

• Bombardier recently reported major construction progress on its new 120,000 sq. ft. service centre at Abu Dhabi’s Al Bateen Executive Airport, part of a broader global expansion that now includes new U.S. capacity in Fort Wayne and an added paint shop at London-Biggin Hill.
• This build-out of maintenance, repair, and overhaul infrastructure is central to Bombardier’s push to grow higher-margin aftermarket revenues and deepen support for its Global, Challenger, and Learjet fleets, including the upcoming Global 8000.
• We’ll now examine how Bombardier’s expanding Abu Dhabi service centre footprint could influence its investment narrative and aftermarket growth outlook.

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Bombardier Investment Narrative Recap

To own Bombardier, you generally have to believe that its focus on business jets and higher-margin aftermarket and defense work can offset sector cyclicality and balance sheet pressure. The Abu Dhabi service centre progress supports the key short term catalyst of expanding service capacity, but its financial impact before opening in 2026 appears limited, while exposure to any downturn in business jet demand remains a central risk.

National Bank of Canada’s recent target price increase for Bombardier, tied to its 2027 outlook and demand for business jets and defense aircraft, connects directly to the same themes behind the Abu Dhabi build-out: a larger installed fleet, more service touchpoints, and potential margin uplift from aftermarket and defense programs if current order strength holds.

But while expansion is encouraging, investors should also be aware that Bombardier’s heavy reliance on the cyclical business jet segment...

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

Bombardier's narrative projects $10.2 billion revenue and $980.5 million earnings by 2028. This requires 5.4% yearly revenue growth and a $531.5 million earnings increase from $449.0 million today.

Uncover how Bombardier's forecasts yield a CA$217.12 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Eleven fair value estimates from the Simply Wall St Community range widely, from about C$47 to C$346 per share, showing sharply different expectations. Set against Bombardier’s push into higher-margin global service centres, this spread underlines why you may want to compare several viewpoints before judging how durable its earnings power could be.

Explore 11 other fair value estimates on Bombardier - why the stock might be worth as much as 52% more than 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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