Does Winning Defense Contracts Broaden Bombardier's Competitive Edge in Aerospace Innovation (TSX:BBD.B)?

• Earlier this month, L3Harris Technologies announced the selection of Bombardier's Global 6500 aircraft, in partnership with Korean Air and ELTA Systems, to deliver airborne early warning and control solutions for the South Korean Air Force, alongside new defense and business jet orders from Sojitz Corporation and a service agreement with SNC for the US military.
• These developments highlight Bombardier's expanding presence in both international defense and premium business aviation, reinforcing its role as a key supplier of advanced and specialized aircraft platforms.
• We will now examine how Bombardier's role in high-profile defense contracts shapes its broader investment narrative and future outlook.

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Bombardier Investment Narrative Recap

For investors, the Bombardier story centers on confidence in sustained demand for large business jets and the company’s ability to harness momentum in both premium and defense aviation. Recent multiyear defense and service contracts further support forward visibility for Bombardier’s backlog, but do not materially change the most important short-term catalyst, expanding high-margin aftermarket services, or reduce supply chain and delivery risk, which remains acute given ongoing inventory build and logistical headwinds.

Among the recent announcements, the 10-year agreement with SNC for Bombardier Defense stands out. By locking in aftermarket service commitments on Global 6500 aircraft deployed for specialized U.S. military missions, Bombardier reinforces its focus on recurring, service-driven revenue streams, an area that is now the clearest catalyst for margin and earnings growth.

However, with spare parts and technical support facilities already at capacity, there is a risk that...

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.

Uncover how Bombardier's forecasts yield a CA$199.52 fair value, in line with its current price.

Exploring Other Perspectives

Ten community fair value estimates for Bombardier span from CA$47.40 to CA$280.25, reflecting a wide spectrum of investor views. While aftermarket services are becoming a key earnings driver, you may want to explore how differing opinions account for ongoing supply chain challenges.

Explore 10 other fair value estimates on Bombardier - why the stock might be worth as much as 41% 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 4 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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