How Canada’s Global 6500 Order At Bombardier (TSX:BBD.B) Has Changed Its Investment Story

• Bombardier recently announced that the Government of Canada purchased six Global 6500 aircraft for worldwide utility, humanitarian, and national security missions, in a deal valued at about US$400 million including military modifications, with assembly in the Greater Toronto Area and interior completion in Greater Montreal.
• This order, alongside Bombardier Defense’s role in Germany’s PEGASUS SIGINT platform and its expanding global service network, underlines how government and aftermarket programs are becoming increasingly central to the company’s long-term business mix.
• Next, we’ll examine how this Canadian Global 6500 order reshapes Bombardier’s investment narrative around defense exposure and aftermarket growth.

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Bombardier Investment Narrative Recap

To own Bombardier today, you need to believe it can keep compounding value off a focused business jet franchise while steadily growing higher-margin defense and aftermarket revenue. The Canadian Global 6500 order reinforces that thesis but is small beside the broader challenge of managing a concentrated, cyclical product line and ongoing supply chain and inventory pressures, which remain the key near term swing factors.

The Abu Dhabi Al Bateen service centre announcement ties directly into this story, since it speaks to Bombardier’s push to relieve capacity constraints in its aftermarket network and support long term, recurring service revenue. As these facilities ramp up alongside government and defense programs, they may help offset some of the volatility inherent in large, lumpy jet deliveries and lengthened backlogs.

Yet, despite these positives, investors should be aware that Bombardier’s heavy reliance on premium business jet demand still leaves the company exposed if...

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$218.48 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Eleven Simply Wall St Community valuations for Bombardier span roughly CA$28 to CA$342 per share, reflecting very different expectations for the business. Against that backdrop, Bombardier’s growing dependence on a single, cyclical business jet segment gives those varied views real weight for anyone assessing how resilient future performance might 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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