The Bull Case For Bombardier (TSX:BBD.B) Could Change Following Q2 Profit Jump Despite Sales Decline

• Bombardier recently reported its second quarter 2025 financial results, showing net income growth to US$178 million and earnings per share rising to US$1.88 from continuing operations despite a sales decline to US$2.03 billion compared to the prior year.
• The company’s latest Challenger 3500 jet delivery in Costa Rica highlights Bombardier's expanding footprint and reinforces the firm’s reach within fast-growing Central American markets.
• We'll explore how Bombardier's surge in profitability, demonstrated in its latest quarterly earnings, impacts its long-term investment outlook.

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Bombardier Investment Narrative Recap

To be a shareholder in Bombardier, you need conviction in the company’s ability to convert robust demand for business jets and expanding global reach into lasting profitability, despite persistent supply chain and tariff risks. The recent surge in net income and earnings per share in Q2 2025 is encouraging, but the continuing decline in sales and ongoing challenges with cost headwinds suggest the biggest near-term catalyst, continued efficiency improvements, is balanced by the persistent risk of supply chain disruptions. For now, the latest quarterly results appear to improve visibility but are not material enough to resolve the company’s most pressing risk factors.

Among Bombardier’s recent announcements, the record net income and substantial earnings per share growth highlighted in the latest Q2 earnings report stand out most. While the delivery of the Challenger 3500 in Costa Rica points to Bombardier’s growing presence in Central America, it’s the company’s improved profitability that directly ties back to its ability to withstand and adapt to near-term cost pressures, a central focus for investors assessing the company’s progress against its core catalysts.

However, investors should also be aware that despite improved earnings, persistent supply chain risks could...

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

Bombardier's outlook anticipates $10.0 billion in revenue and $662.7 million in earnings by 2028. This projection is based on annual revenue growth of 3.8% and an increase in earnings of $388.7 million from the current $274.0 million.

Uncover how Bombardier's forecasts yield a CA$151.58 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair value estimates for Bombardier that range from US$47.40 to US$278.99, reflecting nine unique perspectives. Some see rising profitability as a positive sign, but supply chain headwinds may still have broader implications for the company’s outlook; explore several viewpoints for a fuller picture.

Explore 9 other fair value estimates on Bombardier - why the stock might be worth as much as 70% 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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