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Bombardier (TSX:BBD.B) is in focus after reporting Q2 2026 results that included higher consolidated revenue, a major year-over-year jump in adjusted earnings per share, record services revenue, and a larger US$21.8b order backlog.
See our latest analysis for Bombardier.
The Q2 2026 update comes after a strong share price run for Bombardier, with a year to date share price return of 40.32% and a 1 year total shareholder return of 106.10%. Despite a recent 7 day share price decline of 7.78%, the 3 month share price return of 18.16% and very large 5 year total shareholder return of about 7x suggest positive momentum has been building as investors react to higher revenues, growing services activity and the larger order backlog.
If Bombardier's recent move has you thinking about where capital goods and adjacent sectors might head next, it can be useful to compare with companies exposed to major infrastructure and grid upgrades through the 35 power grid technology and infrastructure stocks
After Bombardier's sharp multi year rerating, the stock still trades at a sizeable discount to some fair value estimates and sits only slightly below analyst targets. Is that a cautious market, or a cautious investor base for good reason?
Bombardier's last close at CA$337.74 sits a little above the most followed fair value estimate of CA$325.07, which is built on detailed revenue, margin and discount rate assumptions.
Robust growth in Bombardier's services and aftermarket business including expanded service facilities and high utilization rates across a growing fleet points to a durable, high-margin recurring revenue stream that should support long-term improvements in earnings stability and free cash flow.
Read the complete narrative. Read the complete narrative.
Want to see what is behind that services driven story? The narrative focuses on recurring revenue, steadier margins and a premium earnings multiple that peers do not share.
Result: Fair Value of CA$325.07 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there is still clear risk that Bombardier's heavy reliance on business jets, along with ongoing supply chain and capacity pressures, could challenge the upbeat, services-led narrative.
Find out about the key risks to this Bombardier narrative.
The narrative model pegs Bombardier's fair value at CA$325.07 and flags the stock as slightly overvalued. Yet on a simple P/E check, Bombardier trades at about 25x. That sits below its fair ratio of 40.5x, the North American Aerospace & Defense average of 38.5x, and the 42.6x peer average. Is the market underpricing the story, or simply applying a safety margin?
See what the numbers say about this price in our full valuation breakdown. See what the numbers say about this price — find out in our valuation breakdown.
Unsure whether the tone of Bombardier's story feels too cautious or not cautious enough? Take a closer look at the numbers and recent developments yourself, and move quickly to form your own view with the 4 key rewards and 3 important warning signs
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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.
Companies discussed in this article include BBD-B.TO.
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