Key Morningstar Metrics for Bombardier
- Fair Value Estimate: C$263.00
- Morningstar Rating: ★★★
- Morningstar Economic Moat Rating: Narrow
- Morningstar Uncertainty Rating: High
What We Thought of Bombardier’s Earnings
Accelerating jet deliveries drove Bombardier’s BBD.A fourth-quarter revenue 19% higher year over year to USD 3.7 billion, with operating profit growing 45% in the same period to USD 499 million, a 13.5% margin.
Why it matters: Bombardier delivered 157 planes in 2025, with a blockbuster 64 deliveries in the fourth quarter, amplifying an accelerating pattern similar to that of 2024. Better throughput from the supply chain in the last year has made Bombardier’s manufacturing more profitable, and we see double-digit operating margins as the new normal.
- During the fourth quarter, Bombardier delivered 25 Challenger and 39 Global jets, compared with 28 Challengers and 29 Global jets a year ago.
The bottom line: We have updated our forecast to reflect slightly more mix shift to higher-revenue Global jets, as well as progress on management’s goal to service 60% of the aftermarket for Bombardier planes by 2030. We raised our fair value estimate for narrow-moat Bombardier to C$263 per share from C$218.
- The shares now trade at a 8% discount to our revised fair value estimate. Given our High Morningstar Uncertainty Rating for the stock, we would consider it an appealing value below C$158.
