After the close Bombardier (BBD-B) added a meaningful 50 aircraft order to its 2027 backlog, with a purchase option for an additional 70 units built into the contract.
Combined with a full-suite service agreement, the deal represents just under $2B at the low end and more than $4B should the client fully exercise the purchase options.
It also reiterates the company’s focus on services and defense-led growth…
If you think through the strategy we’re deploying and where the vast majority of our growth is coming from over the coming years, it’s in our services and defense businesses, which provide us with our highest EBITDA margins.
… which should drive continued margin expansion across BBD’s global footprint.
With shares trading more than 50% higher than liberation day lows, the market is counting on it - continued execution will be required to keep its premium.
