MONTREAL — A major aircraft deal sent Bombardier Inc. shares to a seven-year high on Wednesday after the company announced a firm order for its aircraft with an unidentified buyer.
The Montreal-based company's stock surged more than 20 per cent, reaching as high as $144.63 on the Toronto Stock Exchange.
Bombardier announced on Monday it had signed a deal for 50 Challenger and Global jets, alongside a services agreement, for US$1.7 billion. The stock was trading for the first time since the announcement because the TSX was closed on Tuesday for Canada Day.
Aircraft deliveries are expected to begin in 2027.
RBC Dominion Securities analyst James McGarragle said the deal is "a clear positive" for the company, underscoring the robust demand for its aircraft and maintenance services.
"This deal not only strengthens visibility into future revenue streams but also solidifies confidence in the company’s ability to generate consistent profitability and long-term shareholder value," McGarragle said in a research note.
Bombardier said its unnamed client, a first-time customer, will also hold 70 new aircraft purchase options. If all purchase options were to be exercised, the value of the deal would top US$4 billion.
“This significant order underscores the competitive advantage Bombardier’s full scope of products and services brings to customers throughout the entire aircraft life cycle, from design to delivery, then throughout the in-service journey,” said Bombardier CEO Éric Martel in a press release.
McGarragle said the deal, along with associated services, represents a 12 per cent increase to the current backlog, which could increase to a 28 per cent if the additional 70 jet options are exercised.
"Importantly, the inclusion of a maintenance contract is particularly encouraging, as it is expected to deliver higher incremental margins over time," he added.
Bombardier has been investing in services, including maintenance and repairs, which accounted for one-third of its revenue last quarter.
The deal comes as concerns around 25 per cent duties on steel and aluminum imports into the U.S. have plagued the aerospace sector in recent months.
Martel appeared upbeat during its most recent earnings call in May — foreseeing higher revenue, profits and plane deliveries this year.
This report by The Canadian Press was first published July 2, 2025.
Companies in this story: (TSX: BBD. B)
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