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    Why Bombardier (TSX:BBD.B) Is Up 7.9% After New South Korean Electronic Warfare Jet Deal – And What's Next

    Simply Wall St·07/27/2026 02:16:12
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    • Bombardier Defense has already begun delivering on an agreement for South Korea’s Electronic Warfare program, with Korean Air formalizing the purchase of two Global 6500 aircraft to complement four Global 6500 Airborne Early Warning & Control jets announced in October 2025.
    • This expands Bombardier’s role as a platform supplier for high-end surveillance and electronic warfare missions, reinforcing the Global 6500’s position as a flexible backbone for defense-related special mission fleets.
    • We’ll now examine how Bombardier’s expanding Global 6500 role in South Korea’s Electronic Warfare fleet could influence its defense-driven investment narrative.

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    Bombardier Investment Narrative Recap

    To own Bombardier today, you need to believe it can turn its focused business jet and services model into durable earnings while managing leverage and supply chain pressures. The South Korea Electronic Warfare order is positive for Bombardier Defense’s credibility, but on its own it does not materially change the near term picture, where execution on backlog, inventory and debt reduction remains the key catalyst, and any downturn in business jet demand the central risk.

    The most relevant recent announcement here is Bombardier Defense’s May 2026 deal to supply three Global 6500 aircraft for Australian Border Force maritime surveillance. Together with the new South Korean Electronic Warfare and AEW&C roles, this highlights growing use of the Global 6500 as a multi mission platform across governments, which could reinforce the defense and special mission strand of Bombardier’s investment story alongside its core business jet and services franchises.

    Yet even with these new defense wins, investors should be aware that Bombardier’s high leverage still leaves limited room if...

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

    Bombardier's narrative projects $11.4 billion revenue and $1.2 billion earnings by 2029.

    Uncover how Bombardier's forecasts yield a CA$325.07 fair value, a 11% downside to its current price.

    Exploring Other Perspectives

    TSX:BBD.B 1-Year Stock Price Chart
    TSX:BBD.B 1-Year Stock Price Chart

    Some analysts already projected Bombardier could reach about US$12.4 billion in revenue and US$1.3 billion in earnings, and they view defense growth as a powerful upside catalyst, while others see the same leverage and technology pressures as reasons to be more cautious, so you should weigh how this new South Korea deal might shift those competing narratives before deciding where you stand.

    Explore 5 other fair value estimates on Bombardier - why the stock might be worth as much as 51% more than the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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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.