Bombardier and CCL Industries are poised to gain from a stronger Canadian dollar — but their solid fundamentals, not just currency, are the real draw
A surging Canadian dollar is upending the calculus for investors in Toronto’s equity market, and two TSX-listed names — business jet maker Bombardier Inc. (TSX: BBD.B) and global packaging leader CCL Industries Inc. (TSX: CCL.B) — are well-positioned to capitalize on the loonie’s rally. What sets the pair apart from other Canadian equities, however, is that their upside is not tied solely to currency swings: both have delivered robust operational results, with the stronger loonie acting purely as a tailwind, not the core of their investment case.
For Canadian companies, a rising loonie is inherently a double-edged sword. It erodes the price competitiveness of domestic exporters selling into global markets, and can weigh on reported top-line figures for firms with large overseas operations when foreign earnings are converted back to Canadian dollars. But for companies that source parts, raw materials, or services in U.S. dollars, the stronger currency slashes input costs and directly widens gross margins. It also makes cross-border acquisitions and global expansion far cheaper for Canadian firms looking to scale their international footprint.
Bombardier, one of Canada’s most high-profile industrial turnaround stories, has refocused its business exclusively on high-margin business jet manufacturing, wrapping up its multi-year restructuring plan in 2025. The company has carried that momentum into 2026, delivering first-quarter results that blew past analyst estimates.
In the three months ended March 31, Bombardier reported revenue of US$1.6 billion, up 5% year-over-year. Its services revenue jumped 25% to US$617 million, driven by surging demand for aircraft maintenance and aftermarket support. Adjusted earnings per share hit US$1.81, soundly topping consensus forecasts, while free cash flow reached US$360 million. The company also lifted its 2026 full-year free cash flow guidance to above US$1 billion, and its firm order backlog now stands at US$20.3 billion, locking in years of predictable revenue. A stronger loonie will help ease Bombardier’s U.S. dollar-denominated supply chain costs, though investors should note the company reports in U.S. dollars and serves a global customer base, leaving it exposed to two-way currency risk. Shares currently trade at roughly 22 times forward earnings, a fuller valuation after a steep rally, but still offer compelling upside for investors comfortable with the cyclicality of business jet demand.
For investors seeking a more defensive, low-volatility play, CCL Industries offers a proven steady compounder with consistent, repeatable cash flows. The world’s largest maker of labels and specialty packaging, CCL’s products appear on everything from food and beverage containers to healthcare and personal care goods, tying its revenue to everyday consumer spending rather than volatile cyclical trends.
The company delivered rock-solid results in 2025, with full-year revenue rising 5.8% to CAD$7.7 billion, operating income climbing 8.7% to CAD$1.2 billion, and adjusted net earnings up 5.3% to CAD$810.4 million. CCL also holds a long track record of consecutive dividend increases, a key draw for long-term investors navigating choppy market conditions. A stronger loonie will directly benefit CCL by lowering the cost of imported raw materials and making cross-border acquisitions — a core pillar of its growth strategy — cheaper. While its large global revenue base creates modest translation risk when foreign earnings are converted back to Canadian dollars, the stock’s 18 times forward earnings multiple and CAD$15 billion market capitalization land at a reasonable valuation relative to its consistent operational performance.
Ultimately, the loonie’s rally will not lift all Canadian stocks equally. Export-heavy firms will face meaningful headwinds, and even global operators will see mixed impacts from currency moves. But Bombardier and CCL offer two distinct, low-risk ways to play the stronger Canadian dollar, without betting the farm on currency fluctuations alone: one a high-growth industrial turnaround with locked-in long-term demand, the other a stable, defensive compounder with a decades-long track record of shareholder returns.
