A survey of North American equities heading in both directions
On the rise
Enbridge Inc. (ENB-T) closed up 1.5 per cent after confirming it has signed a deal to sell a minority stake in its Westcoast natural gas pipeline system to a group of 36 First Nations in B.C.
Under the agreement, the Stonlasec8 Indigenous Alliance Limited Partnership will invest $715-million for a 12.5-per-cent stake in the system.
The Westcoast natural gas pipeline system is extends more than 2,900 kilometres from Fort Nelson in northeast B.C. and from Gordondale near the B.C.- Alberta border, south to the Canada -U.S. border.
Chief David Jimmie, president and chair of Stonlasec8 and chief of Squiala First Nation, called the deal a significant milestone.
“Enbridge’s Westcoast pipeline system is a legacy asset that has operated within our traditional territories for over 65 years,” Jimmie said in statement.
“Now, our Nations will receive sustained economic benefits from this asset, funding critical investments in housing, infrastructure, environmental stewardship, and cultural preservation. People often ask what economic reconciliation for Indigenous Peoples looks like. This is it.”
Enbridge chief executive Greg Ebel said the agreement is one of several such deals the company has undertaken in the last several years as it explores additional opportunities for Indigenous partnerships.
“Enbridge’s commitment to advance Indigenous ownership opportunities related to our existing and growing energy assets underlines our efforts to be the first choice partner for the communities we serve,” Mr. Ebel said in a statement.
The First Nations partnership has reached an agreement with Canada Indigenous Loan Guarantee Corp., a subsidiary of Canada Development Investment Corp., to secure a $400-million loan guarantee to enable the deal.
The transaction is expected to close by the end of the second quarter of 2025, subject to financing and other conditions.
In a note, RBC Dominion Securities analyst Maurice Choy said: “We favourably view the proposed transaction, which should see Enbridge recycle the proceeds from the partial sale of Westcoast (BC) Pipeline into new infrastructure projects that may be built at a lower EBITDA multiple. That said, given the size of the transaction, we do not expect the news to have a material impact on the company’s share price.”
Shares of Montreal-based AtkinsRéalis Group Inc. (ATRL-T) soared almost 11 per cent on Thursday after it reported its first-quarter profit and revenue rose compared with a year ago and raised its revenue outlook for its nuclear business.
The engineering company says it now forecasts nuclear revenue between $1.9-billion and $2.0-billion for 2025, up from earlier expectations for between $1.6-billion and $1.7-billion.
The increase came as AtkinsRealis says it earned a profit attributable to shareholders of $69.1-million or 39 cents per diluted share for the quarter ended March 31.
The result was up from a profit of $45.5-million or 26 cents per diluted share in the first quarter of 2024.
Revenue totalled $2.55-billion, up from $2.26-billion in the same quarter last year.
On an consolidated adjusted basis, AtkinsRealis’ earnings per share came in at 63 cents, exceeding the expectation on the Street by 11 cents.
In a research note, National Bank Financial analyst Maxim Sytchev said: “Outlook – quarter is a “nuclear’ story. ATRL’s ESR vertical delivered results precisely on par with our estimates overall, and the 4-per-cent organic retraction was hardly unexpected (though we estimate net revenue was up low single digits y/y on an organic basis given less flow-through work – especially in Canada where sales fell 12 per cent but net revenues were up 9 per cent). The UK&I and USLA geographies proved stable; in the latter, delays/disruptions attributed to the uncertain macro backdrop were minor and helped by limited exposure to Federal government work. AMEA’s 9-per-cent pullback was driven by tough comps and lower volumes of work in the Middle East, not a surprise given the major decline in oil prices in recent months. Nuclear momentum accelerated in a major way, with recent wins pushing the backlog above $5 bln and leading management to materially raise the segment’s 2025E topline outlook to $1.9-billion to $2.0 and the 2027E forecast to $2.2-billion to $2.5-billion (from $1.8 bln to $2.0-billion). We do not view the 100 basis points decrease in expected 2025E margins as concerning as the adjustment is a function of the shifting business mix. As a result, revenue visibility has improved significantly. While the company continues to search for a buyer for its Linxon segment, we were happy to see much-improved execution that drove an almost 4 times year-over-year increase in the unit’s EBIT margins.”
“Bottom line – getting more predictable, on balance. We were a bit surprised by the nuclear guide last quarter that required a downward adjustment on our part despite bulging backlog; we are now back to normal programming of seeing topline for this division closer to a $2-bilion run-rate. Engineering organic retraction was much discussed and should not be viewed as a start of a trend given backlog build across the Atkins platform, even though we are mindful of Middle East exposure for the company and how sequencing of certain projects has changed, especially in Saudi Arabia. On balance, this is good start to the year. Cash from the 407 sale will of course only further solidify the balance sheet while also dramatically simplifying the reporting / analytical structure of the company, hopefully driving down the discrepancy between Atkins’ valuation and that of its direct peers. We rate ATRL shares Outperform with an $88.00 price target”
Strathcona Resources (SCR-T) jumped 14 per cent after the Canadian oil and gas producer said on Wednesday it has sold all of its Montney assets for about $2.84-billion and acquired Hardisty Rail Terminal as part of its “core area consolidation” strategy.
Previously owned by USD Partners, Hardisty is Western Canada’s largest crude-by-rail terminal. It is one of North America’s major crude oil hubs as well as an origination point for export pipelines to the United States, according to the USD Partners website.
Strathcona acquired Hardisty for about $45-million in the first quarter of this year, it said. Combined with its Hamlin Terminal, Strathcona would now own and operate rail terminals handling about 80 per cent of Western Canada’s current crude-by-rail volumes, it added.
The company sold its Kakwa asset to ARC Resources (ARX-T) for around $1.7-billion, its Grade Prairie asset for around $850-million, and its Groundbirch asset to Tourmaline Oil (TOU-T) for $291.5-million.
It expects to close the Kakwa and Grande Prairie asset sales in the early part of the third quarter this year, and the Groundbirch sale in the second quarter.
The company also revised its guidance, projecting second-quarter 2025 production at 180 million barrels of oil equivalent per day (Mboe/d).
Full-year 2025 production is expected to range between 150–160 Mboe/d, with 120–125 thousand barrels per day (Mbbls/d) anticipated in the third and fourth quarters following the Montney asset dispositions, it said in a statement.
Key bellwether Deere & Co (DE-N) cut the lower end of its annual profit forecast on Thursday but topped Street expectations for second-quarter results aided by cost-saving measures and inventory management, sending its shares up 3.9 per cent.
Farmers facing high interest rates and weaker crop prices are leaning more towards renting rather than buying machinery, hitting sales of big-ticket equipment such as tractors and combines.
Deere was able to cushion the blow from softer demand and keep its margins steady by lowering production and warranty-related expenses.
Tariffs imposed by Mr. Trump have added to production costs and led to uncertainty for large industrial firms in international markets.
The company would continue to make “significant investments” in its core U.S. market, Deere said.
Peer CNH Industrial (CNH-N) slashed its annual profit forecast earlier this month, citing a hit from lower shipments due to cooling demand and dealer destocking.
Deere and CNH struggled to keep pace with strong tractor demand in 2022, when farm income hit a record high and pandemic assistance payments gave farmers extra money to upgrade their fleets.
The world’s largest agricultural-equipment maker expects its annual net income to now be between US$4.75-billion and US$5.5-billion, compared to its prior forecast of US$5-billion to US$5.5-billion.
Its revenue for the second quarter fell about 18 per cent to US$11.17-billion from last year, compared to analysts’ estimate of about US$10.8-billion, according to data compiled by LSEG.
Quarterly net income fell to US$1.8-billion or US$6.64 per share, compared with US$2.37-billion or US$8.53 per share a year ago. Analysts on average had expected the company to report a profit of US$5.58 per share.
On the decline
Calgary’s Calfrac Well Services Ltd. (CFW-T) was lower by 3.2 per cent after it reported a first-quarter profit of $7.8-million compared with a loss of $2.9-million a year earlier as its revenue rose 12 per cent.
The oilfield services company says the increase in revenue came from higher prices and activity in Argentina, offset in part by lower prices in North America.
Calfrac reported its profit amounted to nine cents per diluted share for the quarter ended March 31 compared with a loss of three cents per diluted share in the same quarter last year.
Revenue totalled $370.1-million, up from $330.1-million in the first quarter of 2024.
The increase came as the company’s Argentine operations earned $142.2-million in revenue during the first quarter of 2025 compared with $81.1-million in the same quarter in 2024.
Calfrac’s North American operations took in $227.9-million in revenue for the quarter, down from $249.0-million a year earlier.
RBC Dominion Securities analyst Keith Mackey said: “We expect Calfrac’s 1Q25 results to have a positive impact on the stock today. Adj. EBITDA of $55-million was 43 per cent ($16-million) ahead of the Street and 38 per cent ahead of RBCe ($15-million) on stronger results in Argentina. The company’s 2025 outlook appears relatively in line with our expectations, calling for improved utilization in the US and continued strong momentum in Argentina, however the company does not expect 1Q25 operating margins in Argentina to be repeated as the company benefited from additional spot work during 1Q25.”
UnitedHealth Group (UNH-N) shares plummeted 10.9 per cent on Thursday, after the Wall Street Journal reported that the U.S. Department of Justice was investigating the company for potential Medicare fraud.
The latest news adds to the health insurer’s litany of woes, including multiple government inquiries, a sudden change in top leadership and a pulled outlook in the face of soaring medical costs.
Investors and analysts noted that while details on the investigation were limited, they did heighten investor concerns.
“The stock is already in the doghouse with investors, and additional uncertainty will only pile on,” said James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth.
The company, however, said that it had not been notified by the DOJ regarding this criminal investigation.
The news of the probe follows CEO Andrew Witty’s abrupt departure and the withdrawal of its 2025 forecast, which triggered an 18-per-cent drop in shares to a four-year low on Tuesday.
“UnitedHealth Group is mired in a crisis seemingly without end. Investors are bracing for another big bout of turbulence given reports of the DOJ investigation,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Walmart (WMT-N) will have to start raising prices later this month due to the high cost of tariffs, executives said on Thursday, even as the retailing giant’s U.S. comparable sales surpassed expectations in the first quarter.
Shares of the Bentonville, Arkansas-based company were lower by 0.4 per cent. Its stock is up more than 60 per cent over the past year. Walmart became the latest to avoid giving second-quarter profit guidance on Thursday due to the uncertainty around Mr. Trump’s tariffs that have roiled world trade.
U.S. shoppers will start to see prices rise at the end of May and certainly in June, Walmart’s Chief Financial Officer John David Rainey said in a CNBC interview.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” CEO Doug McMillon said in a statement.
Analysts said Walmart can lean on its suppliers and squeeze out efficiencies to shield customers from tariffs, but they can only do that for so long.
“There will likely be some demand destruction from tariffs, a complete wreck is unlikely,” said Brian Jacobsen, chief economist at Annex Wealth Management.
The largest U.S. retailer on Thursday kept its annual sales and profit forecast intact for fiscal 2026. It continues to expect adjusted earnings per share for the fiscal year ending January 2026 in the range of US$2.50 to US$2.60 and annual sales to rise between 3 per cent and 4 per cent.
Mr. Jacobsen said Walmart withholding its second-quarter profit guidance made sense, and he found it encouraging that they didn’t also pull their full-year forecasts. He anticipates the effects of fluctuating tariffs to balance out over a longer timeframe.
Same-store sales in the first quarter grew by 4.5 per cent, driven by increases in both transactions and unit volumes, the company said. Transactions rose 1.6 per cent, while the average spend at the till rose 2.8 per cent, with shoppers reaching for more dairy and pantry products, fresh food and personal care items.
Analysts, on average, were expecting a 3.94-per-cent increase in U.S. same-store sales, according to data compiled by LSEG. Net sales rose 2.5 per cent to US$165.6-billion, a hair shy of estimates.
U.S. e-commerce sales rose 21 per cent, while globally they rose 22 per cent. This was the first time Walmart’s eCommerce business achieved a full quarter of profitability, benefiting from higher-margin businesses, including online advertising and its marketplace, the company said.
The retailer reported quarterly adjusted profit of 61 US cents per share. Analysts, on average, were expecting 58 US cents per share.
Dick’s Sporting Goods (DKS-N) has agreed to buy smaller rival Foot Locker (FL-N) for US$2.4-billion, the second major footwear deal this month after the buyout of Skechers (SKX-N), as U.S. retailers look to navigate a tough demand landscape.
The sporting goods retailer has offered US$24 per share of Foot Locker, the companies said on Thursday, representing an 86-per-cent premium to the stock’s last close.
Shares of Foot Locker surged in Thursday trading, after losing about 40 per cent in the year so far. Dick’s Sporting Goods fell on the confirmation of the deal.
The acquisition, Dick’s largest deal in the sporting goods industry, will help the company boost its presence in malls and expand to international markets for the first time, positioning the retailer to better tackle a slowdown in consumer spending.
Several U.S. retailers have issued gloomy forecasts in recent weeks as the Trump administration’s hefty tariffs have forced Americans to tighten spending in anticipation of potentially higher prices on everything from household staples to toys and apparel.
Over the last few years, Foot Locker has lost market share to competition from brands such as Nike and Under Armour, which have expanded their direct-to-consumer business, as well as falling customer visits to indoor malls, where most Foot Locker stores are located.
It operates 2,400 retail stores across 20 countries in markets including North America, Europe and Asia, and logged worldwide sales of $8 billion last year.
Dick’s expects to operate Foot Locker as a standalone business unit within its portfolio and maintain the Foot Locker brands, according to the statement.
Last week, Skechers agreed to a US$9.42-billion buyout by private equity company 3G, exiting public markets after 26 years as the popular shoe brand grapples with the impact of steep U.S. tariffs.
Dick’s intends to finance the deal, which is expected to close in the second half of 2025, through a combination of cash-on-hand and new debt.
Chinese e-commerce giant Alibaba (BABA-N) reported quarterly revenue that missed Wall Street estimates on Thursday, as the company works on new strategies to keep consumers spending amid persistent economic weakness and global trade uncertainties.
U.S.-listed shares of the company fell 7.6 per cent. They have risen about 58 per cent so far this year.
Chinese shoppers, grappling with a prolonged property crisis and a cloudy economic outlook, have increasingly become cost-conscious, prompting deep discounts and rock-bottom prices to stimulate spending.
That has sparked a price battle among China’s largest online e-commerce platforms including Alibaba, PDD Holdings’ Pinduoduo (PDD-Q) and JD.com (JD-Q), as they jostle for market share.
Alibaba’s rival JD.com on Tuesday beat first-quarter revenue estimates and said it was seeing strong user growth.
For the March quarter, revenue from Alibaba’s Taobao and Tmall Group segment, its Chinese e-commerce arm, was up nearly 9 per cent from a year earlier, above market estimates. Alibaba’s earnings statement attributed the growth to strong momentum in new consumer growth and a continuing increase in orders.
Chinese e-commerce giants have been aggressively expanding into instant retail, focusing on delivery speeds of 30 to 60 minutes, in their battle for market share.
Both JD.com and Alibaba’s platforms have offered users incentives including coupons to try their expanded instant retail and food delivery offerings.
Investors are now shifting focus to the “618” festival, one of the biggest annual shopping events in China, which culminates on June 18. Retailers have already started pre-sales.
Alibaba reported revenue of 236.45 billion yuan (US$32.79-billion) in its fiscal fourth quarter ended March 31, compared with analysts’ estimates of 237.24 billion yuan, according to data compiled by LSEG.
Coinbase Global Inc. (COIN-Q) forecast a hit between US$180-million and US$400-million from a cyber attack that breached account data of a “small subset” of its customers, sending the crypto exchange’s shares down over 7 per cent on Thursday.
The company said it received an email from an unknown threat actor on May 11, claiming to have information about certain customer accounts as well as internal documents.
The disclosure comes days before the company is set to join the benchmark S&P 500 index, marking a landmark moment for the crypto industry.
Coinbase said that while the attackers stole some data including names, addresses and emails, they did not get access to login credentials or passwords. It will, however, reimburse the customers who were tricked into sending funds to the attackers.
The hackers had paid multiple contractors and employees working in support roles outside the U.S. to collect information from internal systems. Coinbase has fired the employees involved immediately, it said.
It also refused to pay the ransom demand of US$20-million and is working with law enforcement agencies. It has instead established a US$20-million reward for information on the attackers.
With files from staff and wires