A look at some small-cap stocks making news - or about to.
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 48 per cent over the past 52 weeks. It hit a record 1,496.55 on June 2. The Russell 2000 in the U.S. is up about 30 per cent over the past 52 weeks. It hit a record of 3,046.59 on July 1.
Small-cap summary:
Aecon Group Inc. (ARE-T) reported second-quarter results that beat expectations, but the stock was down in early Friday trading amid concerns about the company’s margins.
After markets closed on Thursday, the company reported revenue of $1.63-billion, up 25 per cent compared to $1.3-billion for the same period in 2025. The result beat expectations of $1.48-billion, according to S&P Capital IQ.
Adjusted EBITDA of $82.4-million was up from $41.1-million a year ago.
Adjusted profit of $23.8-million or 33 cents, ahead of expectations of 29 cents and compared to a loss of $6.6-million or 10 cents a year earlier.
“The second quarter reflected strong operational execution across our business, including revenue increasing 25% year-over-year and adjusted EBITDA doubling compared to the same period last year, and strengthening Aecon’s strategic positioning through contract awards in sectors with attractive demand profiles,” said CEO Jean-Louis Servranckx.
“Backed by strong backlog of $10.5 billion, growing recurring revenue programs, significant ongoing projects and pursuits across North America tied to power generation, critical resource development, mass transit infrastructure, water, digital infrastructure, and defence, as well as an increasing number of projects delivered under collaborative models – we remain focused on disciplined execution, prudent risk management, and delivering profitable growth for our shareholders.”
TD analyst Michael Tupholme described the results as “slightly positive for share price near term and supportive of constructive thesis.”
Added Mr. Tupholme: “ARE reported a strong qtr., marked by impressive rev. growth (+25% y/y) and solid y/y margin improve. While backlog was flattish (not unexpected), it should hit a new record in Q3/26, supported by several recent large contracts, while other recent awards (still in develop. phase) will underpin future booking/activity levels. Attractive growth/execution story unfolding; room for further re-rating.”
He has a buy and $61 target on the stock.
National Bank analyst Maxim Sytchev said the results delivered “a big top-line beat” but said that development and bidding costs somewhat constrained margin expansion.
“Bottom line – solid backlog / top-line growth; next area of focus is margins, but that will take a bit of time," he wrote. “The company is showing strong backlog momentum, top line, and now better FCF [free cash flow] as some of the working capital that was trapped in legacy projects is getting freed up. “
Added Mr. Sytchev: “A common point of discussion with investors is around margins, but we get a sense that risk management is priority number 1 for the team. We believe, at this juncture, it’s the correct approach; with a generally strong construction market in Canada, we believe the margin dynamic should come in naturally, over time. Share price behaviour has been very choppy; partly attributable to AI/utilities trade, partly to uncertainty around Gordie Howe, which is now complete. When stepping back from all the noise for a second, we are long the name for CAD infrastructure opportunity and nuclear upside.”
He has an “outperform” (buy) and $65 target on the stock.
Stifel analyst Ian Gillies described the results as “slightly positive given modest consensus EBITDA beat and positive outlook.”
Added Mr. Gillies: “One potential point of concern is elevated MG&A costs. Aecon delivered robust 2Q26 revenue of $1,631 mm beating consensus by 9.9% and was up 25.3% y/y. EBITDA margins continued to be impacted by higher MG&A, leading to EBITDA of $82 mm, 3.8% higher than consensus. The company guided to double-digit revenue growth in 2026E for the first time, versus Stifel at 12.5% and consensus at 11.3%, which we expect to move higher following this update.”
Added Mr. Gillies: “The stock is down 13.6% in the past week given the sector pullback, and we believe this print should incite a share price recovery tomorrow [Friday].”
**
Hammond Power Solutions Inc. (HPS-A-T) reported second-quarter results that blew past expectations. The stock was down in early Friday trading amid a decline in backlog, despite it being near record levels.
After markets closed on Thursday, the Guelph, Ont.-based transformer company reported record quarterly sales of $325-million, up 45 per cent from a year earlier. The result beat expectations of $290-million, according to S&P Capital IQ.
Adjusted EBITDA of $53-million was up from $23.7-million a year ago and ahead of expectations of $42.2-million.
Net earnings of $9.4-million or 79 cents per share fell from $13.4-million or $1.12 last year. Adjusted EPS came in at $2.76, up from $1.72 a year ago and ahead of expectations of $2.10.
“The second quarter was an outstanding quarter for HPS, with record sales, improved margins and strong execution across our operations,” said CEO Adrian Thomas. “Demand in the U.S. market continues to be driven by data centre investment, electrification and power infrastructure spending, and our expanded manufacturing footprint is allowing us to support that growth more effectively.”
He added: “Despite record shipments, our backlog remains at historic levels and supports continued utilization of our capacity investments. We also saw positive margin uplifts from higher custom product mix, flow-through of previous pricing actions and operational improvements.”
National Bank analyst Baltej Sidhu said in a nte that the company delivered “a sizable Q2/26 beat and a strong fundamental rebuttal to the recent share weakness.”
He said the record revenue was 9 per cent above his $297.3-million estimate, while adjusted EBITDA beat his forecast by 25 per cent.
“Investors may focus on the 7% sequential decline in backlog; however, this largely reflects improved capacity and throughput, alongside the shipment of larger orders, which pushed shipments above bookings,” he wrote. “Importantly, backlog remains near record levels and is still up 97% y/y. Net-net, a strong organic print with improving margins and AEG adding a new growth leg in H2/26.”
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Coveo Solutions Inc. (CVO-T) reported higher revenue and trimmed its losses in the first quarter ended June 30 compared to the year-ago period.
After markets closed on Thursday, the Montreal-based company reported revenue of US$38.5-million compared to US$35.5-million last year. The result was roughly in line with expectations of US$38.6-million, according to S&P Capital IQ.
Its net loss of US$5.8-million or 6 cents US per share compared with a loss of US$15.1-million or 16 cents US a year ago. The expectation was for a loss of 7 cents US in the most recent quarter.
“Our first quarter reflected continued customer adoption across our core solution areas and further demonstrated the strategic role Coveo is playing as enterprises scale their AI initiatives,” said CEO Laurent Simoneau.
National Bank Financial analyst Doug Taylor said in a note that the company delivered in-line revenue while adjusted EBITDA of $0.1-million beat expectations.
He also said that second-quarter guidance also featured in-line revenue and adjusted EBITDA slightly above expectations while the company maintained its full-year guidance.
"The quarter was incrementally constructive on profitability and strategic-customer traction, but we continue to await traction back toward mid-teen growth before becoming more positive," he wrote.
He maintained his $5.50 target and “sector perform” (hold) rating.
Stifel analyst Suthan Sukumar said the first quarter was in line with expectations and full-year guidance was reaffirmed, “but our primary takeaway was significant customer validation post-quarter close with the company’s first-ever 8-figure customer via expansion with an unnamed Fortune Global 500 tech company... .”
He said the deal underscores “the growing strategic relationship Coveo has with its clients as enterprise AI maturity improves and AI investment ROI scrutiny increases.”
He maintained his “buy” and $9 target.
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Black Diamond Group Ltd. (BDI-T) shares were down on Friday after the company reported mixed results for its second quarter.
After markets closed on Thursday, the Calgary-based space rental and workforce accommodation solutions company reported revenue of $129.2-million, up 23 per cent from $105.4-million a year earlier. The result beat expectations of $125-million, according to S&P Capital IQ estimates.
Adjusted EBITDA of $30.4-million rose from $29.8-million a year ago. The expectation was for $31.3-million.
Adjusted profit of $6.5-million or 9 cents per share was down from $11-million or 18 cents a year ago. The result was ahead of expectations of 8 cents.
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Canada Goose Holdings Inc. (GOOS-T) shares ended flat on Thursday after the company reported mixed results for its first quarter ended June 28. It also said it expects low-single-digit growth for fiscal 2027.
Before markets opened on Thursday, the retailer reported revenue of $118.9-million, up from $107.8-million a year earlier and ahead of expectations of $109.7-million.
Its net loss of $90.8-million or 93 cents per share was in line with expectations and an improvement from a net loss of $125.2-million or $1.29 per share in the prior year period. On an adjusted basis, the loss was 89 cents per share compared 91 cents a year ago.
Adjusted EBITDA was a loss of $67.7-million versus a loss of $75.2-million a year ago. The expectation was a loss of $79.1-million.
“Our first quarter is another proof point that our strategy is working,” said Dani Reiss, Chairman & CEO of Canada Goose. “We’re successfully evolving Canada Goose into a year-round luxury brand, with customers engaging across more seasons and categories. We expanded gross margin, improved profitability, and deepened engagement around the world. Together, those results are building a stronger, more productive, and more profitable business.”
In its fiscal 2027 outlook, the company said it expects revenue to increase approximately low-single digits compared to the prior year.
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Lightspeed Commerce Inc. (LSPD-T) shares closed down nearly 13 per cent on Thursday after the company reported mixed first-quarter results.
Before markets opened on Thursday, the Montreal-based point-of-sale and payments company reported revenue of US$322.7 million for the quarter ended June 30, up from US$305-million a year earlier. The result beat expectations of US$310.6-million.
Its net loss of US$2.4-million or 2 cents US per share was improved from a net loss of US$49.6-million or 35 cents US per share a year ago. Adjusted net income of US$17-million or 13 cents US per share compared to adjusted income of US$7.9 million or 6 cents US last year. That beat expectations of 12 cents US for adjusted earnings.
Adjusted EBITDA of US$17.5-million was up US$15.9-million. It missed expectations of US$18.2-million.
“Fiscal 2027 is off to a strong start for Lightspeed, with revenue ahead of our outlook, and solid progress across our strategic priorities,” said CEO Dax Dasilva. “With the foundations of our transformation firmly in place, we are accelerating product innovation across retail and hospitality, expanding our AI capabilities and executing with greater discipline to drive stronger results.”
In its outlook, the company said it expects second-quarter revenue of US$316 million to US$326 million. The expectation is for US$319.2-million. Adjusted EBITDA is expected to come in at between US$20 million and US$25-million. The expectation is for US$22.4-million.
Stifel analyst Suthan Sukumar described the results as “largely uneventful.”
In a note he wrote: “Revenue topped guidance but subscription software growth (the key stock debate) was mixed (5% as reported, 8% ex-Upserve), with strength instead led by payments and hardware. EBITDA landed in line with our estimate/guide but a touch below the Street, as the company balances profitability with pulled-forward growth investments.”
He said full-year guidance was left unchanged despite the beat, “implying some conservatism over the remainder of the year. Net/net, we see continuous improvement, with encouraging momentum in core growth markets but the stock’s re-rating still hinges on subscription software growth re-accelerating to a sustainable double-digit pace to confirm Lightspeed is regaining share after its strategic reset.”
CIBC analyst Todd Coupland described the results as “mixed” with unchanged guidance, “but the turnaround is moving in the right direction.”
In a note, he wrote: “The debate now shifts to execution: faster software/location growth, better GTM productivity, and higher Payments/Capital adoption. Importantly, these are management-controlled levers; we expect sequential improvement through FY27 that can support a multi-quarter re-rate.”
Added Mr. Coupland: “The stock still screens too cheap, in our view: bottom-quartile BVP Cloud valuation despite GTV progress, with location and Subscription growth the key proof points needed to unlock the discount.”
He has an “outperformer” and $25 target on the stock.
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Spin Master Corp. (TOY-T) shares closed down nearly 11 per cent on Thursday after the company reported second-quarter earnings and, according to one analyst, a “disappointing” outlook.
Before markets opened on Thursday, the Toronto-based children’s entertainment company reported revenue of US$436.4-million, up 9 per cent from US$400.7-million a year earlier. The result beat expectations of US$418.4-million, according to S&P Capital IQ estimates.
Net income was US$29.7-million or 29 US cents per share versus a loss of US$46.5-million or 46 US cents per share last year. On an adjusted basis, net income was US$8.6-million or 8 US cents per share compared to a loss of US$7.4-million or 7 US cents per share.
Adjusted EBITDA was US$51.6-million up from US$28.7-million a year earlier and ahead of expectations of US$31.7-million.
“We recorded a strong second quarter, powering our return to profitable growth,” said CEO Christina Miller. “Our results were driven by solid sales of core brands, including PAW Patrol and Monster Jam, along with compelling new products. Entering the back half of the year, we remain sharply focused on investing in innovation across our creative centers, accelerating growth by expanding into collectibles and strategic trading cards, and unlocking the full value of our brands by bringing them to global audiences in stores, on screen, and online."
TD analyst Brian Morrison described the results as positive in a note.
“Spin had a strong Q2/26 adjusted EBITDA /EPS beat and maintained 2026 key guidance metrics,” he wrote. “Solid core offering, improving H2/26 outlook for M&D/Digital Games, and collaborative offering for the upcoming Paw Patrol: The Dino Movie, increases our conviction Spin should meet its annual targets. This should improve investor sentiment and in turn multiple expansion from historic lows.”
The company was previously set to use price hikes to offset US$15-million in additional costs it was expecting to incur from the war in the Middle East through the second half of this year.
But chief financial officer Jonathan Roiter told analysts in a call on Thursday that it’s no longer necessary because the company is getting US$37.9-million back from the U.S. government after its Supreme Court ruled in February that a 10 per cent global tariff on imports President Donald Trump had applied was unconstitutional. The move allowed companies who had paid the tariffs since 2025 to apply for refunds.
“With the reception of the tariff refunds, we’ve decided to utilize those refunds to counter the increased costs without having to increase pricing,” Mr. Roiter said during the call.
The refunds will also help the company head off potential impacts of a new 50 per cent tariff U.S. President Donald Trump has said he will start applying to imports into the country including some toys on and after Aug. 19, Mr. Roiter added.
See full story here: Spin Master cancels price hikes for toys after tariff refund
Stifel analyst Martin Landry said in a not that the company’s “disappointing outlook” for the third quarter weighed on the stock price.
“Spin Master reported Q2/26 EBITDA of $52 million, up 80% Y/Y, better than our expectations of $30 million and consensus of $32 million. Part of the beat was due to a pull forward of orders as retailers prepared for the PAW Patrol movie slated for August 14th,” he wrote. “Despite the reiteration of 2026 EBITDA guidance, shares traded down 11% on the day, reflecting (1) a strong share-price run into the print, such that a beat without a guidance raise underwhelmed, (2) concern that the pull-forward of orders without incremental demand points to a Y/Y decline in Q3/26 EBITDA, and (3) management’s cautious tone. According to our forecasts, guidance now appears to be weighted more heavily on Q4/26 where a Y/Y growth rate of >25% may be needed to meet the midpoint of the EBITDA guidance. Hence, with reduced visibility on TOY attaining its 2026 EBITDA guidance, we remain on the sidelines.”
He has a “hold” and $21 target on the stock.
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Ag Growth International Inc. (AFN-T) shares closed down 24 per cent on Thursday after the company reported lower profit and earnings for the second quarter and warned about the impact of its slowing order book.
After markets closed on Wednesday, the Winnipeg-based company reported revenue of $323-million, down from $348.6-million a year ago. The result was ahead of expectations of $320.7-million, according to S&P Capital IQ estimates.
Adjusted EBITDA of $43.3-million fell from $52.2-million last year and was in line with expectations of $43.1-million.
In its outlook, the company said its order book was down 22 per cent year over year to $516-million as of June 30 “primarily due to softer customer purchasing patterns in the commercial segment,” it stated, “as well as the absence of new large-scale comprehensive project contributions in Brazil.” It said the drop was partially offset by improvement in the farm order book.
“Taken together, the combination of a still-guarded Farm recovery, continued Commercial softness, and the strategy shift in Brazil are expected to weigh on second-half and full-year results relative to the prior year,” the company stated.
CEO Paul Brisebois said the second-quarter results reflected a divergence it has been navigating all year, “early signs of stabilization in North American Farm, offset by continued softness in Commercial across several markets.”
Added Mr. Brisebois: “We remain focused on execution and what we can control: simplifying the business, tightening execution, and delivering on structural cost savings. These are permanent changes to how we operate, which means the earnings power of this business improves meaningfully as volumes recover. We are confident that AGI is well-positioned for a strong rebound as market conditions eventually turn.”
The company also said it’s on track to exceed its $30-million annualized cost savings target, “with much of the savings being structural.” It also expects to save at least $20-million from unused facility and asset sales in the second half of fiscal 2026.
Ag Growth also said it has initiated a low-capex U.S. facility consolidation to grow storage and handling volumes in the U.S. market. It said capex will be more than covered by unused facility and asset sales in the second half of this year, which are part of its consolidation effort.
The company also reiterated that it has launched a strategic review.
In a first-look note, National Bank Financial analyst Maxim Sytchev described the results as “very noisy,” while noting declining backlog.
“Headline numbers [were] roughly in line, but quality of adjusted EBITDA is less than stellar,” he wrote, adding that “leverage is elevated and end-market recovery prospects are still foggy.”
Added Mr. Sytchev: “While revenue came in marginally ahead of progressively lower expectations, EBITDA has missed the market expectations (especially when taking into account all the adjustments); at this macro juncture, costs savings are simply not enough to cushion the margins while the challenges we cited in our post-Q4/25 downgrade ... remain equally pertinent today.”
He has a “sector perform” (hold) and $20 target on the stock.
CIBC analyst Hamir Patel maintained his “neutral” rating on Ag Growth and cut his price target to $19 from $23, reflecting lower free cash flow assumptions.
“Despite Thursday’s steep sell-off, we remain on the sidelines as challenges in the Commercial segment persist, the wind-down of legacy large-scale projects in Brazil is likely to weigh on near-term growth, and broader agricultural market conditions remain challenging,” he wrote. “That said, we are encouraged by continued signs of stabilization in the Farm segment, with conditions appearing incrementally more constructive, supported by improved order intake.”
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Algoma Steel Group Inc. (ASTL-T) shares closed down 10 per cent on Thursday after the company reported mixed second-quarter results.
After markets closed on Wednesday, the Sault Ste. Marie, Ont.-based steelmaker reported revenue of $267.5-million, down from $589.7-million in the prior-year quarter. The result missed expectations of $292-million, according to S&P Capital IQ estimates.
Its net loss was $96-million or 88 cents per share compared to a net loss of $110.6-million or $1.02 in the prior-year quarter. The expectation was for a loss of 80 cents.
The company said the year-over-year improvement was due mostly to $45-million in insurance proceeds recognized in other income and a foreign exchange gain of $18.8-million, compared to a foreign exchange loss of $31.5-million in the prior-year quarter.
Adjusted EBITDA was $13.8-million compared to negative $32.4-million last year. The expectation was a loss of $80.6-million.
“The second quarter demonstrated the resilience of our transformed business against a stubbornly challenging industry backdrop,” stated CEO Rajat Marwah. “We delivered a second consecutive quarter of record plate sales, our first EAF unit continued to ramp up as expected, and transition costs declined meaningfully from the first quarter. With commissioning activities commencing at the second EAF unit and first steel expected in the third quarter, we are entering the final phase of the most significant transformation in Algoma’s history.”
Stifel analyst Ian Gillies described the quarter as “uneventful” in a note.
“Algoma reported 2Q26 adj. EBITDA in line with its pre-released guidance, though revenue of $268 mm was below our $295 mm estimate and consensus of $292 mm by 8-9%, as tonnage beat guidance but revenue/ton came in below expectations,” he wrote. “The press release highlighted a recent increase in Canadian steel prices, which is positive at the margin. There is considerable spare HRC production capacity in Canada, however, so any price gains may be tenuous as Algoma — and likely peers — bring incremental production back to market. 2Q26 plate production of 125,000 tons was up 21.3% y/y and represents an annualized run-rate already near 500k tons; we believe the company can push run-rate plate production above that level in 2027E. Over the medium term, we see the stock direction driven by (1) changes in Section 232 tariffs and (2) news on development of the beam mill."
In a note, Stifel analyst Ian Gilles said Algoma’s fundamentals are improving, “belying today’s [Thursday’s] share price reaction.”
“ASTL’s 2Q26 results were in line with expectations, and the outlook is improving with 2027E EBITDA rising to $107 mm from $50 mm,” he wrote. “We are admittedly having trouble identifying why the stock traded down 10% today. The next major catalysts for the stock are (1) progression on the beam mill; (2) potential changes in US-Canada trade policy; and (3) returning to EBITDA breakeven.”
He reiterated his $11.50 target price and “buy” rating.
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Canfor Corp. (CFP-T) rose on Thursday after the company reported higher sales and trimmed its loss for the second quarter compared to a year ago. The results also beat expectations.
After markets closed on Wednesday, the Vancouver-based lumber company reported sales of $1.53-billion up from $1.38-billion a year earlier. The expectation was for sales to come in at $1.43-billion, according to S&P Capital IQ.
Its net loss of $18.5-million or 16 cents per share compared with a loss of $202.1-million or $1.71 a year earlier. The expectation was for a loss of 36 cents.
“Our second quarter results reflect an improvement in earnings, principally driven by a solid operating performance across all of our lumber regions and an ongoing improvement in our underlying cost structure, combined with an uplift in lumber market conditions in North America,” stated CEO Susan Yurkovich. “Despite this short-term uptick, we continue to take disciplined actions to address longer-term structural fibre and market challenges, while investing in opportunities that support long-term value creation.”
Ms. Yurkovich added: “Global pulp markets remained challenging during the second quarter as the ongoing structural shift in market fundamentals combined with subdued demand and elevated inventories continued to pressure pricing. Against this backdrop, we made the difficult but necessary decision to permanently close our Northwood pulp mill. As global pulp market conditions are likely to remain under pressure in the near-term, we remain focused on optimizing our footprint, controlling costs, and strengthening the long-term competitiveness of our pulp and paper operations.”
CIBC analyst Hamir Patel maintained his “neutral” (hold) rating on Canfor and raised his target price to $16 from $15 on higher estimates.
“We are encouraged by Canfor’s improved results, underpinned by rising lumber realizations, stronger performance in Europe and a reduced footprint in BC, all of which continue to support a healthy balance sheet. That said, we remain on the sidelines given a sluggish backdrop for housing, fiber challenges and weak pulp markets,” he wrote.
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Endeavour Silver Corp. (EDR-T) reported a 150-per-cent rise in revenue in its second quarter driven by stronger commodity prices and growing production.
After markets closed on Wednesday, the mid-tier silver producer with three operating mines in Mexico and Peru reported revenue of US$212.1-million up from US$85.3-million a year earlier. Production of silver and gold was 31 per cent and 35 per cent higher, respectively, than in the same period in 2025.
Net earnings came in at US$66.5-million or 15 cents US per share versus a loss of US$20.5-million or 3 cents US last year. The expectation was for EPS of 13 cents US.
“Endeavour delivered strong second quarter results, supported by higher production, record ounces sold and improved mine operating cash flow,” said CEO Dan Dickson. “The successful increase in throughput at Kolpa and our strong cash position provide a solid foundation as we continue to advance our growth initiatives in the second half of the year, while delivering long-term value for our shareholders.”
National Bank analyst Alex Terentiew described the results as “neutral” in a note.
“While this was largely a financial update as operating results were previously disclosed, we reiterate that the operating outlook is improving across all three assets, with Terronera’s LNG plant now operational, Kolpa’s 2,500-tpd expansion commissioned, and higher grades expected at both Terronera and Guanaceví during 2H/26,” he wrote. “We note, however, that capital spending plans for 2026 have increased by US$24mln, with the additional spending largely being directed at Kolpa, where investments in tailings, water treatment and other initiatives in support of the longer-term plan are being made. Nonetheless, cash at quarter end ofUS$236.6mln was largely in line with our US$239.4mln estimate.”
He has an “outperform” (buy) and $24 target on the stock.
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Primaris REIT (PMN-UN-T) reported higher revenue for its second quarter but swung to a loss versus a year earlier.
After markets closed on Wednesday, the company reported rental revenue of $174.1-million up from $150-million a year earlier. The result was slightly ahead of expectations of $173.9-million.
It net loss of $13.7-million or 10 cents per unit compared to a profit of $50.4-million or 40 cents a year earlier.
Adjusted funds from operations came in at 31 cents versus 34 cents a year earlier.
“The strength of our operating platform, the quality of our portfolio, and the visibility we have into future growth opportunities continue to differentiate Primaris in the Canadian REIT sector,” said CEO Alex Avery. “As we execute on our leasing, portfolio optimization, and capital allocation initiatives, we believe we are exceptionally well positioned to deliver above-average earnings growth and long-term value creation for our unitholders.”
TD analyst Sam Damiani said the results “showed the beginnings of the upward inflection we’ve been calling for (further supported by the big leasing update provided 4 weeks ago, link).”
He said the REIT’s near 50-per-cent unit price move so far this year has lifted the relative valuation from historic lows to new highs and is “fully deserved, in our view.”
He has a “buy” and $24 target on the stock.
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Vermilion Energy Inc. (VET-T) reported second quarter results that largely beat expectations.
After markets closed on Wednesday, the Calgary-based oil and gas company reported sales of $554.3-million up from $443.8-million a year earlier. The result beat expectations of $469.3-million, according to S&P Capital IQ estimates.
Net earnings of $134-million or 88 cents per share compared with a loss of $145-million or 92 cents a year ago. The result beat expectations of 67 cents.
Funds flow from operations came in at $231-million or $1.48 per share compared with $232-million or $1.49 a year earlier.
TD analyst Menno Hulshof described the results as “positive” in a first-look note.
“Prod’n [production] of ~126 mboe/d [million barrels of oil equivalent per day] (71% nat gas) was slightly higher than our 125 mboe/d and eclipsed pre-released 2Q26 prod’n guidance of 123-125 mboe/d,” he wrote. “However, FFOPS [funds from operations per share] of $1.48 landed ~2% below our est. of $1.51 (cons. $1.53). Relative to our model, lower-than-forecast liquids prod’n and higher-than-forecast transportation costs were key drivers of the miss. Capex of $110mm landed below cons./our est. of $138mm/$142mm, respectively.”
National Bank Financial analyst Travis Wood described the results as “mixed” in a note and maintained his “outperform” $27 target price after the earnings report.
“Average production of 126 mboe/d was in line with both NBCCM and Street estimates of 124 mboe/d (flat Q/Q). CFPS of $1.48 came in slightly below both NBCCM and Street estimates of $1.55 and $1.53, respectively,” he wrote. “The delta to our estimates was driven by lower-than-expected domestic realized prices, partially offset by lower-than-expected opex and royalties.”
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Timbercreek Financial Corp. (TF-T) reported lower investment income and profit for the second quarter ended June 30.
After markets closed on Wednesday, the Toronto-based company that provides financing for Canadian commercial real estate investors reported net investment income of $24.9-million compared to $25.2-million a year earlier. The result was below expectations of $26.2-million, according to S&P Capital IQ estimates.
Net income of $7.8-million or 9 cents per share was down from net income of $12.4-million or 15 cents a year earlier.
“We delivered strong origination activity during both the second quarter and first half of 2026, advancing close to $314.7 million year-to-date while continuing to generate stable distributable income,” said CEO Blair Tamblyn. “Market conditions remained positive during the quarter with healthy levels of transaction activity and borrower demand across our core lending categories and we have continued to see strong capital deployment activity subsequent to quarter-end.”
National Bank Financial analyst Jaeme Gloyn lowered his target price to $6.50 from $7 and maintained his “sector perform” (hold) after the earnings.
"Another quarter that reflects the transitional nature of the business as TF continues to work through a still sizable impaired loan portfolio (driving consistently higher credit losses as loans resolve)," he wrote. “On the positive side, TF reported a stable weighted average interest rate earned (a previously persistent headwind), strong originations (and a robust pipeline) and stable distributable income that exceeded the common dividend.”
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Exco Technologies Ltd. (XTC-T) reported mixed results for its third quarter ended June 30.
After markets closed on Wednesday, the company that makes products for the die-cast, extrusion and automotive industries reported sales of $165.4-million compared to $154.9-million in the same quarter last year. The result was slightly ahead of expectations of $164.5-million, according to S&P Capital IQ.
Net income was $5.8-million or 15 cents per share compared to $5.4-million or 14 per share last year. The expectation was for EPS to come in at 20 cents.
EBITDA was $18.5-million compared to $14.7 million in the same quarter last year and below expectations of $21.4-million.
“Exco delivered solid progress in the third quarter, with consolidated sales increasing 7% and EBITDA increasing 26%, reflecting stronger performance in Casting and Extrusion and continued growth in Automotive Solutions,” said CEO Darren Kirk. “We are encouraged by our die-cast backlog above historical levels, favourable North American extrusion market dynamics and increased quoting activity across the business.”
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Morguard Real Estate Investment Trust (MRT-UN-T) swung to a profit in its second quarter.
After markets closed on Wednesday, the REIT reported revenue of $58.6-million, up slightly from $58.3-million a year earlier.
Net income of $2-million or 3 cents per share improved from a loss of $1.7-million or 3 cents a year earlier.
Adjusted funds from operations came in at 4 cents per unit versus nil last year and ahead of expectations of 2 cents, according to S&P Capital IQ.
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Surge Energy Inc. (SGY-T) reported higher revenue and profit for its latest quarter.
After markets closed on Wednesday, the Calgary oil and gas producer reported revenue of $208.7-million for the second quarter ended June 30, up from $141.2-million a year earlier.
Net income of $69.4-million or 68 cents per share compared with net income of $31.9-million or 32 cents a year ago.
The company’s operating and financial results in line with expectations, National Bank Financial analyst Dan Payne wrote in a note, “including average production of 22.9 mboe/d (89% liquids) and associated CFPS of $0.89 (in line with consensus).”
Added Mr. Payne: “During the quarter, the company managed its assets (net of third-party downtime) within the context of a 36% payout ratio (<20% of annual capex deployed), to suggest a 20-25% annualized FCF yield, with that directed towards its shareholder returns (5% yield & ~2% buybacks). The returns of its program continue to be well supported by the strength of its oil-weighted netback (+33% Q/Q), with positive operating leverage to note on the top line and cost structure through the period.”
He maintained his “outperform” (buy) and $13.50 target after the earnings release.
“A solid foundation of returns has been established through the strength of its execution across its assets, and which should continue to suggest value through a sound total return proposition; SGY is poised for a 20% return profile (vs. peers 15%) on a leverage of 0.1x (vs. peers 0.1x), while trading at a 2027e EV/DACF of 3.1x (vs. peers 3.2x),” he wrote.
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Upcoming small-cap earnings:
July 30: Real Matters Inc. (REAL-T), Coveo Solutions Inc. (CVO-T), Canada Goose Holdings Inc. (GOOS-T), Hammond Power Solutions Inc. (HPS-A-T), Richards Group Inc. (RIC-T)
Aug. 3: 5N Plus Inc.(VNP-T)
Aug. 4: Green Thumb Industries Inc. (GTII-CN), Dream Industrial REIT (DIR-UN-T), K-Bro Linen Inc. (KBL-T), Grown Rogue International Inc. (GRIN-CN), Gran Tierra Energy Inc. (GTE-T), Martinrea International Inc. (MRE-T)
Aug. 5: Chorus Aviation Inc. (CHR-T), Flagship Communities REIT (MHC-UN-T), Kinaxis Inc. (KXS-T), Doman Building Materials Group Ltd. (DBM-T), Propel Holdings Inc. (PRL-T), Xanadu Quantum Technologies Ltd. (XNDU-T), Thinkific Labs Inc. (THNC-T), AirBoss of America Corp. (BOS-T), Kits Eyecare Ltd. (KITS-T), Galaxy Digital Holdings Ltd. (GLXY-T), Pizza Pizza Royalty Corp. (PZA-T), Aurora Cannabis Inc. (ACB-T), Savaria Corp. (SIS-T), Dorel Industries Inc. (DII-B-T), Sprott Inc. (SII-T)
Aug. 6: NFI Group Inc. (NFI-T), Enerflex Ltd. (EFX-T), Interfor Corp. (IFP-T), Cascades Inc. (CAS-T), Plaza Retail REIT (PLZ-UN-T), Rogers Sugar Inc. (RSI-T), Cronos Group Inc. (CRON-T), Profound Medical Corp. (PRN-T), TerrAscend Corp. (TSND-T), Premium Brands Holdings Corp. (PBH-T), Altus Group Ltd. (AIF-T), Goeasy Ltd. (GSY-T), Alaris Equity Partners Income Trust (AD-UN-T), Medical Facilities Corp. (DR-T), VitalHub Corp. (VHI-T), Knight Therapeutics Inc. (GUD-T)
Aug. 7: Superior Plus Corp. (SPB-T), Docebo Inc. (DCBO-T), Trulieve Cannabis Corp. (TRUL-CN), Slate Grocery REIT (SGR-UN-T), DRI Healthcare Trust (DHT-UN-T), Fiera Capital Corp. (FSZ-T)
Aug. 10: Cargojet Inc. (CJT-T), Silvercorp Inc. (SVM-T), Altius Minerals Corp. (ALS-T)
Aug. 11: Neo Performance Materials Inc. (NEO-T), Pason Systems Inc. (PSI-T), Minto Apartment REIT (MI-UN-T), BTB REIT (BTB-UN-T), Cineplex Inc. (CGX-T), Pet Valu Holdings Ltd. (PET-T), Hemlo Mining Corp. (HMMC-T), Westport Fuel Systems Inc. (WPRT-T)
Aug. 12: Maple Leaf Foods Inc. (MFI-T), Western Forest Products Inc. (WEF-T), BSR REIT (HOM-U-T), AutoCanada Inc. (ACQ-T), North American Construction Group Ltd. (NOA-T), Ascend Wellness Holdings, Inc. (AAWH-U-CN), Sagicor Financial Company Ltd. (SFC-T), HLS Therapeutics Inc. (HLS-T)
Aug. 13: Total Energy Services Inc. (TOT-T), Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T), Automotive Properties REIT (APR-UN-T), True North Commercial REIT (TNT-UN-T), RFA Financial Inc. (RFA-T), Pro REIT (PRV-UN-T), Calian Group Ltd. (CGY-T), Boston Pizza Royalties Income Fund (BPF-UN-T), Quarterhill Inc. (QTRH-T), Auxly Cannabis Group Inc. (XLY-T)
Aug. 14: Beyond Oil Ltd. (BOIL-T)
Aug. 26: Corby Spirit and Wine Ltd. (CSW-A-T)
- with files from The Canadian Press and Reuters