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 80 per cent over the past 52 weeks. It hit a record 1,472.51 on Monday. The Russell 2000 in the U.S. is up about 25 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
Aecon Group Inc. (ARE-T) shares could be active on Friday after the company beat expectations in the fourth quarter and announced a dividend hike.
After markets closed on Thursday, the North American construction and infrastructure development company reported revenue of $1.54-billion, up from $1.27-billion a year earlier. The results were ahead of expectations of $1.4-billion, according to S&P Capital IQ.
Profit attributable to shareholders came in at $20.7-million or 31 cents per share compared to $14-million or 22 cents a year earlier. Adjusted profit of $34.6-million or 52 cents per share compared to $15.2-million or 23 cents per share a year earlier.
Adjusted EBITDA of $97.3-million was up from $76.3-million a year earlier and ahead of expectations of $78.5-million.
The company also approved an increase to the quarterly dividend of 19.25 cents per share from 19 cents per share previously, payable on April 2, 2026, to shareholders of record on March 23.
In its outlook, Aecon expects 2026 revenue to exceed 2025 levels “on the strength of its record backlog, strategic positioning in sectors with attractive demand profiles, robust recurring revenue programs, and a healthy pipeline of project opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defence,” it stated.
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Maple Leaf Foods Inc. (MFI-T) shares rose in Thursday trading after the company announced fourth-quarter results that beat expectations.
Before markets opened on Thursday, Maple Leaf reported sales of $991-million, up from $917-million for the same period a year earlier. The result was ahead of expectations of $986.8-million, according to S&P Capital IQ.
Adjusted operating earnings were $67.2-million or 32 cents per share compared to $52.8-million or 18 cents last year. The result was ahead of expectations of 32 cents.
Adjusted EBITDA of $117.3-million was up from $108.3-million a year earlier and ahead of the consensus of $113.7-million.
“Our fourth-quarter results capped off another year of substantial operational and financial progress for Maple Leaf Foods,” said CEO Curtis Frank in a release.
TD analyst Michael Van Aelst, who has a “buy” and $42 target on the stock, described the earnings as “positive to share price.”
In a note, he described the fourth quarter as “very solid quarter in the face of commodity price pressures and the still-stressed consumer health.”
He noted that 2026 guidance - EBITDA of $520-million to $540-million, was unchanged.
“Based on today’s results, we don’t see any material changes to our EBITDA forecasts (at $538M, we are currently near the top end of management’s guidance), though we believe consensus (currently at $530M) may move up a little,” he wrote.
“With MFI trading at only 8.2x our 2026E EBITDA (below the 9.4x average of peers and below 5-/10-yr averages of 8.4x/9.0x even before the CPKR spin off), we still see significant upside to MFI shares, particularly as margins recover following the Feb/26 price increases.”
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Savaria Corp. (SIS-T) shares climbed in Thursday trading after the company reported a number of earnings ”bests” for the fourth quarter and results that beat expectations.
After markets closed on Wednesday, the Montreal-based company said revenue rose 8 per cent to $241.8-million in the first quarter and was ahead of the consensus of $236.8-million.
Adjusted EBITDA was $51.3-million, up from $42.9-million a year ago and ahead of expectations of $48.9-million.
Adjusted net income of $26.1-million or 37 cents per share was up from $19.3-million or 26 cents a year earlier. The result beat expectations of 31 cents.
“Our fourth quarter results delivered a number of ‘bests’ for Savaria, including the title as our ‘best quarter ever,’” stated CEO Sébastien Bourassa, including best revenue growth quarter for accessibility in Europe and overall best quarter for adjusted EBITDA per share of 71 cents.
“Beyond that, our good results helped us reduce our net debt-to-adjusted EBITDA ratio to 1.03, giving us ample room for strategic acquisitions. Operationally, we have several hundred process improvement initiatives ongoing. Even though we faced some threats of trade issues in 2025, we forged ahead and worked our plan.”
National Bank Financial analyst Zachary Evershed said no additional guidance or long-term targets were provided with the result, and expects them to come at the company’s upcoming investor day scheduled for April 14.
“As we previously noted, JP de Montigny, the company’s Chief Transformation Officer, has also taken on the role of President Europe Accessibility, so we expect the focus to remain on improvements across the pond ... not at odds with Savaria’s broad statement that ‘the next phase of our Strategic Plan will focus on accelerating growth by expanding our market opportunities, deepening customer relationships, and further strengthening our competitive position,’” the analyst wrote, adding that some of hte efforts are beginning to prove out.
“The company also flags lower material costs and operational efficiencies contributing to improved profitability in Europe (and possibly improved product pricing), complementing burgeoning operating leverage,” he added.
Stifel analyst Justin Keywood increased his target to $29 from $28 and kept his “buy” rating after the earnings.
“Our 2026 estimates remain largely unchanged. Despite recent share performance, we believe the stock remains relatively cheap at 10.7x our 2026E EV/adjusted EBITDA versus its elevator peers at 14.0x,” he wrote. “We continue to recognize the valuation spread as a function of slower growth, and expect a reaccelerated sales push will be rewarded, with shares re-rating to industry averages, which on our 2026 adjusted EBITDA estimate of $201.4mm, would imply a share price of ~$33. Our C$29.00 target price is edged up (factoring-in greater FCF visibility) but is conservatively based on 11.5x estimated EBITDA.”
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Tecsys Inc. (TCS-T) shares jumped in Thursday trading after the company reported higher revenue and profit for its third quarter ended Jan. 31, 2026.
After markets closed on Wednesday, the company said revenue increased to $48.5-million compared to $45.2-million a year ago. The result was ahead of expectations of $43.9-million, according to S&P Capital IQ.
Net profit was $1.7-million or 12 cents per share compared to a net profit of $1.2-million or 8 cents a year earlier.
Adjusted EBITDA was $5-million compared to $3.5-million a year earlier
CEO Peter Brereton said the company saw strong SaaS bookings across its health care and general distribution verticals during the quarter, “with new logo wins leading the way.” He also said it was the largest bookings quarter in the company’s history “and it was achieved without any migration bookings, which we believe underscores the demand for our core offerings and the strength of our pipeline.”
Stifel analyst Suthan Sukumar maintained his “hold” rating and $28,50 target.
“TCS reported in-line revenues and better EBITDA relative to our/Street expectations. However, SaaS revenue growth decelerated to 17% y/y (vs. 22% LQ) and SaaS ARR growth slowed to 10% y/y (vs. 16% LQ) due to persisting non-core customer churn which offset new bookings strength,” he wrote. “Net/Net, we continue to see risk around a re-acceleration in growth trajectory given the combination of legacy churn and a challenging US healthcare backdrop which is driving more pause to already slow sales cycles in the industry, implying a balanced risk-reward on shares.”
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Spin Master Corp. (TOY-T) shares were higher in Thursday trading after the company reported fourth-quarter results that beat expectations.
Before markets opened on Thursday, the company reported revenue of $618.2-million, down 4.8 per cent compared to the same quarter a year earlier. The result was ahead of expectations of $604.3-million.
Its net loss was $184.3-million or $1.85 per share compared to net income of $21.1-million or 21 cents per share a year earlier.
Adjusted net income was $42.3-million or 41 cents per share compared to $57.4-million or 55 cents per share a year earlier. The result was ahead of expectations of 39 cents.
Adjusted EBITDA was $111.3-million, a decrease of $2.6-million and ahead of expectations of $104.4-million.
“We navigated a challenging fourth quarter for U.S. toy sales, while increasing our POS, achieving double-digit gains in digital games, and strategically expanding the audience for PAW Patrol ahead of its third movie release," CEO Christina Miller stated in a release.
TD analyst Brian Morrison, who has a “buy” and $26 targe on the stock, said the fourth-quarter results were in line with his expectations.
“Physical toy companies are being allocated ‘below average’ multiples on fears of a structural decline, weak industry/financial performance,” he wrote. “A catalyst is required to heighten investor interest, as valuation alone is not compelling. We believe this takes hold in H2/26 as an earnings inflection should take place aided by the Paw Patrol movie, growth in core brands strategy takes hold, and it laps a weak H2/25 comparable. Industry stabilization/uptick provides upside optionality.”
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Kits Eyecare Ltd. (KITS-T) fell on Thursday after the company’s latest earnings report.
After markets closed on Wednesday, the company said revenue increased by 20 per cent to a record $53.9-million in the fourth quarter compared to $44.8-million a year earlier. The result was in line with expectations.
“The quarter was anchored by the company’s strongest-ever sales week during the Black Friday and Cyber Monday, which generated approximately $5.8 million in revenue and underscored the growing consumer awareness of the KITS brand,” the company stated.
Adjusted EBITDA of $2.8-million was down slightly from $2.9-million a year earlier and ahead of expectations of $2.4-million.
Net income of $264,000 or a penny per share was below expectations of 4 cents per share and down from $2.7-mllion or 8 cents a year earlier.
The company also reaffirmed its financial guidance for the first quarter ending March 31, as originally issued on Feb. 17.
Canaccord Genuity analyst Luke Hannan maintained his “buy” rating and $23 target after the report.
“Management shed more light on the productivity of their investments in marketing, which, as a percentage of revenue, came in at 16.3% of revenue for the quarter,” he wrote in a note.
He also said the company is well-positioned to benefit from smartglasses.
“Management called out AI as being an accelerant of consumers’ shift into smartglasses, mentioning that the optical category is undergoing the most important shift in the last 100 years,” he wrote.
“In our view, the structural drivers of KITS’ long-term growth algorithm remain firmly on track. Though marketing spend has increased of late, we believe it’s justified considering the higher returns and the expanded LTV of newly acquired customers when compared to KITS’ existing customers. Accordingly, we’re coming away from the quarter remaining positive on the stock.”
Stifel analyst Martin Landry, who has a “buy” and $24 target, wrote in a note that he’s not making material changes to his forecasts post-earnings.
“We view KITS as a disruptor in the eyewear industry, with its rapid turnaround times and low prices,” he wrote. “In addition, the company is at the forefront of emerging trends with already 18 months of successful experience with AI glasses. Management sees significant opportunity to increase brand awareness in Ontario with the opening of a store in Toronto in late spring.”
Added Mr. Landry: “In our view, KITS has a long growth runway as the US$50 billion North American optical industry shifts online. Management is accelerating growth, given healthy returns on customer acquisition costs and healthy retention rates, which have translated into high customer lifetime value exceeding $400 within 5 years.”
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AirBoss of America Corp. (BOS-T) shares rose in early Thursday trading after the company reported higher sales and adjusted EBITDA for its fourth quarter ended Dec. 31
After markets closed on Wednesday, the company reported sales of US$106-million, up from US$92-million a year earlier. The comapny said the higher number was due to increases in its manufactured products division, partially offset by its rubber solutions segment
Adjusted EBITDA of US$8.4-million compared to US$5.1-million in the fourth quarter of 2024.
Its loss of US$7.6-million or 28 cents US per share was wider than the loss of US$2.6-million or 10 cents US a year earlier. It said the larger loss was primarily attributable to restructuring initiatives and non-cash asset impairment charges.
On an adjusted basis, the company reported a profit of US$145,000 or 1 cent US per share versus a loss of US$1.6-million or 6 cents US a year ago.
National Bank Financial analyst Ahmed Abdullah said adjusted EBITDA results were better than expected as the company’s manufactured products’ defence business benefited from contract deliveries and improved results in its rubber moulded products division.
“The company updated its strategic priorities as it is no longer looking to narrow its defence product range, but is seeking to position its core defence products to take advantage of new growth opportunities within NATO and other partner customers,” the analyst stated. “Additionally, BOS dropped the third strategic priority around executing a strategic review across all AMP product lines.”
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A&W Food Services of Canada Inc. (AW-T) reported fourth-quarter earnings that beat expectations.
Before markets opened on Thursday, the burger company reported revenue of $93-million, similar to $93.2-million a year earlier and ahead of expectations of $87.5-million.
Same-store sales growth came in at 0.9 per cent year over year, “due to an increase in the average cheque size and growth in guest counts,” the company stated.
Adjusted EBITDA increased by $1.4-million to $29.3-million year over year and was ahead of expectations of $26.5-million.
Net income of $17.5-million was an improvement from a loss of $1.1-million a year earlier.
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Automotive Properties REIT (APR-UN-T) reported higher revenue and profit for its fourth quarter ended Dec. 31.
After markets closed on Wednesday, the REIT reported rental revenue of $27.9-million, up 19.3 per cent from $23.4-million a year earlier.
It said the increase “reflected growth from the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the automotive dealership property” in Markham, Ont.
Net income and other comprehensive income of $13.9-million compared to $12-million a year earlier.
Adjusted funds from operations came in at $13.8-million or 25 cents per unit, up from $11.7-million or 23 cents a year earlier.
Upcoming small-cap earnings:
March 6: Nexus Industrial REIT (NXR-UN-T), Canfor Corp. (CFP-T), Canfor Pulp Products Inc. (CFX-T)
March 9: Alaris Equity Partners Income Trust (AD-UN-T)
March 10: Flagship Communities REIT (MHC-UN-T), Pollard Banknote Ltd. (PBL-T), Transcontinental Inc. (TCL-A-T), Transcontinental Inc. (TCL-A-T), Transcontinental Inc. (TCL-A-T)
March 11: NFI Group Inc. (NFI-T), BSR REIT (HOM-U-T), Total Energy Services Inc. (TOT-T), Bird Construction Inc. (BDT-T), CES Energy Solutions Corp. (CEU-T), North American Construction Group Ltd. (NOA-T), Dorel Industries Inc. (DII-B-T)
March 12: TerrAscend Corp. (TSND-T), Ballard Power Systems (BLDP-T), Haivision Systems Inc. (HAI-T), HLS Therapeutics Inc. (HLS-T), Blackline Safety Corp. (BLN-T), Cipher Pharmaceuticals Inc. (CPH-T)
March 19: K-Bro Linen Inc. (KBL-T), Information Services Corp. (ISC-T), Hammond Power Solutions Inc. (HPS-A-T)
March 23: GO Residential REIT (GO-U-T)
March 24: Aimia Inc. (AIM-T)
March 25: Goeasy Ltd. (GSY-T)
March 31: Grown Rogue International Inc. (GRIN-CN)
April 14: AGF Management Ltd. (AGF-B-T)