Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 64 per cent over the past 52 weeks, as of Thursday’s close. It hit a record of 1,413.69 on Jan. 29. The Russell 2000 in the U.S. is up about 16 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
MTY Food Group Inc. (MTY-T) shares rose in early Thursday trading after the restaurant company reported higher revenue that beat expectations and swung to a profit for its fourth quarter ended Nov. 30 compared to the year-earlier quarter.
Before markets opened on Thursday, MTY reported revenue of $305.4-million, up from $284.5-million a year earlier and above expectations of $282.3-million, according to S&P Capital IQ.
Same-store sales decreased 1.7 per cent year-over-year in the fourth quarter. By region, Canada was in line with the prior-year period, the U.S. dropped 2.8 per cent and international saw a 3.2 per cent decrease in same-store sales.
Adjusted EBITDA of $87.7-million was up from $59.4-million a year earlier.
Net income increased to $32.1-million or $1.40 per share compared to a loss of $55.3-million or $2.34 per share a year earlier. The result beat expectations of 83 cents for the latest quarter. MTY said the year-over-year improvement is mainly due to lower impairment losses in 2025.
“We continued to expand our footprint during the quarter with 19 net new store openings, extending the momentum from Q3 and supported by a strong pipeline of development led by experienced franchise operators,” said CEO Eric Lefebvre in a release.
“Despite an unsettled macroeconomic backdrop, our franchisees are navigating these headwinds effectively with modest growth in Canada and slight pressure in the U.S. Same-store sales were stable in Canada, supported by strength in the casual dining, while the U.S. experienced modest pressure. Importantly, our asset-light, diversified model continues to generate strong free cash flow, positioning us well to support our brands and capitalize as operating conditions improve.”
At the end of the fourth quarter of 2025, MTY’s network had 7,080 locations, of which 6,831 were franchised or under operator agreements, and 249 were corporate-owned. The geographical split was 57 per cent in the US, 35 per cent in Canada and 8 per cent international.
Acumen Capital analyst Nick Corcoran wrote in a note on Thursday that MTY’s strategic review process is still underway with no further details.
In its outlook, the analyst noted that the company “continues to actively implement a range of strategic initiatives to position the business for growth.”
The analyst, who has a “buy” rating and $50 target on the stock, added: “The pipeline for new locations remains strong, with positive net openings on the quarter and continued demand expected for the following quarters. EBITDA margins are expected to remain stable across segments, [which] will translate into strong free cash flows, further supported by lower capex over the prior year.”
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KP Tissue Inc. (KPT-T) reported higher revenues and swung to a profit for the fourth quarter ended Dec. 31.
Before markets opened on Wednesday, the maker of brands such as Cashmere, SpongeTowels and Scotties reported revenue of $560.1-million, up from $539.6-million in the same quarter a year earlier. The result was below expectations of $574.5-million, according to S&P Capital IQ.
Adjusted EBITDA was $84.2-million, up from $66.8-million a year ago and below expectations of $85.5-million.
Net income of $23.4-million or 26 cents per share compared to a net loss of $13.7-million or 20 cents a year earlier.
“The increase was primarily due to a foreign exchange difference and higher adjusted EBITDA, partially offset by higher income tax expense, higher income from non-controlling interest and higher interest expense and other finance costs,” the company stated.
For its first-quarter outlook, the company said it expects adjusted EBITDA to be in line with its fourth-quarter results.
National Bank Financial analyst Ahmed Abdullah maintained his “sector perform” (hold) rating and increased his target to $12 from $11 after the earnings report.
“We moderated the impact of pulp price increases on adjusted EBITDA margins throughout 2026, but trimmed our NAV multiple by 25 bps [basis points] to reflect the stepped-up capex profile,” he wrote. “Our target is based on a 7x multiple applied to our 2026E adj. EBITDA forecast; which moved higher as a result of our model changes.”
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Acadian Timber Corp. (ADN-T) announced that Malcolm Cockwell has been appointed interim president CEO, effective immediately.
After markets closed on Wednesday, the company said its president and CEO Adam Sheparski stepped down to pursue other opportunities.
Mr. Cockwell is a registered professional forester who has served as Chair of the Company since August, 2019, the company stated.
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Northern Dynasty Minerals Ltd. (NDM-T) stock plunged 38 per cent on Wednesday after the Vancouver-based miner announced that the U.S. Department of Justice had filed a brief in the Alaska Federal Court related to a veto in place on its proposed Pebble mine in Alaska.
“We find it surprising that despite the Executive Orders and the many statements made by the administration related to Alaskan development, pro-energy, pro-critical metals, pro-defense and military support, removing roadblocks to permitting, on the need for copper, etc., this EPA would choose to defend the unlawful Obama-Biden veto,” CEO Ron Thiessen stated in a release after markets closed on Tuesday. “This precedent will be used by future Democratic administrations to reverse all of the progress this administration has made with its pro-energy, pro-mining, pro-development agenda.”
Added the CEO: “We are reviewing their filing with our legal team and will have detailed comments once that review is completed in the next few days.”
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Organigram Global Inc. (OGI-T) announced it’s buying the remaining stake in Germany’s Sanity Group GmbH it doesn’t already own.
Before markets opened on Wednesday, Organigram said it would pay Sanity shareholders €113.4-million in cash and shares upfront plus a maximum earnout of up to €113.8-million tied to financial performance.
The upfront shares are expected to be priced at $3 (Canadian) per Organigram share, representing a 71-per-cent premium to its $1.75 closing price on Tuesday. The earnout consideration shares are based on a 20-day volume-weighted average price on the trading day prior to settlement, subject to a $3 floor and $4.00 cap.
It said the acquisition is expected to be financed by a combination of cash, proceeds from a new credit facility and a $65.2-million equity investment by British American Tobacco plc (BAT). It confirmed the BAT private placement before markets opened on Thursday.
“The proposed acquisition of Sanity Group marks a pivotal step in Organigram’s global expansion strategy as a leader in the rapidly expanding cannabis industry,” said Organigram CEO James Yamanaka. “This transformational acquisition will bring together two market leaders, extend our commercial footprint into Europe, and strengthen our competitive edge in the world’s largest federally legal cannabis markets.”
Canaccord Genuity analyst Kenric Tyghe increased his target to $4 from $3 and kept his “buy” recommendation after the news.
“The company is believed to be a top two operator in the rapidly growing German market,” he wrote of Sanity Group. “According to Euromonitor, the German medical cannabis market served roughly 800,000 patients in 2025 and is forecast to surpass €4.5B in sales through 2028, with the patient population expected to reach ~1.8M (~2.0% of the population).“
He added that Sanity was EBITDA-positive in 2025, and that Organigram is targeting EBITDA margins of 10 to 12 per cent post-integration.
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Kits Eyecare Ltd. (KITS-T) reported first-quarter guidance this week, including organic growth of nearly 30 per cent.
Before markets opened on Tuesday, the Vancouver-based company said its revenue is expected to be in the range of $58-million to $60-million, reflecting 25 to 29 per cent organic growth. Adjusted EBITDA as a percentage of revenue is expected to be between 4 and 6 per cent.
Glasses revenue is expected to exceed $10-million, representing more than 50 per cent year-over-year growth, the company stated.
Canaccord Genuity analyst Luke Hannan reiterated his “buy” rating and $23 target after the report.
He said the revenue guidance came in higher than his estimate of $54.9-million (or 18 per cent year over year) and the consensus of $55.6 million (or 19 per cent year over year).
He said EBITDA margin guidance is below his estimate of 6.2 per cent and the consensus of 6 per cent.
“While at the midpoint it’s [about] 240 bps [basis points] below Q1/25’s 7.4% margin, the guidance is in line with KITS’ Q4/25 preliminary 4-6% expectation... reflecting its near-term strategic focus to acquire repeat, high-value customers,” he wrote in a note.
“Though margin expansion may be tempered in the near-term as the company invests in growth, we believe KITS’ higher marketing spend should yield positive results in the long-term, and we continue to like its value proposition and positioning as a capital-light vertically-integrated operator in the North American market.”
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AutoCanada Inc. (ACQ-T) announced on Tuesday before markets opened that Samuel Cochrane was appointed CEO, effective immediately.
He will also serve as interim chief financial officer while the searches for a permanent CFO.
Mr. Cochrane joined AutoCanada in August, 2024 as CFO and was appointed interim CEO in October.
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Canfor Corp. (CFP-T) announced after markets closed on Tuesday that it will record a non-cash asset write-down and impairment charge totalling approximately $321-million in its fourth quarter of 2025 results.
“In the lumber segment, the impairment is associated with the company’s European operations and reflects ongoing log supply pressures in the region, which have resulted in significant increases in log costs and reduced asset carrying values,” Canfor stated in a release.
“In the pulp segment, the impairment reflects sustained declines in global U.S.-dollar pulp list prices as well as continued challenges in securing economically viable fibre necessary to support operations.”
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Western Forest Products Inc. (WEF-T) announced an amendment to its $250-million syndicated credit facility to allow for the concurrent closing of a new $30-million bilateral term loan with Royal Bank of Canada.
Proceeds from the term loan will be used to repay outstanding drawings of the credit facility, the company stated.
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Hammond Power Solutions Inc. (HPS-A-T) announced that it’s acquiring AEG Power Solutions, a global manufacturer of industrial power electronics for industrial facilities, transportation, infrastructure, and energy applications.
The all-cash transaction has an enterprise value of $365-million. As part of the transaction, HPS will repay AEG Power Solutions’ outstanding bank debt, the company stated.
It said the transaction is expected to be accretive to adjusted earnings per share in the first full year following closing, with anticipated returns on invested capital exceeding HPS’s cost of capital.
The transaction is subject to regulatory approvals and other customary conditions and is expected to close in the second quarter of 2026.
Acumen Capital analyst Jim Byrne raised his target to $240 from $205 and maintained his “buy” recommendation on the stock following the deal announcement.
“We believe the company is still in the early stages of growth driven by the massive investment in data centres to be deployed over the next several years,” he wrote. “The AEG deal provides opportunities for growth in new end markets and new geographies, and we believe there is room for revenue growth and margin expansion for AEG.”
Canaccord Genuity analyst Matthew Lee raised his target to $223 from $211 after the news.
“In our view, the transaction accretively diversifies HPS’ end-markets, giving Hammond exposure to burgeoning energy transformation and IT demand,” he wrote. “With nearly opposite footprints, we see meaningful long-term cross-sell opportunities for the two businesses, although the deal is unlikely to garner cost savings in the near term.”
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Altus Group Ltd. (AIF-T) announced a deal to sell its Canadian appraisals business to an affiliate of Newmark Group, Inc. (NMRK-Q). The price wasn’t disclosed in the release.
As part of the acquisition, Newmark named Colin Johnston, former president of Altus’ Canadian appraisals business, as head of valuation and advisory services Canada.
“The expanded software and data agreement with Newmark includes access to certain of Altus’ suite of software and data offerings,” the company stated.
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Dye & Durham Ltd. (DND-T) reported second-quarter results that missed expectations.
On Monday, the company reported revenue for the three months ended Dec. 31 of $107-million, an 8-per-cent decrease compared to the same period a year earlier. The expectation was for revenue of $113.4-million, according to S&P Capital IQ.
Adjusted EBITDA was $50.4-million, a decrease of 22 per cent compared to a year earlier and below expectations of $52.5-million.
Its net loss was $21.8-million compared to a net loss of $19.7-million for the same quarter a year earlier.
“Our second quarter reflects a business moving from stabilization to consistent execution,” CEO George Tsivin stated. “We continue to generate strong operating cash flow and have taken decisive action to simplify the business, reduce leverage, and reinvest where it matters most to our customers.”
He added: “While parts of our Legal Software Business face near-term market headwinds, we are making tangible progress on our multi-year transformation to reduce complexity and deliver a more connected product experience. With a strengthened team and a clear path forward, we are well-positioned for long-term growth.”
CIBC analyst Erin Kyle said the revenue declines were driven by lower volumes and softer pricing resulting from elevated churn and weaker contract renewal terms, partially offset by growth in the financial technology business.
The analyst added that the company remains in compliance with its financial covenants. “While no incremental detail on the potential sale of the company was shared, management remains focused on stabilizing the business.”
The analyst revised revenue and EBITDA estimates lower to reflect ongoing churn in the core business, bringing the target to $4 from $4.50 and maintaining a “neutral” rating.
BMO Capital Markets analyst Thanos Moschopoulos reduced his target to $4 from $4.50 and maintained his “market perform” after the results, writing in a note that management’s commentary and the results “suggest that more work is needed in order to stabilize the business.”
He added: “We believe the strategic review process may result in an unlocking of shareholder value; however, we do not view the stock’s current risk/reward as compelling given DND’s revenue declines and leverage, and given the recent contraction in software multiples.”
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Sherritt International Inc. (S-T), the Canadian mining company with a long-standing presence in Cuba, has been forced to scale back operations at its Moa nickel mine there in response to the oil blockade imposed by the United States last month.
The Toronto-based miner said in a statement earlier this week that it expects to completely halt mining operations in the country and put its processing plant there on standby within the next week due to a lack of fuel.
The decision could in turn affect operations at the company’s refinery in Fort Saskatchewan, Alta., which relies on material imported from Cuba to produce finished nickel and cobalt.
The company said it has enough inventory to maintain production at the Fort Saskatchewan refinery until mid-April.
Read the full Globe story here
Upcoming small-cap earnings:
Feb. 23: Winpak Ltd. (WPK-T)
Feb. 24: Cargojet Inc. (CJT-T), BTB REIT (BTB-UN-T), 5N Plus Inc. (VNP-T)
Feb. 25: Chemtrade Logistics Income Fund (CHE-UN-T), Kneat.com Inc. (KSI-T), Timbercreek Financial Corp. (TF-T), Leon’s Furniture (LNF-T), Major Drilling Group International Inc. (MDI-T), DIRTT Environmental Solutions Ltd. (DRT-T),
Feb. 26: Pason Systems Inc. (PSI-T), Enerflex Ltd. (EFX-T), Curaleaf Holdings Inc.(CURA-T), Plaza Retail REIT (PLZ-UN-T), EQB Inc. (EQB-T), Trulieve Cannabis Corp. (TRUL-CN), High Liner Foods Inc. (HLF-T), Cronos Group Inc. (CRON-T)
Feb. 27: Boralex Inc. (BLX-T), Laurentian Bank (LB-T)
March 3: Pet Valu Holdings Ltd. (PET-T), Wajax Corp. (WJX-T)
March 4: Minto Apartment REIT (MI-UN-T), Spin Master Corp. (TOY-T), Canada Packers Inc. (CPKR-T), Propel Holdings Inc. (PRL-T)
March 4: Minto Apartment REIT (MI-UN-T), Spin Master Corp. (TOY-T), Canada Packers Inc. (CPKR-T), MDA Space Ltd. (MDA-T), DRI Healthcare Trust (DHT-UN-T), Tecsys Inc. (TCS-T)
March 5: Aecon Group Inc. (ARE-T), Thinkific Labs Inc. (THNC-T), Maple Leaf Foods Inc. (MFI-T), Automotive Properties REIT (APR-UN-T), Doman Building Materials Group Ltd. (DBM-T), Badger Infrastructure Solutions Ltd. (BDGI-T), A&W Food Services of Canada Inc. (AW-T), Profound Medical Corp. (PRN-T), Algoma Central Corp. (ALC-T)
March 6: Nexus Industrial REIT (NXR-UN-T), Canfor Corp. (CFP-T), Canfor Pulp Products Inc. (CFX-T)
March 10: Flagship Communities REIT (MHC-UN-T), Pollard Banknote Ltd. (PBL-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)
March 12: TerrAscend Corp. (TSND-T), Ballard Power Systems (BLDP-T)
March 23: GO Residential REIT (GO-U-T)
March 31: Grown Rogue International Inc. (GRIN-CN)