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 77 per cent over the past 52 weeks as of Thursday’s close. It hit a record 1,472.51 on March 2. The Russell 2000 in the U.S. is up about 43 per cent over the past 52 weeks. It hit a record of 2,817.96 on April 21.
Small-cap summary:
Real Matters Inc. (REAL-T) shares were higher in Friday trading after the company reported second-quarter earnings that beat expectations.
Before markets opened on Friday, the company reported revenue of $47.2-million for the quarter ended March 31, up from $37.3-million a year earlier. The result was ahead of expectations of $45.3-million, according to S&P Capital IQ estimates.
Adjusted EBITDA of $900,000 was up 147 per cent year-over-year from a loss of $1.9-million.
Net income of $1.2-million or 2 cents per share was up from a loss of $2.2-million or 3 cents a year earlier. Adjusted EPS came in at a penny per share, higher than the expected nil per share and compared with a loss of 2 cents last year.
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Badger Infrastructure Solutions Ltd. (BDGI-T) shares soared in Friday trading after the company reported higher revenue and profit for its first quarter ended March 31. The earnings also beat expectations.
After markets closed on Thursday, the Calgary-based excavation and related services company reported revenue of US$203.2-million for the quarter, up 18 per cent from US$172.6 -million in the first quarter of 2025.
Adjusted EBITDA improved to US$38.1-million, up 13 per cent from US$33.8-million in the first quarter of 2025.
Net earnings of US$862,000 or 3 cents per share were down from US$3.2-million or 10 cents a year earlier. Adjusted earnings of US$7.4-million or 22 cents per share were up from US$6.4-million or 19 cents a year ago.
“Looking to the remainder of 2026, Badger expects a continuation of the strong growth in our end markets and customer demand that we experienced in the second half of 2025 and into the first three months of this year,” the company stated in a release.
“As a result of the increased demand, we increased our planned 2026 fleet growth to the higher end of the 7% to 10% range. Concurrent with the higher truck build rate that started in the fourth quarter of 2025, we continue to increase the rate of hiring and training of new operators to serve our growing fleet capacity.”
National Bank Financial analyst Maxim Sytchev upgraded the stock to “outperform” (buy) from “sector perform” (hold) and maintained his $74 target after the report.
In a note, he said the revenue was 6-per-cent above consensus and his firm’s estimate of US$191-million driven by fleet expansion and revenue per truck. Adjusted EPS of 22 cents US was above consensus of 17 cents US and his firm’s estimate of 21 cents US, he said.
Mr. Sytchev said the shares “feel washed out,” being down about 20 per cent year-to-date, while “the construction cohort went on an absolute tear.”
“So, what’s ‘working’ in this market?“ he added. ”Anything touching data centre space, nation-building projects, energy, etc. This is essentially BDGI’s end markets and while the full margin normalization dynamic will take a bit of time, getting in now before that fully plays out seems like a good idea to us."
The analyst said he’s using “the current downdraft in the shares to get exposure to a compounder, albeit one that’s never ‘technically cheap’; we are OK with that. Hard to displace an equipment-heavy business with an app.”
Raymond James analyst Frederic Bastien increased his target to $77 from $73 after the earnings and his rating to “outperform” (buy) from “market perform” (hold).
“We were right to go neutral on Badger Infrastructure on Oct-21-25, as the common shares have since retreated 7%, versus a gain of 14% for the TSX Composite,” he wrote. “That said, with new truck builds stretching higher on accelerating demand and growth investments weighing less on profitability than expected, we see BDGI digging out from under the skepticism that followed its 4Q25 print.”
Canaccord Genuity analyst Yuri Lynk described it as an “impressive quarter” in a note.
He said the year-over-year revenue and adjusted EPS growth beat expectations “despite heightened investments aimed at expanding the company’s earnings capacity.
Added Mr. Lynk: "Management reiterated a constructive 2026 outlook, highlighting continued strong demand across its end markets. "
He has a “hold” and $70 target on the stock.
Stifel analyst Ian Gillies, who has a “buy” and $82 target on the stock, described the results as “positive”
“We believe the stock should trade higher [Friday] given a strong print that should alleviate some concerns around revenue growth and margins given the increased capital spending announced in 4Q25 to fund growth,” he wrote. “In addition, the company expects its 2026 truck build to be in the higher end of the 7-10% range guided in 4Q25, compared to consensus at 8.4%. We view this quarter as a solid data point that helps to disprove the narrative that BDGI is increasing its truck build program into the peak of the market.”
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Black Diamond Group Ltd. (BDI-T) shares were down in early Friday trading after the company reported higher sales but lower profit for its first quarter ended March 31.
After markets closed on Thursday, the industrial services and asset management company reported revenue of $130-million, up 27 per cent from $102.2-million a year earlier. The result was ahead of expectations of $124.9-million, according to S&P Capital IQ estimates.
Adjusted EBITDA of $32-million was up from $26.5-million last year and roughly in line with expectations.
Profit of $2.7-million or 4 cents per share was down from $7.5-million or 9 cents a year ago.
The company said the drop in profit was due to increased shares outstanding, higher stock-based compensation expense and “moderated activity” in its legacy workforce solutions (WFS) operations.
“While the quarter reflected modest softening of activity levels within the legacy WFS operations, this is viewed as transitory due to the significant increase in the WFS sales pipeline,” the company stated. “The potential for major resource, infrastructure development and defence investment in Canada represents significant mid-to-long-term upside, and the current volume and diversity of projects within the bid pipeline reflects this evolving opportunity.”
Canaccord Genuity analyst Matthew Lee maintained his “buy” rating and $20 target in a first-look note on Thursday.
“BDI reported Q1 results with a headline beat on revenue and in-line EBITDA, driven by a full quarter of Royal Camp’s contribution within WFS. MSS [its modular solutions business] delivered steady rental growth, offset by softer custom sales,” he wrote.
“Management outlook points to consistent near-term performance, with an accelerating growth cadence in H2/26, underpinned by an active nation-building bid pipeline.”
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Martinrea International Inc. (MRE-T) shares slid in early Friday trading after the company reported softer sales in its first quarter ended March 31.
After markets closed on Thursday, the auto parts company reported sales of $1.13-billion, down 3.7 per cent from $1.17-billion for the same quarter a year earlier. The expectation was for sales of $1.16-billion, according to S&P Capital IQ estimates.
Net income of $27.9-million or 39 cents per share was up from $17.5-million or 24 cents a year earlier.
Adjusted earnings were $32.5-million or 45 cents per share compared with $29.5-million or 41 cents a year ago. The result was ahead of expectations of 43 cents for the latest quarter.
Adjusted EBITDA of $137.7-million was down from $140.9-million a year earlier.
The company also reaffirmed its 2026 outlook.
“We are very pleased with our performance in the first quarter,” stated CEO Pat D’Eramo. “Adjusted operating income margin was higher year over year on lower production sales, as we continued to drive operating improvements across the organization."
The CEO also said the company continues to “monitor and address the impact of tariffs on our business, including the recent amendments to Section 232 tariffs impacting derivative steel and aluminum products.”
He noted that the vast majority of parts the company exports to the U.S. are USMCA-compliant and therefore exempt from tariffs.
“While the section 232 amendments affect some inputs we receive from our Tier 2 suppliers, the impact is modest and expected to be absorbed by our customers,” he added.
CIBC analyst Ty Collin maintained his “outperformer” (buy) rating and $12.50 price target after the earnings.
“Top-line results were a little light, but stronger-than-expected margins drove a modest earnings beat,” he wrote. “Softer sales were largely due to the known wind-down of a key customer program, and we remain constructive on medium-term growth as MRE continues to secure new business at an impressive rate. Meanwhile, underlying profitability is moving in the right direction, cash flow remains strong, and capital allocation is disciplined.”
Added Mr. Collin: “While we continue to see macro risks for the auto suppliers, MRE shares have underperformed YTD (-3%) vs. peers MGA (+19%) and LNR (+10%), and we view relative valuation as compelling (2.6x EV/EBITDA, 13% FCFY on our 2026E).”
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Canada Packers Inc. (CPKR-T) shares closed down in Thursday trading after the company reported mixed first-quarter results.
Before markets opened on Thursday, the company reported sales of $428.3-million for the quarter, down from $452-million a year earlier. The company noted that the prior-year sales included operations that were not acquired by the company in connection with the spin-off from Maple Leaf Foods. The expectation was for sales of $425.1-million, according to S&P Capital IQ.
Adjusted EBITDA of $42.1-million, which was above expectations of $40.9-million and compared with $49.6-million a year earlier.
Earnings of $43.8-million or $1.46 per share compared with $34.1-million or $1.15 per share a year ago. Adjusted earnings were $29.8-million or 54 cents per share versus $38.2-million or 89 cents a year earlier. The company said the prior-year result doesn’t reflect the impacts of stand-alone costs incurred in 2026. The expectation was for adjusted EPS of 53 cents.
TD analyst Michael Van Aelst described the results as “neutral” in a note, adding that the drop in EBITDA was due to “currency headwinds as pork market conditions were favourable and operating performance solid.”
He added that free-cash-flow generation “should provide attractive upside to the share price, given its low EV/EBITDA valuation.”
He has a “buy” and a $24 target on the stock.
In an updated note, the analyst said the shares were down on what he believes are investor concerns about higher fuel costs.
“We argue that these costs are transient and should be passed on by year-end, so they do not alter our outlook beyond this year,” he wrote. “We view the shares as attractive, with a ~15% FCF [free-cash-flow] yield, 5.0% dividend yield, and a current valuation that is below peers.”
Canaccord Genuity analyst Luke Hannan reiterated his “buy” rating but lowered his target price to $20.25 from $20.50.
In a note, he attributed the softness in the shares on Thursday to management commentary on fuel potentially weighing on near-term costs. He also said there was likely profit-taking in light of the commentary and the company’s strong start to the year.
“With that said, the company’s growth initiatives and execution appear to be playing out as expected, with annual volume targets reiterated and adjusted EBITDA margins virtually at the midpoint of the expected 8-12% range,” he wrote. “We’ve updated our numbers to reflect QTD vertically integrated spreads and packer margins for Q2/26, though otherwise we leave our model, rating, and target price unchanged.”
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Spin Master Corp. (TOY-T) shares closed up 15 per cent on Thursday trading after the company reported first-quarter results that beat expectations.
Before markets opened on Thursday, the children’s entertainment company reported revenue of US$328.5-million, down from US$359.3-million a year earlier. The result was ahead of expectations of US$303-million, according to S&P Capital IQ.
Its net loss was US$32-million or 32 cents US per share compared to US$24.5-million or 24 cents US per share a year earlier.
On an adjusted basis, the loss was US$24.1-million or 24 cents US per share compared to US$12-million or 12 cents US per share a year earlier. The expectation was for a loss of 28 cents US per share.
Adjusted EBITDA was US$17.2-million, down from US$21.6-million a year earlier.
“We delivered a solid start to the year, a direct result of our disciplined execution against our core strategic priorities,” said CEO Christina Miller in a release. “Our focus on product innovation, the expansion of evergreen properties like Monster Jam, and the stabilization of Melissa & Doug is yielding positive results. We are strategically managing our portfolio by investing in our creative capabilities, reimagining how fans engage with our brands in both the physical and digital worlds, and expanding our audiences – laying the groundwork for future growth."
TD analyst Brian Morrison, who has a “buy” and $26 target on the stock, described the results as “slightly positive” in a note.
“Our first take is that our investment thesis remains intact supported by the reaffirmation of its 2026 guidance and strength of its product offering,” he wrote.
“With the seasonality of the industry, we believe the catalyst to improving SpinMaster’s valuation is achieving annual guidance that is materially H2/26 weighted. A solid Q1/26/ maintained 2026 guidance adds to our conviction Spin has the product line-up across each operating segment and cost discipline to do so - that should improve investor confidence/ expand its multiple with visibility.”
Cannacord Genuity analyst Luke Hannan maintained his “hold” rating and increased his target price to $22 from $20.
“Spin Master delivered a beat versus expectations, showing encouraging improvements off a challenging 2025,” he wrote. “With inflationary pressures appearing well managed thus far, comps in the Toy segment getting much easier beginning in Q2/26 (given last year’s pullforward to get around the imposition of tariffs), the Entertainment segment set to benefit from the PAW Patrol movie beginning in Q3/26, and Digital Games growth expected to improve in H2/26 following content releases, the company appears well positioned to deliver growth during 2026.”
Added Mr. Hannan: “We like the company’s solid start to the year, and recognize that the shares are fairly inexpensive here; however, we’ll wait for further evidence that growth will be sustained before taking a more optimistic stance on the stock.”
CIBC analyst Ty Collin stuck with his “neutral” (hold) rating and $22 target post-earnings.
“Q1/26 results were ahead of modest expectations, benefiting from earlier timing of the Easter holiday,” he wrote. “Consumer demand and retailer behaviour appear stable, and TOY affirmed its 2026 outlook. Net cost headwinds related to the Iran war are expected to be minimal, but macro volatility creates elevated risks for the consumer and supply chains, and overall we are hesitant to draw strong conclusions from TOY’s seasonally smallest quarter. Valuation is compelling (7.2x EV/EBIT and 10x P/E based on CIBC 2026E), but challenging industry conditions and a lack of visibility/catalysts keeps us Neutral-rated.”
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Precision Drilling Corp. (PD-T) shares closed down in Thursday trading after the company reported first-quarter results that one analyst described as “negative.”
After markets closed on Wednesday, the company reported revenue of $526-million, up from $496-million a year earlier, “due to higher activity in both the U.S. and Canada, which more than offset lower results internationally.” The revenue result beat expectations of $508.5-million, according to S&P Capital IQ.
Adjusted EBITDA was $124-million versus $137-million a year earlier. The expectation was for $135-million in the latest quarter.
Net earnings attributable to shareholders were $17-million or $1.34 per share compared with $35-million or $2.20 per share in 2025. The expectation was for $2.31 per share.
“Our lower net earnings in 2026 [were] due to higher share-based compensation expense and increased depreciation expense from the change in useful life estimates,” the company stated.
“As we entered the year, the global operating environment became increasingly complex, driven in part by escalating geopolitical conflict in the Middle East,” stated CEO Carey Ford. “The resulting commodity and financial market volatility, combined with heightened scrutiny of the global energy industry, has created one of the most unique operating environments we have experienced in several decades. For a company like Precision, with operations in the Middle East, effectively navigating the daily changes is critical.”
TD analyst Aaron MacNeil described the results as “negative” in a note.
“We were expecting more of a positive inflection in fundamentals from Precision with this update given a strong commodity price macro, so are surprised by the near-term weakness in the outlook,” he wrote. “Additionally, the capital budget increased by $20 million. These factors are likely to result in decreased free-cash flow generation, which we expect will overshadow a relatively good quarter.”
National Bank analyst Dan Payne raised his target to $150 from $140 after the earnings report and maintained his “sector perform” (hold) rating.
“The diversity of its operations continues to underpin the resilience and quality of its earnings (far more industrialized than historical) and accelerating outcomes of shareholder value (~10% FCF yield supporting deleveraging & buyback), while prospective macro tailwinds offer long-term option value to come; PD trades at 5.0x 2026e EV/EBITDA (vs. peers 5.3x), on leverage of 0.9x (vs. peers 1.7x).”
CIBC analyst Jamie Kubik increased his target to $160 from $150 and maintained his “outperformer” (buy) recommendation.
“Management has indicated visibility towards an inflection point for U.S. rig activity through H2/26, supported by a strong outlook for crude oil pricing, along with increased activity in dry gas basins,” he wrote.
“We believe PD’s share price weakness will prove to be temporary, particularly as we move through Q2/26 and the company’s U.S. fleet begins to see increasing utilization. We also expect higher free cash flow in H2/26 as capital spending normalizes, which should support increased share buybacks.”
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Winpak Ltd. (WPK-T) shares fell in Thursday trading after the company reported first-quarter results that missed expectations.
After markets closed on Wednesday, the Winnipeg-based packaging materials and related packaging machines company reported revenue of US$280-million for the quarter ended March 29, down from US$284-million a year earlier and below expectations of $289-million.
“Volumes fell by 2.1 per cent when compared to the first quarter of 2025,” the company stated. “Weakened customer demand within several product categories contributed to the result. ”
Net income of US$31-million or 53 cents US per share was down from US$34-million or 60 cents US a year earlier. The expectation was for EPS of 59 cents US, according to S&P Capital IQ estimates.
National Bank analyst Ahmed Abdullah maintained his “sector perform” rating and $49 target.
“We updated our forecast for 1Q26 results and the updated outlook,” he wrote. “We estimate that aluminum tariff passthroughs could still provide a pricing lift in the lidding business as tariff updates related to Section 232 will likely drive another round of tariff passthroughs. Additionally, petrochemical resin pricing increases due to the Middle East war will likely drive a pricing lift but on a lagged basis. We moved our gross profit assumptions down to the 30% lower end of the outlook range, given the macro and geopolitical uncertainty. We await execution results on cost savings initiatives targeting what we estimate could be up to $25M to $30M of costs, before we can fully reflect that in our model.”
CIBC analyst Hamir Patel kept his “neutral” (hold) rating on Winipak and lowered his target price to $47 from $52 after the results.
“We remain on the sidelines pending greater visibility on the upcoming USMCA renewal, headwinds from rising resin prices and WPK’s ability to achieve sustainable volume growth,” he wrote. “While Winpak does not host an earnings call and the company’s prepared remarks skewed quite cautious, WPK noted that customer shipments accelerated in the second half of Q1, and after speaking with management, we largely remain comfortable with our estimates for the remainder of 2026.”
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Allied Properties REIT (AP-UN-T) units fell in Thursday trading after the REIT reported a drop in revenue and profit in its first quarter ended March 31.
After markets closed on Wednesday, the REIT reported rental revenue of $143.9-million, down from $150.6-million a year earlier. The expectation was for revenue of $140-million.
Its net loss was $146.7-million versus a loss of $107.7-million a year earlier.
Adjusted funds from operations (FF0) came in at $33.7-million or 20 cents per unit compared with $64.8-million or 46 cents a year earlier. The expectation was for adjusted FFO of 25 cents, according to S&P Capital IQ.
Adjusted EBITDA of $83.3-million was down from $94.5-million last year.
“Our first-quarter results were in line with the expectations we set at year-end, reflecting progress on our action plan,” said CEO Cecilia Williams in a release. “Our portfolio continues to demonstrate resilience and relevance, positioning us to serve high-quality users. We’re focused on leasing execution, disciplined capital allocation and deleveraging to deliver on our three-year targets.”
TD analyst Jonathan Kelcher described the results as “slightly negative to ests [estimates]” in a note.
“We were somewhat surprised to see unit price weakness at the open today and attribute it to increased investor concern, which we share, over the pushed out timing/cost escalation at the King Toronto condo project,” he wrote. “While we view the maintained 2026 operating targets as achievable and liked what we heard on near term leasing, fundamentals remain one q away from inflecting.”
He maintained his “hold” and $10 target price.
In a note titled “The Curious Case of the Disappearing NOI,” [net operating income] National Bank analyst Matt Kornack maintained his “sector perform” (hold) rating and lowered his target to $10.50 from $10.75 after the results.
“While we are admittedly being cute with our title to this note, the goal was to highlight an apparent variance in NOI for the last few quarters relative to operating performance KPIs [key performance indicators],” he wrote. “There has been a notable divergence here with occupancy/rents trending stable to positive but eroding margins/recoveries eating into earnings. Management did note that some of this relates to development leasing deliveries where cost decapitalization is preceding revenue recognition. As such, it should be temporary albeit the timing is uncertain. Meanwhile non-renewals will hit occupancy in Q2, so the road to recovery remains non-linear.”
Added Mr. Kornack: “Elsewhere [the] King Toronto [project] continues to be an expensive problem child, but disposition activity is heating up with relatively low associated cash yields.”
CIBC analyst Tal Woolley reiterated his “neutral” (hold) rating and lowered his price target to $10.50 from $11 following the results.
"Our estimates are largely unchanged as we continue to forecast a strong H2/26 recovery,“ he wrote. ”Our confidence in our forecasts is not especially high. First, AP mostly reiterated its three-year outlook (and our forecasts are in line with it), but we would argue there is some deterioration at the margin, with the increased capex and timeline pressures on major developments like KING Toronto ... Second, cost capitalization and decapitalization timing and disclosure (particularly around qualifying assets in IPP) leave us vulnerable to negative FFO and cash flow surprises. At the same time, AP trades at an estimated 6.2% implied cap rate, among the lowest in our REIT coverage universe; consequently, we see better risk/reward elsewhere for now."
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Morguard Real Estate Investment Trust (MRT-UN-T) swung to a profit in its first quarter compared to the same period last year.
After markets closed on Wednesday, the REIT reported revenue of $60-million, roughly in line with the same period last year.
Net income of $6-million or 9 cents per unit was an improvement from a loss of $11.7-million or 18 cents a year ago.
Adjusted funds from operations came in at $643,000 or a penny per unit versus $807,000 or a penny per unit a year earlier.
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Exco Technologies Ltd. (XTC-T) reported lower sales and profit for its second quarter ended March 31.
After markets closed on Wednesday, the company that sells parts and equipment for the die-cast, extrusion and automotive industries, reported sales of $157.6-million for the quarter, down from $166.1-million a year earlier. The result was below expectations of $160-million, according to S&P Capital IQ.
Net income of $5.8-million or 15 cents per share compared with net income of $6.4-milion or 17 cents a year earlier. The expectation was for EPS of 21 cents.
“Although our second quarter results were affected by temporary softness in large mould volumes, restructuring actions and foreign exchange headwinds, we are encouraged by the underlying momentum building across the business,” said CEO Darren Kirk.
“Large mould order activity and backlog continue to build, and we expect sales and profitability in this business to recover in future quarters as new programs ramp up. At the same time, our Automotive Solutions segment continues to benefit from recent program launches, extrusion tooling demand remains solid, and our recent investments and innovation initiatives are increasingly positioned to contribute to stronger margins and earnings growth in the near term.”
Stifel analyst Nick Corcoran described the results as “slightly negative” in a note.
“The outlook for the company remains unchanged, with management expecting that the increasing initiatives for the re-shoring of industrial manufacturing being expected to act as a catalyst in driving HPDC tooling demand,” he wrote. “Although the company is experiencing short-term headwinds and economic uncertainty, management remains confident in its long-term outlook due primarily to policy-driven reshoring, automotive trends, and its product positioning.”
He maintained his “buy” and $9.50 target.
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Primaris REIT (PMN-UN-T) reported higher revenue and profit for its first quarter ended March 31.
After markets closed on Wednesday, the REIT reported revenue of $177-million up from $150-million a year earlier. The result was below expectations of $180.9-million, according to S&P Capital IQ.
Net income of $41.9-million or 30 cents per unit was up from $31.1-million or 26 cents a year earlier.
Adjusted funds from operations were $49.3-million or 35.4 cents per unit versus $41.5-million or 34.6 cents a year earlier. The expectation was for 33 cents.
National Bank analyst Matt Kornack maintained his “outperform” and $21.50 target after the results.
“While we have become accustomed to beats and guidance raises, Q1 was largely in line with expectations given the impact of HBC and some heightened seasonality,” he wrote. “2026 is going to be a transition year as boxes once leased to HBC and Toys R Us are refilled at higher rents, better foot traffic and increased landlord flexibility. While we expect redevelopment activity to ramp up and to see tangible incremental NOI [net operating income], Q1 was a capex light quarter.”
CIBC analyst Tal Woolley reiterated his “outperformer” (buy) rating and increased his price target to $22 from $20 following the results.
“Our $22 price target is based on an 11.0x 2027E FFO/unit multiple (10.2x previously), translating to a 5% discount to our revised one-year-out NAV (9% previously), reflective of its risk, growth prospects, and leverage versus peers,” he wrote.
“We also reiterate our belief that PMZ unitholders will benefit from occupancy improvements and rent growth over the long term.”
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Pulse Seismic Inc. (PSD-T) shares fell on Wednesday after the company reported a big drop in revenue and swung to a loss during its first quarter ended March 31.
Before markets opened on Wednesday, the company that provides seismic data to the western Canadian energy sector said its revenue was $1.9-million for the quarter, down from $22.8-million for the same period in 2025.EBITDA
Its net loss of $1.4-million or 3 cents per share compared to net earnings of $13.4-million or 26 cents a year earlier.
“Pulse has had a slow start to 2026 from a data licensing perspective, which is not unusual following years in which large volumes of data are licensed, as in 2025,” stated CEO Neal Coleman in a release.
“Pulse’s seismic data library assets are instrumental for risk mitigation and well optimization by our energy industry clients, but the timing of new licensing is impacted by factors affecting industry activity and is therefore subject to significant fluctuations both quarterly and annually.”
The company also announced a 7-per-cent increase to the regular quarterly dividend to $0.01875 per share. That results in an increase in the annual regular dividend from 7 cents per share to 7.5 cents per share.
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Aecon Group Inc. (ARE-T) reported higher revenue and trimmed its loss in the first quarter ended March 31.
After markets closed on Tuesday, the construction and infrastructure development company reported revenue of $1.26-billion during the quarter, up from $1.06-billion a year earlier. The result was ahead of expectations of $1.13-billion, according to S&P Capital IQ estimates.
Its net loss of $17.9-million improved from a loss of $37.9-million a year earlier. On an adjusted basis, the loss was 28 cents compared with a loss of 60 cents during the prior-year quarter. The expectation was for a oss of 25 cents on an adjusted basis in the most recent quarter.
Aecon also reported a record backlog of $10.9-billion as of March 31.
In its outlook, Aecon said it expects 2026 revenue to exceed 2025 levels, driven by the strength of its backlog and other factors.
Canaccord Genuity analyst Yuri Lynk reiterated his “buy” and increased his target price to $56 from $52 afer the results.
“Aecon’s business has been much improved over the last five years, yet its valuation multiple has only recently showed signs of reflecting this,” he wrote. “Lower risk, collaborative contracts as well as cost plus/unit price now dominate the revenue stream at 69% vs. 38% in 2020. Its nuclear business, where the barrier to entry is extremely high, is 28% of revenue vs. 10% in 2020. Its backlog is $10.9 billion vs. $6.5 billion in 2020. Its utilities business has posted a 5-year revenue CAGR of 10% and generates a 10% EBITDA margin with US-listed peers trading at mid-teens EV/EBITDA (2026E) multiples. With the legacy LSTK contracts down to de minimis levels of revenue and backlog (<1%), we are seeing the benefits of Aecon’s improved fundamentals reflected in its financials, which are higher margin and appear more predictable.”
National Bank analyst Maxim Sytchev increased his target price to $59 from $48 after the report.
“When facts change, one needs to adjust their perspective,” he wrote in a note.
“Is Aecon’s investment thesis swept up in electrification/nuclear/AI momentum? 100%. Will earnings tonight from the hyperscalers provide another make-or-break sentiment read on this trajectory? Most likely. We are also cognizant of the fact that investors are petrified of the perception around AI disruption in the engineering space and construction is viewed as ‘safe’ in addition to nuclear (28% of the top line), defense, utilities and eventual concessions opportunity. We would rather see the trade completely crack vs. facing an opportunity cost of not being long.”
He has an outperform “buy” on the stock.
Stifel analyst Ian Gillies maintained his “hold” rating and hiked his target to $46 from $44.50.
“Valuation remains the basis for our ‘hold’ rating and that view is unchanged, but we believe the company remains well positioned to benefit from Canadian government spending on nuclear, defence work and infrastructure,” he wrote.
BMO analyst Devin Dodge maintained his “market perform” rating and $49 target.
“In our view, ARE is well-positioned to benefit from increased investment across several of its end-markets, including nuclear, infrastructure and power,” the analyst wrote. “However, with the valuation multiple shifting materially higher over the last ~6 months, we believe much of this optimism is already reflected in the shares.”
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Upcoming small-cap earnings:
May 4: Cargojet Inc. (CJT-T), Thinkific Labs Inc. (THNC-T), Propel Holdings Inc. (PRL-T), InterRent REIT (IIP-UN-T), Richards Group Inc. (RIC-T)
May 5: Curaleaf Holdings Inc.(CURA-T), Russel Metals Inc. (RUS-T), Sienna Senior Living Inc. (SIA-T), Flagship Communities REIT (MHC-UN-T), Ballard Power Systems (BLDP-T), Dream Industrial REIT (DIR-UN-T), Telesat Corp. (TSAT-T), Hammond Power Solutions Inc. (HPS-A-T), AirBoss of America Corp. (BOS-T), K-Bro Linen Inc. (KBL-T)
May 6: Western Forest Products Inc. (WEF-T), SmartCentres REIT (SRU-UN-T), Canfor Corp. (CFP-T), GO Residential REIT (GO-U-T), Green Thumb Industries Inc. (GTII-CN), Kits Eyecare Ltd. (KITS-T), Savaria Corp. (SIS-T), DIRTT Environmental Solutions Ltd. (DRT-T), 5N Plus Inc. (VNP-T), Sprott Inc. (SII-T), Taseko Mines Ltd. (TKO-T)
May 7: Maple Leaf Foods Inc. (MFI-T), Killam Apartment REIT (KMP-UN-T), Pason Systems Inc. (PSI-T), Altus Group Ltd. (AIF-T), Extendicare Inc. (EXE-T), NFI Group Inc. (NFI-T), Ag Growth International Inc. (AFN-T), MDA Space Ltd. (MDA-T), A&W Food Services of Canada Inc. (AW-T), Profound Medical Corp. (PRN-T), Trulieve Cannabis Corp. (TRUL-CN), Dream Office REIT (D-UN-T), Enerflex Ltd. (EFX-T), Medical Facilities Corp. (DR-T), Premium Brands Holdings Corp. (PBH-T), Leon’s Furniture (LNF-T), Ensign Energy Services Inc. (ESI-T), Dorel Industries Inc. (DII-B-T), Knight Therapeutics Inc. (GUD-T), Algoma Central Corp. (ALC-T)
May 8: Docebo Inc. (DCBO-T), CES Energy Solutions Corp. (CEU-T), Doman Building Materials Group Ltd. (DBM-T), Lassonde Industries Inc. (LAS-A-T)
May 11: Cineplex Inc. (CGX-T), CT REIT (CRT-UN-T), Minto Apartment REIT (MI-UN-T), Cineplex Inc. (CGX-T), Chemtrade Logistics Income Fund (CHE-UN-T), Cronos Group Inc. (CRON-T)
May 12: RFA Financial Inc. (RFA-T), Parex Resources Inc. (PXT-T), True North Commercial REIT (TNT-UN-T), BTB REIT (BTB-UN-T), Altius Minerals Corp. (ALS-T), Grown Rogue International Inc. (GRIN-CN), Goeasy Ltd. (GSY-T), Pet Valu Holdings Ltd. (PET-T), Terago Inc. (TGO-T), Algoma Steel Group Inc. (ASTL-T)
May 13: Superior Plus Corp. (SPB-T), Bird Construction Inc. (BDT-T), Total Energy Services Inc. (TOT-T), BSR REIT (HOM-U-T), Pollard Banknote Ltd. (PBL-T), Automotive Properties REIT (APR-UN-T), Slate Grocery REIT (SGR-UN-T), Mattr Corp. (MATR-T), Dream Unlimited Corp. (DRM-T), AutoCanada Inc. (ACQ-T), Kneat.com Inc. (KSI-T), Aimia Inc. (AIM-T), North American Construction Group Ltd. (NOA-T), Boyd Group Services Inc. (BYD-T)
May 14: Corby Spirit and Wine Ltd. (CSW-A-T), H&R REIT (HR-UN-T), Interfor Corp. (IFP-T), Plaza Retail REIT (PLZ-UN-T), Velan Inc. (VLN-T), Vecima Networks Inc. (VCM-T)
May 15: HLS Therapeutics Inc. (HLS-T)
May 21: Lightspeed Commerce Inc. (LSPD-T)
June 9: Stingray Group Inc. (RAY-A-B)