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 37 per cent over the past 52 weeks as of Thursday’s close. It hit a record of 1,179.02 on Oct. 15. The Russell 2000 in the U.S. is down about 2.5 per cent over the past 52 weeks. It hit a record 2,541.67 on Oct. 15.
Small-cap summary
Rogers Sugar Inc. (RSI-T) shares closed up 2 per cent on Thursday after the company beat expectations for its fourth quarter earnings ended Sept. 30.
Before markets opened on Thursday, the Montreal-based company reported revenue of $322.7-million, up from $333-million a year ago and ahead of expectations of $315.7-million.
Adjusted EBITDA of $39.5-million compared to $38.3-million last year and surpassed expectations of $38.9-million.
Adjusted earnings came in at $19.8-million or 16 cents versus $18.8-million or 14 cents a year ago. The expectation was for adjusted EPS of 14 cents for the most recent quarter.
The company also announced a six-month delay in its “LEAP” expansion project, putting the in-service date to June, 2027.
BMO analysts Stephen MacLeod and Nevan Yochim increased their target to $7 from $6.50 after the earnings report.
“Q4/25 results were in line, with solid performance in both Sugar and Maple,” they wrote in a note.
The analysts also noted that the “unexpected” LEAP project delay was driven by “construction complexity and decision to better match supply to expected demand,” and noted that tariffs appear manageable with exemptions under CUSMA [Canada-United States-Mexico Agreement], although exports face headwinds.
“We maintain our ‘market perform’ [hold] rating and believe the 5.6% yield could be attractive to income-oriented investors,” they wrote.
National Bank Financial analyst Zachary Evershed increased his target to $7 from $6.25 after the earnings report.
“While uncertainty remains surrounding the timing and pace of the LEAP production ramp-up as the extension pushes the return on invested capital further to the right, our concerns are tempered by expectations of higher profitability in FY26,” he wrote.
He reiterated his “sector perform” (hold) rating as the company remains in investment mode, and we see timelier options elsewhere."
Desjardins analyst Frederic Tremblay, who has a “buy” and $7.50 target, said the 2026 sugar volume outlook was lower than he had anticipated. He was also surprised by the slight delay for the LEAP expansion project.
“That said, we view the long-term demand outlook for Sugar positively and continue to consider LEAP as a strategic project that will solidly position RSI to capture growth opportunities in eastern Canada,” he wrote in a note.
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Goodfood Market Corp. (FOOD-T) shares closed down 4 per cent on Thursday after the Montreal-based meal-kit company reported a drop in fourth-quarter sales.
Before markets opened on Thursday, the company reported $25-million in sales for the quarter ended Sept. 6, down from $34-million for the same quarter ended Sept. 7 a year ago.
Its net loss was $4.1-million or 4 cents per share compared to a loss of $3-million or 5 cents a year earlier.
“We do not expect meaningful near-term improvement in food input inflation, labour costs, packaging, logistics or compliance expenses and we expect these pressures will persist through Fiscal 2026,” stated Goodfood chair Selim Bassoul in a release. “Our operational review is focused on building an even more disciplined, flexible and margin-resilient business. We are refining our product lineup, tightening costs, and strengthening the customer experience with a clear eye on sustainable profitability and cash flow stability.”
Desjardins analyst Frederic Tremblay said the fourth-quarter results were in line with his expectations.
He reduced his fiscal 2026 estimates “due to continued pressure on meal-kit demand,” but added that he’s “encouraged by early progress from Genuine Tea and the launch of Heat & Eat meals.”
He noted the company is looking at other opportunities to increase diversification, “although we believe that limited balance sheet flexibility is a complicating factor.”
He has a “hold” on the stock and lowered his target to 25 cents from 30 cents.
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Exco Technologies Ltd. (XTC-T) reported lower sales but higher profit for its fourth quarter ended Sept. 30.
After markets closed on Wednesday, the company reported sales of $150.7-million down from $155.4-million last year. The result was ahead of expectations of $149.9-million, according to S&P Capital IQ.
Net income of $8.2-million or 22 cents per share compared with $7.7-million or 20 cents last year. The expectation was for EPS of 12 cents.
Acumen Capital analyst Nick Corcoran, who has a “buy” rating and a $8 target on the stock, said in a note that extrusion tooling sales benefited from diversified end markets, while die-cast tooling sales, primarily for automotive manufacturers, continued to be impacted by slower EV adoption.
“Management highlighted that OEMs are prioritizing smaller ICE platforms, which has led to a meaningful uptick in requests for die-cast moulds in recent months,” he wrote in a note. “There has also been an increase in demand for XTC’s additive tooling as well as tooling within regions in the USMCA due to OEMs and die-casters looking to avoid tariffs and reduce uncertainty within their supply chains.
In an updated commentary after the analyst conference call, Mr. Corcoran wrote in a note that management’s tone “has improved markedly compared to prior quarters.”
He said the company has “demonstrated the resilience of the business model, driven by diversified end markets and geographies, and generated strong FCF ($41M FY/25). There appears to be an uptick in demand signalling an inflection point.”
He described the fiscal 2025 results as “a trough in terms of sales and margins. With the US negotiating trade deals with Asia and Europe, uncertainty related to tariffs appears to be subsiding.”
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Calian Group Ltd. (CGY-T) shares rose this week after the company announced fourth-quarter results that largely beat expectations and a major contract win.
Before markets opened on Wednesday, Calian reported that its revenue rose 12 per cent to $203-million for the quarter ended Sept. 30. The result was ahead of expectations of $200.5-million.
Adjusted EBITDA rose by 2 per cent to $24-million and beat expectations of $20.3-million.
Net profit of $11.5-million or $1 per share was up from $10.5-million or 87 cents per share a year ago. The EPS result was below expectations of $1.07.
“Our fourth quarter results mark a significant turning point for the company,” stated CEO Kevin Ford. “This return to organic growth after several challenging quarters is a testament to the resilience and adaptability of our team.
Ventum Capital Markets analyst Rob Goff increased his target to $62 from $58 and kept his “buy” rating.
“The better-than-expected Q4/F25 results and ongoing backlog growth suggest upside to our F2026 EBITDA. We believe the strength and sustainability of opportunity for Calian from increased military spending domestically and across NATO are discounted in current forecasts and valuations,” he wrote in a note.
Canaccord Genuity analyst Doug Taylor increased his target to $63 from $60 and maintained his “buy” rating.
“Calian reported a Q4 beat as its defence exposure powers a return to organic growth,” he wrote. “Given the expectation of the Canadian government accelerating its procurement decisions, as previewed by the recent $81.8B defence budget increase, we see a strong backdrop for the coming years.”
CIBC analyst Stephanie Price maintained her “outperformer” (buy) rating and $62 target. “We continue to view Calian as well-positioned to benefit from increased defence spending,” she wrote.
She also said Calian’s independent special committee of the board continues to review certain non-core assets for disposition.
“We expect that Calian will provide an update with its FQ1 results in mid-February, and we continue to view the U.S. ITCS business as a potential divestiture,” she wrote.
Earlier in the week, the Ottawa-based company also said it has been awarded a contract by an unnamed “leading” global space technology company.
Before markets opened on Monday, Calian said the contract is for the design and manufacturing of four “Ka/Q/V-band RF gateway ground stations” to support the roll-out of services for two geostationary satellites.
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Blue Ant Media Corp. (BAMI-T) announced on Wednesday that it’s buying Thunderbird Entertainment Group Inc. (TBRD-X) in a stock-and-cash agreement valued at $89-million.
“The acquisition of Thunderbird is anticipated to add scale and complementary capabilities that strengthen Blue Ant’s studio business and enhance our earnings and cash flow,” stated Blue Ant CEO Michael MacMillan in a release.
Vancouver-based Thunderbird’s production businesses include Atomic Cartoons and Great Pacific Media.
Under the deal, Thunderbird shareholders will have the option to receive 0.2165 of a Blue Ant subordinate voting share, $1.77 in cash, or a combination of both for each Thunderbird share they hold. The maximum amount of cash available under the offer is limited to $40-million.
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Happy Belly Food Group Inc. (HBFG-CN) shares rose this week after the company reported a near 200-per-cent increase in revenue for its third quarter, driven by acquisitions and new restaurant openings.
Before markets opened on Wednesday, the company behind brands such as Lettuce Love, Joey Turks Caribbean Grill and Rosie’s Burgers, reported revenue of $7.2-million for the quarter versus $2.5-million last year. The result was ahead of expectations of $6.2-million.
Ventum Capital Markets analyst Rob Goff maintained his “buy” recommendation and increased his target to $2.40 from $2.25.
“Establishing a successful launch into the U.S. market would increase the prospects for a recalibration of our baseline forecasts and a potentially redefining opportunity – one that would warrant a positive revaluation," he wrote in a note. “With successful introductions, we could see a broader commitment as a positive catalyst within the next 6 months.”
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H&R Real Estate Investment Trust (HR-UN-T) says it has signed deals with multiple buyers to sell a total of $1.5-billion in retail and office properties in Canada and the U.S.
The assets being sold include H&R’s 33.1-per-cent stake in Echo Realty LP’s U.S. retail portfolio, 27 Canadian retail properties, the Hess Tower office property in Houston, a downtown Toronto office property and another in the Greater Toronto Area.
H&R executive chair and chief executive Tom Hofstedter says the sales accelerate the trust’s portfolio simplification strategy. When the strategy was announced in June 2021, he said the residential and industrial segments amounted to 35 per cent of the trust’s total portfolio. After the sales were announced on Tuesday, the residential and industrial segments will account for 83 per cent of H&R’s total real estate assets.
H&R also said it remains in talks to sell two Canadian office properties in Toronto.
“Despite the earnings dilution expected from this transaction, it is a step in the right direction for simplifying the business and doesn’t materially move our NAV [net asset value], which is a positive considering the real upside to our numbers is likely in the industrial and apartment portfolio,” National Bank Financial analyst Matt Kornack said in a note. “We await further details on the disposition program for any signalling on the longer-term plans for the REIT.”
He maintained his “sector perform” rating and increased his target prices to $10.75 from $10.50.
BMO analyst Tom Callaghan increased his target to $11.50 from $11 and kept his “outperform” (buy) rating.
“We update our estimates following H&R’s announced agreements to dispose $1.5-billion of office and retail properties. This represents the first slice of dispositions aimed at accelerating the REIT’s portfolio simplification strategy following the recent conclusion of a strategic review,” he wrote in a note. “Strategically, the dispositions serve to reduce both portfolio complexity and office exposure along with balance sheet leverage while continuing to augment H&R’s concentration towards U.S. residential properties. Ultimately, we believe the closer H&R moves toward a residential pure-play, the better from both a valuation and investor interest perspective.”
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Organigram Global Inc. (OGI-T) announced that James Yamanaka has been appointed its new CEO, effective mid-January. Mr. Yamanaka is the former global head of strategy for British American Tobacco and spent more than 20 years at the company.
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Trubar Inc. (TRBR-X) announced that it’s being acquired by Turkey-based consumer products company ETİ Gıda in a deal valued at $201-million.
Under the terms of the deal, Trubar shareholders will get $1.64 per common share in cash. The amount is a 64-per-cent premium to the stock’s last closing price before the announcement.
“This proposed acquisition represents a significant milestone for our company and delivers on our commitment to creating strong value for shareholders,” stated Kingsley Ward, Trubar’s executive chairman. “ETİ Gıda is an ideal acquirer for Trubar at this stage in the brand’s development, given ETİ Gıda’s successful track record of scaling CPG brands over the last six decades.”
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Endeavour Silver Corp. (EDR-T) shares rose this week after the company announced an agreement to sell its Bolañitos Gold-Silver Mine in Mexico to Guanajuato Silver for US$50-million.
“As part of our ongoing strategy to create long-term value for our shareholders, the sale of Bolañitos marks a significant milestone in the rationalization of our portfolio,” said CEO Dan Dickson. “By focusing our resources on our core silver assets, particularly delivering at Terronera and advancing the world-class Pitarrilla project, we are sharpening our operational focus and positioning the company for sustainable growth. We remain committed to maximizing the potential of our silver portfolio and reinforcing our leadership in the sector.”
The deal includes US$40-million in cash and shares, followed by two US$5-million in cash-and-share payments upon the production of two million and four million ounces of silver equivalent from the Bolañitos Mine, respectively.
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Kraken Robotics Inc. (PNG-X) reported mixed third-quarter results earlier this week.
Before markets opened on Monday, the St. John’s-based company reported revenue of $31.3-million for the quarter ended Sept. 30, up 60 per cent from $ 19.6-million in the prior year. The result was below expectations of $34.4-million.
“The growth was driven by record shipments of subsea batteries and synthetic aperture sonar to defence industry customers, solid organic growth in sub-bottom imaging services, and the acquisition of 3D at Depth Inc.,” the company stated.
Adjusted EBITDA grew 92 per cent year-over-year to $8-million compared to $4.1-million last year. The result was roughly in line with expectations.
Net income was $3.3-million or a penny per share, which was in line with expectations and compared to a net income of $1.6-million or a penny per share last year.
The company maintained its revenue and adjusted EBITDA guidance for fiscal 2025.
National Bank Financial analyst Mike Stevens, who has an “outperform” (buy) and $7.50 target on the stock, said in a Nov. 24 note that the guidance “implies [a] robust upcoming fourth quarter.”
He wrote: “Q4 has always been the seasonally strongest quarter as deliveries ramp throughout the year; the guide (now) implies [about] 40 per cent-plus of full-year revenue landing in Q4.”
The analyst also wrote that the company’s “broader growth trajectory and positioning toward (further) contract wins for its expanding set of products and services. We remain confident in Kraken’s momentum on these fronts.”
Canaccord Genuity analyst Doug Taylor maintained his “hold” recommendation and $6 target after the earnings.
“We look ahead at 2026, a year which should see further ramp in battery revenue as Kraken’s new NS battery production facility begins contributing,” he wrote in a Nov. 25 note. “Our estimates for the year receive only modest tweaks, and we continue to look for conversion of Kraken’s active and sizable pipeline of sensor opportunities into firm bookings to better underpin the growth profile in the coming years.”
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The Competition Bureau is investigating Well Health Technologies Corp. (WELL-T), a consolidator of medical clinics and health-technology companies, over concerns that some of its biggest acquisitions this year are lessening competition for AI transcription and medical-record software.
The bureau filed an application in Federal Court on Nov. 12 for a court order compelling Well Health to produce information, with a hearing set for Dec. 9.
The request is related to Well Health’s acquisition of a controlling interest in Healwell AI Inc. (AIDX-T) on April 1 and Healwell’s concurrent acquisition of Orion Health Holdings Ltd., a major global provider of medical-record software based in New Zealand.
Well Health told The Globe and Mail it was “working collaboratively” with the bureau to resolve the investigation.
Read the full Globe and Mail story here
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Upcoming small-cap earnings:
Dec. 3: EQB Inc. (EQB-T), Tecsys Inc. (TCS-T)
Dec. 5: Laurentian Bank (LB-T)
Dec. 9: Groupe Dynamite Inc. (GRDG-T)
Dec 10: Transcontinental Inc. (TCL-A-T), D2L Inc. (DTOL-T), Major Drilling Group International Inc. (MDI-T)
Dec. 18: Reitmans (Canada) Ltd. (RET-X)
- with files from The Canadian Press