A look at some small-cap stocks making news - or about to
Canada’s S&P/TSX Small Cap Index (TXTW-I) hit a record 1,446.87 on Thursday and is up by about 77 per cent over the past 52 weeks. The Russell 2000 in the U.S. is up about 23 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
Enerflex Ltd. (EFX-T) shares surged in early Thursday trading after the company announced an agreement to divest the majority of its operations in the Asia Pacific region. It also reported higher revenue but swung to a loss in its fourth quarter.
After markets closed on Wednesday, the company reported revenue of US$627-million compared to US$561-million a year earlier. Adjusted EBITDA of US$123-million compared to US$121-million a year earlier.
Its net loss of US$57-million or 47 cents US per share compared to earnings US$15-million or 12 cents US per share a year earlier. On a normalized basis, net income was US$24-million or 20 cents US per share, the company stated.
The company also said it has a definitive agreement to divest the majority of its Asia-Pacific (APAC) operations to Innio Group.
“This business operates principally in Australia, Indonesia and Thailand and is primarily focused on the AMS [after-market services] product line,” the company stated. “Following close, Enerflex will continue to deliver ES [engineered systems] solutions in APAC, including natural gas compression, processing, and electric power generation, through local sales teams, with equipment manufactured from the company’s three facilities in North America.”
Acumen Capital analyst Nick Corcoran said revenue was above his estimate of US$575-million and adjusted EBITDA was well above his estimate of US$106-million.
He noted the company’s preliminary outlook for 2026 reflects steady demand across its business lines and geographic regions. “Operating results are expected to be underpinned by highly contracted EI [energy infrastructure] and recurring AMS,” he wrote. “ES is expected to remain steady, supported by a backlog of $1.1B with the majority expected to convert to revenue in the next 12 months.”
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Cargojet Inc. (CJT-T) shares surged in early Thursday trading amid analyst price target hikes following fourth-quarter results that beat expectations.
After markets closed on Tuesday, the company reported revenue of $284.7-million, down nearly 3 per cent compared to $293.2-million during the same period a year earlier. The result was ahead of the consensus of $251.3-million, according to S&P Capital IQ.
Adjusted EBITDA was $95-million, up 3.6 per cent compared to $91.7-million for the same quarter of the previous year and ahead of expectations of $79.6-million.
Adjusted net earnings of $22.2-million or $1.47 per share were down from $27.2-million or $1.71 per share a year earlier. The expectation was for EPS to come in at $1 in the fourth quarter of 2025.
CIBC analyst Kevin Chiang increased his price target to $116 from $106 “as we become increasingly optimistic on the recovery in the freight cycle,” he said in a note.
He maintained his “outperformer” (buy) rating.
“CJT’s Q4/25 results highlight the success it is having in navigating an uncertain global freight market,” he wrote. “It continues to find new revenue opportunities, is leaning on its cost efficiency plans, and has committed to a disciplined capital program which should drive strong FCF [free cash flow] generation.”
Stifel analyst Daryl Young increased his target price to $120 from $100 and kept his “buy” rating.
“While near-term visibility remains low amid the global geopolitical/trade uncertainties, we think CJT is navigating it well and see strong leverage to an eventual freight recovery given its latent capacity,” he wrote.
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Cascades Inc. (CAS-T) shares slipped in early Thursday trading after the company reported mixed fourth-quarter results.
Before markets opened on Thursday, the company reported sales of $1.197-billion compared $1.211-billion in the same quarter a year earlier.
Net earnings of $37-million or 37 cents per share compared with a loss of $13-million or 13 cents a year earlier. Adjusted EPS of 40 cents compared with 25 cents a year earlier and was ahead of expectations of 37 cents, according to S&P Capital IQ.
Adjusted EBITDA of $155-million compared $146-million a year earlier and was below expectations of $159.8-million.
“Our fourth quarter consolidated performance met sequential forecasts,” stated CEO Hugues Simon. “Packaging results were within expectations, with benefits from lower production costs, favourable raw material pricing and continued solid production levels at Bear Island mitigating the expected lower seasonal sales volumes.”
He said results in the tissue business fell short of targeted levels.
“Simply put, our tissue operations did not meet efficiency and logistics execution objectives in the quarter. These effects were compounded by an unplanned power outage at one of our facilities that further impacted production levels, supply chain efficiency and added incremental operating costs of approximately $6 million in the period,” he stated, adding that measures we have already put in place to address these issues and are generating “positive traction.”
Mr. Simon also said he expects first‑quarter performance “to decline sequentially, but to remain higher year‑over‑year for the sixth consecutive quarter.“
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EQB Inc. (EQB-T) reported first-quarter earnings per share that beat expectations and increased its dividend.
After markets closed on Wednesday, the company reported adjusted net income of $85.2-million and adjusted EPS of $2.26 per share for the quarter ended Jan. 31, down from $116.2-million or $2.98 per share a year ago.
Revenue of $306.8-million compared to $322.6-million a year earlier.
Its provision for credit losses was $39.1-million in the quarter, up from $18.7-million a year earlier and down from $54.6-million in the fourth quarter ended Oct. 31.
“The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 43 bps [basis points], compared to 28 bps at Q1 2025,” it stated in a release.
The company declared a dividend of 59 cents per common share payable on March 31 to shareholders of record as of March 13, which it said is an increase of 4 per cent and 16 per cent from the dividends paid in December, 2025 and March 2025, respectively.
“While we expect operating environment headwinds to persist through the first half of the year, we delivered strong first-quarter performance with meaningful expense improvement and continued strategic investment in high‑impact growth areas. Importantly, we also delivered stable margins and maintained our disciplined approach to lending, anchored in our robust risk management framework,” chief financial officer Anilisa Sainani stated in a release.
CEO Chadwick Westlake said the first-quarter results reflect “the outcome of our refreshed strategic focus and important steps forward to challenge the market” adding the the company is close to closing its agreement to acquire PC Financial, “partner with Loblaw Companies and make banking more competitive across Canada with EQ Bank.”
National Bank Financial analyst Gabriel Dechaine increased his target to $120 from $111, “to reflect potentially stabilizing credit performance” and maintained his “sector perform” (hold) rating.
In a note, the analyst said EPS beat his $2.15 forecast and the consensus of $2.18. He noted that expenses were down 9 per cent quarter-over-quarter, 1 per cent year-over-year, and fell across all major categories.
“Management had guided to low-single-digit expense growth for the year,” he wrote in a note.
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Major Drilling Group International Inc. (MDI-T) reported higher revenue for its third quarter ended Jan. 31 that beat expectations and a “robust” outlook for 2026.
After markets closed on Wednesday, the Moncton, N.B.-based company reported revenue of $184.6-million, up 14.9 per cent from the $160.7-million recorded in the same quarter last year. The result was ahead of expectations of $175-million, according to S&P Capital IQ.
Its net loss of $10.8-million, or 13 cents per share, compared to a net loss of $9.1-million, or 11 cents per share, for the same period a year earlier.
The company stated that its outlook for 2026 “remains robust” amid record commodity prices and the amount of equity raised by Canadian publicly listed mining companies.
“Our optimism heading into calendar 2026 continues to be driven by a combination of increased financing activity and growing exploration budgets,” stated CEO Denis Larocque.
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High Liner Foods Inc. (HLF-T) reported higher sales that beat expectations but lower profit for its fourth quarter.
After markets closed on Wednesday, the company reported sales of US$270-million for the quarter ended Jan. 3, up from US$235-million a year earlier. The result was ahead of expectations of US$257-million, according to S&P Capital IQ.
Adjusted EBITDA came in at US$19.3 million, down from US$23.8-million a year earlier and slightly ahead of expectations of US$19.1-million.
Adjusted net income dropped to US$2.7-million or 9 cents US per share from US$12.5-million or 41 cents US a year earlier.
“We delivered sales and volume growth in the fourth quarter and made progress across our business towards improved profitability in what remains a challenging environment,” said CEO Paul Jewer in a release. “While margins remained constrained in our fourth quarter results, we advanced margin improvement initiatives and saw underlying momentum improve as we exited the quarter. As we head into the important Lenten period, we are well-positioned to drive profitable sales growth, supported by our ongoing focus on continuous improvement, including plant efficiencies, and disciplined execution.”
Canaccord Genuity analyst Luke Hannan said the revenue came in ahead of his $262-million forecast, while adjusted EBITDA was slightly ahead of his $18.9-million estimate.
He noted that sales volumes grew 1.5 per cent year over year to 61.3 million pounds, driven by promotional activity and the contribution of an additional week in the quarter versus the same quarter in 2024.
“That said, sales for the quarter increased 15% YoY to $270 million, reflecting tariff-related price increases and improved mix,” he wrote in a note.
“In its outlook, management noted it expects profitability to improve as a function of product innovation, supply chain efficiencies, and its ability to offset higher raw material costs.
He maintained his “buy” rating and $17.50 target.
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Chemtrade Logistics Income Fund (CHE-UN-T) reported higher revenue and profit for its fourth quarter ended Dec. 31.
After markets closed on Wednesday, the company reported revenue of $502-million, an increase of 12.4 per cent from $446.5-million for the same quarter a year earlier. The expectation was for revenue of $468.6-million, according to S&P Capital IQ.
Adjusted EBITDA of $98.2-million was down 9.6 per cent from $108.6-million a year earlier and below expectations of $105.6-million.
Net earnings of $38.3-million or 18 cents per share were up from $10.3-million or 9 cents a year earlier, “primarily due to favourable unrealized foreign exchange gains and lower finance costs in 2025 and an impairment loss in 2024, partially offset by lower adjusted EBITDA.”
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Kneat.com Inc. (KSI-T) reported higher revenue but a wider loss for its fourth quarter ended Dec. 31.
After markets closed on Wednesday, the company said its fourth-quarter revenue increased by 24 per cent to $17-million, in line with expectations and compared with $13.7-million in the fourth quarter of 2024. Software-as-a-Service (SaaS) revenue grew 29 per cent to $16.2-million versus $12.5-million a year earlier.
Its net loss was $3.6-million, or 4 cents per share, compared with a net loss of $2.5-million, or 3 cents per share, a year earlier. The expectation was for a loss of 3 cents per share in the latest quarter.
Adjusted EBITDA was $4.2-million, ahead of expectations of $2.4-million and compared with $2.6-million for the fourth quarter of 2024.
Canaccord Genuity analyst Doug Taylor, who has a “speculative buy” and $7 target on the stock, described the quarter as “mixed.”
“Revenue was largely in line with the Street and profits came in ahead on the back of strong gross margins,” he wrote in a note. “While we observed a brisk pace of new strategic customer announcements over the course of the year, the company’s NRR [net revenue retention rate], a figure only provided annually, was 115% for the year. This is robust in the context of software comps, but was down from 151% in the prior year, confirming what we think had been suspected (and qualitatively noted by management) to be a slower year for expansion-type growth.”
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PHX Energy Services Corp. (PHX-T) shares closed up 19 per cent on Wednesday after the company reported fourth-quarter results that beat expectations and a special dividend.
After markets closed on Tuesday, the company reported revenue of $183.9-million, up from $178.7-million in the fourth quarter of 2024. The result was ahead of expectations of $170.5-million.
Adjusted EBITDA was $36.9-million, above expectations of $29.3-million and compared to $29.6-million a year earlier.
Earnings of $17.6-million or 35 cents per share compared to $14.1 million or 30 cents per share a year earlier. The expectation was for earnings per share of 15 cents.
The company announced a special cash dividend of 20 cents per common share payable on April 1 to shareholders of record at the close of business on March 16.
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Pulse Seismic Inc. (PSD-T) shares rose 6 per cent on Wednesday after the company reported higher revenue and profit for its fourth quarter ended Dec. 31 compared to a year earlier.
After markets closed on Tuesday, the company reported revenue of $6.6-million as compared to $5.6-million a year earlier.
Net earnings of $1.7-million of 3 cents per share compared to net earnings of $774,000 or 2 cents per share in the fourth quarter of 2024.
The company also declared a special dividend of 10 cents per share.
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5N Plus Inc. (VNP-T) reported fourth-quarter results that beat expectations.
After markets closed on Tuesday, the Montreal-based specialty semiconductors and performance materials company reported revenue of US$102-million, up from US$70.8-million a year earlier. The result was ahead of expectations US$90.8-million, according to S&P Capital IQ.
Adjusted EBITDA of US$18.5-million was up from US$12.5-million a year earlier and ahead of expectations of US$16.4-million.
“The beat vis-à-vis consensus was top-line driven with revenue of $102-million, beating by 12%,” stated Canaccord Genuity analyst Yuri Lynk. He said the stronger results were due to higher volumes in specialty semiconductors and space solar power, and higher pricing in space solar power.
“Management’s initial 2026 EBITDA guidance of between $100-million and $105-million implies good growth over record EBITDA of $92.4-million in 2025. With the 2026 FactSet EBITDA consensus sitting at $103-million, we do not expect much in the way of earnings revisions post-quarter,” he wrote. “Management noted EBITDA will be back-half weighted this year and will be driven by the Specialty Semiconductors segment. The company expects margins in Performance Materials to normalize for bismuth-based products in 2026 due to anticipated cost pressures (in line with our model). Revenue visibility continues to improve.”
National Bank Financial analyst Baltej Sidhu maintained his “outperform” rating and $33 target after the earnings.
“VNP continues to execute well, shifting toward higher value-added products to support long-term growth,” he wrote in a note. “While FY2026 guidance is in line, its track record of beats and upward revisions points to upside potential. With only minimal updates to our model, we maintain our $33/sh target, based on a 17.5x EV/EBITDA multiple on FY27E.”
Added the analyst: “Supported by strong forward cash flow visibility and differentiated exposure to structurally growing end markets, including strategic materials such as germanium, where demand is increasingly aligned with defense and national security priorities and supported by U.S. government initiatives, we believe VNP merits a premium valuation relative to peers. The company’s unique positioning within critical material supply chains, coupled with improving mix and margin durability, underpins this view.”
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Winpak Ltd. (WPK-T) reported fourth-quarter earnings that missed expectations.
On Monday, the Winnipeg-based packaging materials and packaging machines company reported revenue of $284.9-million, down from $285.1-million in the fourth quarter of 2024. The result was below expectations of $291.4-million, according to S&P Capital IQ.
Net income of $36.3-million or 60 cents per share compared to $37-million or 58 cents a year earlier. The result was below expectations of 63 cents.
CIBC analyst Hamir Patel reduced his rating on Winpak to “neutral” (hold) from “outperformer” (buy) and reduced his target to $52 form $53 amid increased tariff uncertainty ahead of Canada-United States-Mexico Agreement (CUSMA) negotiations and a more competitive industry backdrop.
“Additionally, while we were previously hopeful that Winpak would finalize an acquisition in the health care space in H1/26, we now have less confidence that a transaction may be completed given increased competition,” he wrote.
National Bank Financial analyst Ahmed Abdullah increased his target by $1 to $49 after the results and maintained his “sector perform” (hold) rating.
“We tweaked our forecast to reflect slightly better volume growth, but we do not fully reflect cost-saving initiatives quite yet,” he wrote in a Feb. 24 note. “We await execution to reflect an improved cost structure that presents a more solid degree of recovery from the 2Q trough.”
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Parex Resources Inc. (PXT-T) announced on Monday that it plans to buy Frontera Energy Corp.’s (FEC-T) Colombian upstream business for US$500-million in cash, plus the assumption of debt. The deal also includes a contingent payment of US$25-million “with terms that are substantially the same as the existing acquisition agreement previously announced.”
The company said the proposal represents a US$125-million premium compared to the existing acquisition agreement.
“Our all-cash offer to acquire Frontera’s Colombian-based upstream business provides immediate and greater value for Frontera and its shareholders,” stated CEO Imad Mohsen in a release. “Based on the premium offered, we expect that the Frontera Board will conclude that our Proposal will be a “Superior Proposal” as defined by the previously announced acquisition agreement. We look forward to further discussions with Frontera’s Board and Management team to finalize a transaction.”
In a response on Monday, Frontera acknowledged receipt of the “unsolicited proposal,” which includes the same assets that Frontera has agreed to sell to a subsidiary of GeoPark Ltd. in an agreement announced in late January.
The company said its board is “carefully reviewing and considering” the Parex proposal but added that: “At this time, the Frontera Board continues to recommend the GeoPark transaction to its shareholders.”
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Upcoming small-cap earnings:
Feb. 27: Boralex Inc. (BLX-T), Laurentian Bank (LB-T)
March 3: Pet Valu Holdings Ltd. (PET-T), Wajax Corp. (WJX-T), Plaza Retail REIT (PLZ-UN-T)
March 4: Minto Apartment REIT (MI-UN-T), Spin Master Corp. (TOY-T), Canada Packers Inc. (CPKR-T), Propel Holdings Inc. (PRL-T), Kits Eyecare Ltd. (KITS-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), AirBoss of America Corp. (BOS-T), VersaBank (VBNK-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), Savaria Corp. (SIS-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), 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)
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)
March 19: K-Bro Linen Inc. (KBL-T)
March 23: GO Residential REIT (GO-U-T)
March 25: Goeasy Ltd. (GSY-T)
March 31: Grown Rogue International Inc. (GRIN-CN)