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 48 per cent over the past 52 weeks. It hit a record 1,496.55 on June 2. The Russell 2000 in the U.S. is up about 30 per cent over the past 52 weeks. It hit a record of 3,046.59 on July 1.
Small-cap summary:
Winpak Ltd. (WPK-T) reported mixed results for its second quarter.
During market hours on Thursday, the packaging materials and machines company reported revenue of US$294.5-million for its second quarter ended June 28, up nearly 8 per cent from US$272.8-million for the second quarter of 2025. The result was below expectations of US$306.6-million, according to S&P Capital IQ.
Net earnings of US$33.6-million or 57 cents US per share were above expectations of 55 cents US compared to US$30.2-million or 49 cents US last year.
In its outlook, the company said ongoing uncertainty in the Middle East “poses significant risks to the company and the overall value chain” and said it’s seeking out “all available sourcing options and alternate supply channels to maintain continuity of supply to our customers.”
The company said it saw “significant market pressure on the prices for both raw materials and outbound transportation” in the quarter and expects these pressures to alleviate during the second half of the year. “However, the timing and extent of this reversal remains uncertain and therefore the current conditions could continue to materially impact the company’s operating costs, resulting selling prices and investment in working capital.”
It also said its products are currently exempt from U.S. tariffs. “The US government continues to target aluminum and steel with an array of significant tariffs,” it stated, adding that nearly all U.S. import tariffs are passed on to customers.
“With significant trade uncertainty, Winpak is targeting measures focused on enhancing its cost structure with respect to raw material procurement, lean manufacturing, automation and personnel levels. Given the existing geopolitical, trade and inflationary backdrop, it is difficult to accurately predict the gross profit margin level for the rest of 2026.”
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Mullen Group Ltd. (MTL-T) shares rose on Thursday after the company reported second-quarter earnings that beat expectations.
Before markets opened on Thursday, the company reported record quarterly revenues of $609.3-million – up 12.6 per cent from $540.9-million a year earlier. The result was ahead of expectations of $594.1-million.
Net income of $36-million or 37 cents per share rose from $25.6-million or 28 cents a year ago. On an adjusted basis, earnings came in at 41 cents per share up from 21 cents last year. The expectation was for adjusted earnings of 34 cents in the most recent quarter.
“There is growing evidence, from recent economic reports and our second quarter results, that the Canadian economy has finally gained some traction,” stated chair Murray Mullen. “If this momentum can be maintained, along with continued enforcement of safety and regulatory requirements by government authorities on those in the trucking industry that do not follow the law, there is a case to be made that the freight recession that has burdened the trucking and logistics industry for nearly three years, has ended. June was the best month our group has had in years.”
In a note, TD analyst Tim James said the outlook is “increasingly optimistic relative to Q1/26 due to commercial freight, overall market conditions, and Nation Building opportunities.”
Acumen Capital analyst Trevor Reynolds said the results beat his estimates and consensus.
“Notably, management highlights growing evidence that the long-awaited freight recession is nearing an end as the Canadian economy begins to gain some traction,” he wrote in a “first look” note. “Accordingly, MTL continues to position themselves for increased demand with the announcement of a $50M increase to the 2026 capital program.”
Mr. Reynolds maintained a “buy” rating with an increased target price of $32, from $25.
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A&W Food Services of Canada Inc. (AW-T) reported a rise in same-store sales for its second quarter, driven by a new smash burger promotion.
Before markets opened on Thursday, the fast-food chain reported revenue rose 3 per cent to $70.8-million for the 12-week period ended June 14. The result was slightly ahead of expectations of $70-million, according to S&P Capital IQ.
“The increase was due to increases in revenue streams that are primarily driven by system sales, including advertising fund contributions, service fees and revenue generated from the distribution of food and supplies,” the company stated.
Same-store sales rose 2.1 per cent year over year, which the company said was driven by its smash-style burger promotion that ran for three of the 12 weeks in the quarter and led to increases in both guest counts and average cheque.
Adjusted EBITDA decreased by 4 per cent to $24.4-million.
Net income of 11.7-million or 46 cents per share was down from $12.5-million or 50 cents a year ago, due to an increase in general and administrative expenses.
The company maintained its guidance for fiscal 2026, including adjusted EBITDA to be between $103-million and $105-million and same-store sales growth of 0.5 per cent to 3 per cent.
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Goodfood Market Corp. (FOOD-T) announced a review of strategic alternatives “to stabilize its financial position and debt levels.”
Before markets opened on Thursday, the Montreal-based mealkit company said the review will focus on a solution to put the company in a position to ensure its long-term stability.
It added that there’s no certainty that alternatives can be successfully implemented. “In such circumstances, the company’s investors could see the value of their investment decrease significantly,” the company stated.
The announcement follows the company’s earnings release earlier this week, in which it its negative capital working position and reiterated that additional financing or re-financing or alternatives would be need for the company to repay debt or risk having the curtail operations.
Goodfood reported sales of $21.5-million for the quarter ended June 6, a 30-per-cent decrease from $30.7-million compared to the same quarter last year.
“The decrease in net sales is explained by the decrease in active customers driving lower orders, partially offset by an increase in average order value as a result of price increases and lower incentive offerings,” the company stated. “The decrease in active customers can be explained mainly by lower marketing and incentive offerings and the impact of the temporary CFIA [Canadian Food Inspection Agency] suspension in the second quarter of Fiscal 2026.”
Its net loss was $50,000, down from net income of $54,000 in the same quarter last year.
Adjusted EBITDA came in at $3.8-million versus $2.6-million a year earlier.
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Novagold Inc. (NG-T) rose on Wednesday after the company announced it would acquire the shares it does not already own in Donlin Gold from Paulson Advisors in an all-stock deal that would create a gold producer worth US$4.2-billion.
U.S.-listed shares of NovaGold Resources rose 2.9 per cent in premarket trading, supported by higher gold prices.
The deal aims to end split control of Donlin Gold and create a single, fully owned U.S.-listed entity. When the deal is complete, a new company – NovaGold Corp. – will be formed, with NovaGold shareholders owning nearly 65 per cent and Paulson receiving about 35 per cent in exchange for its Donlin Gold interest.
Inclusive of its existing equity ownership in NovaGold, New York-based Paulson would own approximately 40 per cent in the new entity, the company said.
Canaccord Genuity analyst Carey MacRury reiterated his “speculative buy” rating on the company and increased his target price to $16 from $15 following the announcement.
“Although the transaction doesn’t change the fundamental attributes of the project itself, one of the world’s largest gold projects, it streamlines the company’s structure ahead of project financing discussions, should add scale and trading liquidity, and simplifies any future strategic transactions regarding the company,” he wrote.
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Ensign Energy Services Inc. (ESI-T) announced late Tuesday a deal to buy Citadel Drilling Ltd. for US$65-million. Ensign said it will be funding the purchase with cash on hand and available credit facilities.
“The acquisition of Citadel’s business in the US Permian area provides Ensign with an expanded fleet of 6 high-spec AC drilling rigs supported by a top-notch, experienced management team, highly trained technical crews, and a complement of managed pressure drilling packages with engineering support (operated as Opla Energy Services),” stated Ensign president Robert Geddes. “The transaction broadens our client base, increases our Permian capacity by 20% and increases our market share in this highly active region, while delivering meaningful cost synergies.”
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Auxly Cannabis Group Inc. (XLY-T) announced a 14:1 share consolidation approved by shareholders at its recent annual general meeting. It said the consolidation is expected to happen on July 28.
“This is an important step forward for Auxly,” said CEO Hugo Alves. “Coming off a record year in 2025, our financial results continue to strengthen, our balance sheet is the strongest it has been in years, and we have a disciplined framework for deploying capital where it can generate the highest returns for our shareholders.”
He also said the move is “not a precursor to a financing or any other dilution – as we have previously said and our actions under our standing NCIB program have shown, we are buyers of our shares, not issuers."
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Sleep Country Canada Holdings Inc. (ZZZ-T) announced this week that it’s expanding into the U.S. market with the acquisition of Sleep Number following a court-supervised sale process.
Documents filed in U.S. Bankruptcy Court say Sleep Country agreed to pay about US$702-million for the assets.
Minneapolis-based Sleep Number announced in June that it entered into an agreement to combine with Sleep Country and initiated a voluntary bankruptcy sale process.
Following the acquisition, Sleep Country says it will have more than 800 store locations and will become the second largest sleep retailer in the world. As of June, Sleep Number had over 570 stores across the U.S.
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Altius Minerals Corp. (ALS-T) shares rose this week after the company said it expects to report record attributable royalty revenue of approximately $30-million for the second quarter, up from $12.7-million last year. The result is ahead of expectations of $25.2-million.
The mineral and renewable royalties company said it expects to report detailed results for the quarter on Aug. 10.
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Kraken Robotics Inc. (PNG-X) announced on Monday that it had $35-million in new product orders from customers in the maritime defence, offshore energy, and ocean science sectors.
“By technology solution, these orders are across navigation and positioning systems, multi-aperture sonar, positioning, and monitoring systems from Covelya, as well as Synthetic Aperture Sonar (SAS) from Kraken,” the marine technology company stated.
“Our product portfolio forms the backbone of a wide range of platforms used across both defence and commercial applications and we expect it to represent over 75% of consolidated revenue in 2026,” said CEO Greg Reid.
Upcoming small-cap earnings:
July 27: Gibson Energy Inc. (GEI-T)
July 28: Precision Drilling Corp. (PD-T), Allied Properties REIT (AP-UN-T), SNDL Inc. (SNDL-CN)
July 29: Secure Waste Infrastructure Corp. (SES-T), Primaris REIT (PMN-UN-T). Timbercreek Financial Corp. (TF-T), Exco Technologies Limited (XTC-T), Ag Growth International Inc. (AFN-T), Aris Mining Corp. (ARIS-T), Algoma Steel Group Inc. (ASTL-T), DIRTT Environmental Solutions Ltd. (DRT-T)
July 30: Canfor Corp. (CFP-T), Real Matters Inc. (REAL-T), Champion Iron Ltd. (CIA-T), Lightspeed Commerce Inc. (LSPD-T), Coveo Solutions Inc. (CVO-T), Canada Goose Holdings Inc. (GOOS-T), Hammond Power Solutions Inc. (HPS-A-T), Richards Group Inc. (RIC-T)
July 31: Ballard Power Systems (BLDP-T), Parex Resources Inc. (PXT-T)
Aug. 4: Green Thumb Industries Inc. (GTII-CN), Dream Industrial REIT (DIR-UN-T), K-Bro Linen Inc. (KBL-T)
Aug. 5: Chorus Aviation Inc. (CHR-T), Flagship Communities REIT (MHC-UN-T), Kinaxis Inc. (KXS-T), Doman Building Materials Group Ltd. (DBM-T), Propel Holdings Inc. (PRL-T), Xanadu Quantum Technologies Ltd. (XNDU-T), Thinkific Labs Inc. (THNC-T), AirBoss of America Corp. (BOS-T), Kits Eyecare Ltd. (KITS-T), Galaxy Digital Holdings Ltd. (GLXY-T), Pizza Pizza Royalty Corp. (PZA-T), Aurora Cannabis Inc. (ACB-T)
Aug. 6: NFI Group Inc. (NFI-T), Enerflex Ltd. (EFX-T), Interfor Corp. (IFP-T), Cascades Inc. (CAS-T), Plaza Retail REIT (PLZ-UN-T), Rogers Sugar Inc. (RSI-T), Cronos Group Inc. (CRON-T), Profound Medical Corp. (PRN-T), TerrAscend Corp. (TSND-T), Premium Brands Holdings Corp. (PBH-T), Altus Group Ltd. (AIF-T), Goeasy Ltd. (GSY-T), Alaris Equity Partners Income Trust (AD-UN-T), Medical Facilities Corp. (DR-T)
Aug. 7: Superior Plus Corp. (SPB-T), Docebo Inc. (DCBO-T), Trulieve Cannabis Corp. (TRUL-CN), Slate Grocery REIT (SGR-UN-T), DRI Healthcare Trust (DHT-UN-T), Fiera Capital Corp. (FSZ-T)
Aug. 10: Cargojet Inc. (CJT-T), Silvercorp Inc. (SVM-T), Altius Minerals Corp. (ALS-T)
Aug. 11: Neo Performance Materials Inc. (NEO-T), Pason Systems Inc. (PSI-T), Minto Apartment REIT (MI-UN-T), BTB REIT (BTB-UN-T), Cineplex Inc. (CGX-T), Pet Valu Holdings Ltd. (PET-T), Hemlo Mining Corp. (HMMC-T)
Aug. 12: Maple Leaf Foods Inc. (MFI-T), Western Forest Products Inc. (WEF-T), BSR REIT (HOM-U-T), AutoCanada Inc. (ACQ-T), North American Construction Group Ltd. (NOA-T)
Aug. 13: Total Energy Services Inc. (TOT-T), Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T), Automotive Properties REIT (APR-UN-T), True North Commercial REIT (TNT-UN-T), RFA Financial Inc. (RFA-T)
Aug. 26: Corby Spirit and Wine Ltd. (CSW-A-T)
- with files from Reuters and The Canadian Press