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 1,189.53 on Thursday and is up by about 40 per cent over the past 52 weeks. The Russell 2000 in the U.S. hit a record 2,576.31 on Wednesday and is up about 7 per cent over the past 52 weeks.
Small-cap summary
Premium Brands Holdings Corp. (PBH-T) shares fell in early Thursday trading after the food company announced it’s buying Stampede Culinary Partners Inc., a U.S.-based food company, for US$662.5-million in cash and shares.
In the release late Wednesday, CEO George Paleologou said the acquisition will support the growth of its cooked protein initiatives in the U.S., including in the foodservice channel, and enhance its production capabilities by adding sous-vide cooking capacity. Premium Brands said the deal will also give it access to “significant unused production capacity.”
The deal price includes US$512.5-million in cash and US$150-million in shares. The seller will be entitled to a one-time aggregate earn-out payment of up to US$100-million based on Stampede achieving certain profitability targets over the full two fiscal years following the acquisition, the company stated.
“From a financing perspective, we have taken a conservative approach and have used the acquisition and the related financing to accelerate the deleveraging of our balance sheet with our senior funded debt and total funded debt to adjusted EBITDA ratios decreasing by approximately 0.4 turns on a pro forma basis,” Mr. Paleologou stated.
**
Evertz Technologies Ltd. (ET-T) shares increased on Thursday after the company reported third-quarter results that beat expectations, a dividend increase and a special dividend.
After markets closed on Wednesday, the company, which makes software-defined video network technology, reported revenue of $132.7-million, up from $125.3-million a year earlier. The result was ahead of expectations of $125.6-million.
Net earnings were $18.6-million or 24 cents per share, ahead of expectations of 18 cents and up from $15.9-million or 21 cents last year.
The company increased its dividend to 20.5 cents from 20 cents and announced a special dividend of $1 per share payable to shareholders of record on Dec. 18 and payable on Dec. 24.
Canaccord Genuity analyst Robert Young said the results were driven by strong software and services, up 11 per cent year over year.
“Highlighting confidence on near-term prospects, including related to heightened defence spend, and competitiveness of the product portfolio,” he wrote.
“We view the quarter positively given the strong execution during lingering geopolitical pressures and tariff-related uncertainty.”
We kept this “buy” rating and increased his price target to $15.50 from $14.25. “We believe Evertz’s cloud and services momentum, along with strong backlog levels and historically strong execution, justifies a premium multiple,” he wrote.
**
Goodfood Market Corp. (FOOD-T) shares were up in early Thursday trading after the company announced that its co-founder, president and chief operating officer Neil Cuggy will step down from his executive roles effective Jan. 16, 2026. He will remain on the board until the next annual shareholder meeting in February, 2026, the company stated.
Effective immediately, Selim Bassoul, non-executive board chair, will become executive chair, and Donald Olds will serve as lead independent director.
“As executive chair, Mr. Bassoul will guide the company’s strategic direction and work with the board on building an efficient, agile leadership structure that supports Goodfood’s next stage of growth,” the company stated in a release before markets opened on Thursday.
**
D2L Inc. (DTOL-T) shares sank in early Thursday trading after the company reported lower revenue and profit for its third quarter ended Oct. 31, a period it described as “more challenging than anticipated.”
After markets closed on Wednesday, the company reported revenue of US$54.1-million for the fiscal 2026 third quarter, relatively unchanged from the same period last year. The result was below expectations of $55.9-million.
Adjusted EBITDA decreased to US$7.9-million, which was roughly in line with expectations and below US$10.4-million a year earlier.
Income for the period was US$4.4-million, versus $5.5-million for the same period in 2024.
“While Q3 proved more challenging than anticipated due to higher churn among U.S. K-12 clients, we remain on track to meet our full-year guidance for SaaS revenue and adjusted EBITDA,” said CEO John Baker in a release.
The company also trimmed its guidance for the fiscal year ended Jan. 31, 2026.
It said subscription and support revenue is expected to be in the range of US$198-million to $199-million compared to previously issued guidance of US$198 million to US$200 million, growth of more than 10 per cent over fiscal 2025.
Total revenue is expected to be in the range of US$217-million to US$218-million versus previously issued guidance of US$219 million to US$221-million, implying growth of 6 per cent versus fiscal 2025. The expectation is for revenue of US$220-million.
Adjusted EBITDA in the range of US$32-million to US$33-million compares to previously issued guidance of US$32-million to US$34-million. The expectation is for US$33-million.
“The anticipated revenue growth rates are informed by the current macroeconomic and geopolitical environment and its impact on our selling activities, inclusive of a general slowness in activity within the U.S. higher education market,” it stated.
“The updated subscription and support revenue guidance reflects higher-than-typical churn this fiscal year, particularly in our U.S. K-12 market. The updated total revenue guidance reflects both the reduction in subscription and support guidance driven by U.S. K-12 churn and a continued decline in the contribution of professional services revenue due to the more cautious spending environment, particularly for curriculum advisory services in the U.S. higher education market.”
**
Transcontinental Inc. (TCL-A-T) reported a drop in revenue and earnings for its fourth quarter ended Oct. 26
After markets closed on Wednesday, the company reported revenue of $732.4-million for the period, down from $749.3-million a year earlier. The result was below expectations of $743.3-million.
Net earnings of $42.9-million or 51 cents per share compared to $47.9-million or 57 cents during the same period a year earlier.
“This decrease is mainly due to lower volume in the Retail Services and Printing Sector and the impact of the sale of the industrial packaging operations, partially offset by the recent acquisition in our in-store marketing activities, higher volume in the Packaging Sector and the favourable exchange rate effect,” the company stated.
Also on Wednesday, the company announced a 10-year extension of its printing agreement with The Globe and Mail. “This renewal marks a major milestone in a partnership that spans 40 years - the longest-standing in the history of newspaper printing in Canada,” Transcontinental stated.
Earlier in the week, the company announced a deal to sell its flagship packaging business to Ohio-based ProAmpac Holdings Inc. for about $2.2-billion, including debt and lease obligations. The company said the sale of its packaging sector should close in the first quarter of calendar year 2026.
In its outlook, the company said it expects lower volumes in its traditional activities, including book printing, which it said “experienced a very high growth in fiscal year 2025.” The company said the drop should be partially offset by growth in its in-store marketing activities, “including the positive impact of the acquisitions.”
It also expects consolidated adjusted operating earnings before depreciation from continuing operations to be stable in fiscal 2026 compared to the year before. “Lastly, we expect to continue generating significant cash flows from operating activities, which will enable us to continue to reduce net indebtedness while investing in our growth and returning capital to our shareholders,” the company stated.
**
Major Drilling Group International Inc. (MDI-T) reported record revenue for its fiscal 2026 second quarter, driven by continued demand from senior mining customers.
After markets closed on Wednesday, the company reported revenue of $244.1-million for the quarter ended Oct. 31, a 29-per-cent increase when compared to the same period last year and ahead of expectations of $239.7-million.
Net earnings of $13.9-million or 17 cents per share were in line with expectations and down from $18.2-million or 22 cents a year ago.
**
Roots Corp. (ROOT-T) reported higher sales and adjusted EBITDA for its third quarter.
Before markets opened on Wednesday, Roots said sales for the quarter ended Nov. 1 came in at $71.5-million, up from $66.9-million a year ago. The result was ahead of expectations of $68.7-million.
Net income of $2.3-million or 6 cents per share, slightly below the expectation of 7 cents and compared to $2.4-million or 6 cents a year ago.
Adjusted EBITDA of $7.5-million was up from $7.1-million a year ago.
Related: Roots CEO says shoppers remain price-sensitive as retailer records lower profit, sales up 7%
**
The North West Company Inc. (NWC-T) reported mixed results for its third quarter ended Oct. 31.
After markets closed on Tuesday, the company reported sales of $634.3-million, down from $637.5-million for the same time last year. It said the slight decrease was due to a drop in its Canadian same-store sales, partially offset by the impact of foreign exchange on the translation of international sales and sales from new stores. The expectation was for sales of $638.8-million.
Same-store sales decreased 1.7 per cent in the quarter compared to a 4-per-cent sales gain in the third quarter last year.
Net earnings of $40.1-million or 82 cents per share beat expectations of 82 cents and compared to 72 cents per share last year. Adjusted net earnings increased 8.1 per cent to $43.3-million.
“FQ3 results included a modest top-line miss given ongoing government funding headwinds in Canada, offset by strong progress on efficiency initiatives, which we view positively,” CIBC analyst Ty Collins said in a note.
He added that the fourth quarter is expected to be challenging as well, “with more meaningful benefits from settlement money” expected to start in the first quarter of fiscal 2026.
“It is increasingly clear that settlement payments will be stretched over a longer period of time, and expectations are adjusting accordingly,” he wrote. “However, we continue to expect strong earnings growth for NWC supported by settlement payments, efficiency initiatives, and long-term market tailwinds, and believe shares offer good value at ~14x our normalized 2026E EPS.”
He maintained his “outperformer” rating and lowered his price target to $57 from $58.
*
A tentative agreement reached hours before a strike deadline averted a work stoppage by Air Transat’s TRZ-T pilots on Tuesday night.
The Montreal-based carrier and the Air Line Pilots Association, which represents its 750 pilots, have been in talks for close to a year, seeking to replace an agreement reached in 2015. Negotiations in Montreal were taking place almost around the clock.
Details of the deal, which must be approved by a majority of union members at a coming vote, were not immediately available. The union said the agreement is a “modern contract” that “recognizes the professional contributions of Air Transat pilots.”
Read the full Globe story here
**
Coveo Solutions Inc. (CVO-T) announced this week that its chief financial officer, Brandon Nussey, is stepping down “for a career opportunity outside the public markets.”
“While this news comes as a surprise, we believe Mr. Nussey’s strong financial and operating discipline for [about] 3 years as CFO has set the company with a strong foundation for durable, profitable growth,” stated Stifel analyst Suthan Sukumar in a note. “We see continuity with SVP, Finance, Karine Hamel’s appointment as interim CFO, who has been with Coveo for nearly 10 years.”
National Bank analyst Richard Tse wrote in a note that the departure “appears unrelated to Coveo but rather is what it is on the surface – a different opportunity for Brandon Nussey,“ adding that ”we would not read into anything around the departure."
He also referred to Ms. Hamel as “highly competent to fill the interim and potentially permanent role.”
**
Parex Resources Inc. (PXT-T) announced this week that it’s walking away from discussions with GeoPark Ltd. (GPRK-N) over a potential acquisition.
“Based on Parex’s review of information provided by GeoPark since November 14, 2025, as well as virtual and in-person discussions with GeoPark management, Parex has determined that there is no basis to increase its view on the value of GeoPark common shares relative to the proposal to acquire all GeoPark shares for US$9.00 per share in cash,” the company stated, noting it submitted the offer on Sept. 4.
“Following its engagement with Geopark over the past month, Parex concluded, given the gap in perceived value, that further discussions were unlikely to lead to any agreement with respect to a transaction between GeoPark and Parex as outlined in the September Proposal and has determined to halt discussions with GeoPark.”
In its own statement, GeoPark said its board and management team have “always been open to entering into transactions that maximize value for our shareholders” and entered into discussions with Parex “in good faith, aiming to negotiate a mutually agreeable transaction.
The company said it also provided Parex and its advisors access to “substantial and comprehensive, non-public technical and financial information relevant to our ongoing operations and future upside potential – all of which is clearly incremental to the facts upon which Parex’s original offer was founded."
It also said Parex’s $9 per share offer “ascribed no value to GeoPark’s transformative Vaca Muerta acquisition which was announced on September 25, 2025. The Board has communicated that any credible or constructive engagement going forward would require a revised proposal beginning in the double-digits.”
**
Shares of MDA Space (MDA-T) and Telesat Corp. (TSAT-T) rose this week after the companies announced a partnership agreement with the Government of Canada to develop and deliver satellite communications for the Canadian Armed Forces.
“MDA Space has a long history as a trusted mission partner to the Canadian Armed Forces, delivering the advanced technologies and mission outcomes they need to accomplish their critical mandate,” said MDA CEO Mike Greenley.
“For decades, Telesat has proudly supported the mission-critical connectivity needs of the Canadian Armed Forces. Along with MDA Space, we are honoured to be chosen as strategic partners in modernizing Canada’s defence capabilities and expanding secure, resilient communications infrastructure,” stated Telesat CEO Dan Goldberg.
Canaccord Genuity analyst Doug Taylor, who covers MDA SPace with a “buy” and $37 target, said the initial award appears small, similar to a recent MDA announcement related to RADARSAT+, “but likely precedes much more substantial contracts, as Government materials suggest a $5B+ budget for this project. ”
He said it has the potential to continue shifting MDA’s backlog further toward government and defence in the years to come, from its current commercial weighting.
“We believe that MDA’s diverse offering and decades of space heritage position the company strongly to win potential future programs as investment in space infrastructure continues its secular rise,” he wrote in a Dec. 9 note.
**
Interfor Corp. (IFP-T) announced leadership changes on Monday, including the appointment of Mike Mackay as executive vice-president and chief financial officer, effective immediately. He has been with the company since 2015 and replaced Rick Pozzebon, who will be leaving “to pursue other opportunities,” the company stated.
Andrew Horahan was appointed executive vice-president and chief operating officer, also effective Dec. 8.
**
Maple Leaf Foods Inc. (MFI-T) announced this week that it will pay a special cash dividend of 60 cents per share to shareholders in addition to its regular quarterly dividend.
Maple Leaf chief executive Curtis Frank says the move reflects the company’s strong financial position and confidence in its outlook.
The special dividend is payable on Dec. 19 to shareholders of record at the close of business on Dec. 15.
“While the balance sheet impact is not significant, we believe there are more efficient uses of capital to create shareholder value, including share repurchases,” National Bank Financial analyst Vishal Shreedhar wrote in a Dec. 8 note. “In our view, share repurchases can create more shareholder value, particularly when shares are repurchased at attractive levels.
He lowered his price target to $33 from $34 and kept his “outperform” (buy) rating.
Canaccord analyst Luke Hannan reiterated his “buy” rating and $36 target.
“Following the spin-out of its pork processing business, we believe Maple Leaf should exhibit a higher degree of top-line and margin resilience on a go-forward basis, which should garner a higher multiple from investors,” he wrote in a Dec. 8 note. “In our view, Maple Leaf offers long-term investors an attractive growth profile at a reasonable valuation, given the company’s robust brand portfolio and category dominance in prepared meats.”
Upcoming small-cap earnings:
Dec. 15: Enghouse Systems Ltd. (ENGH-T)
Dec. 16: Organigram Global Inc. (OGI-T), DavidsTea Inc. (DTEA-X)
Dec. 18: Reitmans (Canada) Ltd. (RET-X)
- with files from Globe staff and The Canadian Press