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 80 per cent over the past 52 weeks. It hit a record 1,472.51 on Monday. The Russell 2000 in the U.S. is up about 24 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
MDA Space Ltd. (MDA-T) shares rose in Wednesday trading after the company reported better-than-expected fourth-quarter results and an improved outlook for 2026.
Before markets opened on Wednesday, the company reported record quarterly revenue of $499.1-million, up 44 per cent year-over-year, largely driven by strong contributions from its satellite systems business. The results beat expectations of $471.5-million, according to S&P Capital IQ. Adjusted EBITDA was a record $96.2-million, up from $70.9-million a year earlier and ahead of expectations of $87-million.
Adjusted net income of $58.5-million or 45 cents per share compared to $35.1-million or 28 cents a year earlier. The result was ahead of expectations of 40 cents per share.
In its outlook for fiscal 2026, the company said it expects revenues of $1.7-billion to $1.9-billion, representing year-over-year growth of approximately 10 per cent at the mid-point of guidance.
Adjusted EBITDA is expected to be in the $320-million to $370-million range, representing year-over-year growth of approximately 7% at the mid-point of guidance
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Canada Packers Inc. (CPKR-T) shares were higher in Wednesday trading after the company largely beat expectations for its fourth quarter.
Before markets opened on Wednesday, the company spun off from Maple Leaf Foods Inc. last year, reported earnings of $23.2-million or 78 cents per share, down from $50.6-million or $1.70 per share a year earlier. Adjusted earnings came in at 63 cents, beating expectations of 58 cents and down from 79 cents a year earlier.
Adjusted EBITDA of $46.3-million was up from $45.1-million a year earlier and ahead of expectations of $43.2-million.
Sales of $429.4-million for the quarter ended Dec. 28 were up slightly from $424-million in the same quarter a year earlier. The result was slightly below the $430.5-million expectation.
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VersaBank (VBNK-T) shares fell in volatile Wednesday trading after the company reported mixed results for its first quarter ended Jan. 31.
After markets closed on Tuesday, the London, Ont.-based business-to-business digital banking company reported revenue of $36.5-million for the quarter, up from $27.8-million a year earlier. The result was below expectations of $37.1-million, according to S&P Capital IQ.
The company said the revenue increase was driven by its structured receivable program in the U.S., combined with “steady growth” in Canada and a strengthened net interest margin.
Adjusted net income was $12.2-million or 38 cents per share, which was ahead of expectations of 35 cents and compared to $8.1-million or 28 cents a year ago.
“Our investment over the past several years in establishing and ramping up our U.S. business is yielding results in terms of improved operating leverage, with net income up 36% and adjusted net income up 49%, year-over-year. Notably, adjusted net income grew 15% sequentially,” founder and president David Taylor stated in a release.
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DRI Healthcare Trust (DHT-UN-T) units were higher in Wednesday trading after it reported fourth-quarter results that beat expectations, alongside an increase to its quarterly distribution.
After markets closed on Tuesday, the company reported income of US$61.7-million, up slightly from US$61.5-million a year earlier. The result easily surpassed expectations of US$50.1-million, according to S&P Capital IQ.
Net earnings of US$8.8-million or 16 cents US per share compared to US$7-million or 12 cents US a year earlier.
Adjusted EPS of 77 cents US beat expectations of 52 cents US and was up from 76 cents US a year earlier.
Adjusted EBITDA was US$46.2-million up from $44.6-million the year before and ahead of expectations of US$44.4-million.
The company also increased its quarterly distribution to 11 cents per unit from 10 cents payable on April 20 to unitholders of record as of March 31.
Stifel analyst Justin Keywood said income was above his firm’s estimate of US$42.7-million and adjusted EBITDA beat his estimate of $44-million.
“The business model has substantially improved LTM, including manager internalization and ridding of a fee structure, leading to operating leverage, evident in Q4, along with a strengthened capital structure,” he wrote. “DRI’s portfolio is in strong shape, [as] indicated in the outlook.”
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Kraken Robotics Inc. (PNG-X) shares were down in Wednesday trading after the company announced a deal to acquire Covelya Group Ltd., an international provider of “mission-critical” underwater technology solutions, for $615 million in cash and shares.
Covelya operates through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc. and Chelsea Technologies Ltd.
St. John’s-based Kraken said the deal, announced after markets closed on Tuesday, will position it as a major supplier of dual-use subsea technology.
“We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team,” stated Kraken CEO Greg Reid in a release. “Strategically, this acquisition will provide a unique opportunity to combine two leading subsea technology providers with complementary products, operating in markets with barriers to entry and high growth potential.”
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Lucara Diamond Corp. (LUC-T) shares were down in early Wednesday, before turning higher midday, after the company results for its fourth quarter ended Dec. 31.
After markets closed on Tuesday, the Vancouver-based company behind the Karowe Diamond Mine in Botswana, reported revenue of US$34.5-million, down from US$78.8-million a year earlier.
Net income of US$6.4-million or a penny US per share was down from US$38.5-million or 8 cents US per share a year earlier.
The company also said it struck a waiver agreement with its lenders to extend certain covenants to July 15.
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Pet Valu Holdings Ltd. (PET-T) shares were down in early Wednesday trading after falling 11 per cent on Tuesday, following the company’s fourth-quarter results that missed expectations.
Before markets opened on Tuesday, the company reported revenue of $326.4-million, up 10.6 per cent versus the same period a year earlier but below expectations of $329.7-million.
Adjusted EBITDA of $74.6 million was up 9.4 per cent versus a year earlier but missed expectations of $76.1-million, according to S&P Capital IQ.
Adjusted net income was $34-million or 49 cents per share compared to $32.2-million or 45 cents a year earlier. The expectation was for EPS of 51 cents.
National Bank Financial analyst Vishal Shreedhar downgraded the stock to “sector perform” from “outperform” and lowered his price target to $28 from $37 after the earnings.
He said the results were “light across key metrics” and 2026 guidance was softer than expected.
“While the pet industry has historically been characterized by stable growth, we believe the current pressured backdrop (tepid consumer and heightened industry competition, etc.) is unfavourable for premium-priced retailers (motivates trade down),” he wrote in a note. “We view our rating change to be tactical and remain constructive on the industry long term; however, we believe the stock could be range-bound in the near term.”
Stifel analyst Martin Landry, who has a “buy” and $32 price target, said the stock dropped as investors repriced lower growth than expected.
“Promotional intensity increased during Q4/25, which weighed on same-store sales and gross margins,” he wrote. “This dynamic is expected to continue in Q1/26 and led management to introduce a 2026 guidance below expectations. Management claims that Pet Valu is gaining share in the specialty channel, but these gains don’t translate into strong revenue growth as the category is experiencing price deflation in our view.”
Added Mr. Landry: “We believe that the specialty channel may be losing share to Costco, Dollarama and to other online retailers. This makes for a tricky outlook where Pet Valu’s 2026 revenue growth is expected to range between 2-4% Y/Y [year over year], below historical averages and below investors’ growth expectations.”
CIBC analyst Mark Petrie lowered his target price to $28 from $36 and downgraded the stock from “outperformer” (buy) to “neutral” (hold).
“Although shares reacted sharply and likely leave limited downside, we also see a limited number of catalysts to prompt a re-rate until same-store sales (SSS) growth can inflect positively,” he wrote in a note. “This likely necessitates a better selling environment and we see continued challenges.”
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Roots Corp. (ROOT-T) shares rose 10 per cent in Wednesday trading, after closing up 13 per cent on Tuesday, after the Toronto-based retailer announced a strategic review that could lead to a sale of the company.
Read the full Globe story here
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Propel Holdings Inc. (PRL-T) missed expectations for its fourth quarter ended Dec. 31 and reported higher provisions for loan losses versus the same quarter a year earlier..
After markets closed on Monday, the Toronto-based financial technology company reported revenue of US$155.8-million, up from US$129.3-million in the prior-year quarter. The result was below expectations of US$161-million, according to S&P Capital IQ.
Adjusted net income decreased by 53 per cent year over year to US$8-million. Adjusted EPS of 19 cents US missed expectations of 39 cents US, according to S&P Capital IQ.
Its provision for loan losses increased to US$88-million in the quarter from US$65.6-million a year earlier.
“The credit performance softness that emerged in the third quarter extended into Q4, resulting in a provision for loan losses of 56% of revenue, was driven by macroeconomic dynamics, including the U.S. federal government shutdown,” the company stated. “In response, underwriting remained disciplined through most of Q4 with origination growth moderated and a greater emphasis placed on higher credit-quality and returning customers.”
Canaccord Genuity analyst Matthew Lee wrote in a note that the quarter “highlights the cyclicality of the business” and called the stock’s sell-off this week an “overreaction.”
He maintained his “buy” recommendation but lowered his price target to $27 from $37 “on the back of lower estimates and a reduction of our target P/E multiple from 8.0x to 7.0x, following an industry-wide compression of valuations.”
Stifel analyst Suthan Sukumar lowered his target to $32 from $38 “on lower bottom-line estimates,” and maintained his “buy” recommendation.
“Timing appears to be the wildcard for the surprise FQ4 revenue/earnings miss, but with credit performance rebounding as PRL takes advantage of a larger, higher-quality demand pipeline from upmarket lenders tightening, we see a more consistent growth trajectory ahead, as per the better-than-expected FY revenue guide,” he wrote.
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Wajax Corp. (WJX-T) reported fourth-quarter results that beat expectations.
After markets closed on Monday, the Toronto-based company reported revenue of $560-million, down slightly from $565.9-million a year earlier but ahead of expectations of $553.1-million, according to S&P Capital IQ.
Adjusted net earnings of $15.4-million or 71 cents per share compared with $7.5-million or 35 cents a year earlier.
Adjusted EBITDA came in at $44-million versus $35.1-million a year earlier and ahead of consensus of $42.2-million.
National Bank Financial analyst Maxim Sytchev upgraded the shares to “outperform” (buy) from “sector perform” (hold) and hiked his target price to $37 from $27 after the report.
In a note titled “Perhaps there is hope,” the analyst said the company “doesn’t neatly fit into a ‘copper play’ or ‘AI beta’ box but with a low-teens FCF [free cash flow] yield and a P/E [price-earnings ratio] below 10x [times] perhaps the latter is sufficient to continue pushing the shares upwards.
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Dye & Durham Ltd. (DND-T) announced this week that it has signed a contract with the Government of Ontario to provide electronic Ontario Business Registry (OBR) services as a licensed service provider.
“The agreement ensures Dye & Durham customers have uninterrupted access to OBR due diligence, search, and filing services,” the company stated in a release.
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Hudbay Minerals Inc. (HBM-T) announced this week it’s buying Arizona Sonoran Copper Company Inc. (ASCU-T), a copper exploration and development company behind the Cactus project in Arizona.
The deal sees Hudbay pay 0.242 of a common share of Hudbay per common share of ASCU, which represents approximately $9.35 per ASCU common share and a US$1.48-billion equity value based on Hudbay’s closing share price on the TSX on Feb. 27.
“The transaction brings together two highly complementary copper growth assets in Arizona and strengthens Hudbay’s position as a premier Americas-focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one jurisdictions," the companies stated in a release.
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One of Western Canada’s largest real estate fund managers is planning initial public offerings for its $9.8-billion apartment building and self-storage portfolios, a pair of market debuts that could help kick-start a moribund domestic IPO market.
On Monday, Calgary-based Avenue Living Asset Management Ltd. launched strategic reviews of its privately-owned 23,000-apartment-unit portfolio, the Avenue Living Real Estate Core Trust, and the Mini Mall Storage Properties Trust, which owns 270 facilities.
The two Avenue Living offerings could create public companies together worth more than $3-billion, based on the value of comparable publicly listed real estate investment trusts (REITs).
Read the full Globe story here
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Upcoming small-cap earnings:
March 4: Minto Apartment REIT (MI-UN-T), Spin Master Corp. (TOY-T), Canada Packers Inc. (CPKR-T), MDA Space Ltd. (MDA-T), Tecsys Inc. (TCS-T), AirBoss of America Corp. (BOS-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 9: Alaris Equity Partners Income Trust (AD-UN-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), Dorel Industries Inc. (DII-B-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), Information Services Corp. (ISC-T)
March 23: GO Residential REIT (GO-U-T)
March 25: Goeasy Ltd. (GSY-T)
March 31: Grown Rogue International Inc. (GRIN-CN)