Small caps to watch: Earnings from Algoma Steel, West Fraser, Acadian Timber, Canada Packers and more

A look at some small-cap stocks making news - or about to. This file will be updated throughout Thursday.

Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 26 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 12 per cent over the past 52 weeks and reached a high of 3,069.71 on Aug. 14.

Small-cap summary:

Algoma Steel Group Inc. (ASTL-T) reported third-quarter results.

After markets closed on Wednesday, the company reported revenue of $249.4-million, down from $523.9-million in the prior-year quarter. The expectation was for revenue to come in at $229.5-million, according to S&P Capital IQ estimates.

Its net loss of $129.6-million or $1.18 per share compared to a net loss of $485.1-million or $4.46 in the prior-year quarter. The expectation was for a loss of 73 cents in the latest quarter.

“The decrease primarily reflects the lower loss from operations, partially offset by a $144.0 million decrease in income tax recovery and a foreign exchange loss of $10.0 million, compared to a foreign exchange gain of $14.3 million in the prior-year quarter,” the company stated.

“Comparisons between Q3 2026 and Q3 2025 were significantly impacted by the transition from legacy blast furnace operations to the company’s Electric Arc Furnace (EAF) platform,” the company stated. “In the prior-year quarter, the company produced steel predominantly from its legacy blast furnace operations, which were permanently halted on January 18, 2026. In the third quarter of 2026, all liquid steel production was sourced from the Company’s first EAF unit, which continues to ramp up.”

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West Fraser Timber Co. Ltd. (WFG-T) reported lower third-quarter sales and announced the indefinite closure of two U.S. mills.

After markets closed on Wednesday, the Vancouver-based company reported sales of US$1.36-billion compared to US$1.31-billion in the third quarter of 2025. The result was below expectations of US$1.42-billion, according to S&P Capital IQ estimates.

The company also reported a loss of US$80-million US$1.03 per share compared to a loss of US$204-million or US$2.63 a year earlier. The expectation was for a loss of 76 cents US.

West Fraser also said it would indefinitely curtail its Huguley oriented strand board (OSB) mill in Lanett, Alabama and lumber mill in Leola, Arkansas.

The company said it expects to record an asset impairment loss between US$200-million and US$220-million in the fourth quarter in connection with the indefinite curtailments.

“Over the last quarter, housing affordability continued to be a key constraint for wood products demand, which remains soft,” said CEO Sean McLaren. “We were also impacted by higher energy-related input costs. Our teams responded by running mills to demand, reducing inventory and controlling costs.”

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Acadian Timber Corp. (ADN-T) reported higher third-quarter profit and sales.

After markets closed on Wednesday, the New Brunswick-based company reported sales of $24-million, up from $23-million a year earlier. The result was below expectations of $26.9-million, according to S&P Capital IQ estimates.

“Timber sales were relatively flat, as a 17% increase in the weighted average selling price offset 14% lower sales volumes, both excluding biomass,” the company stated. “Pricing benefited from stronger end-use markets and higher fuel surcharges. While volumes increased in Maine due to operational improvements, volumes decreased in New Brunswick due to weaker softwood pulpwood demand. Timber services revenue increased $0.8 million compared to Q3 2025, reflecting increased activity for neighbouring landowners in Maine.”

Net income of $4.4-million or 23 cents per share compared to $2.9-million or 16 cents per share during the same period last year. The expectation was for earnings of 11 cents.

“Higher operating income, higher non-cash fair value adjustments and higher gains on the sale of timberlands and other fixed assets were partially offset by higher income tax expense,” the company stated.

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Canada Packers Inc. (CPKR-T) reported a drop in third-quarter results compared to a year ago due to what management called a “sharp and unusual deterioration in market conditions.”

Before markets opened on Wednesday, the Mississauga, Ont.-based pork producer reported sales of $420.7-million, down from $481.8-million a year earlier. The result beat expectations of $419.6-million, according to S&P Capital IQ estimates.

Its net loss of $28.1-million or 94 cents per share in the quarter ended Sept. 26 compared with a profit of $25.6-million or 86 cents per share a year earlier.

“The third quarter was marked by a sharp and unusual deterioration in market conditions, resulting in significant margin compression across the industry,” said CEO Dennis Organ. “We believe current market conditions are temporary and, as the market normalizes, we expect our competitive advantages will position us to capture our earnings potential.”

TD analyst Derek Lessard described the results as “neutral” in a note.

“We expect some overly pessimistic headlines around the y/y [year over year] decline in sales and earnings,” he wrote. “However, pork markets are transparent, and we believe much of the Q3 weakness was already reflected in the share price, which has fallen about 25% since CPKR reported Q2 results.”

Related: Pork producer Canada Packers reports third-quarter loss as market turns

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Trican Well Service Ltd. (TCW-T) shares rose on Wednesday after the company reported third-quarter results that mostly beat expectations.

After markets closed on Tuesday, the company reported revenue of $338.3-million for the three months ended Sept. 30 compared to $300.6-million for the same period last year. The result missed expectations of $341.4-million, according to S&P Capital IQ.

Adjusted EBITDA of $87.7-million compared to $59.5-million last year and above expectations of $82.8-million.

Profit came in at $48-million or 23 cents per share, ahead of expectations of 21 cents and compared to profit of $28.9-million of 15 cents last year.

TD analyst Aaron MacNeil said the analyst call with management “reinforced our constructive view.”

In a note, he said management “sees the Canadian frac market becoming undersupplied ‘very soon’ as spreads migrate to the U.S., alongside about 5% annual growth in both activity and pricing. Flat 2027 capex guidance matches our recently raised estimate, with more 100% natural gas pump orders likely. Q4/26 outlook matches our published estimates.”

He said Trican remains his firm’s top pick.

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Precision Drilling Corp. (PD-T) reported mixed results for its third quarter ended Sept. 30 and received at least two analyst upgrades.

After markets closed on Tuesday, the company reported revenue of $532-million, up 15 per cent from $462-million a year earlier. The result was ahead of expectations of $529.7-million, according to S&P Capital IQ estimates.

The company said the revenue rise was “supported by stronger drilling activity in North America and higher average U.S. day rates, which more than offset lower international results.”

Adjusted EBITDA increased 6 per cent to $125-million.

Net earnings attributable to shareholders was $21-million or $1.65 per share, below expectations of $1.72 per share and compared with a net loss of $7-million or 51 cents for the same quarter in 2025.

“This increase was primarily due to higher deferred income tax expense in 2025 related to our U.S. operations, partially offset by $8 million of additional depreciation expense in 2026 resulting from our previously communicated change in useful life estimates,” the company stated.

BMO John Gibson raised his target to $170 from $165 and maintained his “outperform” (buy) rating after the report.

“PD reported slightly softer-than-expected Q3/26 results, although underlying operating momentum remains very strong across North America,” he wrote in a note. “The company continued to reactivate U.S. rigs in the quarter, with margin guidance pointing to a Q4 inflection in the lower-48. In our view, the set-up into 2027 remains very constructive (our estimates now signal a ~ [approximate] 20% Y/Y [year over year] increase).”

TD analyst Aaron MacNeil increased his target to $182 from $150 and maintained his “buy” recommendation after the earnings.

“As expected, Precision formalized its Q4/26 U.S. margin guide that management views as sustainable into 2027,” he wrote in a note. “With leverage approaching ~1.0x, we see FCF [free cash flow] shifting to buybacks. Our PT [price target] rises to $182 ($150 prior) on higher estimates and modest multiple expansion as earnings visibility improves. We believe that the 2027 shareholder return framework is the next catalyst.”

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Tamarack Valley Energy Ltd. (TVE-T), which recently announced a merger with Headwater Exploration Inc. (HWX-T), reported higher third-quarter revenue and profit.

Before markets opened on Wednesday, the company reported oil and natural gas sales of $468-million for the quarter ended Sept. 30, up from $394-million last year.

Net income of $98-million or 21 cents per share compared to a loss of $248-million or 50 cents last year.

Tamarack announced in September that it will merge with Headwater in a $10-billion all-stock deal that they say will create an oil-producing heavyweight in the Clearwater region of northern Alberta.

Related: Tamarack Valley, Headwater agree to merge in $10-billion deal

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Transcontinental Inc. (TCL-A-T) announced that its chief financial officer, Donald LeCavalier, will leave the company on Dec. 31, after two decades.

Manon Sigouin, currently vice-president, financial operations and corporate controller, will become the new CEO. He has 28 years of finance experience at the company.

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Perpetua Resources Corp. (PPTA-T) stock jumped earlier this week after the company announced a new 36-month, $40 million award from the U.S. Army.

After markets closed on Monday, the company said the award will fund a program to evaluate the technical and economic feasibility of producing tungsten concentrate at the historical Stibnite Mining District in Idaho.

It said the award is structured as a cost-share program between the company and the U.S. Government, and that funding will support drilling to define a potential tungsten mineral resource; collecting material for laboratory and bench-scale metallurgical testing; and permitting and engineering an exploration decline to access areas of known tungsten mineralization.

The company said there has been no commercial tungsten mining in the United States since 2015.

“The funding announcement is positive for advancing tungsten exploration faster and without diluting shareholders and further evidences U.S. Government support for the Stibnite project,” stated National Bank analyst Rabi Nizami in a note. “This new award brings total U.S. Government awards to Perpetua for critical minerals to $126 mln since 2022.”

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High Liner Foods Inc. (HLF-T) shares skyrocketed to record highs on Monday after Japanese seafood giant Umios Corp. (MRUHF) offered more than $800-million in cash to buy the Nova Scotia company.

Thornridge Holdings Ltd., the private investment company for Nova Scotia’s prominent Hennigar family, which is High Liner’s largest shareholder with a 41.4-per-cent ownership stake, has agreed to support the deal. The sale requires support from at least 75 per cent of votes at a shareholder meeting set for December to proceed.

Umios is offering $27 per share for the Canadian seafood processor that is more than a century old. High Liner’s stock closed on Friday at roughly $15 per share on the Toronto Stock Exchange. Shares closed on Monday at $26.76, up 77 per cent, just below the Umios offer price.

The offer includes a commitment to maintain High Liner’s workforce of more than 1,200 people – 400 to 500 of whom are based in Canada – as well as the company’s Halifax headquarters. High Liner has three production facilities, one in Nova Scotia and two in the United States, in New Hampshire and Virginia. Roughly 75 per cent of High Liner’s revenue comes from its U.S. operations.

“For the people at High Liner, really not much is going to change,” Paul Jewer, High Liner’s chief executive officer, who will stay with the company after the transaction closes, said in an interview. “We are going to continue to focus on growing seafood consumption in North America.”

Read the full Globe story here

Canaccord analyst Luke Hannan lowered his rating to “hold” from “buy” and increased his target price to $27 from $19 after the announcement.

“In our view, the deal is likely to close as proposed,” he wrote in a note. “Given the substantial premium and a competitive process that already tested the market, a more attractive rival bid looks unlikely. With financing committed and ~45.4% of shares already committed to voting in favour, the path to the 75% approval threshold looks clear. Umios’ operating commitments should also ease regulatory review, and we therefore expect investors to view the transaction favourably.”

More analyst commentary on the deal can be found in Tuesday’s analyst upgrades and downgrades

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Ovintiv Inc. (OVV-T) announced on Monday that it’s buying Logan Energy Corp. (LGN-X) in a $1.26-billion deal.

Under the agreement, Ovintiv will pay $1.40 per share in cash for Logan Energy. Logan Energy shareholders will also receive 0.0817 of a share in a new company, Logan Oil, plus 0.05 of a Logan Oil purchase warrant for each Logan Energy share they hold. Each whole warrant will entitle the holder to buy one Logan Oil share at an exercise price of $1 per share, within 60 days following the closing date.

Denver-based Ovintiv said the acquisition is expected to add about 20,000 barrels of oil equivalent per day of production in the Montney region, which spans parts of northern British Columbia and Alberta. The acquisition also includes two new oil batteries and interests in two natural gas processing facilities.

Ovintiv, formerly Encana, moved its headquarters from Calgary to the United States in 2020. It significantly increased its Canadian presence earlier this year after closing its $3.8-billion purchase of NuVista Energy Ltd., another Montney-focused player.

BMO analyst Jeremy McCrea increased his target to $1.70 from $1.45 after the news.

“Concurrent with the transaction, Logan Oil will emerge as a management-led Alberta oil company with exposure to thermal oil, Clearwater, and light oil opportunities,” he wrote in a note.

“Logan’s sale to Ovintiv crystallizes another successful outcome for management, but we believe the more interesting opportunity now shifts to Logan Oil. At $1.00/ share formation price, we see limited recognition for a management team with a demonstrated record of value creation or an asset base weighted to long-life oil. Nipisi provides near-term Clearwater cash flow with waterflood upside, while Sawn Lake provides scalable, long-duration thermal exposure. Combined, we believe these attributes justify a premium valuation above $1.48/share, supporting a value closer to $1.67/share and our increased target price of $1.70/share.”

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Upcoming small-cap earnings:

Oct. 29: Aecon Group Inc. (ARE-T), Enerflex Ltd. (EFX-T), Centerra Gold Inc. (CG-T), Spin Master Corp. (TOY-T), Coveo Solutions Inc. (CVO-T), Champion Iron Ltd. (CIA-T), Black Diamond Group Ltd. (BDI-T) Nov. 2: RioCan REIT (REI-UN-T), Gibson Energy Inc. (GEI-T), First Capital REIT (FCR-UN-T), Pizza Pizza Royalty Corp. (PZA-T)

Nov. 3: Curaleaf Holdings Inc.(CURA-T), Boardwalk REIT (BEI-UN-T), Alaris Equity Partners Income Trust (AD-UN-T), Propel Holdings Inc. (PRL-T), Thinkific Labs Inc. (THNC-T), TransAlta Corp.(TA-T)

Nov. 4: Maple Leaf Foods Inc. (MFI-T), Killam Apartment REIT (KMP-UN-T), Canfor Corp. (CFP-T), Russel Metals Inc. (RUS-T), SmartCentres REIT (SRU-UN-T), Stella Jones Inc. (SJ-T), Maple Leaf Foods Inc. (MFI-T), Canadian Apartment Properties REIT (CAR-UN-T), Stella Jones Inc. (SJ-T), AirBoss of America Corp. (BOS-T), Vermilion Energy Inc. (VET-T), Savaria Corp. (SIS-T), North American Construction Group Ltd. (NOA-T), DIRTT Environmental Solutions Ltd. (DRT-T),

Nov. 5: Western Forest Products Inc. (WEF-T), Chartwell Retirement Residences (CSH.UN-T), Cascades Inc. (CAS-T), Interfor Corp. (IFP-T), Profound Medical Corp. (PRN-T), Lightspeed Commerce Inc. (LSPD-T), Cronos Group Inc. (CRON-T), Altus Group Ltd. (AIF-T), Kinaxis Inc. (KXS-T), DRI Healthcare Trust (DHT-UN-T), MDA Space Ltd. (MDA-T), Canada Goose Holdings Inc. (GOOS-T), Plaza Retail REIT (PLZ-UN-T), TerrAscend Corp. (TSND-T), Tucows Inc. (TC-T), Keel Infrastructure Corp. (KEEL-T), Lassonde Industries Inc. (LAS-A-T), Kits Eyecare Ltd. (KITS-T), Premium Brands Holdings Corp. (PBH-T)

Nov. 6: NFI Group Inc. (NFI-T), Cineplex Inc. (CGX-T), Pollard Banknote Ltd. (PBL-T), Parex Resources Inc. (PXT-T), Doman Building Materials Group Ltd. (DBM-T), Canopy Growth Corp. (WEED-T), Aimia Inc. (AIM-T)

Nov. 9: Hemlo Mining Corp. (HMMC-T), Boston Pizza Royalties Income Fund (BPF-UN-T)

Nov. 10: Superior Plus Corp. (SPB-T), Stingray Group Inc. (RAY-A-T), True North Commercial REIT (TNT-UN-T), Pet Valu Holdings Ltd. (PET-T), Neo Performance Materials Inc. (NEO-T), NanoXplore Inc. (GRA-T),

Nov. 11: Cargojet Inc. (CJT-T), Bird Construction Inc. (BDT-T), BSR REIT (HOM-U-T), Fiera Capital Corp. (FSZ-T), Boyd Group Services Inc. (BYD-T), Corby Spirit and Wine Ltd. (CSW-A-T), Timbercreek Financial Corp. (TF-T), Pro REIT (PRV-UN-T), Sagicor Financial Company Ltd. (SFC-T)

Nov. 12: Sienna Senior Living Inc. (SIA-T), Apotex Health Corp. (APTX-T), Total Energy Services Inc. (TOT-T), Automotive Properties REIT (APR-UN-T), AutoCanada Inc. (ACQ-T), Grown Rogue International Inc. (GRIN-CN), K-Bro Linen Inc. (KBL-T), Ascend Wellness Holdings, Inc. (AAWH-U-CN), Auxly Cannabis Group Inc. (XLY-T)

Nov. 16: Ballard Power Systems (BLDP-T)

Nov. 19: Real Matters Inc. (REAL-T)

- with files from Dave Leeder and The Canadian Press