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First and foremost, our thoughts are with anyone impacted by the wildfires in northern Ontario. Some scary videos coming out of the area. A great reminder that first responders are a different breed and we’re incredibly lucky to have them.
WHAT'S ON TAP
HOT OFF THE PRESS
The companies linked to wildfire solutions
While the number of wildfires has trended lower over the past few decades, the severity of those fires has increased…
… a real problem with no easy fixes. Dexterra (DXT) and Black Diamond (BDI) are each up nearly 10% since smoke enveloped Bay Street, given they’re tied to the solution…
… with DXT’s fire support services segment doing revenue of $56M in 2023 alone, which was the worst wildfire season on record. Its reforestation business should also see increased demand…
… as could BDI’s workforce accommodation solutions, which house impacted communities and remote crews involved in wildfire remediation.
The pair has seen multiples double on investor optimism around natural resource projects, so the bid is incremental…
… but the fundamental setup will be structural if we can’t solve prevention.
Housing starts miss, construction falls
Housing starts missed estimates in June, falling to 239K on softer multi-unit activity…
… and down on a Y/Y basis, with continued weakness in Alberta and a large decline in BC dragging down modest gains in other western provinces.
Construction remains subdued, with multi-unit activity down ~25% since 2024 - but with absorption starting to stabilize…
… we could be nearing the conditions needed to make a dent in inventory balances, which have grown to record levels after years of oversupply.
Manufacturing sales post fourth straight gain
Manufacturing sales of $78B in May rose 1.3%, edging past preliminary estimates and notching the fourth straight gain…
… on a >4% rise in transportation equipment and chemical products. Those two categories dominated the print - pushing inventories up to $126B…
… driving the 7% increase in unfilled orders, and causing a 210 bps improvement in capacity utilization.
The strength in chemicals also flowed through to wholesale sales but was offset by lower volumes in food and household goods, resulting in a flat print.
ON OUR RADAR
GAINERS & LOSERS
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