High Liner (HLF) rose 8% on the back of its Q2 results, which beat small on revenue thanks to continued growth in both price and volumes…

… and crushed on profit, with $8M of tariff refunds boosting results and another $28M coming in Q3. Even without these recoveries, management expects to deliver Y/Y EBITDA growth…

… but the windfall will support leverage reduction towards their sub-3x target by year end.

It also skews HLF’s valuation, with the subsequent $20M bump to consensus estimates for NTM EBITDA compressing the multiple by a full turn.

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…