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WHAT'S ON TAP
HOT OFF THE PRESS
Household net worth breaks $19T
Household net worth rose 3% in Q2, breaking $19T for the first time on the back of strong equity markets (up $388B Q/Q)…
… as well as a $130B increase in pension entitlements and life insurance reserves. Meanwhile, new household borrowing moderated for a fourth straight quarter…
… with mortgage debt growth of $19B posting its slowest pace since Q1/24. Income grew at over 2x the pace of debt…
… which drove improved credit ratios but might be tough to keep up, with slowing wage growth in recent months.
National net worth rises by $1.1T
National net worth rose by $1.1T in Q2, driven by financial assets and growth in the value of resource reserves…
… which pushed household net worth up $546B and corporate net worth up $339B.
Helped by a $5B decrease in buybacks, corporate demand for funding slowed…
… with bond issuance and long-term credit facility draws driving most of the $20B decrease and resulting in a 0.2% improvement in corporate debt to GDP.
ON OUR RADAR
GAINERS & LOSERS
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Boyd Group Services (BYD) jumped over 10% Friday after announcing a 10% buyback program, as management looks to take advantage of BYD’s near-peak discount…
… following their $1.3B JHCC acquisition, which has come with temporary integration challenges. While an NCIB doesn’t usually drive that type of bid, it would be the first time they’ve repurchased shares…
… so there’s more of a signal in that versus a program renewal. With leverage approaching management’s 2026 target…
… and EBITDA margins expanding towards their longer term 14% goal, Boyd has the capacity to make buybacks a part of their go-forward capital allocation framework.
Tecsys (TCS) ran 7% on the back of its Q1, which beat thanks to near-20% Y/Y SaaS growth (24% core SaaS growth)…
… prompting a bump to full-year guidance, taking the midpoint of revenue growth from 3.0% to 6.5% and the top end of adj. EBITDA margins up 100 bps to 14%. With a SaaS backlog of nearly ~$260M…
… there’s likely room above that in the future, which could drive a re-rate given its software is mission-critical for healthcare logistics (high stakes, less AI risk).
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