|
|
||||
|
|
||||
|
|
||||
|
|
With Family Day Monday, I’ll be back in your inbox Wednesday. Enjoy the long weekend!
WHAT'S ON TAP
Trump to ease steel & aluminum tax
Building permits beat estimates
Bombardier closes $1.2B jet order
SAP sells Argentina stake for $540M
Engineering names wipe out >$5B
HOT OFF THE PRESS
Trump to ease steel & aluminum tariffs
Late last night the Financial Times reported that Trump plans to relax his 50% tariff on steel and aluminum, a move that could boost Canadian export activity…
… and U.S. trade more broadly if it materializes. While unconfirmed, I wanted to flag this as impacted names could be volatile - let’s see how it develops.
Building permits heat up
December’s building permits rose 7% to $13B, beating expectations for a 5% gain…
… driven by residential construction intentions, which hit $8B thanks to multi-family strength in Ontario (tracking to housing starts) that more than offset weakness in single family activity.
Non-residential permitting helped out too, with a $400M gain in institutional intentions (mostly Ontario) carrying small drawdowns in commercial and industrial.
Bombardier closes a $1.2B jet order
Bombardier (BBD) announced a $1.2B, 40 aircraft order with purchase options that could take that to $4.7B. The deal builds on a $2B order last year and will add anywhere from 7-27% to its $17B backlog…
… which underpins the company’s 2026 guide for continued growth in deliveries.
Execution on that backlog should be the primary driver of performance from here, assuming there’s not a whole lot more room for multiple expansion.
ON OUR RADAR
GAINERS & LOSERS
|
|
||||
|
|
||||
|
|
Saputo (SAP) was up 4% yesterday after selling 80% of its Argentina business for $540M. At ~7% of revenue, the divestiture isn’t overly material…
… but it should reduce margin volatility and free up some capital for reinvestment in the company’s core geographic footprint.
With leverage being a non-issue, buybacks are likely another use of proceeds…
… which could support continued multiple expansion towards Saputo’s long-term average valuation.
Anything touching engineering services got smoked yesterday on heavy volumes, wiping out >$5B in aggregate market cap…
… with no fundamental catalyst. Given recent market volatility, it’s possible the move is more mechanical in nature - as funds reduce exposure to crowded positions.
INSIDER TRANSACTIONS
| Insider | Company | Value |
|---|---|---|
| Lisa Olsen | ARC Resources (ARX) | $179K |
| Margaret McKenzie | PrairieSky (PSK) | $251K |
| Ryan McLeod | ATS Corp. (ATS) | $166K |
| David Rae | DPM Metals (DPM) | $970K |
More insider buying at ARC Resources (ARX)… that’s now ~$2M of buying in the four days following the sell-off.
EARNINGS
YESTERDAY’S EARNINGS
| Company | Actual | Consensus |
|---|---|---|
| 🇨🇦 IGM Financial (IGM) | 1.27 | 1.20 |
| 🇨🇦 CAE Inc. (CAE) | 0.34 | 0.30 |
| 🇨🇦 Trisura (TSU) | 0.75 | 0.72 |
| 🇨🇦 Definity (DFY) | 0.99 | 0.94 |
| 🇨🇦 Agnico (AEM) | 2.70 | 2.65 |
| 🇨🇦 Bombardier (BBD) | 4.80 | 3.40 |
| 🇨🇦 Fortis (FTS) | 0.90 | 0.85 |
| 🇨🇦 Calian (CGY) | 1.03 | 0.91 |
| 🇨🇦 Russel Metals (RUS) | 0.55 | 0.53 |
| 🇨🇦 Mullen (MTL) | 0.15 | 0.21 |
| 🇨🇦 Brookfield (BN) | 0.67 | - |
| 🇨🇦 Keyera (KEY) | 0.55 | 0.42 |
| 🇨🇦 Telus (T) | 0.20 | 0.25 |
| 🇨🇦 Air Canada (AC) | 0.65 | 0.30 |
TODAY’S EARNINGS
| Company | Time | Consensus |
|---|---|---|
| 🇨🇦 Hydro One (H) | AM | 0.37 |
| 🇨🇦 Magna (MG) | AM | 1.80 |
| 🇨🇦 TC Energy (TRP) | AM | 0.91 |
| 🇨🇦 Enbridge (ENB) | AM | 0.78 |
| 🇨🇦 Colliers (CIGI) | AM | 2.45 |
ECONOMIC DATA
YESTERDAY’S ECONOMIC RELEASES
| Release | Actual | Consensus |
|---|---|---|
| 🇺🇸 Jobless Claims | 227K | 222K |
| 🇺🇸 Existing Home Sales | 3.9M | 4.2M |
TODAY’S ECONOMIC RELEASES
| Release | Time | Consensus |
|---|---|---|
| 🇺🇸 Inflation Y/Y | 8:30AM | 2.5% |
Was this forwarded to you? Join 7,000+ investors reading The Morning Meeting by clicking the button below.
