Canada’s main stock index has been moving lower this week, as investors stepped away from big bets, driven by declines in energy, tech, and industrial companies.
The index had already felt the weight of new potential U.S. tariffs on steel and aluminum imports on Tuesday. However, energy led gains on the TSX, followed by the tech and industrial markets, causing the index to jump on Monday due to a new record high for gold prices after US President Trump’s latest tariff threats and a rebound in oil prices.
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On Monday, President Donald Trump imposed a uniform 25 per cent tariff on steel and aluminum imports, with no exceptions, to bolster US industries. This move, effective from March 4th, could potentially ignite trade disputes. A key US inflation report also doused hopes of interest rate cuts by the Federal Reserve this year.
Several Canadian stocks have seen some growth, though some have struggled this week, building upon their performance (for better or worse) since last year.
Ending 2024 on a high note
Bombardier (TSX:BBD, Forum) closed out 2024 with a net profit, marking its fourth consecutive year of growth across key metrics. Revenue exceeded guidance, growing to US$8.7 billion, up by 8 per cent year-over-year (YoY), thanks to record service performance of more than US$2 billion, up by 16 per cent YoY, and 146 aircraft deliveries, up from 138 YoY.
Adjusted EBITDA grew by 11 per cent YoY to US$1.36 billion with a margin of 15.7 per cent, and EBIT reached US$878 million. Key drivers included higher deliveries and services demand, partially offset by supply chain disruption costs. Net income and adjusted net income reached US$370 million and US$547 million, respectively, translating to diluted EPS of US$3.40 and adjusted EPS of US$5.16, the latter up by 31 per cent YoY. Bombardier took in US$124 million in net income in Q4 2024, marking its fifth consecutive quarter of positive performance.
Free cash flow was US$232 million, with cash flow from operating activities of US$405 million and net additions to PP&E and intangible assets of US$173 million. Bombardier’s backlog hit US$14.4 billion as of December 31, 2024, representing a US$200 million increase YoY. Debt fell by about US$400 million in 2024, strengthening the company’s balance sheet. Liquidity ended the year at US$2.1 billion, including cash and cash equivalents of US$1.7 billion.
Bombardier will defer 2025 guidance until management gains clarity on U.S. President Donald Trump’s tariff measures affecting Canada, Mexico, and China.
Bombardier stock (TSX:BBD) has risen 55 per cent since this time last year.
Breakthrough in Herpes treatment
Clinical-stage pharma stock Theralase Technologies (TSXV:TLT, Forum) announced a significant breakthrough in the treatment of Herpes Simplex Viruses (HSV). Independent research conducted at the University of Manitoba found that non-light activated Ruvidar is significantly more effective in inactivating HSV post-infection compared to the current gold standard treatment, acyclovir.
Dr. Kevin Coombs, a professor of virology at the University of Manitoba (retired), demonstrated that Ruvidar could inhibit numerous pathogenic human viruses, both with and without light activation. The latest experiments showed that Ruvidar successfully inhibited HSV-1 replication at significantly lower concentrations and more effectively than acyclovir alone. Dr. Coombs also discovered additive and synergistic anti-HSV-1 effects when Ruvidar was used in combination with acyclovir.
Theralase stock (TSXV:TLT) is up 38 per cent since this time last year.
Expanding the cannabis extract portfolio in Germany
Tilray Medical, a division of Tilray Brands (TSX:TLRY, Forum), is adding new cannabis extract products to its German medical portfolio. The additions include:
- Tilray THC50 CBD50 (25 ml): A high-potency and balanced medical cannabis extract for those looking for a stronger therapeutic effect tempered by CBD.
- Tilray THC10 CBD10 (10 ml): A trial-size version of Tilray Medical’s top-selling medical cannabis extract, following patient and physician demand for smaller formats to broaden the range of dosing and access to treatment.
These new SKUs join Tilray Medical’s existing portfolio, which includes various other balanced and high-potency extracts. A report by Prohibition Partners estimated that German medical cannabis sales would exceed €420 million in 2024 and surpass €1 billion by 2028. Aligning itself with broader growth trends, Tilray Brands has almost quadrupled its revenue from US$210.48 million in 2020 to US$788.94 million in the fiscal year ended May 2024. However, the company has yet to show a path to profitability, posting approximately US$3 billion in net losses since 2020.
Tilray stock (TSX:TLRY) has lost 44 per cent since this time last year.
Conclusion
Investors should keep up with their due diligence into the news of stocks to ensure their portfolios are up to date. With significant developments in companies like Bombardier, Theralase Technologies, and Tilray Medical, staying informed is key to making sound investment decisions.
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