Buzz on the Bullboards: Quarterly success stories and struggles

Equities in Toronto experienced growth this week, driven by gains in technology shares. Investors reacted positively to U.S. President Donald Trump’s assurance that he would not dismiss Federal Reserve Chairman Jerome Powell. This stability in the U.S. financial leadership provided a boost to market confidence, leading to a favourable environment for investments.

Whitecap Resources (TSX:WCP, Forum) reported its financial results for the three months ended March 31, 2025. The company achieved a production of 179,051 boe/d during Q1 2025, marking a 1.3 per cent increase compared to the prior quarter and setting a record production number. The oil price was slightly higher in Q1 2025 compared to Q4 2024 in most markets, and a weaker Canadian dollar likely contributed positively. The realized natural gas price and NGL price for Whitecap saw significant increases, up 52 per cent and 11 per cent respectively. This resulted in a total realized price of C$58.5/boe in Q1, up 2.7 per cent compared to the prior quarter.

Whitecap Resources’ recent acquisition of Veren (TSX:VRN, Forum) is set to create a larger company with a production of around 370,000 boe/d, warranting a premium valuation. The acquisition, expected to close in mid-May, will result in Veren shareholders owning 52 per cent and Whitecap shareholders owning 48 per cent of the combined entity. The long-term growth in production and production per share has been impressive for Whitecap over the last few years, and both metrics are expected to increase further once the merger closes.

Aecon Group (TSX:ARE, Forum) reported results for Q1 2025, with revenue for the three months ended March 31, 2025, totaling $1,062 million. This represents a $215 million, or 25 per cent, increase compared to the same period in 2024. Revenue was higher in the Construction segment by $214 million, driven by increases in nuclear ($125 million), industrial ($65 million), utilities ($15 million), and civil operations ($11 million), partially offset by lower revenue in urban transportation solutions ($2 million). The higher revenue was primarily due to increased refurbishment work at nuclear generating stations in Ontario and the U.S., and a higher volume of field construction work at industrial facilities in western Canada.

Despite the revenue growth, Aecon reported an operating loss of $40.7 million for Q1 2025, which was unfavourable by $36.5 million compared to an operating loss of $4.2 million in the same period in 2024. The decline was driven by a decrease in gross profit of $21.0 million. However, Aecon’s backlog reached a record $9.7 billion at the end of Q1 2025, indicating strong demand for its services across Canada and select U.S. and international markets.

Aecon’s strategic acquisitions completed in the second half of 2024, along with its strong bid pipeline, are expected to drive revenue growth in 2025. The company is focused on delivering several significant long-term progressive design-build projects and has recently reached commercial close on the Scarborough Subway Extension project. Aecon’s disciplined capital allocation approach aims to enhance long-term shareholder value through acquisitions, organic growth, dividends, capital investments, and share buybacks.

Well Health Technologies (TSX:WELL, Forum) released its results for Q4 and the full year 2024. The company achieved annual revenue of $919.7 million in 2024, an increase of 19 per cent compared to the prior year. Revenue was negatively impacted by a delay in the recognition of revenue for Circle Medical amounting to $56.6 million and uncertainty of $24.5 million by CRH due to the Change Healthcare cyberattack. Excluding these impacts, Well was on track to achieve record revenue of $1.0 billion in 2024, an increase of 29 per cent compared to the prior year.

Well achieved record Free Cash Flow Attributable to Shareholders (FCFA2S) in 2024 of $49.3 million, representing an increase of ~16 per cent compared to $42.4 million in 2023. Adjusted EBITDA for 2024 was $46.7 million, compared to $113.4 million in 2023. Excluding the impacts from Circle Medical and CRH matters, Wellwas on track to achieve adjusted EBITDA of $127 million for 2024, an increase of 12 per cent compared to the prior year.

Looking ahead, Well provides a positive outlook for 2025 with annual guidance for revenue between $1.40 billion to $1.45 billion and adjusted EBITDA in the range of $190 million to $210 million. This guidance reflects 100 per cent consolidation of HealWell as per IFRS control requirements and assumes that substantially all of the deferred Circle Medical revenue will be recognized in 2025. The guidance does not include any contribution from the delayed earnings of CRH related to the cyberattack until further collections occur and the matter is settled with Change Healthcare.

Investors are encouraged to deepen their due diligence into these news-making stocks to keep their portfolios up to date. Whitecap Resources, Aecon Group, and Well Health Technologies have all reported significant developments and financial results that could impact their future performance. Staying informed and analyzing these companies’ strategic moves and market conditions can help investors make more informed decisions.

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(Top image generated with AI.)