Toronto, Ontario -- Canada's automotive aftermarket is facing severe headwinds as a result of the Trump Administration's economic policies. Despite this, some companies have managed to beat expectations. This week's Tuesday Ticker takes a look at how investors have responded to those businesses that have been able to deliver strong results during the direst of circumstances.
AutoCanada on the upswing
Investors are looking at AutoCanada Inc. with renewed optimism following a weaker-than-anticipated first-quarter. The company, headquartered in Edmonton, operates 81 franchised dealerships across eight Canadian provinces, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia and New Brunswick, as well as in Illinois.
On May 14, the company released its Q1 report, revealing its revenue from continuing operations generated $1.24 billion, a 120 million over the same period of the previous year. Its net income from continuing operations rose to $9.7 million, up from $8.0 million. Same-store revenue in Canadian operations grew by 3.5 percent, while collision repair revenue rose by 23.7 percent with a 27.2 percent gain in gross profit.
Despite the strong performance,the report also recorded a total net loss of $3.2 million, stemming from a $12.9 million loss at its discontinued U.S. division. This caused a short-lived negative reaction from investors.
In the immediate aftermath of the report, stocks to decline by 1.37 percent. By May 16, however, these losses had been erased and, as of June 13, 2025, AutoCanada's stock price stood at $21.88, up 16.5 percent from the post-earnings dip.
Exco bounces back
Exco Technologies Ltd., a Markham, Ontario-based manufacturer of die-cast auto parts, is experiencing a significant rebound after unveiling stronger-than-expected results.
In April, the company's stock, which trades on the TSX, fell to $5.26, a 52-week low. At the end of the month, however, the company released its report covering performance during the first three months of the year.
It revealed the company's earnings-per-share reached $0.17. During the previous quarter, the company's earnings-per-share fell from $0.15 to $0.11. This lead to a steady rise in the stock's value, leading it to reach $7.03 on June 13, a 26 percent rise.
