In this week’s Tuesday Ticker, BlackBerry's move into automotive software makes waves, AutoCanada exits the U.S., Axalta’s merger is put to a vote and much more.
QNX climb
BlackBerry’s latest quarterly results have highlighted how far the former smartphone maker has transitioned into automotive software.
On June 25, the release of its quarterly results showed the Waterloo-based company's QNX division saw revenues grow and its earnings increase. Following the results release, U.S.-listed BlackBerry shares rose 20.0% to US$10.34 on June 25 from US$8.62 on June 24.
The former smartphone manufacturer reported first-quarter fiscal 2027 revenue of US$152.9 million for the three months ended May 31, up 26% from the same period a year earlier.
QNX is BlackBerry’s embedded software business. Embedded software runs inside larger products, including vehicles, industrial equipment, medical devices and robotics. In the automotive market, QNX software is used in vehicle computing systems where reliability, safety and security are central requirements.
QNX revenue was US$72.3 million in the first quarter, up 26% year over year. QNX adjusted EBITDA was US$19.3 million, up 52%, with a 27% margin.
Management also raised full-year fiscal 2027 guidance. Total revenue is now expected to fall between US$594 million and US$621 million. QNX revenue is expected to fall between US$295 million and US$312 million.
The release also listed QNX Hypervisor 8.0 for Safety and a QNX software win with Leapmotor’s forthcoming D19 electric sport utility vehicle. Leapmotor is an electric vehicle manufacturer based in Hangzhou, China.
In the release, John J. Giamatteo, chief executive officer at BlackBerry, stated, “Our first quarter results demonstrate continued momentum following our transformation, as we advance our strategy to drive profitable growth.”
Giamatteo also pointed to “multi-year growth opportunities ahead in software-defined vehicles.”
U.S. retreat
AutoCanada has sold another U.S. dealership as the Edmonton-based dealership and collision repair group continues to exit the American market.
AutoCanada closed the sale of Toyota of Lincolnwood in Illinois for about $40.1 million in cash, excluding inventory and net working capital. Gross proceeds from seven U.S. dealership divestitures now total about $105.9 million.
The Lincolnwood store generated about $79.4 million in revenue and $5.8 million in net income in the 12 months ended March 31, 2026. Net proceeds from the sale are to be used to reduce the balance of AutoCanada’s revolving credit facility.
AutoCanada’s Canadian dealership operations include 64 franchised dealerships across eight provinces. In the release, Samuel Cochrane, chief executive officer and interim chief financial officer at AutoCanada, stated that the sale reflects progress on the decision to focus capital and management attention on “our core Canadian dealership and collision operations.”
Following the disclosure, shares rose 1.4% to $22.07 on June 23 from $21.76 on June 22.
Semiconductor sell-off
Investors have punished Onsemi after the Scottsdale, Ariz.-based semiconductor supplier announced a US$7-billion all-stock agreement to acquire Synaptics.
Onsemi supplies intelligent power and sensing technologies for automotive, industrial and artificial intelligence data centre markets. Its automotive products include technology used in advanced driver assistance systems, electric and hybrid powertrains, body electronics and vehicle architecture. Synaptics, based in San Jose, Calif., develops edge artificial intelligence compute, wireless connectivity and human-machine interface technology.
The proposed transaction would give Synaptics shareholders 1.350 Onsemi shares for each Synaptics share. A corporate press release states the deal would expand Onsemi’s total addressable market by US$30 billion, to US$243 billion by 2030, and add about US$200 million in expected annual synergies after closing.
In the release, Hassane El-Khoury, president and chief executive officer at Onsemi, stated, “As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act and adapt in real time.”
Following the disclosure, Onsemi shares fell 23.7% to US$90.65 on June 26 from US$118.74 on June 25. Synaptics shares fell 3.7% to US$121.00 from US$125.62.
Fleet financing
Element Fleet Management has completed a $670-million financing transaction tied to U.S. fleet lease receivables.
The Toronto-based business describes itself as the world’s largest publicly traded pure-play automotive fleet manager. Element manages more than 1.5 million vehicles globally and provides fleet and mobility services.
The release states the transaction included a $670-million asset-backed securities note offering. Asset-backed securities are bonds backed by pools of income-producing assets, in this case fleet lease receivables. Related equity residuals were sold to funds managed by Blackstone Credit & Insurance and CPP Investments.
The release also states Element’s pro forma debt-to-capital ratio would fall to 74.9% from 76.4%. In the release, Marc St-Onge, senior vice-president and treasurer at Element, stated, “This transaction represents an important evolution in our funding strategy, providing another tool to support the Company’s growth while enhancing our ability to serve clients.”
Following the disclosure, shares fell 0.1% to $29.57 on June 26 from $29.59 on June 25.
Supplier snapback
A Michigan automotive electronics business saw its fortunes rise after its latest quarterly statement showed increased sales across a range of segments.
Methode Electronics has reported a stronger fourth quarter, with its automotive segment moving back into operating income. The Southfield, Mich.-based supplier makes custom-engineered power distribution, user interface, lighting and sensor products for mobility, industrial and other markets.
The fourth-quarter release lists net sales of US$298.1 million, up 15.9% year over year. Net income was US$400,000, compared with a net loss of US$28.3 million a year earlier. Adjusted EBITDA, or adjusted earnings before interest, taxes, depreciation and amortization, was US$26.9 million, compared with an adjusted EBITDA loss of US$7.1 million.
Automotive segment sales rose to US$144.9 million from US$112.9 million. The segment reported operating income of US$6 million, compared with an operating loss of US$33.7 million in the prior-year quarter.
In the release, Jon DeGaynor, president and chief executive officer at Methode, stated, “Fiscal 2026 marked a year of meaningful progress in Methode’s transformation.”
Following the results release, shares rose 37.5% to US$18.00 on June 25 from US$13.09 on June 24.
Paint vote
Axalta shareholders have received a date for the proposed AkzoNobel merger vote.
Philadelphia-based Axalta supplies coatings for light vehicle, commercial vehicle, refinish, industrial and electric motor markets. Amsterdam-based AkzoNobel also supplies paints and coatings, including automotive and specialty coatings.
The June 24 release states the U.S. Securities and Exchange Commission declared AkzoNobel’s registration statement effective on June 23. Axalta filed its definitive proxy statement and scheduled a special meeting of stockholders for Aug. 5. AkzoNobel has scheduled its extraordinary general meeting for the same day.
The proposed all-share merger still requires shareholder approvals, regulatory approvals and other closing conditions. In the original merger release, Chris Villavarayan, chief executive officer and president at Axalta, stated that the combination would “enhance innovation, develop new capabilities and further strengthen customer relationships.”
Following the June 24 disclosure, shares rose 3.0% to US$34.66 from US$33.64.
Connected block
Polestar has been barred from selling new connected vehicles in the U.S. from model year 2027 onward.
The restriction follows a decision by the U.S. Department of Commerce’s Bureau of Industry and Security under the Connected Vehicle Rule. The rule covers certain connected vehicles and related technology linked to China or Russia.
Polestar is based in Gothenburg, Sweden, and trades on Nasdaq under the ticker PSNY. Reuters reported that China’s Geely Holding is Polestar’s majority owner.
The restriction does not stop all current U.S. sales. Existing U.S. inventory of the Polestar 3 and Polestar 4 can still be sold, and service support for existing U.S. customers will continue.
Polestar reported that 94% of its first-quarter 2026 retail sales volume came from markets outside the U.S. Europe accounted for close to 80% of current retail sales volume.
In a June 25 release, Michael Lohscheller, chief executive officer at Polestar, stated, “The automotive industry is entering a new phase, based on regional dynamics.”
Following the disclosure, shares fell 8.1% to US$17.43 on June 26.
