Small caps to watch: EQB slashes jobs, a Precision Drilling revenue beat, and analysts react to Mullen Group earnings

A look at some small-cap stocks making news – or about to

Canada’s S&P/TSX Small Cap Index TXTW-I is up by about 30 per cent over the past 52 weeks as of Wednesday’s close. It hit a record of 1,179.02 on Oct. 15. The Russell 2000 in the U.S. is up 10 per cent over the past 52 weeks. It hit a record 2,541.67 on Oct. 15.

Small-cap summary

Shares of EQB Inc. (EQB-T) rose in early Thursday trading after the company announced cost-cutting measures. The parent of Equitable Bank and EQ Bank said it’s cutting 8 per cent of its workforce and taking $85-million in pre-tax charges as part of a restructuring it said “places refreshed discipline on capital allocation” as it looks to boost its return on equity.

In a release after markets closed on Wednesday, the company said the charges include about $20-million in restructuring and severance costs and $65-million in impairment charges, including intangible assets and $24-million relating to its equipment financing business.

“We are executing a future-focused plan that concentrates capital and talent where we have leading opportunities for growth and competitive advantage as Canada’s Challenger Bank,” stated chief executive officer Chadwick Westlake, who took the top job in late August after the sudden death of CEO Andrew Moor in June.

The company said more details, including the final restructuring charges, will be provided with its fiscal 2025 results on Dec. 3.

EQB shares sold off after its third-quarter report in late August, which included higher provisions for credit losses (PCLs) and missed expectations. It also lowered earnings expectations for the remainder of fiscal 2025.

The stock is down 17 per cent over the past year, as of Wednesday’s close.

TD Bank analyst Graham Ryding described the news as “positive” in a note and increased his target to $105 from $100. He maintained his “hold” rating.

“This restructuring program is intended to sharpen EQB’s capital allocation on core growth areas and indicates a lower expense run-rate,” he wrote. “We expect the shares to respond positively to the restructuring program.”

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Winpak Ltd. (WPK-T) reported lower revenue and profit for its third quarter amid slowing demand for its products.

During market hours on Wednesday, the Winnipeg-based packaging company reported revenue of US$283-million, down from US$285.5-million for the third quarter of 2024. The expectation was for revenue of US$287.4-million in the latest quarter.

Volumes fell by 3 per cent when compared to the third quarter of 2024, the company stated, citing “weakened customer demand within several product categories.”

Winpak manufactures and distributes packaging materials and related packaging machines, primarily for the food and beverage and health care industries.

Net income of US$36.4-million or 60 cents US per share compared to US$38.5-million or 61 cents US a year earlier. The expectation was for earnings of 58 cents per share.

“WPK’s outlook points to flat volumes in 4Q25 due to muted customer demand, which has been a theme throughout 2025, primarily driven by inflation and trade uncertainty,” National Bank Financial Ahmed Abdullah wrote in a note, but added the company is optimistic about 2026, driven by increased production capacity and new business wins.

“WPK is actively pursuing M&A opportunities, primarily focused on the pharmaceutical/medical space,” the analyst wrote. “Furthermore, WPK noted that its entire product portfolio (except foil-based products) currently benefits from USMCA exemptions. If these exemptions lapse (changes to USMCA or other trade agreements replace it), the impact could be significant.”

He maintained his “sector perform” and $47 (Canadian) target price on the stock.

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Precision Drilling Corp. (PD-T) reported higher-than-expected revenue for its third quarter, although the result was down from a year ago.

After markets closed on Wednesday, the Calgary-based company reported revenue of $462.3-million, down from $477.2-million reported in the third quarter of 2024. The expectation was for revenue of $460.5-million.

The company described it as a “relative outperformance” compared to industry drilling rig activity declines of 15 per cent in Canada and 7 per cent in the U.S. over the same period.

Its net loss was $6.7-million or 51 cents per share, which the company said was due to a higher deferred income tax expense related to its U.S. operations. The result compared to net income of $39.1-million or $3.21 a year earlier.

“Overall, our outlook for the remainder of the year remains optimistic but will continue to be commodity price dependent,” the company stated. “With the constructive commodity prices we experienced at the beginning of the fourth quarter, we expect our fourth quarter activity levels to be steady year over year with some upside potential.”

National Bank Financial analyst Dan Payne maintained his “sector perform” and $100 target on the stock.

“Overall, the relative quality and stability of earnings through its diversity of exposures remains intact, which, in association with refreshed management, should continue to support visibility to maximum free cash generation and accelerating return of capital through the outlook,” he wrote in a note.

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Mullen Group Ltd. (MTL-T) reported mixed earnings for its third quarter ended Sept. 30.

Before markets opened on Wednesday, the trucking and logistics company reported revenue of $561.8 million for the quarter, up from $532-million in the same quarter last year but below expectations of $603.1-million.

Net income of $33.2-million or 36 cents per share compared to net income of $38.3-million or 41 cents per share a year earlier. Adjusted earnings of 38 cents per share fell from 41 cents per share a year earlier. The expectation was for adjusted earnings of 36 cents.

“Overall, the outlook is largely intact from last quarter with execution on major ‘nation building’ projects identified as a significant potential catalyst,” Acumen Capital analyst Trevor Reynolds said in a note. He has a “buy” and $17.25 target on the stock.

National Bank Financial analyst Cameron Doerksen maintained his “outperform” recommendation and trimmed his target to $16.50 from $17, citing “modest downward adjustments” to his forecast.

“Trucking end markets remain sluggish, but the trucking cycle in Canada will eventually turn more positive and, in the meantime, MTL remains well positioned to grow through M&A,” he wrote in a note. “Furthermore, if some of the proposed ‘nation-building’ projects in Canada ultimately move forward, these could be a tailwind for freight demand generally and also for some of Mullen’s specific operations in Western Canada.”

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Dye & Durham Ltd. (DND-T) fell to a low this week after ex-chief executive officer Matt Proud withdrew his offer to buy the real estate software vendor, and it hit back with a lawsuit to enforce a co-operation agreement with his personal investment holding company.

Mr. Proud’s holding company, Plantro Ltd., said in a release Monday that it had withdrawn its $10.25-a-share offer consisting of cash and stock in a new company that would hold part of D&D’s business. Plantro added it was evaluating its D&D holdings “and may seek to reduce or exit” its stake.

The retreat comes after D&D enacted a poison pill to prevent a “creeping” takeover by Plantro, and following downgrades of D&D’s credit ratings by S&P Global Ratings and Moody’s Ratings.

Read the full Globe story here

On Thursday, Dye & Durham issued another release, stating that Plantro published ”misleading statements concerning the company’s financial leverage and future prospects, harming both the company and its strategic review.”

Dye & Durham also stated in the release that: “Despite the actions taken by Plantro, the company would be willing to settle its litigation against Mr. Proud and Plantro if they unequivocally reaffirm their commitment to the bargain struck in July, abide by the cooperation agreement and respect the principles of a fair and transparent strategic review.”

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Upcoming small-cap earnings:

Oct. 27: Morguard North American Residential REIT (MRG-UN-T)

Oct. 29: Aecon Group Inc. (ARE-T), Morguard REIT (MRT-UN-T), Allied Properties REIT (AP-UN-T), Primaris REIT (PMN-UN-T), Timbercreek Financial Corp. (TF-T), Algoma Steel Group Inc. (ASTL-T)

Oct. 30: Secure Waste Infrastructure Corp. (SES-T), Black Diamond Group Ltd. (BDI-T), Spin Master Corp. (TOY-T), Coveo Solutions Inc. (CVO-T), Champion Iron Ltd. (CIA-T), Corus Entertainment Inc. (CJR-B-T)

Nov. 3: BTB REIT (BTB-UN-T), Ag Growth International Inc. (AFN-T), Gibson Energy Inc. (GEI-T), CT REIT (CRT-UN-T)

Nov. 4: Minto Apartment Real Estate Investment Trust (MI-UN-T), Parex Resources Inc. (PXT-T), Cargojet Inc. (CJT-T), Propel Holdings Inc. (PRL-T), Information Services Corp. (ISC-T), Andrew Peller Ltd. (ADW-A-T), SNDL Inc. (SNDL-CN), Pet Valu Holdings Ltd. (PET-T), Dream Industrial REIT (DIR-UN-T)

Nov. 5: Curaleaf Holdings Inc.(CURA-T), BSR REIT (HOM-U-T), Killam Apartment REIT (KMP-UN-T), Canada Packers Inc. (CPKR-T), First Capital REIT (FCR-UN-T), Russel Metals Inc. (RUS-T), Alaris Equity Partners Income Trust (AD-UN-T), Badger Infrastructure Solutions Ltd. (BDGI-T), Trulieve Cannabis Corp. (TRUL-CN), Goeasy Ltd. (GSY-T), Aurora Cannabis Inc. (ACB-T), AirBoss of America Corp. (BOS-T)

Nov. 6: Dentalcorp Holdings Ltd. (DNTL-T), Canfor Corp. (CFP-T), Canfor Pulp Products Inc. (CFX-T), Cascades Inc. (CAS-T), Pason Systems Inc. (PSI-T), Interfor Corp. (IFP-T), Enerflex Ltd. (EFX-T), TerrAscend Corp. (TSND-T), Lightspeed Commerce Inc. (LSPD-T), NFI Group Inc. (NFI-T), Slate Grocery REIT (SGR-UN-T), Source Energy Services Ltd. (SHLE-T), Cineplex Inc. (CGX-T), Doman Building Materials Group Ltd. (DBM-T), Kits Eyecare Ltd. (KITS-T), Canada Goose Holdings Inc. (GOOS-T), VitalHub Corp. (VHI-T), American Hotel Income Properties REIT LP (HOT-UN-T), Dream Office REIT (D-UN-T), Tucows Inc. (TC-T), Quarterhill Inc. (QTRH-T), Supremex Inc. (SXP-T), Cronos Group Inc. (CRON-T), Well Health Technologies Corp. (WELL-T)

Nov. 7: Chorus Aviation Inc. (CHR-T), Boralex Inc. (BLX-T), Exchange Income Corp. (EIF-T)

Nov. 10: Ascend Wellness Holdings, Inc. (AAWH-U-CN), Westport Fuel Systems Inc. (WPRT-T)

Nov. 11: Extendicare Inc. (EXE-T), True North Commercial REIT (TNT-UN-T), Grown Rogue International Inc. (GRIN-CN), Dream Unlimited Corp. (DRM-T)

Nov. 12: Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T), Thinkific Labs Inc. (THNC-T), North American Construction Group Ltd. (NOA-T)

Nov. 13: Superior Plus Corp. (SPB-T), Total Energy Services Inc. (TOT-T), Profound Medical Corp. (PRN-T), AutoCanada Inc. (ACQ-T), Ballard Power Systems (BLDP-T), KP Tissue Inc. (KPT-T), Corby Spirit and Wine Limited (CSW-A-T), Automotive Properties REIT (APR-UN-T), H&R REIT (HR-UN-T), GO Residential REIT (GO-U-T), Fiera Capital Corp. (FSZ-T), Plaza Retail REIT (PLZ-UN-T)

Nov. 14: Conifex Timber Inc. (CFF-T), Neo Performance Materials Inc. (NEO-T), Pizza Pizza Royalty Corp. (PZA-T), MDA Space (MDA-T)

Nov. 20: Real Matters Inc. (REAL-T), Sucro Ltd. (SUGR-X)

Nov. 27: Rogers Sugar Inc. (RSI-T)

Nov. 30: Richards Packaging Income Fund (RPI-UN-T)

Dec. 3: EQB Inc. (EQB-T)