HEADLINES

Brookfield Second-Quarter Profit Rises on Asset Management Fees, Inflows

Brookfield posted a rise in second-quarter profit, driven by a surge in fee-related income and client inflows into its asset management arm.

The Toronto-based alternative asset management firm posted net income of $364 million, or 14 cents a share, up from $272 million, or 10 cents a share, in the comparable quarter a year ago.

Distributable earnings before realizations, an adjusted figure, came to 61 cents a share. According to FactSet, analysts were expecting 62 cents a share.

Brookfield's stock rose 0.7% to C$62.82 on Thursday.

Private-Equity Hit From AI Weighs on Caisse Results

Mid-year results from Canada's second-biggest pension fund, La Caisse, were dragged down by its private-equity portfolio as valuations tumbled for certain holdings viewed as vulnerable to the adoption of artificial intelligence.

La Caisse, also known as Caisse de dépôt et placement du Québec, said its average return on depositors' funds for the six-month period ended June 30 was 5.1%. A 14.6% return on equities during that six-month period was offset by a 4.3% decline in the private-equity portfolio.

Canadian pension funds typically measure themselves against an in-house index given the diversity of their public and private holdings. Caisse said its six-month performance was below its in-house index of 7.5%.

OMERS Buys $1 Billion of Canadian Stocks to Bolster Domestic Holdings

The Ontario Municipal Employees Retirement System earned a 4.8% return and bought an additional $1 billion in Canadian stocks in the first half of the year as the pension fund looks to add to its domestic investments, The Globe and Mail reported.

OMERS reported positive returns from each of its asset classes up to June 30, with publicly traded equities yielding the strongest gains at 12.2%.

The Toronto-based fund chose to "shore up" its position as a shareholder in a number of prominent Canadian companies that included banks, insurers and other "counterparties" with which OMERS does business, Chief Executive Blake Hutcheson said.

Canadian Tire Profit Rises as World Cup Boost Sporting Goods Segment

Canadian Tire reported a jump in second-quarter profit as World Cup-driven sales at its SportChek sporting goods banner offset weather-related drags at its flagship retail stores.

The Canadian retailer posted higher net income, which reached C$214.2 million, or C$3.65 a share, up from C$132.3 million, or C$2.04 a share, in the comparable quarter a year ago.

Normalized earnings, an adjusted figure, came to C$3.94 a share, just shy of analyst forecasts, which had expected C$3.95 a share, according to FactSet.

Bird Construction Shares Up as Second-Quarter Revenue Tops C$1 Billion, Profit Rises

Shares of Bird Construction rose after the company surpassed C$1 billion in quarterly revenue for the first time in its history, driving a surge in profit.

Shares rose 11.4% to C$71.88.

The Canadian construction company late Wednesday reported a nearly 23% rise in construction revenue to C$1.04 billion, handily topping forecasts of a more modest rise to C$957.5 million, according to consensus expectations. The higher revenue pushed net income to C$30.3 million, or C$0.55 a share, compared with C$20.3 million, or C$0.37 a share a year earlier.

Telesat Shares Slide on Second-Quarter Loss, Revenue Decline

Telesat shares fell sharply Thursday as lower revenue and non-renewed broadcast contracts dragged the satellite operator into a steep second-quarter loss.

Shares dropped 14.2% to C$73.04.

Telesat swung to a loss of C$558.6 million from a profit of C$75.5 million, largely due to noncash accounting losses tied to the rising valuation of its financing warrants. The company reported revenue of C$79.5 million, down from C$106.1 million a year earlier, in-line with analyst expectations.

Calian Group Third-Quarter Profit, Revenue Rise on Defense, Space Demand

Calian Group posted higher profit in its third quarter, benefiting from strong demand for space and defense offerings which drove revenue higher.

Shares rose 7.3% to C$91.58.

For the three months ended June 30, the mission-critical solutions company reported a rise in net income to C$5.94 million, or C$0.51 a share, up from C$590,000, or C$0.05 a share, in the comparable quarter a year ago.

Calian, which focuses on defense, space, healthcare and other strategic critical infrastructure sectors, generated 20% higher revenue, reaching C$230.4 million, topping analyst forecasts for a more modest rise to C$215.4 million.

Alithya Swings to First-Quarter Loss as Conversion Cycles, Decision-Making Drag

Alithya Group swung to a loss in its first quarter as slower conversion cycles weighed on revenue and bookings.

For the three months ended June 30, the digital strategy and technologies company swung to a first-quarter loss of C$2.42 million, or C$0.03 a share, compared with a profit of C$185,000, or nil a share, in the comparable quarter a year ago.

Revenues fell more than 15% to C$105.1 million, missing analyst forecasts of a less precipitous decline to C$114.7 million.

KP Tissue Profit Edges Lower, Kruger Product Revenue Rises

KP Tissue posted a slightly lower second-quarter profit, despite higher U.S. sales volumes and lower pulp costs at operating arm Kruger Products, which helped offset softening demand in Canada.

The Canadian holding company, which owns a 12% stake in paper tissue products company Kruger Products, posted net income of C$2.4 million, or C$0.24 a share, down from C$2.6 million, or C$0.26 a share, in the comparable quarter a year ago.

The quarter's profit came from its share of Kruger Products' net income. Kruger Products' net income remained flat at C$22.1 million. Kruger Products revenue rose to C$550.9 million from C$536.1 million, just shy of analyst forecasts of C$551.9 million.

TALKING POINT

Ford Open to Lifting Ontario's Ban on U.S. Alcohol if Fair Deal Reached

By Adrian Morrow and Laura Stone of The Globe and Mail

Ontario Premier Doug Ford is open to putting American alcohol back on store shelves even if U.S. President Donald Trump's tariffs on Canadian autos, metals and forest products are only reduced and not eliminated.

On Thursday, as Prime Minister Mark Carney's top trade emissaries remained in Washington scrambling for a deal, Ford signalled that he was willing to co-operate to help reach an agreement to avoid the Trump administration's threatened 50% tariffs, which would take effect Aug. 19.

At an unrelated announcement in Guelph, Ont., Ford repeatedly declined to call for an end to all U.S. tariffs as a precondition to ending his booze ban. He did, however, outline the sectors that he said would need to be covered by a trade pact.

The ban has been in place since March, 2025.

"If we get a fair deal that will protect our steel sector, our auto sector, our forestry sector, our agricultural sector, manufacturing sector, then we'd be more than happy to bring booze back on shelves," he said, adding Quebec's aluminum sector to his list of requirements in response to another question.

Ford, B.C. Premier David Eby, Manitoba Premier Wab Kinew and other provincial premiers will need to agree to lift their alcohol bans in order for a deal to be reached.

As The Globe and Mail has previously reported, the proposal currently under discussion would entail the U.S. reducing - but not eliminating Trump's tariffs on autos, steel and aluminum in exchange for Canada conceding on a long list of American demands. One of these is that Canadian premiers drop their bans on U.S. liquor and Buy Canadian policies, both of which were brought in to retaliate against Trump's trade war.

Canada faces auto tariffs of 25%. Under one U.S. proposal, it would drop those tariffs to between 10-15% if Canada agrees to completely lift its retaliatory tariffs on American autos, among other conditions.

Ford on Thursday pushed back on the demand that Canada drop its retaliation on U.S. autos.

"We have to match tariff for tariff. We can't negotiate through weakness. They can't put tariffs on our autos and we're not putting tariffs on theirs," he said.

It would be up to the federal government to drop its retaliatory measures.

Ford also repeatedly criticized Trump, saying "he drives me crazy" and calling on U.S. voters to punish him in this fall's midterm congressional elections.

"My message to the Americans: A tariff on Canada is a tax on the American people. They're feeling the pain. As we saw last month, they didn't have any job creation," he said. "My message to the American people: Remember when it comes to the midterms, you have to get that bully and send him the message."

The Premier said he had recently had a long conversation with Dominic LeBlanc, the minister responsible for Canada-U.S. trade. "I want to thank him for his service down in the U.S. He's been, basically, every single day, they're sitting down, negotiating the deal."

On Thursday, LeBlanc and Janice Charette, Canada's chief negotiator, are sitting down with U.S. Trade Representative Jamieson Greer at the latter's Winder Building office near the White House. The meeting will be their second this week and is set for just six days before Trump's latest threatened tariffs are set to take effect.

The two countries traded written negotiating positions at a previous hour-long meeting on Tuesday and LeBlanc and Charette have since been hunkered down with their officials at the Canadian embassy.

Canada wants reductions in Trump's tariffs, imposed last year under Section 232 of the Trade Expansion Act of 1962. The U.S. has imposed tariffs of 50% on steel and aluminum, 25% on autos and between 10-25% on various forest products.

Canada also wants Trump to stand down from his threat to levy 50% tariffs on US$20 billion more Canadian exports, including electronic equipment, dairy and alcohol, under Section 338 of the Smoot-Hawley Tariff Act of 1930.

Charette told Greer last week that, if the new tariffs come into effect on Aug. 19, negotiations would halt and Canada would be forced to retaliate.

The negotiations have centred on the U.S. lowering, but not eliminating, its tariffs, with Canada agreeing to various Washington demands. These include ending retaliatory tariffs on U.S. autos, getting provincial premiers to put American alcohol back on store shelves and halt Buy Canadian programs, and changing how licences are allocated under the supply-managed dairy system.

Talks had been sluggish until Trump threatened the new 338 tariffs last month and set a deadline for them to take effect. This lit a fire under the talks, with LeBlanc and Charette meeting Greer in Washington every week for the past three. Charette has been encamped semi-permanently in the U.S. capital with her team.

Greer has said he wants "interim" trade deals with both Canada and Mexico before moving onto a larger overhaul of the U.S.-Mexico-Canada Agreement, which would include renegotiating automotive content rules, among other thorny topics.

Canadian negotiators have privately presented the current talks as a first deal before moving onto future rounds of bargaining that would include various trade and defence topics.

Expected Major Events for Friday

06:00/GER: Jul WPI

06:45/FRA: Jul CPI

12:30/US: Jul Advance Monthly Sales for Retail & Food Services

12:30/CAN: Jun Wholesale trade

12:30/CAN: Jun Monthly Survey of Manufacturing

14:00/US: Jun Manufacturing & Trade: Inventories & Sales

14:00/US: Aug University of Michigan Survey of Consumers - preliminary

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Friday Abaxx Technologies Inc (ABXX.T) is expected to report for 2Q.

Aya Gold & Silver Inc (AYA.T) is expected to report for 2Q.

Beam Global (BEEM) is expected to report $-0.17 for 2Q.

Big Rock Brewery Inc (BR.T) is expected to report for 2Q.

Bloomia Holdings Inc (TULP) is expected to report for 4Q.

Boralex Inc - Class A (BLX.T,BRLXF) is expected to report $0.19 for 2Q.

CSP Inc (CSPI) is expected to report for 3Q.

Cambium Networks Corp $(CMBMF)$ is expected to report for 2Q.

Chaince Digital Holdings Inc $(CD)$ is expected to report for 2Q.

Creative Media & Community Trust Corp $(CMCT)$ is expected to report for 2Q.

Duos Technologies Group Inc (DUOT) is expected to report for 2Q.

Encision Inc $(ECIA)$ is expected to report for 1Q.

Flexible Solutions International Inc (FSI) is expected to report $0.01 for 2Q.

Frontera Energy Corp (FEC.T) is expected to report for 2Q.

KALA BIO Inc (KALA) is expected to report for 2Q.

Kustom Entertainment Inc $(KUST)$ is expected to report for 2Q.

LanzaTech Global Inc (LNZA) is expected to report for 2Q.

Ledyard Financial Group (LFGP) is expected to report for 2Q.

Milestone Scientific Inc (MLSS) is expected to report $-0.01 for 2Q.

New Era Energy & Digital Inc $(NUAI)$ is expected to report for 2Q.

Outlook Therapeutics Inc $(OTLK)$ is expected to report for 3Q.

Perpetua Resources Corp (PPTA.T) is expected to report for 2Q.

Quince Therapeutics Inc $(QNCX)$ is expected to report for 2Q.

Serina Therapeutics Inc $(SER)$ is expected to report for 2Q.

Sidus Space Inc (SIDU) is expected to report for 2Q.

Solana Co (HSDT) is expected to report for 2Q.

Solarmax Technology Inc $(SMXT)$ is expected to report for 2Q.

Southern Banc Co Inc (SRNN) is expected to report for 4Q.

Star Equity Holdings Inc (STRR) is expected to report $-0.22 for 2Q.

Streamex Corp $(STEX)$ is expected to report for 2Q.

TPI Composites Inc (TPICQ.XX) is expected to report $-1.52 for 2Q.

Tempest Therapeutics Inc $(TPST)$ is expected to report for 2Q.

Trinity Place Holdings Inc (TPHS) is expected to report for 2Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.