HEADLINES

Transat Swings to Loss After Absorbing Higher Fuel Costs

Transat A.T. swung to a loss in the third quarter as surging fuel prices weighed on the company's performance, offsetting a rise in revenue and forcing the company to tap into additional government financing.

The Canadian tour operator and air carrier posted on Thursday a loss of C$106.6 million, or C$2.60 a share, compared with a profit of C$399.8 million, or C$9.97 a share, in the comparable quarter a year ago which included a one-time gain on long-term debt extinguishment.

Chief Executive Annick Guerard said the loss was largely driven by surging fuel costs, which rose 56% in the period, and brought the cumulative impact to C$175 million since the crisis began.

Groupe Dynamite Rally Fades as Second Half Slowdown Overshadows Quarterly Beat

Groupe Dynamite shares pulled back as an impending second-half profit slowdown overshadowed a better-than-expected second quarter and outlook upgrade.

Shares climbed nearly 4% to settle at C$59.12.

The initial market rally faded after management said on its earnings call that the strong profit gains seen in the first half, which were fueled by lapping temporary tariff drags, are now over. Chief Financial Officer Jean-Philippe Lachance said the second half is now a "clean comparable period," meaning that the tariff effects have been lapped, and that profit will temper for the remainder of the year.

"The updated annual outlook we established today balances the dynamics of continuing momentum in the business with the toughest comparison of our year, which are immediately in front of us," Lachance said, who noted that gross margin is expected to be stronger than last year's, but by a much smaller amount.

Carney Says He Has Spoken With Trump in Recent Days

Prime Minister Mark Carney said he has spoken in recent days with President Trump in the aftermath of failed trade talks and a deterioration in diplomatic ties.

Carney revealed the conversation at a press conference in Banff, Alberta, alongside Ukraine President Volodymyr Zelensky, as the Canadian leader said Ottawa would make financing available to Kyiv to purchase fuel and bolster its air defence.

The Canadian prime minister didn't divulge what he and Trump spoke about in terms of renewing talks to stabilize trade relations. He said the topic of Ukraine came up, and the important role the Trump administration can play in ending the war.

"President Trump and I remain in regular contact," Carney said. "I've spoken to him recently in the last few days, a couple of times, related to issues here, related to issues in Iran, other global developments, because that's part of our responsibility is to work together and working very much."

Tribunal Rules Imports of U.S. Canned Vegetables Hurt Domestic Food Sector

Power Corp of Canada to Mobilize C$10 Billion for Canadian Infrastructure Push

Power Corp. of Canada is planning to deploy and mobilize more than C$10 billion into domestic infrastructure and related midmarket companies.

The capital will be committed through the financial holding company's alternative-asset platform, Power Sustainable, which announced the initiative Thursday ahead of Canadian government's inaugural Canada Investment Summit next week.

The company noted that Power Sustainable has already been developing and evaluating strategies across infrastructure equity, credit, clean energy and industrials.

Empire Sales, Profit Rise Amid Expansion Efforts

Empire logged higher revenue and profit in its fiscal first quarter, as the company moves ahead on its expansion plans.

The Canadian grocery-store conglomerate said that revenue rose 2.6% to C$8.48 billion. Analysts surveyed by FactSet forecast revenue of C$8.54 billion.

Empire, which owns Safeway and FreshCo grocery stores, posted a profit of C$233 million, or C$1.04 a share, compared with C$212 million, or C$0.91 a share, a year earlier. Analysts were looking for C$1.04 a share.

Same-store sales increased 2.2%, ahead of the 1.7% projected by Wall Street. There was 1.2% same-store-sales growth in food and an 18.9% jump in fuel.

Canada Goose CEO Dani Reiss Buys 100,000 Company Shares

Canada Goose Holdings chairman and chief executive, Dani Reiss, has acquired company shares worth over C$1 million as the stock price hovers around its 52-week low.

The Canadian apparel company, known for its pricey winter parkas, on Thursday said Reiss acquired 100,000 subordinate voting shares in the company through purchases on the open market for an average of C$10.623 a share.

The purchases were made though Reiss's holding entity DTR LLC.

Combined with his prior holdings, including 20.1 million multiple voting shares, Reiss now controls roughly 21% of all Canada Goose's outstanding shares and about 36.3% of total voting power, the company said.

Village Farms Names Hamid Shekarchi Interim Chief Financial Officer

Village Farms International has named Hamid Shekarchi interim chief financial officer of the agricultural greenhouse-facility operator.

Village Farms on Thursday said Shekarchi, 41 years old, has been finance chief of its Canadian cannabis business since February 2024.

Village Farms in April said Stephen Ruffini, who had been chief financial officer of the Lake Mary, Fla., company since 2009, would be shifting to a new leadership position focused on potential mergers and acquisitions.

TALKING POINT

Trump's Canada Import Ban Has Winners and Losers. That Could Change Quickly.

By Evie Liu for Barron's

President Donald Trump's latest escalation of the trade war with Canada will shut some Canadian products out of the U.S. altogether. While the ban could create an opening for American-made whey protein, whisky, beer, and motorcycles, the overall impact is less clear because any gains in the U.S. could be offset by other trade restrictions in Canada.

The White House said Tuesday that beginning Sept. 29, the U.S. will prohibit imports of a range of Canadian products that had previously been hit with 50% tariffs. The bans cover most alcoholic beverages, certain dairy-related products including whey protein, and Canadian-made motorcycles with engines larger than 800 cubic centimeters.

The administration says the move is retaliation for Canadian policies it considers discriminatory toward U.S. alcohol, dairy, and motor vehicles. Canada imposed counter-tariffs on roughly $20 billion of American goods on Sept. 8 after the U.S. placed 50% tariffs on a similar value of Canadian products in August.

Canadian powersports manufacturer BRP would face a direct hit. The company said in a statement that its Can-Am Spyder and Canyon three-wheel motorcycles, which are produced in Valcourt, Quebec, will no longer be eligible for import into the U.S. starting Sept. 29. The impact should be limited in the current fiscal year, however, because most production and deliveries for the season have already been completed, the company said.

BRP had warned just days earlier that trade restrictions would become a bigger issue next year. On its Sept. 3 earnings call, CFO Sébastien Martel said a previously imposed 50% U.S. tariff on Canadian imports was already affecting the Spyder line and estimated that Spyder alone could represent a roughly C$60 million to C$65 million headwind next year under that tariff regime.

Alcoholic beverage company Diageo could also be vulnerable, since Crown Royal-one of its biggest spirits brands-is distilled and aged in Canada. Canadian whisky represented 6% of Diageo's fiscal-2026 global sales.

But the exact impact of the new import ban is unclear. Diageo has shifted much of the bottling for U.S.-bound Crown Royal to U.S. facilities. What's more, the new ban only covers Canadian whisky imported in consumer-size containers.

The White House has actually removed other whisky shipped in containers larger than four liters from the 50% tariff list. That could allow Diageo to continue shipping Crown Royal to the U.S. in bulk for domestic bottling.

The company didn't immediately reply to a request for comment.

The potential winners are less obvious than the losers. If Canadian producers lose access to the American consumer market, the replacement demand could be divided among a broad group of domestic and foreign suppliers.

In alcohol, Constellation Brands could get a modest lift from its beer brands such as Modelo Especial, Corona, Pacifico, and Victoria. Since its beer portfolio is mostly Mexican-produced, the company would also be relatively protected from Canada's counter-tariffs on U.S.-origin goods.

Brown-Forman's Jack Daniel's and Woodford Reserve could pick up some whisky demand displaced from Canadian brands. But those benefits could be offset by Canada's tariffs and retail restrictions on American-made alcoholic beverages. The company has already said that Canadian trade barriers have hurt its fiscal-2026 results.

American distillers have shouldered "the brunt of this trade dispute," Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, wrote in s statement in response to Trump's action on Tuesday.

He noted that Canadian provinces' removal of U.S. spirits from store shelves has caused U.S. spirits exports to Canada to fall by more than 70%, and urged leaders to reach a negotiated solution that "returns the spirits sector to a permanent zero-for-zero tariff framework."

Investors should watch whether the Trump administration's bans actually survive until Sept. 29.

The White House has tied the measures to Canadian policies restricting U.S. alcohol, dairy, and motor-vehicle exports, suggesting the bans could be lifted or modified if Canada changes those rules. But the dispute could also widen: Trump has separately threatened higher tariffs on Canadian autos and restrictions on Bombardier aircraft.

That means the current list of winners and losers may only be the opening round.

Write to Evie Liu at evie.liu@barrons.com

Expected Major Events for Friday

06:00/UK: Jul Index of production

06:00/UK: Jul UK trade

06:00/UK: Jul Index of services

06:00/UK: Jul Monthly GDP estimates

08:00/FRA: Sep IEA Oil Market Report

08:00/ITA: 2Q Labour Cost Index

08:30/UK: Aug Bank of England/Ipsos Inflation Attitudes Survey

08:30/UK: Sep Agents' Summary of Business Conditions

11:30/UK: Aug NIESR Monthly GDP Tracker

12:30/US: Aug CPI

12:30/US: Aug Real Earnings

12:30/US: U.S. Weekly Export Sales

12:30/CAN: 2Q Industrial capacity utilization rates

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

16:00/US: World Agricultural Supply & Demand Estimates (WASDE)

16:59/GER: Jul Balance of Payments

18:00/US: Aug Monthly Treasury Statement of Receipts and Outlays of the U.S. Government

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

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

Children's Place Inc $(PLCE)$ is expected to report $-0.93 for 2Q.

Hooker Furnishings Corp $(HOFT)$ is expected to report $-0.05 for 2Q.

Kroger Co $(KR)$ is expected to report $1.07 for 2Q.

Rent the Runway Inc (RENT) is expected to report for 2Q.

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

Starcore International Mines Ltd (SAM.T) is expected to report for 1Q.

US Gold Corp (USAU) is expected to report for 1Q.

Value Line Inc (VALU) is expected to report for 1Q.

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