Trading Day for Friday, Feb. 13, 2026

Key Concepts

• Air Canada: Strong Q4 revenue and profit driven by domestic and Atlantic travel, offsetting US-Canada weakness.
• Magna International: Increased revenue and profit forecasts, despite global vehicle production decline; anticipates 15 million vehicles produced in North America.
• Agnico Eagle Mines: Beat profit estimates, surpassing Barrick Mining to become the world’s second-largest gold producer.
• US-Canada Trade Dispute: US House passed a resolution against Trump’s tariffs on Canadian goods, largely symbolic due to potential veto.
• Elevate Farms: Acquisition of Fields Farms to expand indoor agricultural footprint and bolster Canadian food sovereignty using advanced vertical farming technology.
• Boston Pizza: Record sales year driven by promotions, off-premise growth, and strong performance across all business lines.
• Definity Financial: Strong Q4 earnings, driven by growth in all three business lines; acquisition of Travelers Canada considered transformational.
• TSX & US Markets: Generally positive trading day, influenced by economic data (CPI) and geopolitical factors (US shutdown, trade disputes).
• Lab-Grown vs. Mined Diamonds: Increasing preference for lab-grown diamonds impacting the diamond mining industry.

Market Overview & Company Performance

The trading day saw generally positive performance across North American markets. The TSX was up almost 2%, boosted by strong performances from Air Canada, Magna International, and Agnico Eagle Mines. US markets also traded higher, influenced by CPI numbers and concerns about a potential US government shutdown.

Air Canada reported higher-than-expected revenue and profit in Q4, driven by growth in domestic and Atlantic travel, which offset weaker performance in travel between Canada and the US. Strong demand was observed across both cargo and passenger segments.

Magna International was the best-performing stock on the TSX, boosting its revenue and profit forecasts for the full year. Despite a decline in global vehicle production, Magna anticipates 15 million vehicles will be produced in North America this year and now sees revenue up to $43.5 billion USD.

Agnico Eagle Mines also saw gains after beating profit estimates in Q4 and exceeding consensus revenue from mining operations. The company has surpassed Barrick Mining to become the world’s second-largest gold producer.

US-Canada Trade Relations & Political Developments

The US House of Representatives passed a resolution against President Trump’s tariffs on Canadian goods, citing concerns over border security and the impact of “fentanyl tariffs.” The resolution, passed by a vote of 219 to 211, with six Republicans breaking ranks, is largely symbolic as it is expected to be vetoed by President Trump. Experts believe this move positions Canada better heading into the Kuzma Review and signals a potential erosion of support for the President within the Republican caucus. Trump warned that Republicans voting against the tariffs would “seriously suffer the consequences.”

Industry Spotlight: Indoor Farming & Food Sovereignty

Elevate Farms recently acquired Fields Farms in a strategic move to expand Canada’s indoor agricultural footprint. CEO Amin Jadavji explained that this acquisition combines Elevate’s advanced vertical farming technology with Fields Farms’ retail supply and demand network. Elevate’s technology, developed from space research at the University of Guelph, utilizes LED lights and automation to achieve yields 400-500 times more efficient than traditional field production. Jadavji emphasized the importance of indoor farming for bolstering domestic food supply and achieving Canadian food sovereignty, noting that 90% of Canada’s leafy greens are imported, primarily from the water-stressed southwestern US. He believes this technology offers a solution to supply chain risks and supports Canadian food security.

Restaurant Sector Performance: Boston Pizza

Boston Pizza reported record sales in 2025, with same-restaurant sales up almost 5%. This growth is attributed to promotions, increased off-premise (takeout and delivery) sales, and strong performance across all regions. Despite consumer caution, Boston Pizza is seeing continued demand, driven by value and a strong brand presence. The company is also benefiting from increased sports viewership, particularly with events like the Blue Jays playoff run and the current Winter Olympics. President Jordan Holm highlighted the company’s focus on maintaining a strong franchise model and adapting to changing consumer preferences.

Insurance Sector: Definity Financial & Travelers Acquisition

Definity Financial reported a strong Q4, driven by growth in personal auto, personal property, and commercial lines. The company’s acquisition of Travelers Canada is considered a “transformational” milestone, increasing its size by 35% and expanding its capabilities, particularly in complex and specialty commercial lines. CEO Rohan Saunders emphasized the importance of scale in the insurance industry and highlighted the potential for cost synergies and improved market position. Definity also increased its dividend, reflecting confidence in its earnings trajectory. Saunders acknowledged risks related to climate change and economic uncertainty but expressed confidence in the company’s ability to manage these challenges.

Diamond Industry Trends

The diamond industry is facing headwinds due to a slowdown in demand and the increasing popularity of lab-grown diamonds. Several Canadian mines have paused production, reflecting these challenges. Industry analyst Paul Zimnitsky noted that the industry has been impacted by sanctions on Russia, US tariffs on India, and a luxury recession in China. Lab-grown diamonds, which can be produced at significantly lower costs, are gaining market share. While natural diamonds remain preferred for engagement rings, the price difference is driving increased consumer interest in lab-grown alternatives. Zimnitsky highlighted the potential for a trade deal between the US and India to alleviate some of the pressure on the industry.

Market Movers & Laggards

Biggest Gainers (TSX): Magna International (+20%), Air Canada, Agnico Eagle Mines. Biggest Decliners (TSX): Colliers International (-6.6%), Advantage Energy, Cameco. US Market Movers: Pinterest (-18%), Coinbase (+17%).

Synthesis & Conclusion

The trading day reflected a mix of positive economic indicators and ongoing geopolitical uncertainties. Several Canadian companies, including Air Canada, Magna International, and Agnico Eagle Mines, reported strong results, driving gains on the TSX. The US-Canada trade dispute remains a point of contention, but the US House resolution signals a growing opposition to Trump’s tariffs. Emerging trends, such as the rise of indoor farming and lab-grown diamonds, are reshaping their respective industries, presenting both challenges and opportunities. Overall, the market demonstrated resilience and a cautious optimism as investors navigated a complex economic landscape.