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Second Quarter Highlights

• Generated $2.7 billion in adjusted funds from operations and $1.0 billion in free funds flow.
• Returned $1.45 billion to shareholders, with $750 million in share repurchases and $700 million in dividends.
• Record second quarter upstream production of 808,000 bbls/d and record first half production of 831,000 bbls/d.
• Record second quarter refinery throughput of 442,000 bbls/d and record first half throughput of 462,000 bbls/d.
• Executed major upstream and downstream turnaround activity safely and ahead of schedule.
• Completed the Upgrader 1 coke drum replacement project ahead of schedule in early July.
• Reduced 2025 capital guidance by $400 million, reflecting strong execution performance and capital discipline.

“What stands out the most about our strong second quarter is the outstanding execution of major upstream and downstream turnaround activities, completed safely and ahead of schedule,” said Rich Kruger, President and Chief Executive Officer. “This performance was a key driver behind Suncor’s record-setting second quarter and first half volumes results and positions us extremely well for a strong second half of the year. The quarter once again demonstrates our unwavering commitment and focus on delivering superior results for our shareholders.”

https://www.barchart.com/story/news/33901964/suncor-energy-reports-second-quarter-2025-results

The latest Canadian jobs report, released on July 11, 2025, showed a strong increase in employment, with 83,000 new jobs added in June. This led to a decrease in the unemployment rate, which fell to 6.9%. The report also indicated a rise in the employment rate, reaching 60.9%. 

Key Highlights:

• Employment Growth: The Canadian economy added 83,000 jobs in June, reversing a previous trend of slower growth. 
• Unemployment Rate: The unemployment rate decreased to 6.9%, a drop of 0.1 percentage points. 
• Employment Rate: The employment rate rose to 60.9%, an increase of 0.1 percentage points. 
• Sectoral Gains: The wholesale and retail trade industry saw the most significant gains, with 34,000 new positions, followed by health care and social assistance with 17,000 new jobs. 
• Manufacturing Rebound: Despite recent concerns about tariffs, the manufacturing sector also saw gains, adding 10,000 jobs in June, according to BNN Bloomberg. 
• Tariff Impact: While the report shows overall positive job growth, some areas, like Windsor, Ontario, are still experiencing high unemployment rates due to trade pressures from tariffs. 
• Student Unemployment: The unemployment rate for returning students remained elevated at 17.4%. 

Overall, the Canadian jobs report indicates a positive trend in June, with strong employment gains and a decrease in the unemployment rate

 Gold prices rose for a third straight session on Monday after last week’s economic data fueled expectations of interest rate cuts by the U.S. Federal Reserve.

Spot gold rose 0.2% to $3,371.85 per ounce as of 1:47 p.m. ET (5:47 GMT), its highest level since July 24. U.S. gold futures gained 0.8% to $3,427.1.

“The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That coupled with the headwinds of inflation, I think is pretty bullish for gold,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Last week, data showed that U.S. employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labor market conditions. Additionally, the Fed’s preferred gauge, U.S. PCE inflation data, increased 0.3% in June after an upwardly revised 0.2% gain in May as tariffs started raising the cost of some goods.

According to the CME FedWatch tool, traders now see an 85% chance of a September rate cut, up from just over 63% a week ago.

Bullion typically performs well in a low-interest-rate environment and is regarded as a hedge against inflation.

The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.

Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order.

Elsewhere, spot silver was up 0.8% at $37.33 per ounce.

Platinum inched 0.5% higher to $1,322.03, while palladium reached an over two-week low, slipping 1.9% to $1,184.75.

Palladium prices still has some upside and are likely to see a rebound with downside support at $1,180/oz and upside breakout at $1,230, Pavilonis said.

OPEC+ agreed on Sunday to raise oil production by 547,000 barrels a day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia.

The move marks a full and early reversal of OPEC+’s largest tranche of output cuts plus a separate increase in output for the United Arab Emirates amounting to about 2.5 million b/d, or about 2.4 per cent of world demand.

Eight OPEC+ members held a brief virtual meeting, amid increasing U.S. pressure on India to halt Russian oil purchases – part of Washington’s efforts to bring Moscow to the negotiating table for a peace deal with Ukraine. President Donald Trump said he wants this by Friday.

In a statement following the meeting, OPEC+ cited a healthy economy and low stocks as reasons behind its decision.

Oil prices have remained elevated even as OPEC+ has raised output, with Brent crude closing near US$70 a barrel on Friday, up from a 2025 low of near US$58 in April, supported in part by rising seasonal demand.

Imperial Oil encouraged by talks with Ottawa as company posts fall in quarterly profit

“Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals,” said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks.

The eight countries are scheduled to meet again on Sept. 7, when they may consider reinstating another layer of output cuts totalling around 1.65 million b/d, two OPEC+ sources said following Sunday’s meeting. Those cuts are currently in place until the end of next year.

OPEC+ in full includes 10 non-OPEC oil producing countries, most notably Russia and Kazakhstan.

The group, which pumps about half of the world’s oil, had been curtailing production for several years to support oil prices. It reversed course this year in a bid to regain market share, spurred in part by calls from Mr. Trump for OPEC to ramp up production.

The eight began raising output in April with a modest hike of 138,000 b/d, followed by larger-than-planned hikes of 411,000 b/d in May, June and July, 548,000 b/d in August and now 547,000 b/d for September.

“So far the market has been able to absorb very well those additional barrels also due to stockpiliing activity in China,” said Giovanni Staunovo of UBS. “All eyes will now shift on the Trump decision on Russia this Friday.”

As well as the voluntary cut of about 1.65 million b/d from the eight members, OPEC+ still has a 2-million-b/d cut across all members, which also expires at the end of 2026.

“OPEC+ has passed the first test,” said Jorge Leon of Rystad Energy and a former OPEC official, as it has fully reversed its largest cut without crashing prices.

“But the next task will be even harder: deciding if and when to unwind the remaining 1.66 million barrels, all while navigating geopolitical tension and preserving cohesion.”

The Bank of Canada held its policy interest rate at 2.75 per cent for the third consecutive time as U.S. trade policy continues to muddy the economic outlook.

The bank once again held off publishing a central forecast in its quarterly Monetary Policy Report. Instead, it detailed three potential paths for the Canadian economy that depend on the trajectory of U.S. tariffs, ranging from a mild downturn to an extended recession.

Key moments:

• BoC’s policy interest rate remains on pause for the third consecutive time
• Markets react to today’s BoC decision and probabilities of further rate cuts this year
• Why the BoC hold won’t do much for Canada’s real estate market

Canadian Pacific Kansas City CP-T -0.16%decrease has reported an increase in profits and revenues during the second quarter.

The continent-spanning railroad, headquartered in Calgary, posted net income of $1.23-billion for the three months ended June 30, up from $903-million during the same period a year earlier.

Diluted earnings per share came in at $1.33, an increase from 97 cents.

Revenues were $3.7-billion for the period versus $3.6-billion in the second quarter of 2024.

CPKC’s operating ratio – a key metric watched by investors, where a lower number is better – decreased to 63.7 per cent from 64.8 per cent a year earlier.

The railroad is maintaining its most recent forecast of adjusted diluted earnings per share growth of 10 to 14 per cent in 2025, which was lowered in April from an earlier prediction of 12 to 18 per cent growth.

Air Canada AC-T -10.62%decrease saw an 11-per-cent decline in U.S-bound seat sales in the second quarter amid trade and sovereignty tensions spurred by U.S. President Donald Trump.

Canada’s largest airline posted a 2-per-cent per cent rise in overall operating revenue as travellers chose domestic or overseas destinations.

“In the transborder market, we continue to see less demand for trips to the U.S.,” said Mark Galardo, Air Canada’s chief commercial officer.

‘Elbows up’ vacations a boon for Canada’s hospitality sector, June data show

Air Canada on Tuesday reported profit of $186-million for the three months ending on June 30, compared with $410-million in the year-earlier period. Adjusted for a tax settlement, profit was $207-million, or 60 cents a share, compared with $369-million (98 cents) in the same period a year ago.

Analysts had expected adjusted profit of 72 cents a share.

Airlines are using AI to set ticket prices. Here’s how you can avoid price manipulation when booking flights

“This second quarter was not business as usual,” Mr. Galardo told analysts on an earnings conference call on Tuesday morning. “We navigated through a period of significant economic and geopolitical uncertainty and we contended with reduced demand for transborder travel.”

Other headwinds included reduced demand for travel to the Middle East and India amid geopolitical turmoil, increased competition in China and Hong Kong, and currency fluctuations, he said.

Mr. Galardo said the drop in U.S. travel was expected and accompanied by an 8-per-cent decline in seat capacity and better per-seat yields.

Not shy about travelling to the U.S.? Flight prices have dropped to some destinations

Opinion: Domestic travel in Canada isn’t as accessible as we like to think

Canadians have adopted an elbows-up stance against Mr. Trump’s threats to make Canada the 51st state and crush its industries with tariffs. They have shunned U.S. visits and products and lauded campaigns to spend their money at home.

According to Statistics Canada, the number of Canadians crossing the border by plane has fallen through the first five months of the year, and is down in April and May by 14 per cent and 24 per cent, respectively, compared to a year ago. Trips by car, which comprise three-quarters of travel to the U.S., fell by more than 35 per cent for these months.

The diminished U.S. market is significant for Canada’s airlines because it was the destination for 75 per cent of all trips abroad by Canadians in 2024.

Celestica Inc. CLS-T +16.92%increase continued in the second quarter to benefit from surging demand from tech giants engaged in a global arms race to build giant artificial intelligence-driven data centres, surpassing heightened market expectations.

The Toronto-based global manufacturing giant reported Monday after the market close that it generated US$2.89-billion of revenue in the quarter ended June 30, up 21 per cent from the same period a year earlier. It also reported adjusted earnings of US$1.39 a share, up 54 per cent, and net earnings of US$1.82 a share, up 128 per cent.

Celestica’s U.S.-listed shares jumped more than 10 per cent in after-market trading Monday after the stock closed at an all-time high of $238.07 on the Toronto Stock Exchange. The stock has appreciated by nearly 80 per cent this year and is up more than 15-fold since the end of 2022, giving the company a market capitalization of nearly $27-billion. That makes Celestica the fourth-most valuable technology company on the Toronto Stock Exchange.

Celestica Inc Sv

238.07+105.41 (79.46%)

Year to date

Dec. 31, 2024

132.66

July 28, 2025

238.07

SOURCE: BARCHART

Celestica came into the quarter expected to not only beat its own increased projections from April, but also recent analyst forecasts after exceeding their estimates for revenue and adjusted earnings in each of the past four quarters. It did so.

Revenues were about $200-million above the upper end of the company’s forecast revenue and analyst estimates, while its adjusted operating margin of 7.4 per cent was 20 basis points above its forecast. The company also raised its guidance for 2025, forecasting revenue of US$11.55-billion (up US$700-million from its increased forecast in April) and adjusted earnings per share of US$5.50, up from its prior US$5 forecast.

Analysts had widely expected Celestica to increase its forecast after doing so last quarter,and three times in each of the past two years. In addition, rivals Accton Technology Corp., Broadcom Inc. AVGO-Q +1.72%increase and Jabil Inc. JBL-N +3.10%increase recently reported financial results above expectations,and AI chip giant Nvidia Corp. 

N/A recently surpassed US$4-trillion in stock market value.

Celestica, which supplies equipment to data centres and server farms that provide the computing power for AI models, has been on a tear since 2022, when OpenAI launched ChatGPT and kicked off the generative AI revolution.

CEO of Canada’s Celestica sells $130-million of shares, cashing in on Nvidia-style gains during AI boom

The Canadian company is a key supplier to tech giant “hyperscalers” including Google, Meta Platforms and Amazon.com Inc. They have heavily upgraded computing capacity for AI development and are accelerating plans to do so: Google said last week it would make US$85-billion of capital expenditures this year, US$10-billion higher than previously forecast. Revenue from the Celestica segment which supplies the AI boom, increased by 28 per cent in the quarter to US$2.07-billion, accounting for 71.6 per cent of total company revenues.

“Celestica is benefiting from AI-driven data center expansion through its storage and networking produces, as well as servers for AI applications,” RBC Capital Markets analyst Paul Treiber said in a note to clients last week.

Celestica provides computing modules, network switches and data storage capacity for server farms, none of which is a straightforward manufacturing job. It incorporates custom silicon and has proprietary thermal and power management designs to help companies manage the extreme heat and electricity needed to run data centres.

Celestica was briefly a stock market darling a quarter century ago, after the former IBM division was purchased by Onex Corp. ONEX-T -0.22%decrease and spun out into a public company as dot-com mania heated up. (Onex sold out of its position in 2023, before most of the stock’s current run). Its stock soared as the company supplied fibre-optic cables and other equipment used to build out the internet.

But Celestica shares crashed amid the dot-com bust and remained in investor purgatory for two decades.

Chief executive Rob Mionis arrived in 2015 after the company had experienced years of losses, job cuts and shareholder lawsuits. The American-born private equity and aerospace industry veteran shifted Celestica’s orientation, moving it away from manufacturing low-margin products and competing on price to building more complex equipment that required engineering expertise. It improved its mix of customer segments with higher margin products in aerospace and defence, renewable energy, electric vehicle chargers and medical devices.

But the company’s coup was landing a lead position servicing tech giants as they built out data centres. Those relationships, forged before ChatGPT’s arrival, put the company in position to take off with the arrival of the generative AI wave that is now rapidly transforming the global economy,Mr. Mionissaid in a 2023 interview.

Now, the company’s shares trade above its peers and at the high end of their 10-year range, and it is likely to maintain its premium valuation, Mr. Treiber wrote last week.

https://www.newswire.ca/news-releases/george-weston-reports-strong-operating-performance-offset-by-earnings-impact-of-fair-value-adjustment-related-to-choice-properties-unit-price-gain-of-4-9–849698264.html