The Canadian equity market has been on a strong run in 2025, supported by a resilient economy and impressive gains in key sectors. The S&P TSX Composite Index has gained 12.2% year-to-date, primarily driven by the strength of metals and mining companies, which continue to benefit from solid demand and favourable pricing trends.
However, not all TSX stocks participated in the rally. Tariff-related uncertainties and the volatility in crude oil prices have created significant headwinds for several Canadian companies, leaving some stocks trailing far behind the broader market. As a result, a handful of names on the TSX have lost considerable value in 2025, standing out as the year’s worst performers so far, even as the index itself pushes to new heights.
Against this background, here are two of the worst-performing stocks in the TSX Index in 2025.
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Computer Modelling Group stock
Computer Modelling Group (TSX: CMG) has struggled this year, dropping 39.5% and ranking among the TSX’s worst performers. CMG provides software and consulting services to the energy sector. It has faced headwinds as softer oil prices push many producers to scale back spending on new technology. That has lengthened sales cycles and slowed deal activity, pressuring CMG’s growth.
Adding to the challenges, CMG recently lost a long-standing client in its reservoir simulation business after a global competitor undercut pricing with aggressive discounts and bundled offerings. Meanwhile, enthusiasm around carbon capture and storage, once lifted by U.S. tax incentives, has waned as project momentum in the U.S. cooled, creating another short-term drag.
Despite these setbacks, CMG’s core technology remains critical to the energy industry, particularly in subsurface modelling and reservoir simulation. As energy budgets stabilize and operators refocus on technology, CMG stands to regain momentum. Its acquisitions of Bluware and Sharp expand its capabilities, while its seismic solutions business shows promising early traction, supported by differentiated products and rising adoption.
Management remains cautiously optimistic, projecting stronger revenue and margins in the second half of the year, supported by seasonal contract renewals and continued investment in both organic growth and acquisitions. In short, this small-cap stock could witness a sharp rebound as the demand environment improves.
TFI International stock
TFI International (TSX: TFII) has been one of the worst-performing names on the TSX in 2025, with its shares sliding nearly 35% year-to-date. The transportation and logistics giant is facing the same headwinds that have weighed on much of the freight industry, which includes soft demand and ongoing uncertainty in trade and industrial markets.
In the first half of 2025, TFI reported total revenue of $4 billion, slightly below the $4.14 billion it posted a year earlier. Revenue before fuel surcharges also slipped to $3.51 billion from $3.57 billion. The decline reflects a weak transportation environment and lower fuel surcharge revenue, though recent acquisitions helped offset some of the pressure.
Tariff-related uncertainty has dampened industrial demand, a trend that has hit the company’s Truckload segment particularly hard. Its Less-Than-Truckload (LTL) and Logistics divisions have also seen ongoing weakness.
Despite these challenges, TFI International is working to strengthen its operations and protect margins. The company’s long-term outlook remains promising, as improvements in global trade dynamics and stabilization in industrial demand could act as tailwinds. However, in the near term, investors should expect continued volatility as the company navigates a tough demand and operating landscape.
