TSX’s Long Game: Is It Positioned for Enduring Success?

The TSX is firmly positioned for long-term success as it keeps powering through market headwinds.

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The Toronto Stock Exchange is poised for robust earnings growth in 2025, demonstrating remarkable resilience despite tariff headwinds. Many TSX-listed companies have not only preserved their strong market positions and stable business models but also innovated or adapted to a complex environment.

Three high-quality stocks emerge as exceptional choices for long-term investors. Beyond overcoming short-term setbacks, these companies offer opportunities to maximize your money’s growth potential.

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Defensive legacy business

Empire Company (TSX: EMP.A), a defensive grocery business, should remain a Canadian food retail industry icon for decades. In 2025, Canadian shoppers are supporting the local economy and buying Canadian products over American goods. According to its President and CEO, Michael Medline, this behaviour is becoming sticky.

Medline added that Empire and the industry are not highly or directly affected by tariffs and can roll with the punches. The Sobeys parent company wants to ensure that no unnecessary costs are passed on to customers. Moreover, the sourcing of U.S. products continues to drop.

Empire delivered positive results across all major financial measures in Q4 fiscal 2025. In the three months ending May 3, 2025, sales and net earnings increased 3% and 16% year-over-year to $7.6 billion and $173 million, respectively. Medline is also excited about the potential of Empire’s e-commerce business, which is another catalyst for growth.

The $12.9 billion company’s legacy business has survived countless recessions. For prospective investors, EMP.A is up 29.3%-plus year-to-date, trading at $56.04 per share with a modest 1.6% dividend yield.

Strong foundation for growth

Growth investors should take notice of Firan Technology Group (TSX: FTG). The stock, at $12.07 per share, has outperformed the TSX year-to-date with a 65.6% market-beating return compared to 12.9%-plus. Its trailing one-year price return is 96.3%-plus. This $314.2 million global company offers design, development, prototypes, and manufacturing solutions for aerospace and defence electronic products and subsystems.

Two core business segments, FTG Circuits (high-quality printed circuit boards or PCBs) and FTG Aerospace (high-quality avionic subsystem hardware), are the revenue generators. In Q1 2025, sales and net earnings rose 22.6% and 36.3% year-over-year to $42.9 million and $3.5 million, respectively.

Management said the quarterly results demonstrate FTG’s commitment to laying a strong foundation for continued growth. Strategic investments are ongoing to drive increased shareholder returns in both the near term and the long term.

Renaissance period

AtkinsRéalis Group (TSX: ATRL) is focused on expanding its nuclear business and maintaining its leadership position in the global infrastructure sector. The $16 billion Canadian engineering giant is ready to capitalize on the global shift towards nuclear power.

According to its CEO, Ian Edwards, a significant renaissance is currently underway in the nuclear power sector. AtkinsRéalis achieved a record backlog of $20.9 billion in Q2 2025, including a 230% year-over-year increase in nuclear business backlog. Edwards said the strong quarterly results reflect the ongoing demand for the company’s unique end-to-end engineering services and nuclear expertise. “We are distinctly positioned to capture significant market opportunities,” he added.

As of this writing, ATRL trades at $97.14 per share (+27.4% year-to-date). Market analysts maintain a consistent positive outlook, with buy or strong buy ratings and a 12-month average price target of $110.

Long-term investments

Canada’s largest stock exchange is well-positioned for enduring success, and so are Empire Company, Firan Technology, and AtkinsRéalis. Investors with long-term horizons can take positions in one or all of them.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool has a disclosure policy.

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