Some of the best investments are the ones you could buy and forget about for a while. And it’s even better when you can buy such a fundamentally strong stock at a bargain.
That’s exactly what one of the best TSX-listed energy stocks, TerraVest Industries (TSX: TVK), is offering in late 2025. Interestingly, the stock has delivered close to 2000% returns over the past decade. Yet despite this incredible run, it has recently slipped almost 29% from its 52-week high. But this pullback has little to do with the company’s real long-term potential. In fact, it might just be the perfect setup for long-term investors looking for growth with income. Let me explain why this energy stock could not only reward investors with consistent dividends but could also deliver solid capital appreciation over time.
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This top stock with a strong track record is on sale
If you don’t know it already, TerraVest has quietly grown into a $2.7 billion industrial force over the past few years, with a strong presence in energy-related manufacturing.
TVK stock currently trades at $125.77 per share and offers a small but consistent annualized dividend yield of about 0.6%. Despite falling nearly 29% from its 52-week high, the stock has gained over 700% in the last five years and nearly 400% in just three years.
What makes the recent dip in this energy stock more interesting is that it hasn’t been driven by deteriorating fundamentals. Instead, it comes as TerraVest continues to invest heavily in growth, expand its portfolio, and generate solid earnings.
Growth backed by quality acquisitions
In 2025, TerraVest has gone on an acquisition spree, which is already showing up in its financial performance. The company has acquired multiple businesses so far this year, including Tankcon, Simplex, LBT, EnTrans, and Aureus, all of which added to its top line. These deals helped push its third-quarter revenue up by 70% YoY (year-over-year) to $405.7 million.
Similarly, the company posted a 39% YoY rise in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter to $68.1 million, while net profit came in at $13.3 million. The YoY dip in its profit in the latest quarter was mainly due to higher interest and amortization expenses from the recent acquisitions, along with foreign exchange headwinds. But in the first nine months of the year, TerraVest’s net profit was up 30% YoY, as new acquisitions continue to consistently pay off.
Backed by a strong balance sheet and clear focus
One of the reasons long-term investors can feel confident investing in TerraVest is its conservative approach to capital. Even with several acquisitions, it remains disciplined with its balance sheet and dividend payouts.
In the September quarter, TerraVest’s cash available for distribution grew 8% YoY. The company maintained a low dividend payout ratio of just 10%, leaving plenty of room for future increases, if needed.
Why this energy stock could reward long-term investors
In addition to its strong balance sheet and growth prospects, TerraVest’s resilient business model makes it even more attractive. The company mainly manufactures heating products, gas transport and storage equipment, and energy processing solutions, mostly for North American markets. This domestic focus limits its exposure to global tariff uncertainty, and its recent acquisitions are expected to bring more synergy opportunities in the coming years.
Overall, with consistent adjusted EBITDA growth, a history of smart acquisitions, and a business model tied to core energy infrastructure needs, TerraVest could be a great stock for a buy-and-hold investor. That’s why its recent dip looks like a rare opportunity for long-term investors to grab a high-performing compounder at a discount.
