Here Are My Top Canadian Stocks to Buy for 2026

Canada’s small and mid-cap space is quietly producing some of the market’s most compelling growth stories in 2026.

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Key Points
  • Zedcor delivers record Q3 revenue of $16 million, up 75% year-over-year.
  • Ero Copper achieves all-time monthly production records across all operations in October.
  • MDA Space maintains a $4.4 billion backlog with 45% year-over-year adjusted EBITDA growth.

While headlines focus on mega-cap tech and AI plays, three Canadian companies are delivering the kind of operational momentum that creates real shareholder value – record production, expanding margins, and multi-billion-dollar backlogs that provide revenue visibility well into the future.

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Source: Getty Images

Is this Canadian stock a good buy?

Zedcor (TSXV: ZDC) is a mobile security tower company that reported record revenue of $16 million in Q3 2025, up 75% year over year.

It reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $5.7 million, indicating a healthy 36% margin despite aggressive expansion in the U.S.

Zedcor’s tower fleet grew to over 2,350 units at quarter-end, up 1,200 year-over-year, while weekly production capacity hit 40 towers with room to scale higher.

Revenue splits show that expansion in the U.S. is gaining traction. Gross margins were 64% of revenue, even as Zedcor doubled its U.S. sales team and opened monitoring centres to support growth.

The bull case for the TSX mining stock

Valued at a market cap of $4.3 billion, Ero Copper (TSX: ERO) is engaged in the exploration, development, and production of mining projects in Brazil.

CEO Makko DeFilippo laid out the numbers: “Every single operation in our portfolio achieved not just 2025 calendar year monthly records for productivity and production, but they achieved all-time historic monthly records in October, beating some set many years ago.”

At Caraíba, the company’s flagship copper operation, all three mines hit all-time monthly tonnage records. Mill throughput exceeded 400,000 tonnes, implying an annualized run rate well above installed capacity following zero-cost debottlenecking completed in Q3.

The miner announced a maiden resource of 29,000 ounces of gold in concentrate stockpiles at Xavantina with plans to sell the full volume over 12 to 18 months at operating costs of $300 to $500 per ounce.

CFO Wayne Drier noted that the first shipment had already been invoiced for approximately $10 million, providing “early momentum” for accelerated deleveraging. The company’s net debt-to-EBITDA ratio improved to 1.9 times from 2.5 times at year-end 2024.

This TSX defence stock is a top buy

MDA Space (TSX: MDA) sits at an inflection point where multiple growth drivers converge. In Q3 2025, it reported revenue of $410 million, up 45% year over year. Its adjusted EBITDA rose 49% to $83 million, indicating a margin of over 20%.

The company’s Satellite Systems revenue rose 69% to $284 million, driven by ramp-ups on Telesat Lightspeed and Globalstar’s next-generation constellation.

The Montreal facility expansion adds 185,000 square feet and will have the capacity to deliver two MDA AURORA digital satellites per day upon completion.

Robotics on Canadarm3 progressed during Phase C, with development advancing toward final design completion. The Lunar Utility Vehicle study positions MDA for Canada’s $1.2 billion rover contribution to the Artemis program, according to the earnings transcript.

CFO Guillaume Lavoie reaffirmed 2025 guidance calling for revenue between $1.57 billion and $1.63 billion with adjusted EBITDA of $305 million to $320 million. That implies roughly 19%–20% margins on 45% growth at the midpoint.

The risk factors investors need to know

Zedcor’s rapid expansion creates execution risk. The company nearly doubled its U.S. sales force and plans to open a Houston monitoring centre in Q1 2026. That investment could pressure margins before revenue catches up.

Ero Copper faces supply chain challenges that delayed both Xavantina CHORUS and the initial Globalstar satellites into early 2026. The company has recourse through back-to-back liquidated damages clauses with suppliers, but delays create uncertainty about cash-flow timing.

MDA Space lost the $1.3 billion EchoStar contract when the customer terminated for convenience in September. While MDA expects compensation for termination costs, the development removes a significant growth driver and contributed to recent share price weakness.

Broader market risks include trade policy uncertainty and commodity price volatility for Ero, as well as government budget constraints that could slow the growth of defence spending for MDA.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zedcor. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.

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