3 Canadian Stocks That Are Winning as the Loonie Falters

When the loonie weakens, TSX winners are often companies with U.S.-dollar revenue and costs that don’t rise as fast.

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Key Points
  • Bombardier gets a natural foreign exchange boost because much of its jet revenue is in U.S. dollars.
  • Cenovus benefits as U.S.-priced oil translates into more Canadian-dollar cash flow, plus it returns lots of capital.
  • Alamos can see stronger reported results because gold is priced in U.S. dollars, though miner costs still matter.

The loonie’s weak right now. The Canadian dollar has fallen to around US$0.72, pressured by a stronger U.S. dollar, elevated U.S. interest rates, and geopolitical uncertainty that continues to drive safe-haven demand for the greenback.

It’s not all bad: For Canadian investors, it opens an opportunity. Companies that earn in U.S. dollars while carrying a meaningful cost base in Canada are already seeing the tailwind flow through their results. The best-positioned businesses have U.S.-dollar revenue without the offsetting drag of currency-sensitive costs or U.S.-dollar debt that eats the benefit.

Three stocks on the TSX fit that profile today.

Paper Canadian currency of various denominations

Source: Getty Images

Bombardier: U.S.-Dollar Revenue, Canadian Cost Base, Currency Tailwind Already Running

Bombardier (TSX: BBD.B) focuses on business jets and aftermarket services — a market that runs almost entirely in U.S. dollars. When the loonie slides, Bombardier’s Canadian-dollar costs become relatively cheaper while its U.S.-dollar revenues convert into more Canadian dollars. That’s a structural currency advantage, and it’s active right now, not waiting for a further move.

Over the past year, Bombardier’s story stayed centred on operational delivery, margin improvement, and balance sheet reduction — the kind of execution that makes currency tailwinds additive rather than the whole thesis. In 2025, it reported revenues of approximately US$8.7 billion, adjusted EBITDA of roughly US$1.4 billion, and free cash flow of around US$1.1 billion. The stock recently carried a market cap around $27.2 billion and a trailing P/E around 21.3. The upside comes from continued execution, strong services revenue growth, and a currency tailwind that strengthens if the loonie weakens further from here. The risks include any slowdown in business jet demand, supply chain disruptions that delay deliveries, and the sensitivity that leveraged stories can have when sentiment shifts.

Cenovus Energy: Oil Priced in U.S. Dollars, Cash Flow Landing in Canadian Ones

Oil is priced in U.S. dollars globally, which means every barrel Cenovus produces generates revenue in a currency that’s currently buying more Canadian dollars than it did a year ago. Cenovus Energy (TSX: CVE) adds an integrated downstream refining operation to the mix, which can help smooth results when crude prices and refining margins move out of sync — a useful cushion in a volatile commodity environment.

In Q4 2025, Cenovus reported net earnings of $934 million, cash from operating activities of approximately $2.4 billion, and adjusted funds flow of $2.7 billion, returning $1.1 billion to shareholders through buybacks and dividends in the quarter alone. The stock recently carried a market cap around $59 billion and a trailing P/E around 14.7. At that valuation, a loonie that stays weak — or weakens further — adds a meaningful layer to an already-reasonable entry point. The risks include (cough cough) oil price volatility, operational disruptions, and execution on the integration front.

Alamos Gold: Gold in U.S. Dollars, Costs Partly in Canadian Ones

Like oil, gold is priced in U.S. dollars. A softer Canadian dollar directly boosts reported cash flow for producers with Canadian-linked operating costs. Alamos Gold (TSX: AGI) operates producing gold mines with a track record of disciplined project execution and cost control — the qualities that separate gold stocks worth owning long-term from those that only work when the price tape is perfect. With gold sentiment staying supportive and the currency tailwind now a live factor rather than a forecast, Alamos has two forces working in its favour simultaneously.

The stock recently carried a market cap around $28.6 billion, trading at a premium around 24 times earnings for a mid-tier producer. That multiple reflects both the gold price environment and the operational credibility Alamos has built. The upside comes from continued execution, a supportive gold market, and a currency tailwind that amplifies Canadian-dollar results as long as the loonie stays soft. The risks include gold price pullbacks, cost inflation, and the operational surprises that can hit even well-run miners.

Bottom line

For Canadian investors looking for a silver lining in the loonie’s weakness, these three stocks offer different versions of the same structural advantage: U.S.-dollar revenues converting into more Canadian dollars at a moment when that conversion rate is already moving in their favour. Bombardier offers a business jet and services model running almost entirely in U.S. dollars. Cenovus offers integrated energy exposure with U.S.-priced oil and strong capital returns. Alamos offers gold leverage with disciplined execution and the same U.S.-dollar pricing advantage.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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