The Canada-U.S. trade uncertainty returned earlier this week, when U.S. President Donald Trump announced 50% tariffs on a range of Canadian goods. The new duties are expected to take effect in 30 days and, more importantly, many products covered by the Canada-United States-Mexico Agreement will not be protected this time.
Canada has already spent much of the last two years responding to changing tariffs on steel, aluminum, automobiles, lumber, and other goods. That’s why investors may want to focus on fundamentally solid businesses that do not depend heavily on selling one product into one market.
For example, Franco-Nevada (TSX:FNV) offers diversification through a broad portfolio of royalties and streams. In this article, let me explain why I’d bet on this Canadian stock as Canada-U.S. trade relations become increasingly unpredictable.
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Franco-Nevada stock
In short, Franco-Nevada is a Toronto-based royalty and streaming firm focused mainly on gold. Instead of operating most mines itself, it owns interests that provide revenue linked to production from assets run by other companies.
FNV stock has climbed 37% over the last year alone to currently trade at $292.74 per share. This rally gives it a market cap of about $57 billion. At this market price, it also offers an annualized dividend yield of 0.9%.
Strong commodity prices and record financial results appear to have supported that longer-term performance. Still, its shares were down about 14% over three months, creating a potentially more attractive entry point for patient Foolish investors.
Continues to post record growth
In the first quarter of 2026, Franco-Nevada’s revenue surged 77% year-over-year (YoY) to a record US$651 million. The increase reflected record gold and silver prices, strong production from assets including Antamina and South Arturo, and added contributions from recently acquired or newly producing assets such as Côté Gold, Porcupine, and Valentine.
Its gold equivalent ounces sold rose 8% YoY to 136,353. Similarly, operating cash flow jumped 80% from a year ago to US$520 million, although that figure included a US$49.5 million tax refund from the Canada Revenue Agency.
More importantly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) reached a record US$592 million, up 84%. As a result, Franco-Nevada’s adjusted net profit more than doubled to US$458.3 million.
Growth beyond tariff worries
Beyond its strong financial growth trends, Franco-Nevada is continuing to expand its portfolio, which should help it keep growing even if trade tensions remain elevated.
During and shortly after the quarter, the company added royalties and streams tied to Casa Berardi, i-80 Gold assets, Bullabulling, and properties previously held by Victoria Gold. It also had US$3.4 billion in available capital at the end of March, giving it good flexibility to pursue additional opportunities.
Moreover, the company remains on track for 2026 sales of 510,000 to 570,000 gold equivalent ounces, excluding potential Cobre Panamá contributions. Processing approved stockpiled ore could eventually generate about 23,100 gold ounces and 265,000 silver ounces for Franco-Nevada, although most deliveries are expected in 2027.
Although Franco-Nevada’s recent decision to challenge a Burkina Faso court decision involving its Karma Mine stream highlights short-term risk, the company’s diversified portfolio, strong balance sheet, and limited exposure to mine operating cost inflation make FNV an attractive Canadian stock to buy as trade tensions rise.
