Tariff headlines have made many Canadian investors nervous this year, given that cross-border trade friction tends to squeeze margins, slow down orders, and add uncertainty to earnings.
However, two top Canadian stocks, CES Energy Solutions (TSX:CEU) and MDA Space (TSX:MDA), recently posted stellar quarterly results, suggesting they are built differently.
The business models of the two companies allow them to sidestep trade-war-related headwinds. Let’s see why.
Source: Getty Images
Is this Canadian dividend stock a good buy?
CES Energy provides chemical solutions used across the oil and gas industry to optimize well performance and protect infrastructure. Though it is headquartered in Canada, most of its money is made south of the border.
During the company’s first quarter 2026 earnings call, president and CEO Kenneth Zinger said that 64% of revenue was generated in the United States, with the remaining 36% originating from Canada. Both countries posted record quarterly revenue simultaneously, a rare combination in this industry.
The reason tariffs are not a major issue for CES comes down to how the business is set up. The company runs its U.S. operations natively, with local blending plants, distribution facilities, and a flexible supply chain built inside American shale basins.
Zinger noted that CES now holds a market share of 29.9% of active land rigs across North America, describing it as the company’s highest ever. In the Permian Basin, the company’s rig count climbed from 87 to 98 rigs since March, pushing its market share in the region to 48.6%, also a record for the company.
Chief financial officer Anthony Aulicino added that Q1 revenue rose 8% year over year to $681.5 million, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 12% to $111.7 million. It ended Q1 with free cash flow of $33 million, while the total debt-to-EBITDA ratio was a comfortable 1.2 times.
CES raised its dividend by 29% and repurchased 1.3 million shares in Q1. It has estimated capital expenditures to total $95 million in 2026. CES Energy is a dividend stock that looks like one of the more insulated ways to play North American energy services right now.
Its U.S. footprint behaves like a domestic business, its balance sheet is conservative, and management keeps returning cash to shareholders.
The bull case for this Canadian stock
MDA Space, the company behind the iconic Canadarm, builds satellite systems, robotics, and geo-intelligence technology. Its customers are mostly sovereign governments and large aerospace organizations, a client base that tends to increase spending when geopolitical tensions rise.
CEO Mike Greenley told investors on the company’s earnings call that revenue grew 32% year over year to $464 million in the first quarter, with adjusted EBITDA up 32%, reaching $91 million. The company also completed a U.S. IPO in the quarter, adding $544 million of cash to the balance sheet.
MDA entered the quarter with a $3.7 billion order backlog and pointed to a much larger $40 billion opportunity pipeline, including $10 billion of follow-on work with existing government customers.
Greenley explained that rising interest in sovereign defence and space control, including the company’s new MDA MIDNIGHT platform, is driving fresh conversations with military customers around the world.
Chief financial officer Guillaume Lavoie reaffirmed full-year 2026 guidance of $1.7 billion to $1.9 billion in revenue and adjusted EBITDA of $320 million to $370 million, saying the quarter puts the company on track without needing to raise the outlook yet.
MDA’s backlog provides multi-year revenue visibility insulated from trade disputes. I see MDA stock as a strong defensive growth pick for investors who want exposure to the accelerating global space and defence buildout.
