3 Canadian Stocks That Could Do Well if the Loonie Slides

When the loonie slides, stocks with U.S. dollar revenue, global customers, or pricing power often look a little better. A weaker Canadian dollar can lift the value of foreign sales once companies report back in Canadian dollars, which helps firms with big overseas businesses or contracts tied to U.S. markets. In fact, it often gives exporters and globally exposed businesses a handy tailwind. So let’s look at a few on the TSX today.

CAE

CAE (TSX:CAE) runs flight training and simulation businesses for civil aviation and defence customers around the world, so it doesn’t rely only on the Canadian economy. Over the last year, the story turned more interesting as CAE stock leaned harder into defence while reshaping its civil business. In its latest quarter, management said softer near-term civil trends were largely offset by stronger defence demand, and that matters when markets feel shaky. A weaker loonie adds another layer of support because so much of CAE stock’s business comes from outside Canada.

In the third quarter of fiscal 2026, revenue rose 2% to $1.25 billion, while adjusted earnings per share (EPS) climbed to $0.34 from $0.29. Defence revenue jumped 14% and defence operating income rose 38%, with backlog still sitting near $11 billion. Civil revenue slipped 5%, so this is not a perfect story, but the business still generated more than $411 million in quarterly free cash flow and kept cutting debt. CAE stock trades at about 32 times trailing earnings, so it’s not cheap, but the mix of defence growth, global exposure, and restructuring upside gives it a strong case if the loonie stays weak.

TIH

Toromont Industries (TSX:TIH) isn’t the cleanest currency play on the TSX, but it still brings some useful traits. TIH stock sells and services heavy equipment through Toromont Cat and runs CIMCO, which builds industrial and recreational refrigeration systems in Canada and the U.S. Over the last year, it expanded its AVL manufacturing business and bought a facility in North Carolina to boost U.S. production. That gives it some American exposure, even though this remains a more Canadian industrial story than a straight exporter.

Its latest results showed why investors still like it in uncertain markets. Fourth-quarter revenue rose 9% to $1.4 billion, and full-year revenue climbed 4% to $5.2 billion. Backlog reached $1.5 billion, up from $1.1 billion a year earlier, while fourth-quarter bookings jumped 47%. Net earnings for the year dipped 2% and diluted EPS slipped to $6.07, so growth was not explosive. TIH stock also looks rich at about 35 times trailing earnings. Still, strong service revenue, healthy backlog, and some U.S. expansion give it enough ballast to stay interesting if the currency weakens further.

TRI

Thomson Reuters (TSX:TRI) may be the most polished loonie-slide pick of the bunch. It sells software, data, and professional tools to legal, tax, accounting, and corporate clients around the world, with a heavy U.S. footprint. That kind of business tends to travel well in rough markets because customers keep paying for mission-critical tools. Over the last year, it kept pushing deeper into artificial intelligence (AI), including CoCounsel’s growth to one million users and the acquisition of Noetica, which should strengthen its legal workflow products even more.

Full-year 2025 revenue rose 3% to US$7.5 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 6% to US$2.9 billion, and adjusted EPS rose 4% to US$3.92. TRI stock also guided for 2026 revenue growth of 7.5% to 8%, while its “Big 3” segments are expected to grow about 9.5%. The main risk is valuation, because the stock still trades around 26.5 times trailing earnings, and AI competition has clearly made investors jumpy. Even so, strong recurring revenue, global customers, and a big U.S. earnings base make TRI stock a very tidy match for a softer loonie.

Bottom line

If the loonie keeps slipping, investors may want companies that already earn their keep beyond Canada. CAE offers global training and defence exposure, Toromont brings steady industrial demand with some U.S. growth, and Thomson Reuters adds a high-quality software and information business with plenty of foreign revenue. All three have enough scale, resilience, and international reach to hold up nicely if the currency trend keeps moving in the same direction.

The post 3 Canadian Stocks That Could Do Well if the Loonie Slides appeared first on The Motley Fool Canada.

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More reading

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