Ottawa awards $3.25B contract to Quebec-based Davie shipyard to build new polar icebreaker
The federal government has handed a $3.25 billion contract to the Davie Shipyard in Lévis, Que. to build a new polar icebreaker by 2030.
"This polar icebreaker will be among the largest and most complex ever built on the planet," said Public Services and Procurement Minister Jean-Yves Duclos at a news conference in Lévis on Saturday morning.
An icebreaker is a vessel designed to navigate and cut through thick ice that obstructs frozen waters.
Another polar icebreaker will be built simultaneously at Seaspan's Vancouver Shipyards. Duclos explained that the Canadian Coast Guard will be able to use the two ships in emergency situations in Canada's Arctic to conduct year-round missions to support northern communities and scientific research, and to ensure the country's Arctic sovereignty.
"This will give Canada access to the Arctic and the High Arctic at all times and in all circumstances for the first time in the country's history," said Duclos.
"This is particularly relevant in the present context, where Canadian sovereignty is threatened by growing global tensions."
The construction of the PolarMax is expected to create 3,250 "direct and indirect jobs" per year between 2025 and 2030 and to add $440 million to Canada's GDP annually, according to Duclos.
More than 70 per cent of the work will be done in the province and the rest of Canada. Canadian workers will also work with their Finnish counterparts to build part of the icebreaker in Finland.
Quebec Premier François Legault told reporters this job creation comes at a "good time."
"With Mr. Trump, there's a significant risk that jobs will be lost in the manufacturing sector as a result of the tariffs that will be put in place and the reduction of our exports to the United States," said Legault.
Duclos noted that the PolarMax will withstand impacts and extreme vibrations in very cold temperatures and through ice up to three metres thick for a minimum lifespan of 40 years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Lululemon Athletica Stock (LULU) Plunges 23% as Tariff Pressures Eclipse Earnings Beat
Lululemon Athletica (LULU) shares have declined more than 20% following the release of its quarterly earnings report last week, as investors react to tariff-driven margin concerns and slowing revenue growth. The Canadian athletic apparel brand is beginning to feel the weight of reality in the Trump era following the introduction of sweeping tariffs, while also facing headwinds in its core U.S. market due to tightening discretionary spending and intensifying competition. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Several analysts have since lowered their price targets on the stock. Upon closer examination, several underlying trends raise concerns, prompting a cautiously neutral stance. Despite posting a solid earnings beat for Q1 FY2025, Lululemon (LULU) experienced its steepest single-day drop in years after trimming its full-year EPS guidance by $0.37 per share. While gross margins improved to 58.3% thanks to lower production costs, operating margins slipped 110 basis points to 18.5%, highlighting mounting pressure on profitability. Additionally, comparable store sales grew just 1%, with a 2% decline in the Americas—a concerning trend for the brand's largest market. Notably, it's not just the top-line numbers that tell the story. Lululemon's inventory levels increased 23% versus planned high-teens growth. More and more of its products are collecting dust on its shelves. This could signal demand softness. Lululemon has struggled in the past with its women's apparel aligning with ever-changing trends. Though based in Vancouver, Canada, Lululemon is still exposed to the impact of President Trump's tariffs. Like many apparel retailers, the company relies on Asian manufacturing partners in countries such as Vietnam and Indonesia, importing finished goods into key markets, particularly the U.S., which remains its largest. As a result, the renewed import levies are a significant factor behind the company's downward revision to its earnings guidance. Regardless of the troubles the company faces on a macro level, its store count continues to rise as expansion beckons. Lululemon plans to implement targeted price increases on a select group of products. While this strategy can help support margins, it also carries the risk of dampening demand. After all, Lululemon isn't selling necessities—it's offering premium athletic apparel. In tougher financial climates, price-sensitive consumers may opt to delay purchases or explore more affordable alternatives. A recent Intuit survey found that over 80% of young adults would reduce non-essential spending if economic conditions deteriorate. That puts Lululemon in a position where it must balance profitability with consumer sensitivity. Indeed, other retailers are facing similar challenges, but it's not all negative news for Lululemon. While domestic growth has slowed, the company is seeing strong international momentum. Comparable sales outside the U.S. increased by 6%, with particularly auspicious results in China, where Lululemon ranks as the third-largest foreign sports apparel brand, following Nike and Adidas. Building on this success, Lululemon plans to expand its presence by opening additional stores in China and Europe. In the meantime, other companies competing directly with LULU are shown below. Perhaps the most significant factor in LULU's volatile stock reaction was the fact that it was priced for perfection. Even after the selloff, Lululemon trades at a Price to Earnings (P/E) ratio of 22.7, which is still a premium relative to its peers in retail. Financially, Lululemon remains in great shape. It generated over $1.5 billion in free cash flow in 2024 and maintains a balance sheet of $1.3 billion in cash and zero debt. On Wall Street, LULU sports a Moderate Buy consensus rating based on 16 Buy, 12 Hold, and two Sell ratings in the past three months. LULU's average stock price target of $313.75 implies ~21% upside potential over the next twelve months. Following its first quarter earnings report, analyst Tom Nikic of Needham lowered his price target on LUL from $366 to $317. Although he believes the selloff was overdone due to the guidance cut being predominantly tariff-driven, he expressed caution over the company's lackluster domestic growth. Moreover, he noted that Lululemon's international comparable growth decelerated, 'raising questions about the growth algo from here.' Randal Konik from Jefferies has a Sell rating on LULU due to slowing growth and increasing competition. On the last point, he notes that the company's attempts to diversify its core offerings have 'not been well-received, leading to lower customer conversion rates.' Lululemon's challenges can't be attributed solely to President Trump's tariffs. Beyond the impact of import levies on profitability, the company's growth is showing signs of slowing, especially in mature domestic markets. Coupled with a premium valuation and a lowered guidance, these factors contributed to a staggering $8 billion loss in market value. Looking forward, Lululemon must navigate the ongoing tariff pressures alongside intense competition and an American economy marked by consumer uncertainty and inflation. Fortunately, the company has the financial strength to weather these headwinds, and its brand remains strong, especially among younger consumers. That said, the difficulty of protecting profit margins while sustaining high growth in an increasingly competitive athleisure market suggests that investors should approach with caution. Disclaimer & DisclosureReport an Issue
Yahoo
an hour ago
- Yahoo
Trump's policies disrupt global tourism
The United States is facing a significant decline in international tourism in 2025, with foreign visitor numbers and spending forecast to drop sharply. Analysts link the downturn to a series of policy moves by President Donald Trump, including new travel bans, heightened border scrutiny, and rollbacks on civil rights protections. The World Travel & Tourism Council estimates that these developments could cost the US economy $12.5 billion this year, deepening the trade deficit as inbound tourism is considered an export. According to the US International Trade Administration, foreign air arrivals to the US fell by 2.5% through April compared with the same period last year, with a notable 10% drop in March following the announcement of tariffs targeting Canada, China and Mexico. Canada, the top source of international visitors to the US, has seen a 15% decline in cross-border travel in April alone. Major European airlines have begun reducing flights to key US cities, including New York, Miami, and Las Vegas. Spending by international tourists is projected to decrease by 7% in 2025, marking the first drop since the pandemic recovery began. The World Travel & Tourism Council warns that the US is the only major global destination expected to record a fall in tourism revenue this year, with earnings from foreign visitors falling below $169 billion. The council does not expect US tourism spending to return to pre-Covid-19 levels before 2030. At least 12 countries have issued travel advisories urging caution when visiting the United States. Nations such as Canada, Germany, France, and the UK have warned their citizens about the risk of detention, denial of entry, or the seizure of personal devices. LGBTQ+ travellers have also been cautioned by governments including Ireland and the Netherlands following US policy changes affecting gender recognition. As a result, many tourists are choosing alternative destinations. Tourism Economics reports that global flight bookings to the US from May through July are down 11% compared to 2024. Canadian bookings are off by a third, a drop that could eliminate $6 billion in spending and more than 40,000 US jobs. Countries such as Japan and Vietnam are emerging as winners in the redirected tourism flow, with Japan reporting a record number of monthly visitors. Among the 20 US cities most dependent on international tourism, 18 are forecast to suffer declines in foreign visitor spending. Detroit, Seattle and Tampa are expected to see the sharpest drops, with losses also predicted in cities like Philadelphia and Phoenix. Only Honolulu and New York are forecast to avoid major downturns, though New York officials expect a 17% decrease in overseas tourism compared to 2024. Corporate travel is also under pressure. A survey by the Global Business Travel Association found that nearly one-third of travel managers expect reduced company spending due to recent US government actions. The number of European business travellers entering the US dropped by 18% in April alone. The association has revised its 2025 forecast downward, anticipating a 5% decline in corporate travel expenditure. Meanwhile, fewer Americans are planning trips abroad. Only 18% expect to travel overseas within the next six months, down from 24% in December, according to the Conference Board. Rising economic uncertainty is prompting many to scale back or cancel international holidays in favour of domestic alternatives. With shifting global travel patterns and growing international discontent, analysts suggest the US tourism sector faces a prolonged and uncertain recovery. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Trump's policies disrupt global tourism" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
How I'd Allocate $10,000 Across These 3 Brilliant TSX Stocks for Growth and Income
Written by Puja Tayal at The Motley Fool Canada Investing in the stock market is not just about buying the dip and selling the rally. Knowing what you want from your money is crucial in determining which dips to buy. If you want to put $10,000 to work and help you get growth and income for the long term, you might have to choose two different stocks. However, there are a few stocks that can give you both. A good strategy could be to invest in three stocks – one for income, one for growth, and one for both. Starting with the stock that gives you income and even grows your money in the long term. The non-prime lender goeasy (TYSX:GSY) is a stock that has given regular quarterly dividends and even grown them by strong double digits in 10 out of the last 11 years. goeasy is in the business of giving unsecured and secured loans through easyfinancial and easyhome brands. Over the years, it expanded its business horizontally by Offering new loan products — point-of-sale financing and automotive loans — and ancillary services like creditor insurance and warranty coverage; Expanding its distribution channel; Expanding its Canadian presence; and Strengthening its underwriting model to give loans to more customers while controlling credit risk. All these efforts have helped the lender increase its loan portfolio over the years and grow its share price by 800% in the last 10 years, which is 10 times the 79% rally of the TSX Composite Index. goeasy stock also offers a 3.8% dividend yield from the interest earned on the loan portfolio. The yield might look small, but if you had held the stock for 10 years, the $0.5 dividend per share would have grown to $5.84. A $3,000 investment in goeasy in June 2015 would have bought you 154 shares, which are now worth $23,639, and have increased your annual dividend from $77 to $899. Now is a good time to buy and hold the stock, as high credit risk has pulled down the share price. It is trading at a forward price-to-earnings ratio of 8.71, below its five-year average of 10.76. Business jet maker Bombardier (TSX:BBD.B) is a growth-oriented stock that can give you double-digit capital appreciation. Although the management is considering paying dividends in the next two to three years as its free cash flow (FCF) stabilizes, meaningful returns will come from capital appreciation. Here's why. Bombardier's main business is selling business jets. The order book for business jets can fluctuate, which would be reflected in its share price. For instance, the company completed the flight test of its next-generation Global 8000 in May, hinting at a better product mix in the future. Moreover, the defence and pre-owned business jet verticals present opportunities to boost orders and grow the share price. As for dividends, the business jet maker could use its recurring revenue from after-market services. A $3,000 investment in Bombardier stock in June 2020 is now $23,000. This stock tends to rally in the second half as aircraft delivery volumes surge and free cash flow comes in. Although the stock has already jumped 32% from its April dip, there is more upside as the company secures orders for Global 8000. You have the growth, now comes the dividend. Many dividend stocks intend to help you generate passive income for your retirement. They offer dividend-reinvestment plans (DRIP) and even grow them annually to adjust for inflation. You can bank on them to pay dividends in every market condition, thereby complementing your pension. Telus (TSX:T) has a 21-year history of growing dividends. It offers DRIP to automate your retirement planning by accumulating dividend-paying shares. You can be assured about the dividends as Telus pays them using subscription money. The dividend-growth rate has slowed from 7-10% to 3-8% as competitive pricing and network sharing reduce its margins. However, it is working on monetizing its 5G network, which will help strengthen its balance sheet and FCF. This could help it grow dividends for years to come. You could consider investing $4,000 now while the stock trades closer to its 10-year low and lock in a 7.4% dividend yield. The post How I'd Allocate $10,000 Across These 3 Brilliant TSX Stocks for Growth and Income appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy. 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
