That’s why it’s crucial to look for companies with solid fundamentals, substantial growth potential and effective management. When chosen carefully, small-cap stocks can be a valuable part of a diversified portfolio.
With this backdrop, there are two small-cap TSX stocks to buy right now.
Small-cap stocks #1: Bird construction
Bird construction (TSX:BDT) is an attractive small-cap TSX stock to consider now. This leading construction and maintenance company operates in all major domestic markets in Canada. Moreover, it has delivered solid financial results, which have given its share price a significant boost.
Over the past three years, shares have risen more than 356%. Moreover, diversification efforts, nationwide expansion and effective risk management will enable the country to maintain momentum in the coming quarters.
This small company takes a collaborative contracting approach, spreading risk between the company and its customers. The low to medium risk projects generate stable revenues and maintain resilient profits even during uncertain market conditions. Bird Construction also focuses on key sectors including energy, defense and transportation infrastructure, allowing it to generate reliable revenues while positioning it to capture long-term growth trends.
Looking ahead, its diversified operations, risk management and robust project backlog provide a solid foundation for future growth. Bird maintains a healthy balance sheet, giving it the flexibility to invest in new opportunities. Moreover, the focus on expanding infrastructure capabilities and improving profitability bodes well for growth. Overall, Bird Construction appears well positioned to deliver solid capital gains over the long term.
Small-cap stocks #2: Ballard Energy Systems
Ballard Energy Systems (TSX:BLDP) is another attractive small-cap stock to consider now. The company is a leader in the design, manufacturing and servicing of proton exchange membrane (PEM) fuel cell products, a clean energy technology with applications in a wide range of markets. Ballard also provides services such as technology solutions, after-sales support and training, strengthening its positioning in the hydrogen fuel cell ecosystem.
While commercial adoption of fuel cell technology has been gradual and the number of large-scale contracts remains limited, Ballard’s shares have enjoyed an impressive rally of approximately 163% over the past year. This increase reflects renewed optimism among investors, driven by the company’s ongoing restructuring initiatives aimed at reducing costs and streamlining operations. By optimizing its product portfolio and focusing on high-potential segments, Ballard is positioning itself for a stronger and more sustainable growth trajectory.
Ballard’s disciplined approach to capital allocation and its rigorous cost-saving measures are expected to pay off in the coming years. Management expects year-over-year operating costs to decline approximately 30% by 2026 compared to the first half of 2025. This efficiency drive, combined with a focused product strategy, is expected to help Ballard achieve positive cash flow by 2027.
Strategically, Ballard is focusing its resources on fuel cell products showing the strongest commercial traction while phasing out non-core initiatives. The company is also investing heavily in next-generation stack technology and system cost reduction to offer higher-margin products.
Looking ahead, Ballard Power will be able to benefit from the accelerating global shift to low-carbon energy solutions. Additionally, Ballard’s investments in advanced manufacturing capabilities position the company well to benefit from the clean energy transition.
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