The TSX30 was simply introduced and traders throughout Canada had been fast to take a look at what corporations made the minimize. But as we speak, we’re not going to offer you a easy listing. No, we’re going proper to the highest. We’ll see which two Canadian corporations made it to the very tippity prime of the listing. And extra importantly, why?

CLS

The primary spot this yr went to investment-household title Celestica (TSX:CLS). Its shares surged by 380% within the final yr alone! The corporate is a direct beneficiary of funding into communications, the cloud, and synthetic intelligence by its server builds. The availability chain options firm has continued to beat out earnings quarter after quarter, reflecting sturdy demand in electronics manufacturing companies (EMS). So let’s take a look at these current earnings.

Through the second quarter, the corporate reported income rising 21% yr over yr, exceeding the excessive finish of its steering. Adjusted earnings per share (EPS) hit $1.39 in comparison with $0.90 final yr, with connectivity and cloud options income rising 28%. The quarter was so good in truth that administration raised the 2025 annual income outlook to $11.55 billion from $10.85 billion, with adjusted EPS to $5.50.

LUG

The second spot on the TSX as we speak went to Lundin Gold (TSX:LUG), because the gold miner’s share worth surged by 192% within the final yr as of writing. The corporate has been proven the love due to its potential to take the gold commodity and convert it into increased spot costs, with document money move and capital returns. So not solely is it benefitting from a better worth in gold, however sturdy working metrics as effectively.

This was seen throughout the gold inventory’s second quarter, with the TSX inventory reporting document income at $453 million and web earnings at $196.7 million. Moreover, there was an enormous raise in gold produced and bought, particularly at a realized worth of $3.36 per ounce per quarter. And once more, the corporate raised its steering, together with Celestica, anticipating between 490,000 to 525,000 ounces of gold produced.

The gas behind the rise

So what’s fuelling the facility behind each of those corporations? Certain, there are surges in AI shares and gold, but it surely’s greater than that. Each TSX shares have proven a demonstrable conversion of demand into earnings and money. Lundin now holds massive money dividends, with Celestica paying again shareholders by buybacks. Moreover, upward revisions proceed to make the shares look enticing.

However we will’t ignore the macro market context. Lundin’s realized gold worth is the only largest macro enter to drive document outcomes, and the worth of gold is now nearing US$4,000 per ounce. Moreover, Celestica’s sturdy {hardware} platform development reveals much more demand for server and storage from hyperscalers and telecom. Collectively, these corporations are rising increased on the backs of market drivers, and doing it effectively.

Backside line

After all what goes up this fast might go down, however once more there’s a cause for the momentum. Whereas there are dangers from shares surging as they’ve, with neither inventory wanting precisely low-cost, the businesses have additionally used the rise to their benefit. The TSX shares each use the money to reward shareholders and save for a wet day. Subsequently, collectively these are sturdy corporations solely getting stronger by beating out document outcomes by a mixture of micro and macro narratives. So it’s clear not solely why these corporations are on the prime of the TSX as we speak, but additionally why they may keep there.