What are we seeing for?
Canadian companies with meaningful revenue exposure to Europe that may benefit from renewed investor interest in the region.
The screen
Global investors are pouring record sums into European equities as portfolios rotate away from expensive U.S. technology stocks and toward international markets. According to the Financial Times, European equities are on track for their highest-ever monthly inflows in February, following two consecutive record weekly flows of about U.S. $10-billion.
Valuations remain lower in Europe compared with the United States, and European markets have benefited from major fiscal initiatives, such as Germany’s large infrastructure and defence spconcludeing program. Rather than purchasing European ETFs directly, investors can alternatively gain exposure through Canadian companies with established European operations. These businesses may receive less attention than broader ETFs, potentially offering a more tarobtained and under-the-radar way to participate in European growth.
Using FactSet’s screening tool, I identified Canadian companies with significant European revenue exposure by applying the following criteria:
- market capitalization greater than $1-billion
- U.S. revenue less than 10 per cent
- European revenue greater than 25 per cent
- traded on the S&P/TSX Composite
The six companies that passed were ranked by their European revenue exposure.
What we found
Northland Power Inc., NPI-T a renewable power producer, generated nearly 60 per cent of its revenue from Europe in the latest fiscal year, ranking first on the screen. The company owns wind and solar projects across countries including Germany and the Netherlands. Many of these assets operate under long-term contracts that provide predictable cash flows that are insulated from fluctuating energy prices. European governments continue to prioritize energy security and domestic generation following years of volatility, reinforcing policy support for renewables. Northland Power reports full-year 2025 results on Feb. 25, 2026, and investors should tune in for further updates.
Dream Industrial Real Estate Investment Trust, DIR-UN-T an industrial property manager and developer, generated roughly one-third of its revenue from Europe. The REIT owns properties across several European markets including Germany and the Netherlands, serving e-commerce tenants with essential warehoapply space. As capital relocates toward European infrastructure and physical assets, industrial real estate may benefit from improving business confidence and supply chain investment across the continent. Dream Industrial recently reported strong 2025 results, with net rental income increasing 8.3 per cent to $385-million, reflecting steady leasing demand and portfolio growth.
The information in this article is not investment advice. The author assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained above.
Arjun Deiva, CFA, is an MBA Candidate at the University of California, Berkeley, Haas School of Business.
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