This Canadian junior is a”critical infrastructure player for the AI era”, analyst says

Haywood Capital Markets analyst Gianluca Tucci is maintaining his “Buy” rating and $8.25 price target on Tantalus Systems (Tantalus Systems Holding Stock Quote, Chart, News, Analysts, Financials TSX:GRID), citing strong execution and growing positioning as a key infrastructure player tied to AI-driven power demand.

In a March 19 report, Tucci said the company has undergone a meaningful transformation.

“GRID has successfully transformed from a quiet metering company into a critical infrastructure player for the AI era,” he said.

Tantalus reported a strong finish to 2025, with revenue rising 22% year-over-year and Adjusted EBITDA increasing 156%, reflecting improving operating leverage as the business shifts toward higher-margin software and services. The company also recorded (All figures are USD) $64.9-million in annual sales orders, representing a 1.2-times book-to-bill ratio, and strengthened its balance sheet with a $23-million financing completed in February.

Fourth-quarter results came in ahead of expectations, with revenue of $14.9-million and Adjusted EBITDA of $1.3-million, compared to consensus estimates of $14.2-million and $0.9-million. Gross margin reached 55.9%, supported by a higher mix of software-related revenue.

Tucci highlighted growing adoption of the company’s TRUSense Gateway, with 66 utility customers engaged in trials or deployments, as well as the company surpassing four million endpoints, a milestone he said enhances credibility with larger utility customers.

He added that Tantalus continues to benefit from structural tailwinds tied to grid modernization and rising electricity demand from data centres.

“You cannot have data centers without a modernized grid,” Tucci said, noting that the company’s combination of hardware and software positions it to capture increasing value as utilities digitize their infrastructure.

The analyst also pointed to potential M&A upside, suggesting Tantalus could be an attractive acquisition target for large industrial players seeking grid intelligence capabilities.

Tucci has made modest upward revisions to his forecasts, now expecting the company to generate Adjusted EBITDA of $3.8-million on revenue of $63.3-million in 2026, improving to $8.2-million on revenue of $77.9-million in 2027.

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