Top Infrastructure Growth Stock to Buy This Week

SNC-Lavalin Group Inc. (TSX:SNC) plays an important role in designing, assessing, testing and project managing environmentally sustainable infrastructure.

| More on:

SNC Lavalin (TSX:SNC) is a 110-year-old company that has adapted through more than a century of disruption and technological change. The year 2020 was an important reminder of the fundamental role that engineering occupies in helping to meet critical needs and facilitate societal transformation. Last year, SNC-Lavalin rose to the challenge, while advancing the company’s own transformation.

Contributing to sustainable infrastructure and net-zero carbon emissions

SNC-Lavalin plays an important role in designing, assessing, testing and project managing environmentally sustainable infrastructure, which includes light rail transit, carbon-free nuclear energy, electric aircraft, hydrogen storage, wind energy, or the use of data and digital technology and modular manufacturing to reduce the environmental footprint of construction.

Providing energy to six million homes

Further, SNC-Lavalin’s nuclear services business, which has continued to grow this year with strong earnings before interest and taxes (EBIT) margins, is an important partner in the carbon net-zero targets of several countries. Over the past year, SNC-Lavalin has won new mandates from Korea to Romania and the U.K, where the company is in the midst of a 10-year program to build a new nuclear power station that will provide energy to six million homes and furnish 7% of the country’s electricity.

Working on large clean energy projects

In the U.S., SNC-Lavalin is working with the federal government on the nationwide deactivation and renewal of nuclear sites. Some of the company’s most important nuclear work, however, is happening in Canada. SNC-Lavalin is working on the country’s two largest clean energy projects, which include the refurbishment of the Darlington nuclear generating station and Bruce Power, which together supply approximately half of Ontario’s energy.

Reducing dependency on carbon-emitting power sources

In addition, SNC-Lavalin is also quickly pivoting the company’s nuclear expertise and propriety CANDU technology to move into the evolving field of small modular reactors, which has become a priority for governments looking to reduce dependency on carbon-emitting power sources.

Managing climate change risks

In Louisiana, SNC-Lavalin was recently awarded a contract to support the state’s flood mitigation efforts, an important consideration for managing climate change risk. This work builds on the expansion of SNC-Lavalin’s U.S. business, one of the company’s core markets.

Expanding presence in strategic locations

Over the past year, SNC-Lavalin has won new mandates with the department of transportation in the states of Texas, Georgia, North Carolina, and Louisiana. SNC-Lavalin has also expanded the company’s presence in southern California to support new work on the Los Angeles metro, airport, and port.

Growing digital expertise on a number of projects

Furthermore, SNC-Lavalin continues to deploy the company’s growing digital expertise on a number of projects that will help reduce environmental footprint and transform legacy infrastructure. A great example of this is in the U.K., where SNC-Lavalin has been chosen to lead the digital transformation of the East Coast Main Line railway and improve network performance.

Bright future outlook

Overall, SNC-Lavalin appears well-positioned to take advantage of the global demand for infrastructure solutions. Long-term shareholders look set to continue to be well served by SNC-Lavalin.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

More on Investing

Rocket lift off through the clouds
Investing

2 Canadian Growth Stocks Set to Skyrocket in the Next 12 Months

These two top Canadian stocks not only have tonnes of growth potential, but they're also trading at well-undervalued levels right…

Read more »

The sun sets behind a power source
Energy Stocks

Canadian Utility Stocks Poised to Win Big in 2026

Add these two TSX Canadian utility stocks to your self-directed investment portfolio as you gear up for another year of…

Read more »

hand stacks coins
Investing

Key Canadian Dividend Stocks to Compound Wealth Over 2026

Agnico Eagle Mines (TSX:AEM) and another great dividend stock for long-term compounding.

Read more »

The RRSP (Canadian Registered Retirement Savings Plan) is a smart way to save and invest for the future
Retirement

1 TSX Stock to Safely Hold in Your RRSP for Decades

This is a long-term compounder that Canadians can add in their RRSPs on dips.

Read more »

Dividend Stocks

3 Beginner-Friendly Stocks Perfect for Canadians Starting Out Now

Looking for some beginner-friendly stocks? Here’s a trio of options that are too hard to ignore right now.

Read more »

3 colorful arrows racing straight up on a black background.
Tech Stocks

This Canadian Stock Could Rule Them All in 2026

Constellation Software’s pullback could be a rare chance to buy a proven Canadian compounder before its next growth leg.

Read more »

Close-up of people hands taking slices of pepperoni pizza from wooden board.
Dividend Stocks

3 of the Best Canadian Stocks Investors Can Buy Right Now

These three Canadian stocks are all reliable dividend payers, making them some of the best to buy now in the…

Read more »

hand stacks coins
Dividend Stocks

How to Max Out Your TFSA in 2026

Maxing your 2026 TFSA room could be simpler than you think, and National Bank offers a steady dividend plus growth…

Read more »