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

man looks surprised at investment growth
Dividend Stocks

This RRIF Tax Problem Gets More Expensive Every Year You Ignore It

A big RRSP can create an even bigger tax bill later, so planning withdrawals before 71 can reduce forced taxable…

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Here’s What’s Really Happening With Telus’s Dividend

Telus cut its dividend as predicted, but the stock still isn't out of the woods.

Read more »

dreaming of financial success
Dividend Stocks

Here’s My Plan for Turning $14,000 Into Lifelong TFSA Income

Canadians can turn a $14,000 TFSA or higher into a lifelong tax-free income stream with a smart investment plan.

Read more »

A family watches tv using Roku at home.
Dividend Stocks

Parents, Mark Your Calendars: Your Next CRA Cheque Comes August 20

Your next CRA payment lands Aug. 20. Here's how much parents get, plus a smart way to turn benefit dollars…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, August 19

After falling for a third consecutive session on Tuesday, the TSX could remain volatile today as investors monitor elevated energy…

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Here’s How I’d Turn $14,000 in a TFSA Into a Cash Machine

These Canadian companies generate profitable growth, have sustainable payout ratios, and a proven track record of rewarding shareholders.

Read more »

Hourglass and stock price chart
Energy Stocks

Is This the Stock That Could Make You a Millionaire?

Achieving $1 million in a TFSA over time is achievable with a high-yield, real-world compounding engine as your anchor stock.

Read more »

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

Are You Behind on Your RRSP? Here’s What 50-Year-Olds Have

If your RRSP is behind, increasing contributions and investing to generate solid long-term total-return can help close the gap.

Read more »