Canadian Investors: Buy the World’s Top Infrastructure Company

SNC-Lavalin Inc. (TSX:SNC) operates a resources service business and is actively working with clients to design clean energy solutions and meet carbon-reduction targets.

| More on:
Construction work on a site

Image source: Getty Images

SNC-Lavalin (TSX:SNC) operates a resources service business and is actively working with clients to design clean energy solutions and meet carbon-reduction targets. SNC-Lavalin is the engineer and integrator for HyNet, the world’s first low carbon hydrogen project located in the northern United Kingdom, and this year, the company delivered designs for three offshore wind projects in northern Europe.

Broad, end-to-end capabilities and integrated approach to sustainability

The project, however, that perhaps best showcases SNC-Lavalin’s broad, end-to-end capabilities and integrated approach to sustainability is Montreal’s Réseau express métropolitain, or REM. The latest in a long track record of signature light-rail transit projects that SNC-Lavalin has helped to design, build, operate and maintain, the 67-km REM is the largest public transit project of the past 50 years in Quebec. An electric and fully automated network that will connect the Montreal region, it is being designed and built using advanced digital solutions and offsite modular manufacturing of the line’s 26 stations.

Complex and leading-edge projects

SNC-Lavalin’s work on complex, leading edge projects like REM continues to garner the company a number of awards, including the prestigious Schreyer Award and Award of Excellence for the highest degree of technical merit at the 2020 Canadian Consulting Engineering Awards for the company’s work on the Samuel De Champlain Bridge. Atkins, an SNC-Lavalin Group company, was also recognized with a 2020 Hong Kong Institution of Engineers Innovation Award for the company’s cofferdam design work on the world’s longest and largest subsea road link between Hong Kong and Macau.

Refocus the business on engineering services

In short, SNC-Lavalin has much to look forward to. The company’s decision in 2019 to refocus the business on engineering services and exit lump-sum turnkey construction contracting (LSTK) was clearly the right one, as engineering services have proven resilient through the pandemic with a robust pipeline of new business as the company heads into 2022.

Leveraging digital capabilities as part of a more integrated focus on sustainable infrastructure development

Further, SNC-Lavalin continued to reduce the LSTK backlog by $800 million as of the end of the second quarter of fiscal 2021. SNC-Lavalin is working with the company’s partners to develop new, more collaborative contracting models, which will allow the industry to more fully leverage digital capabilities as part of a more integrated focus on sustainable infrastructure development.

Providing solutions to the world’s most pressing challenges

That foundation positions SNC-Lavalin well, as the company looks to provide solutions to the world’s most pressing challenges. It also allows SNC-Lavalin to contribute and give back to the company’s communities in other ways. Earlier this month, SNC-Lavalin announced a donation to two leading hospital foundations: the McGill University Health Centre (MUHC) and the Montreal Children’s Hospital Foundations.

Strong tailwinds and bright future outlook

That is in addition to other contributions, including donating to Feeding America, the largest hunger-relief network in the United States, and supporting St. Mary’s Hospital in London in the United Kingdom. SNC-Lavalin is also supporting oil and gas multinational BP in ambitious carbon-reduction efforts. Overall, SNC-Lavalin’s has some pretty strong tailwinds and could outperform the general market over the next decade.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

Target. Stand out from the crowd
Stocks for Beginners

2 No-Brainer Stocks to Buy With $7,000

Got some cash to fill up your TFSA? Here are two stocks that look like good buys on the recent…

Read more »

Path to retirement

RRSP Must-Haves: 2 Canadian Stocks to Secure Your Retirement

Future retirees can use the RRSP to save for retirement and be financially secure with the help of a Dividend…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies

2 Utility Stocks That Could Help Energize the AI Boom

Canadian Utilities (TSX:CU) and another great utility stock could indirectly benefit from the rise of AI.

Read more »

top TSX stocks to buy
Stocks for Beginners

3 Stocks That Can Help You to Get Richer in 2024

These three stocks have already proven their worth this year, but are set to continue climbing in 2024 and even…

Read more »

Woman has an idea
Dividend Stocks

3 No-Brainer Best Dividend Stocks in Canada to Buy With $500 Right Now

Are you craving more cash flow? $500 in one of these best dividend stocks in Canada might deliver a slice…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

5 Stocks Whose Dividends Just Keep Growing

Stocks like Enbridge and Fortis are growing their dividends for decades, and returning higher cash to their shareholders.

Read more »

Man considering whether to sell or buy
Tech Stocks

BlackBerry Stock Is Down 20%: Buy the Dip or Call It a Pass?

BlackBerry stock has seen a series of 20% monthly dips since December 2023. Should you buy the dip or call…

Read more »

Happy family father of mother and child daughter launch a kite on nature at sunset

3 High-Flying TSX Stocks That Could Keep On Climbing

These high-flying TSX growth stocks certainly have the potential for more upside over the long term, if secular growth trends…

Read more »