Canada’s infrastructure landscape is experiencing a seismic shift that smart investors cannot afford to ignore. With Prime Minister Mark Carney’s government introducing Bill C-5 on June 6, 2025, the construction sector stands poised for unprecedented growth as project approval times shrink from five years to just two. This legislative catalyst, combined with potential trade policy changes driving increased private infrastructure spending, creates a compelling investment opportunity in infrastructure stocks for those seeking TSX growth stocks with substantial upside potential.
Bird Construction (TSX: BDT) stock emerges as a standout choice for investors looking to capitalize on Canada’s infrastructure boom. The company’s coast-to-coast operations position it perfectly to benefit from accelerated project timelines and increased government spending on national infrastructure priorities.
For investors with $6,000 to deploy, Bird Construction stock represents an exceptional value proposition backed by impressive financial fundamentals and a clear path to sustained revenue and earnings growth.
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Bird Construction: A smart infrastructure stock to buy in June
Bird Construction’s financial performance tells a remarkable story of transformation and momentum. The infrastructure company has delivered a compound annual revenue growth rate of 19% over the past five years, with double-digit growth continuing through 2024’s impressive 21.4% increase. This growth trajectory reflects the company’s strategic positioning across Canada’s diverse construction markets, from industrial and commercial projects to critical civil infrastructure and mine support services.
Revenue backlog reached a record $4.3 billion by March 2025, representing six full quarters of construction revenue and providing exceptional visibility into future earnings. This backlog surge follows $1.3 billion in new contract wins during the first quarter alone, demonstrating the company’s ability to secure large-scale projects that will drive sustained revenue growth. The stability this provides cannot be overstated – Bird Construction could maintain its current revenue pace for 18 months without securing a single new contract.
The company’s operational excellence becomes evident through its margin expansion story. Gross margins have improved from 8.5% in 2022 to 10% over the past 12 months, while operating profit margins expanded from 3.1% to 4.2% during the same period. Most impressively, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) margins have grown from 3.1% two years ago to 6.7% over the past 12 months, putting management within striking distance of its 8% target by 2027.
This operational improvement translates directly into cash generation, with free cash flow surging from $26.6 million in 2022 to $93 million in 2024. Such dramatic improvement in cash generation demonstrates management’s ability to convert revenue growth into tangible shareholder value while maintaining the financial flexibility needed to pursue infrastructure growth opportunities.
Recurring big wins
Recent contract wins underscore Bird Construction’s competitive advantages and market positioning. The company secured five major projects worth $470 million during the first quarter, including participation in Toronto’s rail corridor expansion through its Rail Connect Partners joint venture. Second-quarter victories have been more impressive, with five contracts exceeding $650 million in combined value spanning residential housing, healthcare infrastructure, and a nuclear power support project.
An undervalued growth stock
Despite a 217% stock price gain over three years, BDT stock’s valuation metrics suggest significant upside remains. Trading at a forward price-to-earnings (P/E) multiple of just 8.8 and a price-earnings-to-growth (PEG) ratio of 0.3, the top infrastructure stock appears dramatically undervalued relative to its earnings growth prospects. Legendary investor Peter Lynch’s principle that a fairly valued stock’s P/E ratio should match its earnings growth rate suggests substantial appreciation potential exists.
Dividends to boost returns
Bird Construction stock’s dividends add another layer of attractiveness for income-focused investors. The quarterly dividend yields 3.1% annually, supported by management’s commitment to maintain a 33% payout ratio through 2027. This provides steady income while preserving capital for growth investments.
Investor takeaway
Bill C-5’s fast-tracking provisions create a perfect storm of opportunity for infrastructure companies like Bird Construction. Shorter approval timelines mean faster project starts, improved cash conversion cycles, and reduced carrying costs for development activities. Combined with potential trade policy shifts driving increased North American infrastructure investment, the operating environment has rarely looked more favourable.
Bird Construction stock offers the ideal combination of established market position, improving operational metrics, substantial contract backlog, and a compelling valuation to investors seeking exposure to Canada’s infrastructure renaissance. With $6,000 invested at current levels, investors gain exposure to a company positioned to benefit from both government policy support and secular infrastructure investment trends that should drive returns for years to come.
