2 Stocks Likely to Benefit From Canada’s $1 Trillion Pro-Growth Budget

Two pro-growth industrial stocks align perfectly with the government’s $1 trillion initiative.

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Key Points

  • Prime Minister Mark Carney’s Budget 2025: Canada Strong is a $1‑trillion pro‑growth plan prioritizing major infrastructure, industrial development, R&D, and housing to mobilize investment and boost productivity.
  • Pro‑growth picks: Aecon (TSX:ARE) is primed for large infrastructure and SMR work with a record $10.7B backlog and rising revenue, while Stantec (TSX:STN) offers engineering/design exposure with double‑digit revenue guidance and growing backlog.
  • 5 stocks our experts like better than [ Aecon] >

On November 7, 2025, Prime Minister Mark Carney unveiled the Budget 2025: Canada Strong, a $1 trillion pro-growth budget. This new government plan aims to mobilize investments and supercharge growth. The top priorities are major Infrastructure Projects for nation-building, Industrial Development, Research & Development, and Housing.

If you’re investing to capitalize on its trillion-dollar initiative, Aecon Group (TSX:ARE) and Stantec (TSX:STN) should be on your buy list. Both companies could help drive productivity and boost the Canadian economy.

Heavy construction

A major player in heavy construction like Aecon is well-positioned to secure contracts for new infrastructure, energy, or transportation projects. This $1.6 billion company is part of a consortium that is building the Gordie Howe International Bridge. The once-in-a-generation 2.5-kilometre cable-stayed bridge features six lanes (three Canadian-bound and three U.S.-bound) and two approach bridges. The nominal value of the fixed-priced contract is $5.7 billion, and the bridge might open in early 2026.

Thus far, after three quarters in 2025, revenue increased 30.8% year over year to $3.9 billion, while net loss improved 92.5% to $5.5 million compared to a year ago. At the end of the period, total backlog is $10.7 billion, representing an 80.2% year-over-year growth and a record level backlog.

Its president and CEO, Jean-Louis Servranckx, said, “Aecon achieved 20% revenue growth, added to record backlog, and is strategically positioned to support the delivery of critical infrastructure projects in nuclear, energy generation, storage, distribution and transmission, as well as other essential infrastructure verticals.”

After being selected as delivery partner in one of the first small modular reactor (SMR) projects in the U.S., chosen to partner in the delivery of one of the first small modular reactor (SMR) projects in the U.S., Servranckx said Aecon will pursue nuclear opportunities globally.

Early this month, through its subsidiary, Aecon Utilities, entered a definitive share purchase agreement to acquire K.P.C. Power Electrical and K.P.C. Energy Metering Solutions.

According to Servranckx, the acquisition of KPC strengthens Aecon’s relationships with key clients, increases recurring revenue, and expands its expertise and capacity. “It accelerates our ability to harness significant grid modernization, electrification and infrastructure upgrade opportunities,” Servranckx added. ARE trades at $26.49 per share and pays a decent 2.87% dividend.

Engineering & design

Stantec engages in sustainable engineering, architecture, and environmental consulting. The $15.2 billion company manages aging infrastructure and monitors demographic and population changes, climate change, and others. At $135.22 per share, STN is up 20.5% year to date. The dividend offer is a modest 0.67%.

In the third quarter (Q3) of 2025, net revenue and net income rose 11.8% and 45.3% year over year, respectively, to $1.7 billion and $150 million. The contract backlog increased 14.9% to $8.4 billion from a year ago.

Its President and CEO, Gord Johnston, cited the sustained global demand for Stantec’s services for the strong quarterly results. He expects this year to be another record year for Stantec. The net revenue growth guidance for 2025 is 10% to 12%.

Pro-growth stocks

PM Carney considers Budget 2025 as the foundation for long-term prosperity and Canada’s path towards becoming the strongest G7 economy in the G7. For investors, Aecon and Stantec are pro-growth stocks that will help in nation-building.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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