Canada’s primary stock benchmark is on track to close out an incredible year and record its best annual performance since 2009. With just two weeks left in 2025, the TSX sits up 27.5% year to date. Market analysts are optimistic about a repeat performance in the new year, including multiple new record highs.
One company particularly poised to capitalize on this optimistic outlook and benefit from Canada’s Budget 2026 is Stantec (TSX:STN). The “Canada Strong” pro-growth budget aims $1 trillion in public and private investments over five years towards nation-building.
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Perfectly positioned
Stantec, a $10.7 billion global design and engineering firm, should be in a sweet spot as 2026 kicks off. The company’s specialized expertise in five critical businesses directly aligns with the government’s essential spending priorities during the five-year capital-deployment period.
The business operating units are Water, Environmental Services, Buildings, Energy & Resources, and Infrastructure. Management believes that Stantec is well-positioned for organic growth due to its diverse business lines and customer base.
If you invest today, STN trades at $128.25 per share (+15% year to date) and pays a modest 0.69% dividend. The industrial stock’s five-year return is 224.5%, representing a 26.5% compound annual growth rate (CAGR).
Organic growth
Stantec achieved organic growth in all five business operating units in the third quarter (Q3) of 2025. In the three months ended September 30, 2025, net revenue and net income increased 11.8% and 45% year over year, respectively, to $11.8 billion and $150 million. Strong revenue growth drove operating cash flows up 86% to $254.3 million, compared with Q3 2024.
Its president and CEO, Gord Johnston, said, “Stantec delivered strong third-quarter results, driven by the sustained global demand for our services and a continued focus on project execution and operational efficiency.” For the first three quarters of 2025, net income climbed 46% to $385.5 million from a year ago.
The contract backlog at the close of Q3 2025 was $8.4 billion, 14.9% higher than a year ago. Notably, this backlog represents approximately 13 months of work. Since the business is not in heavy construction but more into design and planning, Stantec has lower exposure to cost-overrun risks and generates stable cash flows.
Also, during the third quarter, Stantec became the second-largest architecture firm in the U.S. following the acquisition of Washington, D.C.-based Page. It instantly boosted and strengthened the Canadian firm’s Buildings practice on the other side of the border.
“With the close of the Page acquisition in the quarter, and the continued demand we are seeing across all of our operating regions, we expect to deliver another record year for Stantec,” Johnston added.
A steady core in 2026
Johnston stressed that Stantec is involved in both broad infrastructure programs announced by Prime Minister Mark Carney and energy-based projects. He sees significant opportunities in the transportation, water, and energy sectors.
The business of this consulting and engineering firm thrives or depends on winning new contracts. In the last two months of 2025 alone, Stantec won new contract awards in Canada, the U.S., Taiwan, and the European Commission. Public and private sector projects in advanced manufacturing and data centers should likewise drive or contribute to growth.
Stantec could be your steady core holding in 2026. The stock has a lower-risk profile amid a strong infrastructure demand, but minus the heavy construction risk.
