Industry experts forecast robust activity and sustained growth for Canada’s Transportation & Logistics market in 2026. According to Mordor Intelligence, the market could grow to US$139.2 billion by 2030, up from US$111.7 billion in 2025.
Three major players are likely to benefit from the country’s planned generational investments in 2026 to spur economic growth. They are also the top stocks to buy in this dynamic, rapidly evolving market.
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Wide economic moat
Canadian National Railway (TSX: CNR) is not a flashy stock but has established a strong moat in North America’s railroad industry. The $82 billion railway operator facilitates trade and powers Canada’s economy, transporting more than 300 million tons of natural resources, manufactured products, and finished goods annually throughout North America. Its three-coast network is a strategic growth driver.
Its President and CEO, Tracy Robinson, said, “We are positioning this business to benefit from higher future volumes and ensuring everything we do enhances our customers and shareholders’ long-term value.” She disclosed a $2.8 billion capital budget for 2026 to ramp up productivity efforts and drive increased free cash flow (FCF).
At $134.30 per share, this large-cap stock pays a decent 2.7% dividend. The dividend growth streak of 29 years makes it a solid option for income-seeking long-term investors.
Successful growth strategy
TFI International (TSX: TFII), a premier name in North America’s trucking industry, has more than 100 operating companies, the result of its aggressive “buy-and-build” strategy. It acquires smaller but well-managed logistics firms to further expand its footprint. This growth strategy makes TFI an acquisition machine.
According to management, business activities depend on the general demand for freight transportation. Thus far, in today’s macroeconomic environment, demand has been relatively stable. TFI’s diverse customer base across a broad cross-section of industries is a competitive advantage. Since no single client accounts for more than 5% of consolidated revenue, a downturn in one sector hardly affects operations.
Moreover, the company assures the business remains resilient amid tariff uncertainties. If you invest today, the stock trades at $145.58 per share and pays a modest 1.8% dividend yield. TFII has consistently paid dividends for 24 consecutive years.
Acquisition model
Mullen Group (TSX: MTL) dominates in Western Canada. The $1.4 billion logistics company provides specialized transportation and logistics services, notably for the construction, energy, mining, and manufacturing industries.
At $15.91 per share, the year-to-date gain is 15.4%. Also, current investors partake in the hefty 5.3% dividend. MTL has paid shareholders a total of $1.5 billion since 2000. According to its Chairman and Senior Executive Officer, Murray Mullen, the company relies on acquisitions for business growth.
“Our acquisition strategy continued to drive top-line growth in the quarter,” Mullen said. In Q3 2025, revenue increased 5.6% to $561.8 million versus Q3 2024, although net income declined 13.3% year-over-year to $33.2 million.
Mullen added that the acquisition model helps expand service offerings to existing customers. It is also the strategy that enabled the Mullen Group to grow in size and scale.
Growth engines
Canadian National Railway, TFI International, and Mullen are staples in the transportation and logistics sector. The respective businesses have growth engines that will drive the stocks higher in 2026.
