We are about a week away from the end of the year, and Canada’s benchmark index is on its way to close out one of the most incredible years it has had. As of this writing, the S&P/TSX Composite Index is up by 25.51% year to date. Stock market analysts and experts are optimistic about the market’s performance in 2026, and possibly new all-time highs.
Canada’s Budget 2026 was recently announced, and that has significantly improved investor sentiment across the board. The growth plan for the country by the government will target around $1 trillion in private and public investments within the country over the next five years of “nation building.”
Considering the potentially billions of dollars flowing into the economy, several Canadian companies are poised to benefit and deliver growth. Today, I will discuss one Canadian stock that might benefit a lot from the development, so you can determine whether to add it to your holdings before 2026 kicks off.
Stantec
Stantec (TSX:STN) is a $14.48 billion market-capitalization company headquartered in Edmonton. Stantec is essentially a consulting company for sustainable engineering, architecture, and environmental concerns. It has three markets: Canada, the U.S., and Global, providing similar services across the different regions. The global design and engineering firm fits perfectly into the type of businesses that might benefit from growing investment in the country.
Stantec’s business operating segments include Water, Environmental Services, Buildings, Infrastructure, and Energy & Resources. All these segments stand to benefit because they align with the government’s priorities for spending amid the growth plan. The company’s diverse customer base and business lines will likely see significant organic growth.
Its recent performance
In the third quarter of fiscal 2025, Stantec saw all five business operating units deliver exceptional performances. In the September 30-ending quarter, the company’s net income increased by 45% year over year, and its net revenue jumped by 11.8% in the same period. Its solid revenue growth also saw an 86% surge in operational cash flows.
The sustained demand for the company’s services worldwide contributed to the improved performance. Stantec’s contract backlog has also expanded to around 15% higher than last year. Due to the company’s business model, it is not heavily involved in construction and focuses more on the designing and planning aspects of projects. In turn, it helps Stantec avoid plenty of typical overheads and cost overrun issues that can affect its cash flows.
The third quarter also saw Stantec complete the acquisition of Page, a Washington, D.C.-based architecture firm, making Stantec the second-largest firm in America.
Foolish takeaway
Any business that offers planning and design services benefits from new contracts. The last couple of months alone have seen Stantec win several new contracts across Canada, the U.S., Europe, and Taiwan. The developments might start bearing fruit early in 2026, and there is no ceiling to where share prices can go in the right conditions.
If you are on the hunt for stand-out holdings to grow your wealth, I would suggest that you consider adding Stantec stock to your self-directed portfolio as a long-term investment.
