A Canadian stock can look ready to surge into 2026 when it has three things lined up at once. That can be demand that does not depend on perfect economic news, a clear catalyst that can push results higher, and a track record of execution that investors actually trust. The best setups also have visibility, not guesses. If management can point to signed work, improving margins, and a balance sheet that stays calm, the market often rewards it fast when sentiment flips. So let’s look at one strong option for 2026 and beyond!
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WSP
WSP Global (TSX: WSP) sits in that sweet spot as it sells expertise that governments and businesses keep buying. It provides engineering, design, consulting, and project management across transportation, buildings, water, environment, and energy systems. When a city repairs bridges, when utilities upgrade the grid, or when a company builds a new facility, WSP often ends up in the middle of the work. That demand tends to stick around because it solves real-world problems, not optional luxuries.
The Canadian stock has already shown it can hold its ground through choppy markets, even if it has not been a straight climb. WSP stock recently had a bit of a drop, with shares up 6% in the last year, though down about 8% in the last six months, while trading at 39 times earnings. That kind of range tells you investors still react to rate headlines and acquisition news. It also tells you there is room for a re-rate if the next leg of growth looks clearer.
What I like most about WSP’s recent performance is that it does not rely on one single trend. It benefited from infrastructure spending, energy transition work, and steady demand for environmental and regulatory projects. It also keeps using acquisitions to widen its capabilities, which can help it win larger contracts and stay relevant as client needs change. That can create bursts of excitement, followed by quiet periods when the Canadian stock just delivers.
Into earnings
The latest quarter gives you a solid snapshot of how it delivers. In Q3 2025, WSP reported revenue of $4.5 billion and net revenues of $3.5 billion. It delivered adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $700.4 million, with an adjusted EBITDA margin of 20.2%. It also posted adjusted net earnings per share of $2.82, up from $2.24 a year earlier, while basic EPS came in at $2.18. Those numbers point to a Canadian stock that’s not only growing, but also widening margins.
The backlog number is the part long-term investors love because it adds visibility. WSP reported a backlog of $16.4 billion as of September 27, 2025. It also produced free cash flow of $314.9 million in the quarter and improved its net debt-to-adjusted EBITDA ratio to 1.4 from 1.8 at the end of 2024. That matters as it suggests the Canadian stock can fund growth without stretching itself too thin.
Management also nudged its outlook higher, which helps explain why investors keep giving WSP the benefit of the doubt. In that same Q3 2025 release, it raised the low end of its 2025 net revenue outlook to $13.8 billion to $14 billion and lifted its adjusted EBITDA outlook to $2.540 billion to $2.560 billion. That is not hype. It’s a concrete signal that demand and execution stayed strong deep into the year.
Bottom line
WSP looks ready to surge into 2026 because the catalysts feel very real, not wishful. In mid-December 2025, WSP announced a $3.3 billion all-cash deal to acquire TRC Companies, a U.S. firm focused on power, energy, environmental services, and program management. The deal should be accretive to adjusted net earnings per share in the low- to mid-single-digit range before synergies, with closing targeted for the first quarter of 2026.
Pair that with a deep backlog, rising margins, and the growing rush to upgrade power grids for data centres and electrification, and you get a Canadian stock with a believable setup for an upbeat 2026. The main risks are integration slip-ups, a rich valuation, and any pause in infrastructure spending, but if execution holds, WSP has the ingredients for a strong year.
