Buy These Stocks Before Canada Starts Building Its $1 Trillion in Projects

A $1 trillion spending boom is hitting Canada. Discover the 3 best TSX infrastructure stocks to buy before the construction super-cycle begins.

Key Points
  • The $1 trillion growth catalyst: Canada's Budget 2025 mobilizes massive public and private capital for infrastructure, aiming to fast-track projects through 2030.
  • The top stocks to buy: Aecon Group (TSX:ARE), AtkinsRealis (TSX:ATRL), and Bird Construction (TSX:BDT) stock are already securing billions in new contracts, from nuclear power to industrial mining.
  • With the Major Projects Office (MPO) now operational, early investors can capture growth before the heavy construction phase ramps up

The Canadian economy is on the cusp of a generational transformation. In response to recent trade-related economic volatility, the federal government has unveiled an ambitious nation-building strategy aimed at enabling over $1 trillion in total investment from both public funds and the private sector over the next five years.

With massive funding earmarked for infrastructure, housing, defence, and national productivity, this is a massive growth investment thesis waiting to be unlocked.

While the project pipeline may take months to fully kick off, the newly established Major Projects Office (MPO) is already operational and fast-tracking progress. While Natural Resources Canada’s Major Projects Inventory (2024-2034) already showed $632.6 billion in planned and under-construction projects, the “gap” to $1 trillion is being filled by new manufacturing, housing, and defence spending mandated in Budget 2025.

This is the time for forward-looking investors to position their portfolios before the first shovels hit the ground on this new wave of assets. Here are three of the best stocks poised to benefit from Canada’s coming infrastructure boom.

buildings lined up in a row

Source: Getty Images

Infrastructure stocks to buy: Aecon Group

Aecon Group (TSX: ARE) stock is an early winner in the MPO’s fast-tracked pipeline. It was successfully awarded a $1.3 billion execution phase contract in May 2025 for the Darlington Small Modular Reactor (SMR) nuclear power project. This is a flagship project of the Major Projects Office’s clean energy pillar.

Aecon reported a record backlog of $10.8 billion by September 30, 2025, up significantly from $6 billion in 2024. Crucially for risk-averse investors, the company has significantly reduced its exposure to high-risk fixed-price projects from 47% of backlog to 25% within 12 months. Its earnings risk profile is much lower than it was a year ago.

There is a significant level of infrastructure investment across Aecon’s focus areas, including the energy transition vertical. The company has made strategic moves to position itself for revenue growth as projects pour in, including the recent acquisition of K.P.C. Power Electrical Ltd. This acquisition, which closed in January 2026, fortifies Aecon’s footprint in grid modernization and electrification – key upgrades required by Canadian utilities.

With a forward P/E of 21.7 and a PEG ratio of 0.4, Aecon Group stock appears undervalued relative to its future earnings growth potential.

Aecon Group stock is showing positive momentum, up 11.4% year-to-date. A 2.2% dividend yield could augment total returns for the year.

AtkinsRealis stock: The “brains” behind the build

Montreal-based AtkinsRealis (TSX: ATRL) is the integrated professional services and project management firm that will likely capture the high-margin engineering fees before construction even begins.

As a major infrastructure development partner, AtkinsRealis (formerly SNC-Lavalin) is well-positioned to grow its backlog at a record pace. The company has successfully pivoted to a “services-first” model, reducing construction risk while retaining the intellectual property rights to the CANDU nuclear technology.

In late 2025, the company secured a $450 million execution contract for the engineering and design of the Darlington SMR – the first of four planned units. As the “architect-engineer,” they get paid to design what the government is funding, positioning them to capture recurring revenue for decades to come.

AtkinsRealis reported record total backlog at $21 billion by September 2025 while third-quarter revenue surged 15% year-over-year. Growth is happening, and investors are bidding the stock up, with a 9.1% gain already seen year-to-date.

ATRL stock trades at a forward P/E of 22.6, a premium to the average of industry stocks trading at 18.6 times historical earnings per share.

Bird Construction: The industrial workhorse

While nuclear plants grab the headlines, the industrial support required for this $1 trillion build-out is massive, and Bird Construction (TSX: BDT) is winning that quiet war.

In December 2025, Bird announced $1.2 billion in new awards, including major contracts for the BHP Jansen Potash Project and recurring maintenance work in the oil sands. These awards highlight Bird’s strength in the industrial sector, a key beneficiary of the MPO’s Critical Minerals and Energy Security mandates.

Unlike its peers, Bird specializes in smaller, recurring industrial maintenance contracts that provide steady cash flow, making it a reliable dividend payer for income-focused portfolios.

Investors may buy BDT stock at a forward P/E of 11.8 today, and a forward PEG ratio of 0.4 screams the infrastructure stock is undervalued given its earnings growth potential.

Shares have gained 5.2% in value so far this year, and a 2.8% dividend could augment total returns for 2026.

Fool contributor Brian Paradza 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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