Bank of Canada Hold: 1 TSX Stock I’d Buy Now

With rates on hold at 2.25%, Stantec stands out as a steady TSX compounder built on essential infrastructure spending.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 9, 8:45 pm EST

| More on: STN

Key Points

Stantec earns fee-based revenue from designing and managing critical projects, which stays resilient when consumers slow down.
Recent results show strong profit growth and record margins, backed by a large and growing $8.4 billion backlog.
The key risk is valuation and execution, since rich multiples can drop quickly if margins or project timing slip.

The Bank of Canada just held its policy rate at 2.25%, and that changes the mood in a quiet way. When rates stop moving, the market stops guessing and starts judging. Investors shift from “who wins the next cut?” to “who can grow and still pay its bills?” A hold can reward businesses that plan years ahead, lock in contracts, and keep demand steady even when households feel cautious. It can punish firms that rely on constant refinancing. Focus on cash flow, balance-sheet strength, and pricing power, not just a tempting story. So now, let’s look at one TSX stock to consider.

A worker overlooks an oil refinery plant. — Source: Getty Images

STN

Stantec (TSX:STN) fits the steady-builder profile Canadians often overlook. It runs a global design and engineering firm that helps build water systems, roads, transit, hospitals, airports, and energy infrastructure. It earns fees from planning, design, and project management rather than owning the assets. That model keeps capital needs lower and lets it scale with talent. In a rate-hold world, clients still fund safety, maintenance, and compliance work, even if they pause nice-to-have projects.

Recent news over the last year showed it is business as usual. Stantec pointed to strong demand in water and environmental services and continued momentum in infrastructure and buildings. It also benefits when governments prioritize climate resilience and aging infrastructure repairs nationwide. It widened its footprint through acquisitions and integration work that strengthened its position in core markets. In January 2026, it confirmed it will report fourth-quarter and full-year 2025 results on Feb. 25, 2026, which gives the market a clear checkpoint.

It also landed work that fits the moment: big, long-dated, and tied to essential spending. In January 2026, reports highlighted a US$150 million architect-engineer contract awarded to a Stantec and AECOM joint venture to support modernization tied to U.S. naval shipyards. That kind of mandate does not depend on shoppers opening their wallets. It depends on public investment, which often keeps moving even when rate headlines fade.

Earnings support

Earnings show why investors keep paying attention. In the third quarter of 2025, Stantec delivered diluted earnings per share (EPS) of $1.32 and adjusted EPS of $1.53. It grew adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) 17.8% and lifted its adjusted EBITDA margin to a record 19%. It further grew adjusted net income to $174.1 million, up 17.7%. Those numbers point to solid demand and sharper execution, not luck. It also offers better visibility than many TSX stocks.

Contract backlog reached $8.4 billion at Sept. 30, 2025, up year over year, with contributions from both organic wins and acquisitions. Backlog does not guarantee perfect quarters, but it helps you gauge momentum and staffing needs. Moreover, it helps the outlook, which still demands discipline.

Stantec must keep hiring and retaining talent, though wage pressure can pinch margins. Project timing can swing quarter to quarter because permitting, weather, and client decisions shift schedules. Still, water, environmental, and grid-related work offer multiple lanes for growth, and that breadth helps when one pocket cools. While trading at 33 times earnings might seem rich, stable rates can support it by reducing discount-rate whiplash. The risk comes from any slip in margin momentum, because quality multiples compress fast when execution wobbles.

Bottom line

So, should you buy this global sustainable engineering and consulting firm now while the Bank of Canada holds? It can make sense if you want a Canadian compounder tied to essential infrastructure, with record margins and a backlog that supports visibility. It can disappoint if execution slips on big jobs, if labour costs bite harder than expected, or if governments delay starts. If you can hold through normal project noise, this TSX stock offers a calm way to invest when rates stay steady and the market cares about fundamentals again.