3 Stocks for Canada’s Infrastructure Spending Boom

Canada’s infrastructure boom is creating opportunities for investors, including these stocks positioned to benefit from long-term infrastructure spending.

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Key Points
  • Canada is entering a significant infrastructure spending cycle, focusing on public transit, water treatment, and energy systems, creating opportunities for investors.
  • Engineering and consulting firms like AtkinsRéalis, WSP Global, and Stantec are positioned to benefit, as they manage crucial projects and provide stability against market volatility.
  • These companies have strong project backlogs and recurring revenue streams, offering investors exposure to Canada’s infrastructure boom and long-term growth potential.

A once-in-a-generation opportunity is emerging. Canada is entering one of the largest infrastructure spending cycles in decades. Funds are being awarded toward public transit, water treatment, energy systems, and other large projects.

For investors, this represents an opportunity to buy companies that directly benefit from long‑term government and private‑sector spending. Engineering and consulting firms are positioned at the core of this boom. They design, plan, and manage the projects that governments and utilities rely on. Even better, they can provide a hedge against market volatility.

Here are three top Canadian infrastructure stocks that stand to benefit from years of increased spending.

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A direct beneficiary of Canada’s infrastructure pipeline

AtkinsRéalis (TSX: ATRL) is a name that most investors will recognize under its former name, SNC‑Lavalin. The company has undergone a major transformation in recent years, which includes shifting away from fixed-price construction projects.

Instead, AtkinsRéalis is now focusing on engineering, consulting, and project management work. That pivot has reduced risk and improved earnings stability.

AtkinsRéalis has one of the strongest project backlogs in the industry. That backlog is supported by demand across energy, transit, and public infrastructure. The company is deeply embedded in major Canadian projects, including transit expansions, power system upgrades, and environmental remediation work.

As major infrastructure plans continue to roll out, AtkinsRéalis is in a unique position to capture a meaningful share of that spending. Its improved business model and growing project pipeline make it a compelling long‑term pick.

While AtkinsRéalis does offer a dividend, the 0.09% yield is more of a rounding error than a source of income.

A global infrastructure powerhouse

Another company at the core of Canada’s infrastructure spending is WSP Global (TSX: WSP). WSP is one of the largest engineering and consulting firms in the world. Its expertise spans transportation networks, water systems, environmental services, and energy infrastructure. Its global footprint gives it exposure to infrastructure spending not only in Canada, but across the United States, Europe, and Australia.

WSP benefits from long‑term government contracts and recurring revenue streams tied to essential public works. The company has also expanded aggressively through acquisitions, strengthening its capabilities in high‑growth areas such as climate adaptation and environmental engineering.

Like AtkinsRéalis, WSP does offer a dividend, but it is an anemic yield of just 0.68%.

With infrastructure spending accelerating worldwide, WSP’s diversified portfolio and strong balance sheet make it a high‑quality, lower‑volatility option for long‑term investors.

The mid‑cap leader in water and environmental infrastructure

A third pick slated to benefit from Canada’s infrastructure spending boom is Stantec (TSX: STN). Stantec is a mid‑cap engineering firm with a strong focus on water treatment, environmental engineering, and urban planning. Those areas are seeing increased investment as governments prioritize climate‑resilient infrastructure and sustainable development.

Stantec’s project pipeline continues to grow, supported by demand for upgraded water systems, flood mitigation, and environmental remediation. The company has delivered consistent earnings growth and maintains a strong presence across North America.

For investors seeking a steady compounder with direct exposure to infrastructure spending, Stantec offers a balanced mix of stability and long‑term growth potential.

Why these stocks benefit from Canada’s infrastructure boom

AtkinsRéalis, WSP Global, and Stantec are uniquely positioned to benefit from Canada’s infrastructure cycle. They provide the engineering, design, and project management expertise required for major public and private projects. Unlike capital‑intensive companies, these firms generate strong margins with lower risk and higher project visibility.

All three companies maintain strong backlogs, recurring revenue, and exposure to multi‑year spending programs. As infrastructure investment accelerates, these stocks offer a compelling way to participate in long‑term structural growth.

Canada’s infrastructure boom is just beginning, and the companies that design and manage these projects are set to benefit for years. For those looking to add durable growth to their portfolio, these infrastructure stocks are worth a closer look in any well-diversified portfolio.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

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