These Stocks Will Power Canada’s Nation-Building Push in 2026

Canada’s $1T nation-building boom targets infrastructure, housing, AI power, and resilience. These 2 surging TSX stocks are set to cash in and make their investors wealthy.

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Key Points
  • A $159B federal spend unlocks $1T private investment: How the Build Communities Strong Fund multiplies cash into infrastructure for homes & AI data centers before 2030.
  • Bird Construction's (TSX:BDT) fortress: An $11B backlog secures 3+ years of high-margin work in housing & booming data centers, among other infrastructure project wins, fueled by a spotless balance sheet.
  • Aecon Group's (TSX:ARE) nuclear edge: A $10.7B backlog, on-time and on-budget Darlington wins, plus contract shifts to higher margin wins promise triple-digit EPS growth in 2026 - 27.

Canada’s nation-building push has fast morphed from a political talking point to a massive industrial mobilization in 2026. It’s designed to insulate the country from trade impasses and global supply chain shocks while addressing the domestic housing crisis and insatiable power demands of an artificial intelligence (AI) boom. A multi-year infrastructure spend like this one represents a generational opportunity for Canadian investors to own stakes in growth stocks of companies physically building the foundations of a more economically resilient Canada.

heavy construction machines needed for infrastructure buildout

Source: Getty Images

The $1 trillion nation-building investment opportunity

The catalyst for Canada’s sudden urgency was a combination of disruptive tariffs and a realization that reliance on a single major trading partner for prosperity is a strategic vulnerability. The federal government has committed to massive expenditures to sustain economic growth and promote a structural transformation. Total federal spending may reach approximately $159 billion between 2025 and 2030.

Furthermore, the government expects its public seed money to attract more than $1 trillion in total private-sector investment, creating a multiplier effect that could define the TSX’s growth mood for years to come.

2 TSX stocks harvesting cash from Canada’s infrastructure projects

Two engineering and construction industry stocks stand at the forefront of Canada’s nation-building push, and they have already surged by 50% year to date. Bird Construction (TSX: BDT) stock and Aecon Group (TSX: ARE) stock are rising after spending the last year cleaning up their balance sheets and winning massive, high-margin contracts that are just now beginning to hit their income statements in 2026.

Bird Construction stock

Bird Construction stock is perhaps the most compelling “pure play” on this nation-building trend. The construction company entered 2026 with a staggering $11 billion backlog of future higher margin revenue, representing more than three years of guaranteed work already on the books.

BDT has strategically positioned itself to benefit from the AI boom by securing contracts for data centre construction, which requires specialized industrial expertise.

The beauty of BDT stock’s revenue and earnings growth story right now lies in the company’s execution of revenue and earnings growth. Through a combination of organic wins and smart acquisitions, the company has built a fortress balance sheet that allows it to take on these massive projects without the financial strain that often plagues smaller builders.

Aecon Group stock

Aecon Group is equally vital to nation building, but focuses on the heavy-lifting side of infrastructure. It’s a critical partner in the clean energy transition, particularly in the nuclear sector. It’s successful completion of Ontario’s Darlington Nuclear Refurbishment project, which finished under budget and four months ahead of schedule, has cemented its reputation as a premier operator for complex power projects. Its revenue backlog has surged from $6.7 billion at the end of 2024 to $10.7 billion heading into 2026.

While Aecon Group stock previously struggled with high-risk, fixed-price legacy projects, it has since transitioned to more favourable contract structures that protect its gross margins from inflationary pressure. Earnings per share could grow at triple digits rates over the next year or two.

Which Canadian infrastructure stock to buy right now?

Both infrastructure stocks have substantially taken off this year. New investors may wish to look past simple price movements and utilize a valuation methodology based on the Price-Earnings-to-Growth (PEG) ratio.

Bird Construction stock still trades at a reasonable forward price-to-earnings ratio of 12.9. With growing earnings, BDT’s forward PEG ratio of roughly 0.6 suggests the stock remains undervalued relative to its earnings growth potential.

Aecon Group stock also looks attractive from a growth perspective, sporting a forward PEG ratio between 0.2 and 0.6, even with a higher forward P/E of 23.7.

If you have to choose just one favourite buy right now, Bird Construction stock may take the prize. Its lower valuation, record-breaking backlog levels, and specific exposure to both the housing and blazing-hot data centre markets, among other infrastructure projects, make it a quintessential nation-building stock. As new contracts morph into revenue throughout 2026, BDT stock may deliver strong earnings growth that creates long-term wealth for patient retail investors. This is an investment opportunity where national necessity and corporate profitability are perfectly aligned.

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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