3 Stocks for Canada’s Infrastructure Spending Boom

Are you wondering what TSX stocks could see a surge from Canada’s infrastructure spending boom? These are some of my favourites right now.

Key Points
  • Canada’s multibillion infrastructure and defence spending push creates a multiyear tailwind for domestic infrastructure, engineering, and energy projects.
  • Top beneficiaries: WSP Global (TSX:WSP) — engineering/backlog growth; Pembina Pipeline (TSX:PPL) — energy infrastructure and LNG projects; Toromont Industries (TSX:TIH) — heavy equipment supplier with growing backlog.
  • These names offer durable exposure to nation‑building but carry execution, cyclicality and valuation risks, so favour strong backlogs and consider buying on pullbacks.

Canada is getting serious about stimulating its economic growth. It is investing billions of dollars in crucial infrastructure projects. Likewise, it is fast-tracking projects that are considered of national importance. That should play favourably for several domestic Canadian stocks. These three stocks are some of my favourites that should benefit from rising infrastructure spending in the coming years.

infrastructure like highways enables economic growth

Source: Getty Images

WSP Global stock

With a market cap of $30 billion, WSP Global (TSX: WSP) is one of the largest and most diversified engineering, design, and advisory firms in the world. It has acquired businesses around the world that have both expanded its expertise and geographic distribution.

This allows WSP to provide end-to-end solutions across major infrastructure projects. It is taking a greater share of broader projects, which is also helping its margins increase.

WSP’s Canadian backlog grew 13.5% in 2025. In fact, this was one of its strongest performing regions. Last year, it grew adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) by 17.2%. It is targeting at least 17% adjusted EBITDA growth in 2026.

Its stock is down 9% this year. WSP’s valuation is at its lowest in five years. If you want exposure to the Canadian and global infrastructure boom, WSP is a perfect stock to add now.

Pembina Pipeline

Pembina Pipeline (TSX: PPL) is a leading provider of energy infrastructure in Western Canada. Canadian energy is increasingly becoming important as energy security becomes scarcer in places like the Middle East.

Pembina provides all the tools an energy producer needs to get their gas and liquids to market. This included everything from collection pipelines to midstream facilities to egress pipelines to storage and export terminals.

Pembina is constructing one of only a few LNG terminals that have been approved to date. It has already seen very strong contracting demand for that facility. It is very likely to pursue additional phases after it hits completion in 2028. Recent government fast-tracking of other facilities shows that LNG export is now a national priority.

Pembina is also exploring opportunities to power data centres in central Alberta. Alberta has the perfect climate for data centres and ample natural gas to power them. This could be another infrastructure opportunity in the decades ahead.

Right now, Pembina is targeting 5-7% annual growth all the way to 2030. However, with a more open regulatory environment, it may be able to grow its infrastructure network even faster than previously.

Toromont Industries stock

Toromont Industries (TSX: TIH) could be another beneficiary of Canada’s infrastructure boom. It is somewhat agnostic to what sector is seeing infrastructure because each of them needs yellow iron and heavy-duty construction equipment regardless.

Today, Toromont has a $1.5 billion backlog. That is likely to keep growing as more projects are announced and construction commences. Toromont is in a strong position because metal pricing is high, so miners have the capital to update equipment. Likewise, several major resource projects were considered of national importance.

It will take some time for capital to move from approvals to project construction. As a result, the nation-building activity will likely be more of a long-term tailwind than a near-term one.

Regardless, this is an exceptionally well-managed company. Toromont consistently delivers strong returns for shareholders. It is not a cheap stock today, so you do want to be a bit choosy when you enter a position. However, if you want a strong business (that could get stronger), it’s an interesting stock to look at.

Fool contributor Robin Brown has positions in WSP Global. The Motley Fool recommends Pembina Pipeline and WSP Global. The Motley Fool has a disclosure policy.

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