2 TSX Stocks That Could Win Big From Canada’s Energy Strength

Canada’s energy edge includes both “toll-road” infrastructure and the nuclear fuel supply chain — and these two TSX stocks capture each side.

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 May 7, 10:30 am EDT

| More on: GEINXE

Key Points

Gibson Energy is a fee-heavy liquids infrastructure business, raising dividends and benefiting from contracted volumes, though leverage is worth watching.
NexGen is a uranium megaproject developer with key approvals and lots of cash, but it’s still pre-production and execution-heavy.
One is built for income and stability, the other for long-term upside if nuclear demand and uranium prices stay strong.

10 stocks we like better than Gibson Energy

Canada’s energy strength isn’t just about oil prices. It’s about assets the world still needs: natural gas, crude infrastructure, export capacity, and uranium for reliable power. The best stocks in this theme usually own hard-to-replace assets, generate cash when demand rises, and have a clear reason to matter beyond one good commodity cycle. Investors still need to watch debt, project risk, and volatile prices, but Canada’s energy base gives the TSX a real edge.

Muscles Drawn On Black board — Source: Getty Images

GEI

Gibson Energy (TSX:GEI) offers a different kind of energy bet. It doesn’t need to drill a hot well or chase every move in oil prices. Instead, Gibson Energy owns liquids infrastructure, including storage, processing, gathering, and terminal assets in key North American energy hubs. That makes it a steadier way to play Canada’s energy strength. When more crude and liquids move through the system, companies like Gibson Energy can benefit from long-term contracts and infrastructure demand rather than pure commodity swings.

Its latest full-year results gave investors plenty to like. Gibson Energy delivered record Infrastructure adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $622 million in 2025, including $160 million in the fourth quarter. Net income reached $198 million for the year, and the company raised its dividend by 5%, marking its seventh straight annual increase.

Gibson Energy stock also announced a $400 million acquisition of Teine Energy’s Chauvin infrastructure assets, plus major Edmonton contract extensions. The valuation isn’t dirt cheap, with the stock trading around 31 times earnings, and debt sat at 3.9 times adjusted EBITDA. Still, the yield remains at about 6.2%, and infrastructure EBITDA per-share growth target make it a strong fit for income investors who want energy exposure with less drama.

NXE

NexGen Energy (TSX:NXE) represents the higher-risk, higher-upside side of Canada’s energy story. It’s developing Rook I in Saskatchewan’s Athabasca Basin, one of the world’s top uranium regions. Uranium matters more now because nuclear power keeps gaining attention as countries and data-centre operators search for reliable, low-emission electricity. NexGen received final federal approval for Rook I in March 2026, a major step forward after years of permitting work.

Unlike Gibson Energy stock, NexGen doesn’t trade on earnings today. It trades on future production potential. That makes valuation harder. The TSX-listed shares recently carried a market cap near $11 billion and a price-to-book ratio around 6. It also ended 2025 with more than $1.1 billion in cash after a large equity raise, giving it funding flexibility as it moves toward construction planning.

The risk sits right in plain view. Rook I still needs major capital, execution remains crucial, and uranium prices can swing hard. But if Canada’s energy strength includes nuclear fuel, NexGen could become one of the biggest long-term winners.

Bottom line

Canada’s energy advantage stretches across more than oil. Gibson Energy offers income and infrastructure stability. NexGen gives investors a direct shot at the nuclear fuel boom. Together, these two energy stocks show why Canadian energy still deserves attention, especially when the world wants more secure, reliable, and locally sourced supply.