Today, Canada is investing heavily to become an energy super power around the globe. The country has substantial resources. However, heavy regulations and NIMBYism have limited the development of these resources.
Fortunately, things are starting to change. New trade policy with the U.S. is forcing Canada to start investing for economic growth. Likewise, Canada has a massive infrastructure deficit from years of aggressive population growth.
Fortunately, the current government appears to be taking the economic and geopolitical risks seriously. This means Canada is investing to improve its defence capacities, streamlining infrastructure, and deregulating projects of national importance.
All of these actions should result in major dollars rolling in to great Canadian companies. Below are three TSX stocks that are set to thrive from Canada’s infrastructure spending boom.
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Calian Group: A TSX stock winning from Canada’s defence infrastructure expansion
Calian Group (TSX:CGY) is one of the best companies set to enjoy the boom in Canadian defence spending. It is a significant provider of health, training, and ground satellite services to the Canadian military.
The company has been working to focus on its core competencies and reinforce its defence relationships. This appears to be paying off.
It just announced quarterly results. Revenues rose 18%, including 12% organic growth. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 60% to $28 million.
Calian’s backlog ended at $1.5 billion. For a TSX stock with a market cap of only $938 million, it is an impressive opportunity. Even with the stock up 49% in 2026, it is still not an expensive stock at 19 times earnings.
Bird Construction: A top TSX construction company
With a market cap of $2.8 billion, Bird Construction (TSX:BDT) is one of Canada’s largest construction companies. Industrial and infrastructure projects form about 60% of its business mix, while buildings make up the rest.
This TSX stock has been working to focus on higher margin, niche projects where it can consistently deliver on budget and on time. EBITDA margins have improved to the mid-single digit range. Management is targeting 8% EBITDA margins by 2027.
The construction firm has a $5.4 billion backlog and a $5.6 billion pending backlog. That is expected to continue to rise as Canada approves nation building projects. It already has its fair share of significant projects in LNG export, petrochemical, nuclear power, and data centres.
This stock is up 78% this year. BDT is not exactly cheap with a price-to-earnings ratio of 18 today. Notwithstanding, it probably deserves a better multiple given its strong execution over the past couple of years.
WSP Global: A top engineering firm
With a market cap of $25 billion, WSP Global (TSX:WSP) is one of the largest engineering, advisory, and consulting firms in the world.
Given its size and scale, WSP or one of its entities are likely to be involved in a significant number of Canada’s major infrastructure projects. It has expertise across many industries and segments, and capabilities from design to project management to project optimization.
It just announced a quarter where revenue increased 10.8%, 5% of that being organic. Adjusted EBITDA increased 16.5%. Its backlog soared 19% to $19.7 billion. Management noted that it would have some big announcements related to Canada in the second quarter, so that backlog is likely to keep rising.
Its stock is down 23% this year. This TSX stock’s valuation is at its lowest price-to-earnings ratio since 2020 during the heart of the pandemic. WSP stock looks like a bargain if you can look through the negative share momentum.
