The rally in energy, basic materials, artificial intelligence (AI), and space technology-related stocks has helped lift the broader Canadian equity market to new highs. While many of these companies have already delivered impressive gains this year, several remain well-positioned to sustain their momentum throughout 2026.
Against this background, here are two Canadian stocks that look primed for a strong 2026, driven by solid demand tailwinds.
Source: Getty Images
Canadian stock #1: MDA Space
MDA Space (TSX: MDA) appears well-positioned for a strong 2026 as demand for space and defence technologies accelerates. The company operates across satellite systems, robotics, and geointelligence, giving it diversified exposure to fast-growing commercial, government, and defence markets.
Supporting MDA’s growth is the strong opportunity in the company’s satellite systems business. The significant increase in satellite launches over the next decade presents a massive growth opportunity.
At the same time, growing investments in space exploration from both governments and private companies are creating additional long-term opportunities.
The defence sector also strengthens the company’s outlook. Space is increasingly viewed as a critical part of modern military infrastructure, driving sustained spending on surveillance, intelligence, and communication systems. MDA Space already has established capabilities in these areas, positioning it to benefit from rising defence budgets.
The company’s financial momentum remains strong, supported by a backlog of $3.7 billion at the end of the first quarter of 2026, providing solid revenue visibility. Beyond that, MDA Space estimates a potential opportunity pipeline of nearly $40 billion over the next five years across government, commercial, and defence markets.
Its geographic reach further enhances its growth prospects, with expanding opportunities not only in Canada and the U.S. but also in Europe and Southeast Asia. With proven technology, diversified revenue streams, and growing exposure to high-demand markets, MDA Space looks well-equipped to deliver solid long-term returns for investors.
Canadian stock #2: CES Energy
CES Energy (TSX: CEU) is another compelling Canadian stock primed for a strong 2026. The company provides specialized chemical solutions to oil and gas producers, helping improve drilling efficiency, boost production, and protect infrastructure. Demand for its specialized chemicals continues to rise as producers focus on maximizing output from existing wells through longer horizontal drilling and expanded hydraulic fracturing activity.
Despite softer rig counts in parts of Canada and the U.S., CES Energy continues to grow through market share gains, new customer wins, and contributions from acquisitions. Its asset-light business model and relatively low capital spending requirements allow the company to generate strong free cash flow, giving management flexibility to invest in growth while rewarding shareholders.
Thanks to the solid momentum in its business, CES recently raised its quarterly dividend by 29% and continues to repurchase shares.
Long-term industry trends remain favourable for CES Energy. Rising global energy demand, expanding LNG infrastructure, and growing electricity consumption from AI and data centres are driving continued investment in oil and gas production. At the same time, underinvestment in upstream energy projects has increased reliance on advanced chemical treatments that improve well productivity and efficiency.
CES Energy also appears relatively resilient amid tariff risks and political uncertainty, supported by its significant U.S. revenue exposure, vertically integrated operations, and flexible supply chain. With strong positioning across key markets, the company remains well-positioned for continued earnings growth, dividend increases, and further upside.
