Many Canadian stocks are primed for growth from Canada’s plans to bolster its crucial infrastructure. With geopolitical and trade threats abounding, Canada is looking to be more independent and better maximize its abundant resources.
Canada just announced major plans to bolster military and defence spending as well. It has deployed over $63 billion in 2026. It is planning to spend as much as 5% of gross domestic product (GDP) on defence and critical infrastructure over the coming years.
For infrastructure, it announced a $51 billion fund that will support the upgrading of community infrastructure across Canada over the coming 10 years.
All this means that a wave of business opportunities is about to hit several Canadian companies. Here are three top Canadian stocks that could enjoy tailwinds from Canada’s infrastructure boom.
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Exchange Income: A Canadian stock with multiple tailwinds
Exchange Income Corporation (TSX:EIF) plays into both the defence and infrastructure theme. While its main business is providing essential air services to Canada’s north, it also provides aerospace services, aircraft leasing, manufacturing, and environmental access solutions.
Climate change is making Arctic transport routes more accessible. Consequently, the development and protection of Canada’s northern regions with plentiful mineral resources is becoming more critical. These themes are great tailwinds for Exchange.
It just announced record results whereby revenue rose 30% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 28%. It continues to maintain its guidance for low-to-mid-teens growth in 2026.
If you like monthly income, this stock pays a 2.3% yield. EIF has a history of regularly growing that dividend. This is an interesting Canadian stock for growth and income.
ADF Group: An infrastructure pure-play investment
If you want a small-cap stock (and slightly more risky play), ADF Group (TSX:DRX) could be interesting. This Canadian stock only has a market cap of $318 million today.
ADF is a large-scale steel manufacturer located in Quebec and Montana. It focuses on major infrastructure projects like airports, transportation infrastructure, industrial complexes, and power projects.
This is no doubt a cyclical business. The steelmaker was ravaged by U.S. steel tariffs last year. Fortunately, it has pivoted to focus most of its business in Canada. It just hit a record backlog of $561 million, providing several years of foreseeable revenue. It should start to see a sales boost in late 2026 and into 2027.
ADF sits with $62.7 million of net cash. DRX stock trades with a price-to-earnings ratio of only 10. If it can continue to execute on its projects and grow its backlog, there could still be attractive upside. This stock can be volatile, so add to it on dips.
Pembina Pipeline: A Canadian infrastructure stock crucial to the energy industry
Pembina Pipeline (TSX:PPL) is positioned to win from several tailwinds in coming years. Energy prices are elevated from the disruption in the Straight of Hormuz. It is not likely that this conflict will abate quickly. In the meantime, Canada is increasingly an attractive source of energy supply.
Pembina is one of the most diversified energy infrastructure players in Canada. It owns everything from pipelines to energy storage to midstream/gas processing to export terminals. Pembina is constructing Canada’s second LNG export terminal and establishing plans to becoming an off-the-meter power provider for data centres.
The federal government appears to be more rational about new energy projects. That could speed up approval and construction timelines.
This Canadian stock just increased its guidance for the year. It continues to project steady 5–7% contracted earnings growth over the coming years. PPL stock pays a nice, growing dividend that yields 4.5%. For steady income and reasonable growth, it’s a low-risk bet on Canada’s infrastructure plans.
