If you want one Canadian stock that is poised to surge in 2026, my pick is WSP Global (TSX:WSP).
The Canadian stock trades near $187, just above a 52-week low, while Wall Street’s consensus target sits around $314, indicating an upside potential of over 60% from current levels.
I think the market is misreading a high-quality business that is still growing fast. Let me back that up with a few facts and figures.
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Why WSP Global stock looks mispriced today
The Montreal-based firm is one of the world’s leading professional services companies, with nearly 83,000 people designing and managing the bridges, transit systems, water networks, and power grids that modern economies depend on.
Valued at a market cap of $25 billion, the TSX stock has returned more than 400% to shareholders over the past decade, after adjusting for dividends.
In 2025, the first year of WSP’s three-year strategic plan, the company grew net revenue by 14.7%, increased adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by 17.2%, and expanded adjusted earnings per share by 19%.
- It reported free cash flow of $1.7 billion in 2025, up from $884.5 million in 2024. Analysts forecast free cash flow to grow to $2.2 billion in 2028.
- WSP ended 2025 with a record backlog of $17 billion, which translates to roughly 11 months of guaranteed work and provides revenue visibility.
- WSP’s first-quarter earnings beat expectations, with adjusted net income up 26%. Further, management raised its full-year adjusted EBITDA outlook to a range of $3.05 billion to $3.18 billion.
How acquisitions and AI fuel the next leg of growth
WSP’s growth engine has two key drivers: smart deals and disciplined expertise.
On the deal side, WSP acquired Ricardo, a U.K. engineering and strategy firm working across transport, energy, and the environment.
It then closed a landmark purchase of TRC, adding 8,000 professionals and deepening its push into the U.S. energy market. WSP now has more than 26,500 people in the United States.
L’Heureux was clear about his approach. He told shareholders that acquisitions are not a strategy on their own, but “a means to execute on your strategy.”
He judges every deal against four tests: strategic fit, culture, shareholder value, and the company’s ability to integrate it easily.
Then there is artificial intelligence (AI). Many investors fear that AI will hollow out consulting and engineering firms.
Notably, WSP views AI as a tool that “augments” its work rather than replaces it, L’Heureux said. WSP is even co-creating solutions with Microsoft and rolling out Copilot across its teams.
The logic is simple. Infrastructure decisions carry real-world consequences, and clients still need human judgment and accountability. AI just helps WSP do that work faster.
The Foolish takeaway
WSP is a global infrastructure leader trading at a discount to its historical multiple. For instance, WSP stock is priced at 17.7 times forward FCF, which is below its three-year average of 31 times.
If it is priced at 20 times forward FCF, the Canadian stock could return 75% within the next 20 months.
I think WSP Global is the Canadian stock most likely to surge in 2026. The market is offering a quality business on sale, and that does not happen often.
