Investors looking for Canadian growth stocks likely to skyrocket in the next 12 months should focus on companies riding secular growth trends. From artificial intelligence (AI) and digital infrastructure to space technology, energy, and specialized industrial services, several industries are benefiting from long-term tailwinds that could drive exceptional shareholder value in the years ahead.
While many TSX stocks in these sectors have already rallied, a few growth stocks remain well-positioned for significant upside driven by durable demand. Companies with strong competitive advantages, expanding addressable markets, and improving financial performance could be among the market’s biggest winners in the next 12 months.
Against this backdrop, here are two Canadian growth stocks with potential to skyrocket in the next 12 months.
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Canadian growth stocks: CES Energy
CES Energy (TSX:CEU) is one of the top Canadian growth stocks set to skyrocket over the next 12 months. The oilfield chemical specialist is benefiting from strong operational momentum, growing demand for its products, and a shareholder-friendly capital allocation approach.
What makes CES stand out is its ability to grow even as rig counts in Canada and the U.S. soften. The company continues to gain market share, winning new business, and benefitting from acquisitions, helping drive revenue and earnings higher.
The company’s asset-light business model and relatively low capital spending requirements continue to generate significant free cash flow, giving management flexibility to invest in growth while rewarding shareholders. That strategy is paying off. CES recently raised its quarterly dividend by 29% and continues to repurchase shares.
CES Energy’s outlook remains compelling. Rising global energy demand, expanding LNG infrastructure, growing electricity consumption from AI-driven data centers, and increasing energy security concerns are supporting investment in oil and gas production. At the same time, producers are increasingly relying on advanced chemical solutions to maximize output from existing wells. CES is well-positioned to capitalize on these trends through its specialized chemical products and drilling support services
CES also appears well-positioned to navigate tariff risks and political uncertainty. Its significant exposure to the U.S. market, vertically integrated operations, and flexible supply chain provide resilience.
CES Energy stock has surged more than 171% over the past year. Despite its recent rally, the stock still trades at a reasonable valuation of roughly 1.5 times forward EV/Sales and 22 times price-to-free-cash-flow, leaving room for further upside if growth momentum continues.
Canadian growth stocks: SES Waste Infrastructure
SECURE Waste Infrastructure (TSX:SES) is another attractive growth stock with potential to skyrocket in the next 12 months. It provides waste management, treatment, and disposal services, as well as infrastructure services, to industrial and energy-sector customers. Its diversified business model and resilient operating framework augur well for growth.
SECURE benefits from its contract-driven revenue base. Long-term customer agreements provide predictable cash flow, reduce sensitivity to commodity price swings, and create a strong foundation for future expansion.
Several catalysts could accelerate growth in the year ahead. Long-cycle water infrastructure projects that advanced through 2025 are likely to start contributing to revenue, driving higher earnings as these assets come online. At the same time, SECURE continues to expand its infrastructure in underserved regions, positioning the company to capture growing demand and strengthen its competitive position.
The recovery in the metals recycling segment adds another growth opportunity. As operational efficiencies improve, this business could become an increasingly important contributor to profitability. Meanwhile, management’s disciplined capital allocation strategy focuses on projects supported by existing customer demand and contracted volumes, helping protect returns and cash flow.
There is also room for value-creating acquisitions. Strategic deals could expand SECURE’s infrastructure footprint, increase recurring revenue, and further enhance its market leadership.
With reliable cash flows, multiple growth catalysts, and a proven expansion strategy, SECURE Waste Infrastructure appears well-positioned for strong financial performance over the next year.
