A Tax-Free Savings Account (TFSA) is an excellent vehicle for long-term wealth creation, allowing investors to earn tax-free returns on eligible investments within their available contribution room. While growth stocks can offer significant long-term return potential, their evolving business models and often higher valuations also make them riskier investments. Therefore, they are best suited for investors with a long-term investment horizon and a higher tolerance for volatility.
With that in mind, here are three growth stocks investors can consider adding to their TFSA this month for long-term wealth creation.
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Celestica
Celestica (TSX:CLS), which provides data centre infrastructure and advanced technology solutions, delivered an impressive second-quarter performance, exceeding its guidance. Revenue surged 62% year over year to $4.70 billion, driven by an 84% increase in the Connectivity & Cloud Solutions (CCS) segment, while Advanced Technology Solutions (ATS) revenue grew 8%. Meanwhile, the company’s adjusted operating margin expanded by 80 basis points to 8.2%, supported by margin improvements across both segments. Adjusted EPS (earnings per share) also jumped 82.7% year over year to $2.54.
Following its strong first-half performance, Celestica raised its 2026 outlook and expects revenue and adjusted EPS to increase by approximately 65% and 87%, respectively. Management also projects its adjusted operating margin to expand by 90 basis points to 8.4% and expects to generate $600 million in free cash flow. With growth expected to accelerate further in 2027, Celestica remains an attractive addition to a TFSA portfolio.
5N Plus
Another growth stock I am bullish on is 5N Plus (TSX:VNP), a producer of specialty semiconductors and performance materials. The company posted an impressive second-quarter performance earlier this month, with revenue increasing 28% year over year to $122.4 million, driven by higher volumes across its specialty semiconductors and performance materials segments. Adjusted gross profit rose 12% to $26.6 million, although adjusted gross margin declined 430 basis points to 30.3% due to higher metal input and chemical costs.
Despite the margin pressure, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 10% to $26.6 million, while net income jumped 29.6% to $19.7 million. The company ended the quarter with a $420 million backlog, equivalent to 313 days of annualized revenue. Its balance sheet also strengthened, with net debt falling to $23.7 million from $50.3 million at the beginning of the year, and its net debt-to-EBITDA ratio improving to 0.21.
Looking ahead, 5N Plus should benefit from favourable long-term trends and structural growth across its specialty semiconductors and performance materials businesses. Its expertise in ultra-high-purity semiconductor materials and strong customer relationships also position it well to capitalize on growing demand from critical industries. Given its solid financial position and long-term growth opportunities, 5N Plus would be an excellent addition to a growth-focused TFSA portfolio.
MDA Space
My final pick is MDA Space (TSX:MDA), which provides advanced technologies and services to the rapidly growing global space and defence industries. The company posted an impressive second-quarter performance, with revenue increasing 33.6% year over year to $498.6 million, driven by volume growth across its business segments. Adjusted EBITDA rose 26.2% to $96.3 million, while the adjusted EBITDA margin stood at 19.3%, within management’s 18% to 20% target range. Adjusted net income also increased 12.9% to $51.8 million, supported by higher gross profits despite increased selling, general, and administrative and research and development expenses.
However, adjusted EPS declined 1.5% to $0.36, reflecting a higher share count following the company’s U.S. initial public offering. Free cash flow also weakened, with the company reporting $150.2 million in cash used, compared with $16.2 million of free cash flow in the prior-year quarter, primarily due to lower working capital contributions and higher capital expenditures.
Looking ahead, rising demand for satellite connectivity and space robotics, increased defence spending amid geopolitical tensions, and growing investment in space exploration provide significant long-term growth opportunities. MDA Space is also strengthening its capabilities through strategic acquisitions, including its proposed acquisitions of Blue Canyon Technologies and Collecte Localisation Satellites, which could expand its global reach and addressable market. With a project pipeline of approximately $40 billion providing strong visibility into future growth, MDA Space could be an excellent addition to a growth-focused TFSA portfolio.
