These Industrial Stocks Are Cashing In on Canada’s Infrastructure Boom (and You Can, Too)

Canada’s infrastructure boom has created opportunities across the supply chain. Energy, utility, and telecom infrastructure companies are seeing rising capital expenditure. This capex is flowing to construction and industrial companies in the form of strong order books. Investors can follow the money trail and cash in on Canada’s infrastructure boom.

The TSX 30 list of top-performing stocks witnessed an infrastructure boom. While gold stocks dominated the June 2025 and June 2026 lists amidst rising geopolitical tensions, industrial stocks came in as the second-best-performing sector.

Industrial stocks cashing in on Canada’s infrastructure boom

According to an Oxford Economics forecast prepared for PwC, Canada will need US$4.7 trillion in infrastructure investments by 2050, of which US$1.6 trillion will be in energy alone. Among other projects are roads and rails connected to energy and mining sites, hospitals, data centres, and defence facilities, and more.

The early winners of the infrastructure wave were Hammond Power Solutions (TSX: HPS.A) and Bird Construction (TSX: BDT). These stocks appeared on the TSX30 list for two years in a row. This rally has inflated their valuation as investors have already priced in the strong growth driven by infrastructure investments.

Hammond Power Solutions

Hammond Power Solutions makes dry-type transformers, power quality products, related magnetics, and power conversion systems that are used for electrification and electrical distribution networks. This small-cap stock’s market cap grew from $1.5 billion to $4.13 billion between June 30, 2025, and June 30, 2026. A 45% revenue jump and a 97% increase in order backlog from the second quarter of 2025 drove the stock price up 109% during this period.

Hammond Power Solutions benefitted from growing demand for artificial intelligence (AI) focused data centre transformers in the U.S. and Mexico. Its revenue from Canada fell 23.7% year over year in the second quarter of 2026 due to the timing of some large custom projects, general softness, and competitive pricing.

HPS stock price slipped 29% since mid-June over fears of cooling AI investment, which has corrected its valuation from its June peak; its price-to-sales (P/S) ratio of 4.3 times dropped to 2.7. Now is a good time to invest and cash in on the next AI infrastructure momentum.

Bird Construction

Bird Construction is a key beneficiary of the Canadian infrastructure boom as it is building various critical infrastructure projects. From Woodfibre LNG to BCE’s AI data Centre to Canada’s largest nuclear plant, Bird is involved in the construction work. These multi-year large capital investment programs in energy and AI data centres are reflected in its $12 billion order backlog, which represents almost four years of revenue.

However, Bird’s stock upside might slow as the 738% rally in the three years ended June 30, 2026, has inflated its valuation to a 72 times price-to-earnings (P/E) ratio from 15.8 as of June 30, 2025. Bird Construction stock is overbought with a Relative Strength Index (RSI) of 73. Surprisingly, the RSI has been above 70 since March, and despite that, the stock jumped 104% between March and September 2026.

Bird stock is highly volatile as valuations ring a warning bell, but the momentum shows investors’ enthusiasm.

How you can cash in on the Canadian infrastructure wave

It is called the infrastructure wave because a sudden surge in demand drives up the stock price, followed by a dip before a new wave pushes the stock up. The next wave may or may not be as powerful as the first one, but it presents a buy-the-dip investing case.

The first wave of the infrastructure boom is over. The next wave could be slightly weaker as investors have already priced in expectations into the stock price. An investing strategy could be to diversify your investments between previous and new performers. Buy the dip and hold for the next few waves until the momentum fades.