A month earlier, Canadian Prime Minister Mark Carney held Canada’s first investment summit in decades. The goal was to raise money for energy, logistics, and technology infrastructure. After Carney’s trade talks with US President Donald Trump failed, he decided to expedite the infrastructure push and bring Canada’s critical minerals, oil, and gas to the world. Canada Pension Plan (CPP) Investment, the big five Canadian banks, and big Canadian venture capital firms committed $500 billion of new investment, and Carney aims to take it to $1 trillion.
Your CPP contribution will fund Canada’s new growth infrastructure. Your indirect contribution to Canada’s infrastructure boom through CPP Investments will give returns in the form of small cash flows over the long term.
Source: Getty Images
Carney’s investing summit creates buying opportunity for two stocks
In your personal portfolio, you could consider investing in stocks that will help build the infrastructure. A part of the $500 million investment will go to these companies as order books. Your investment won’t bear the risk of projects going over budget or the returns they will generate once completed.
The construction stock that surged after the investment summit
Aecon Group (TSX: ARE) constructs infrastructure, including urban transport, civil, power, and utilities. The company’s biggest risk is inflation increasing project costs and government approvals delaying projects. With the government expediting infrastructure development, Aecon will be the key beneficiary. Moreover, it has 68% of its order backlog on cost-plus price terms and the remaining 32% on fixed-price terms. This protects the company from rising commodity costs and project cost overruns.
Aecon Group stock surged 34.8% between September 14 and October 2, as investors reacted to the investing summit. Its peer Bird Construction’s stock surged 15% during this time. The difference is in the price-to-book (P/B) ratio. Since both stocks are rallying on the order book, the P/B ratio makes more sense: Bird had a higher ratio (3.8x) than Aecon (1.8x), making Bird slightly overvalued.
Aecon has more upside as its order backlog is above $10.5 billion, with 40% expected to complete in 12 months. Investors could see strong revenue growth for the next 12 months as Aecon executes its backlog.
The equipment stock to benefit from infrastructure investment
Apart from construction, another stock to take notice of is transformer manufacturer Hammond Power Solutions (TSX:HPS), whose stock price surged 33% between September 15 and October 9.
Transformers manage power flow and help deliver energy safely and efficiently across power grids, mining sites, transportation systems, commercial buildings, public infrastructure, data centres and industrial hubs. In the last two years, HPS witnessed a strong order flow for custom and high-value solutions from the United States to support data centre expansion, infrastructure investment and industrial electrification. The Canadian market also showed strong demand in commercial construction, data centres, mining and utilities.
Its biggest revenue contributor has been electric distribution. However, the data centre boom drove HPS stock up 1,600% between January 2023 and June 2026. Data centres need high-margin custom transformers, driving HPS’s order book to a level that it had to expand capacity to fulfill the order backlog. Hence, its stock price dipped a sharp 33% in July and August, and another 29% in October as AI infrastructure investments come under scrutiny.
While data centres are a catalyst for Hammond Power Solutions, the Canadian infrastructure boom could revive the slowdown in the Canadian market it witnessed in the first half of 2026. The recent dip has created a buying opportunity, as its growth is diversified beyond data centres and across industrial, mining, and utilities. Any momentum uptick in these sectors could push the stock upwards.
