One of the biggest emerging themes on the market right now stems from the upcoming infrastructure boom. That spending isn’t coming from just highways and bridges. Increased spending on infrastructure is set to include power grid updates, new city infrastructure, and expanding transportation networks.
Additionally, some of that spending towards the infrastructure boom targets growth from AI data centre demand.
For investors, that opens up opportunities across several parts of the infrastructure industry. Here are three Canadian stocks that are particularly well positioned to benefit.
WSP Global
WSP Global (TSX:WSP) is one of the largest engineering and professional services companies on the planet. The company’s operations span transportation, buildings, environmental services, and power.
That puts WSP near the front of any infrastructure boom. That’s because before major projects can be built, they require engineering, design, planning, and consulting work. WSP provides those services without taking on the massive capital requirements of owning the completed infrastructure.
More importantly, there are already signs of that strong demand. In the most recent quarter, WSP reported a record-breaking $20.1 billion backlog. That reflects a 23% increase over the prior year.
That backlog gives WSP visibility into future work and makes the company a unique option for investors looking to benefit from the infrastructure boom.
That gives WSP exposure to infrastructure spending before many of those projects ever reach the construction stage.
Brookfield Infrastructure
Another company set to benefit from the upcoming infrastructure boom is Brookfield Infrastructure Corporation (TSX:BIPC). Brookfield owns and operates infrastructure assets. That includes utilities, transportation, midstream, and data infrastructure operations across the planet.
Not only does that position Brookfield as an intriguing growth pick for investors, but it also offers some diversification. That’s because the infrastructure boom isn’t focused on a single area.
Utilities need investment, and transportation networks need upgrades. The growing demand for cloud computing and AI is increasing the need for data infrastructure.
That data infrastructure investment is noteworthy for investors. The segment is one of the fastest-growing areas of infrastructure spending, and Brookfield’s exposure is significant. The company operates over 150 data centres with an operating capacity of 1.3 gigawatts.
Brookfield is also unique in that the company offers a quarterly dividend. As of the time of writing, Brookfield offers a yield of 4.65%.
That combination of essential assets, growth, and dividends makes Brookfield an intriguing option in the infrastructure boom.
Stantec
Rounding out the three investments to consider in the infrastructure boom is Stantec (TSX:STN). Stantec is another engineering and consulting business, but it offers something different from WSP.
Stantec has significant exposure to water, environmental services, buildings, energy, and infrastructure projects. That makes Stantec an interesting option to consider as governments begin updating their essential infrastructure.
Demand for Stantec’s expertise has remained strong. At the end of the first quarter, the company reported a backlog of $9 billion. The backlog gives Stantec a solid base of future revenue while infrastructure investment expands.
Why these Canadian stocks could benefit from the infrastructure boom
WSP, Brookfield Infrastructure, and Stantec all offer exposure to infrastructure, with some variation.
WSP provides engineering and professional services across major global projects. Brookfield owns and operates the assets. Stantec provides another engineering angle with exposure to specialized areas such as water and environmental infrastructure.
The infrastructure boom will provide long-term growth opportunities. The three stocks mentioned above provide investors with multiple ways to profit from that opportunity.