One company particularly poised to take advantage of this optimistic outlook and benefit from Canada’s 2026 budget is Stantec (TSX:STN). The “Canada Strong” pro-growth budget targets a five-year period of $1 trillion in public and private investments in nation-building.
Perfectly positioned
Stantec, a $10.7 billion global design and engineering firm, should be in a good position as 2026 rolls around. The company’s specialist expertise in five key industries aligns directly with the government’s key spending priorities during the five-year capital deployment period.
The business units are Water, Environmental Services, Buildings, Energy & Resources and Infrastructure. Management believes that Stantec is well positioned for organic growth due to its diverse business operations and customer base.
If you invest today, STN is trading at $128.25 per share (+15% year-to-date) and paying a modest 0.69% dividend. The five-year return of industrial stocks is 224.5%, which equates to a compound annual growth rate (CAGR) of 26.5%.
Organic growth
Stantec achieved organic growth across all five business units in the third quarter (Q3) of 2025. In the three months ended September 30, 2025, net sales and net income increased 11.8% and 45% year-over-year, respectively, to $11.8 billion and $150 million. Strong revenue growth drove operating cash flows up 86% to $254.3 million compared to the third quarter of 2024.
President and CEO, Gord Johnston, said: “Stantec delivered strong results in the third quarter, driven by continued global demand for our services and a continued focus on project execution and operational efficiency.” In the first three quarters of 2025, net income rose 46% to $385.5 million from a year ago.
The contract backlog at the end of the third quarter of 2025 was $8.4 billion, up 14.9% from a year ago. Specifically, this backlog represents approximately 13 months of work. Because the company does not engage in heavy construction work, but rather focuses on design and planning, Stantec is less exposed to risks of cost overruns and generates stable cash flows.
Stantec also became the second-largest architecture firm in the US in the third quarter after acquiring Washington, DC-based Page. It immediately strengthened the Canadian company’s buildings practice on the other side of the border.
“With the closing of the Page acquisition in the quarter and the continued demand we see across all our operating regions, we expect another record year for Stantec,” Johnston added.
A permanent core in 2026
Johnston highlighted that Stantec is involved in both broad infrastructure programs announced by Prime Minister Mark Carney and energy-based projects. He sees significant opportunities in the transport, water and energy sectors.
The business of this consultancy and engineering firm is flourishing or depends on winning new contracts. In the last two months of 2025 alone, Stantec won new contract awards in Canada, the US, Taiwan and the European Commission. Public and private sector projects in advanced manufacturing and data centers should also drive or contribute to growth.
Stantec could be your steady core interest in 2026. The stock has a lower risk profile amid strong infrastructure demand, but without the heavy construction risk.
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