Canada’s upcoming federal election has politicians once again talking infrastructure spending. Some economists think this type of government expenditures is a great way to generate economic growth, as at least one estimate shows transit congestion costing the Canadian economy $11 billion a year in lost productivity. With interest rates at historic lows, now might be a good time to borrow to improve roads, bridges, and public transportation, and the stocks on our list could benefit the most.
SNC-Lavalin Group Inc. (TSX: SNC) – $38.75
Construction & Engineering
SNC-Lavalin Group Inc. is an engineering and construction company that operates through four segments: Resources, Environment and Water (REW); Power; Infrastructure, and Infrastructure Concessions Investments (ICI). The Company’s REW segment includes projects from the Mining & Metallurgy, Oil & Gas and Environment & Water sub-segments. The Company’s Power segment includes projects and services in hydro, nuclear and thermal power generation; renewable power generation; energy from waste, and electrical transmission and distribution systems. The Company’s Infrastructure segment includes projects from infrastructure and construction to operations and maintenance (O&M). The Company’s ICI segment includes investments in infrastructure concessions in certain infrastructure for public services.
- Market Cap: $5,683,477,653
- Revenue (LTM): $9,329,577,000
- Operating Income (LTM): $1,739,607,000
- Total Debt (LFQ): $1,107,217,000
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WSP Global Inc. (TSX: WSP) – $45.00
Construction & Engineering
WSP Global Inc. (WSP) is a Canada-based professional services firm that works with governments, businesses, architects and planners and provides solutions across various disciplines. The Company provides services, such as transforming the built environment and restoring the natural environment; environmental remediation and urban planning; engineering iconic buildings and designing transport networks, and developing the energy sources. It has operations across 39 countries in around five continents.
- Market Cap: $4,130,238,269
- Revenue (LTM): $4,689,700,000
- Operating Income (LTM): $201,300,000
- Total Debt (LFQ): $962,900,000
Stantec Inc. (TSX: STN) – $30.44
Business Support Services
Stantec Inc. (Stantec) is engaged in providing planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. The Company’s three business operating units include Buildings, Energy & Resources, and Infrastructure.
- Market Cap: $2,849,433,971
- Revenue (LTM): $2,250,007,000
- Operating Income (LTM): $227,732,000
- Total Debt (LFQ): $401,234,000
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Aecon Group Inc. (TSX: ARE) – $13.50
Construction & Engineering
Aecon Group Inc. is a Canada-based construction and infrastructure development company that operates in four segments: Infrastructure, Energy, Mining and Concessions.
- Market Cap: $756,094,148
- Revenue (LTM): $2,731,470,000
- Operating Income (LTM): $96,326,000
- Total Debt (LFQ): $511,200,000
Northern Frontier Corp. (TSXV: FFF) – $0.73
Construction & Engineering
Northern Frontier Corp., formerly Frontier Acquisition Corp., is a Canada-based provider of civil construction and excavation services to the industrial industry and provides bulk water and fluids transfer services in western Canada. The Company has two operating segments: Civil and Logistics.
- Market Cap: $18,953,920
- Revenue (LTM): $53,191,000
- Operating Income (LTM): -$24,997,000
- Total Debt (LFQ): $37,121,000
