If you’d like one Canadian inventory that’s poised to surge in 2026, my choose is WSP International (TSX:WSP).
The Canadian inventory trades close to $187, simply above a 52-week low, whereas Wall Road’s consensus goal sits round $314, indicating an upside potential of over 60% from present ranges.
I feel the market is misreading a high-quality enterprise that’s nonetheless rising quick. Let me again that up with a number of info and figures.
Supply: Getty Photographs
Why WSP International inventory seems to be mispriced in the present day
The Montreal-based agency is among the world’s main skilled providers corporations, with almost 83,000 individuals designing and managing the bridges, transit techniques, water networks, and energy grids that fashionable economies rely upon.
Valued at a market cap of $25 billion, the TSX inventory has returned greater than 400% to shareholders over the previous decade, after adjusting for dividends.
In 2025, the primary 12 months of WSP’s three-year strategic plan, the corporate grew internet income by 14.7%, elevated adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) by 17.2%, and expanded adjusted earnings per share by 19%.
- It reported free money stream of $1.7 billion in 2025, up from $884.5 million in 2024. Analysts forecast free money stream to develop to $2.2 billion in 2028.
- WSP ended 2025 with a file backlog of $17 billion, which interprets to roughly 11 months of assured work and gives income visibility.
- WSP’s first-quarter earnings beat expectations, with adjusted internet revenue up 26%. Additional, administration raised its full-year adjusted EBITDA outlook to a variety of $3.05 billion to $3.18 billion.
How acquisitions and AI gasoline the subsequent leg of development
WSP’s development engine has two key drivers: good offers and disciplined experience.
On the deal facet, WSP acquired Ricardo, a U.Okay. engineering and technique agency working throughout transport, vitality, and the surroundings.
It then closed a landmark buy of TRC, including 8,000 professionals and deepening its push into the U.S. vitality market. WSP now has greater than 26,500 individuals in the USA.
L’Heureux was clear about his method. He informed shareholders that acquisitions usually are not a technique on their very own, however “a method to execute in your technique.”
He judges each deal in opposition to 4 exams: strategic match, tradition, shareholder worth, and the corporate’s skill to combine it simply.
Then there’s synthetic intelligence (AI). Many buyers concern that AI will hole out consulting and engineering companies.
Notably, WSP views AI as a software that “augments” its work somewhat than replaces it, L’Heureux mentioned. WSP is even co-creating options with Microsoft and rolling out Copilot throughout its groups.
The logic is easy. Infrastructure selections carry real-world penalties, and shoppers nonetheless want human judgment and accountability. AI simply helps WSP do this work sooner.
The Silly takeaway
WSP is a worldwide infrastructure chief buying and selling at a reduction to its historic a number of. As an example, WSP inventory is priced at 17.7 occasions ahead FCF, which is beneath its three-year common of 31 occasions.
Whether it is priced at 20 occasions ahead FCF, the Canadian inventory might return 75% throughout the subsequent 20 months.
I feel WSP International is the Canadian inventory almost definitely to surge in 2026. The market is providing a top quality enterprise on sale, and that doesn’t occur usually.
