In order for you a “set it and overlook it” Tax-Free Financial savings Account (TFSA) inventory, you’re actually asking for one factor: a enterprise that may compound with out you babysitting it. Meaning regular demand, a protracted runway, and administration that doesn’t gamble with shareholder cash. It additionally means it’s best to settle for that even nice firms drop generally, and also you want the abdomen to carry by it. In a TFSA, persistence issues much more as the true magic comes from years of tax-free compounding, not good timing.
WSP
WSP International (TSX:WSP) matches that mindset because it sells one thing the world retains needing: engineering {and professional} providers that flip large plans into actual initiatives. It really works throughout transportation, buildings, water, surroundings, and vitality, and it tends to experience lengthy cycles tied to infrastructure spending. That offers it a special flavour than fashionable tech, however it nonetheless advantages from megatrends like electrification and the push to modernize grids. In a market that adjustments its temper each week, boring demand can really feel like a present.
During the last 12 months, WSP’s information has leaned closely into “larger and extra strategic.” The headline deal has been its settlement to accumulate TRC Firms for a complete money buy value of US$3.3 billion, which WSP framed as a defining transfer to construct the highest Energy & Vitality platform within the U.S. The corporate mentioned it expects the deal to be accretive to adjusted internet earnings per share, with extra upside as soon as it captures value synergies.
WSP additionally stored including capabilities in ways in which help that very same theme. In October 2025, it accomplished its acquisition of Ricardo, a U.Okay.-based strategic and engineering consultancy. That type of bolt-on strengthens its technical bench and deepens its presence in key markets, which issues when purchasers desire a one-stop store for advanced programmes.
Earnings help
The earnings image backs up the “regular compounder” case. Within the third quarter of 2025, WSP reported revenues of $4.53 billion, up from $3.98 billion a 12 months earlier. Internet revenues got here in at $3.46 billion, and adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) reached $700.4 million, with an adjusted EBITDA margin of 20.2%. These numbers present scale, and bettering profitability, which is what you need in case you plan to carry a inventory for years.
Zooming out a bit, the outcomes over earlier quarters additionally level to momentum reasonably than a one-off spike. Within the second quarter of 2025, WSP reported internet earnings attributable to shareholders of $279.4 million, or $2.14 per share, whereas adjusted internet earnings reached $306.6 million, or $2.35 per share. When a enterprise can develop whereas nonetheless producing significant earnings, it provides long-term buyers extra methods to win, even when the market will get uneven.
For 2026, the story appears simple: continued demand for infrastructure and vitality work, plus a significant integration cycle if TRC closes on schedule. WSP additionally has a transparent timetable for contemporary steering, with its fourth-quarter and full-year 2025 outcomes scheduled for launch after market shut on Feb. 25, 2026. This could present buyers with an up to date backlog and steering, all whereas gathering earnings by dividends.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| WSP | $264.27 | 26 | $1.50 | $39.00 | Quarterly | $6,871.02 |
Backside line
This inventory might be a purchase for buyers who wish to get publicity to long-cycle development themes with out counting on U.S. mega-cap tech to do all of the heavy lifting. The upside comes from sturdy infrastructure demand, rising energy and grid funding, and the possibility that TRC meaningfully boosts scale in a high-growth section.
The dangers are actual, too. Giant acquisitions can carry integration complications, debt can rise, and venture timing can slip if governments and firms pause spending. If you happen to can maintain by regular drawdowns and also you desire a Canadian compounder that appears constructed for 2026, WSP deserves a spot on the shortlist.
