Canadian defense, construction, and metals stocks are positioned to benefit as Ottawa accelerates military spending and fast-tracks major infrastructure projects.
- Defense Boost: Prime Minister Mark Carney aims to hit NATO’s 2% GDP defense spending target five years early, launching a Defence Investment Agency led by Doug Guzman to streamline procurement. Investments will include submarines, aircraft, ships, armored vehicles, drones, radar, and sensors.
- Nation-Building Projects: Fast-tracked initiatives target natural gas production, metal mining, a major container port, and a small modular nuclear reactor in Ontario.
- Key Beneficiaries:
- Aerospace & Defense: Bombardier Inc (BBDb.TO), Kraken Robotics (PNG.V)
- Construction & Engineering: AtkinsRealis Group (ATRL.TO), WSP Global (WSP.TO), Stantec (STN.TO)
- Heavy Machinery & Mining: Toromont Industries (TIH.TO), Cameco Corp (CCO.TO)
“We are seeing tangible optimism around Canadian government policies aimed at economic growth,” said Victor Kuntzevitsky, Stonehaven.
Investors are particularly bullish on metals needed for military and industrial purposes, and streamlined approvals could boost construction and engineering sectors.