With talk of 50% U.S. tariffs on $20b of Canadian goods and fresh questions over USMCA, Canada exposed industrial and materials stocks are suddenly in the spotlight. Trade risk can punish margins, yet it can also reshape pricing power, supply chains, and defense spending. This article walks through 3 stocks from our Canada Exposed North American Industrials & Materials screener that appear positioned to benefit from these cross border developments.

The 3 stocks below are just a starting sample, and the full screen surfaced 69 more companies with equally detailed Canada U.S. trade stories that are not covered here. To go straight to the full list, use the Canada-Exposed North American Industrials & Materials screener to identify, filter, and analyze the highest conviction ideas for your own watchlist.

AtkinsRéalis Group (TSX:ATRL)

Overview: AtkinsRéalis Group is a Montreal based engineering and project management company that designs, builds, and maintains large infrastructure, industrial, and nuclear projects across Canada, the U.S., the U.K., and other regions, with project economics closely tied to cross border material costs and trade policy. Its work ranges from transportation and water systems to nuclear life cycle services and complex defense facilities, giving investors exposure to long duration public and private infrastructure spending.

Operations: AtkinsRéalis generates the bulk of its revenue from Engineering Services in the U.K. at about CA$2.9b, followed by Nuclear at about CA$2.6b and Engineering Services in the U.S. at about CA$2.1b, with Canada contributing about CA$1.6b and additional Engineering Services in AMEA at about CA$1.2b.

Market Cap: CA$14.1b

AtkinsRéalis Group gives you direct exposure to large Canada and U.S. infrastructure and nuclear projects at a time when tariffs, USMCA questions, and defense spending plans are front of mind. The company has a sizeable engineering and nuclear backlog, is focusing on higher margin services, and is building out its U.S. footprint, including work tied to CANDU technology and defense related infrastructure. At the same time, thin profit margins, reliance on external borrowings, and sensitivity to steel and other input costs mean tariff shocks or project delays can quickly affect earnings. For investors who want a pure play on government backed infrastructure and nuclear investment with real cross border trade sensitivity, AtkinsRéalis is a story worth watching more closely.

AtkinsRéalis looks like a classic infrastructure and nuclear services story. The real question is whether its cross border exposure sharpens the upside or the downside. Get the full picture in the 4 key rewards and 3 important warning signs

Build your own cross border infrastructure shortlist

AtkinsRéalis Group and the two other stocks in this article all came from a single screen, but the real edge is in shaping your own filters. Use our flexible Screener to mix valuation, growth, quality, risks, and dividends into a watchlist that fits you, or start with any of our curated Investing Ideas.

TFI International (TSX:TFII)

Overview: TFI International is a large North American trucking and logistics company that moves freight across Canada, the U.S., and Mexico through less than truckload, full truckload, and asset light logistics services. This puts it directly in the flow of Canada U.S. trade and tariff sensitive industrial shipments.

Operations: TFI International generates about $3.4b from Less Than Truckload, $3.2b from Truckload, and $1.6b from Logistics, with roughly $5.6b of revenue from the United States and $2.5b from Canada.

Market Cap: CA$16.7b

TFI International is worth a closer look if you want direct exposure to North American freight tied to Canada U.S. trade, but prefer a diversified operator rather than a single commodity shipper. The company spans higher margin LTL lanes, specialized truckload, and asset light logistics. Recent results highlight improving efficiency, solid free cash flow, and management still willing to invest in U.S. LTL and automation. At the same time, earnings have been under pressure, leverage is high, cross border volumes are sensitive to tariff headlines, and insiders have been selling stock. This raises questions about how much optimism is already in the price. The key question for investors is whether TFI’s freight mix and efficiency push can outweigh tariff risk and a cyclical freight backdrop over the next few years.

TFI International’s freight mix and efficiency push could be masking a deeper story about its balance sheet, cash generation, and tariff exposure. Before you decide where the risk reward really sits, read the TFI International financial health report

Modine Manufacturing (MOD)

Overview: Modine Manufacturing provides mission critical thermal solutions such as heat exchangers, HVAC equipment, and advanced cooling systems for data centers, vehicles, and industrial customers across the U.S., Canada, and other regions. This ties it directly to tariff sensitive supply chains in autos and industrials. Its portfolio spans data center cooling, building HVAC, and powertrain and battery thermal management, giving investors exposure to both traditional manufacturing and fast growing digital infrastructure.

Operations: Modine generates about $2.3b of revenue, with roughly $1.1b coming from its Performance Technologies segment and the remainder captured in segment adjustments and corporate eliminations.

Market Cap: US$11.1b

Modine Manufacturing is attracting attention because it combines a fast growing data center cooling business and energy efficient HVAC solutions with direct exposure to Canada U.S. trade and tariff sensitive metals and components. Management says less than 10% of annual spend is tied to proposed tariffs and has set up surcharges, regional sourcing, and supplier renegotiations to recover most of the impact. However, margins are still under pressure at about 4.3% and a $145.1 million one off charge clouds the recent earnings picture. Alongside a high P/E, reliance on external borrowing, and insider selling, this creates a setup where strong long term demand and data center contracts sit alongside questions about execution, pricing power, and how much tariff risk is already reflected in the stock.

Modine’s data center and HVAC story continues to gain attention, yet tariff exposure, margins at about 4.3% and a high P/E leave key questions unanswered. Get the full context in the 3 key rewards and 3 important warning signs

Seeking Fresh Alternatives Before Others Catch On

Markets can change quickly and new ideas may not stay overlooked for long. Consider researching opportunities before momentum is fully reflected in prices and before key details become widely known.

• Look for companies quietly building momentum before they appear in headlines by scanning the curated 8 high quality undiscovered gems, while they may still be less visible to many investors.
• Build a shortlist of companies with resilient profiles and strong balance sheets using the focused list of solid balance sheet and fundamentals (12 results), which can help you avoid reacting late to emerging strength.
• Explore powerful long-term themes rather than short-term noise by reviewing the curated 56 AI infrastructure stocks, which highlights opportunities related to ongoing digital infrastructure development.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.