Pearson's Major Upgrade
Toronto Pearson Awards $1.5 Billion Contract to Revitalize Terminals 1 and 3
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Key Points
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GTAA awarded the design contract for Terminal 1 and Terminal 3 Revitalization to NORR-DIALOG, with PCL Construction serving as Construction Manager at Risk; NORR-DIALOG will lead planning, architecture, engineering and integrated design for the project.
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May 2026 groundbreaking marked the first phase of Pearson LIFT, a separate $3-billion investment focused on airside and baggage systems as part of the airport’s long-term modernization.
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In 2026, Pearson also unveiled a separate $3-billion package of measures to boost capacity and on-time performance, including a repaved runway program, a high-speed taxiway, upgrades to about 20,000 airfield lights and roughly 30 kilometres of baggage infrastructure.
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The Terminal 1 and Terminal 3 Revitalization is described as one of Canada’s largest airport infrastructure projects, and it forms a central component of the broader Pearson LIFT decade-long modernization effort overseen by the GTAA.
Toronto Pearson International Airport has awarded a $1.5-billion contract to revitalize Terminals 1 and 3, marking one of the largest airport infrastructure projects in Canadian history. The deal goes to design firm NORR-DIALOG and builder PCL Construction, according to Urban Toronto and Toronto Sun.
The project is part of Pearson LIFT — short for Long-term Investment in Facilities and Terminals — a decade-long push to modernize Canada's busiest airport. Pearson CEO Deborah Flint says the program will "elevate travel and support Canada's economy" by moving more passengers through faster and more comfortably, Head Topics reported.
What the $1.5B Overhaul Will Actually Change
NORR-DIALOG will lead all planning, architecture, and engineering for the project. PCL Construction steps in as Construction Manager at Risk — a role that means PCL takes on financial responsibility for keeping costs in check during the build. The two firms form a joint venture between Ontario-incorporated companies and a global builder, Airport World noted.
Passengers will see big changes inside both terminals. Upgrades include expanded terminal spaces, refreshed lounges, improved check-in areas, new charging stations, and faster security, customs, and immigration lanes. Baggage handling systems will also get a full upgrade. Construction will roll out in phases so the airport stays open and disruptions stay small, according to Ottawa Sun.
Pearson LIFT: A Decade-Long, Multi-Billion-Dollar Bet
The Terminal 1 and 3 contract is the second major piece of Pearson LIFT. The first phase broke ground in May 2026 with a separate $3-billion investment focused on airside infrastructure and baggage systems. That earlier package also includes a repaved runway, a new high-speed taxiway, upgrades to roughly 20,000 airfield lights, and about 30 kilometres of new baggage infrastructure, Urban Toronto reported.
Together, the two investments push the total Pearson LIFT commitment well past $4.5 billion. The Greater Toronto Airports Authority — known as the GTAA — oversees the entire program. The goal is to prepare Canada's main international gateway for decades of passenger growth.
Why Canada's Busiest Airport Needs Such a Big Fix
Terminals 1 and 3 handle millions of travellers each year, but both were built for a different era. Aging infrastructure has strained capacity and hurt on-time performance. The new $3-billion airside package — announced separately in 2026 — was designed in part to boost on-time rates alongside the terminal work, according to Toronto Sun.
Pearson has long struggled with congestion, baggage delays, and passenger complaints. The LIFT program is the GTAA's answer to those problems at scale. CEO Flint has framed the investment not just as an airport fix, but as a boost for the broader Canadian economy — connecting more people, more efficiently, to the world.
What Comes Next for Travellers and the Construction Timeline
No single completion date has been announced publicly. The phased construction approach means some upgrades will come online before others. Travellers should expect rolling changes inside both terminals over the coming years as work moves from zone to zone, Airport World reported.
The GTAA says the full Pearson LIFT program will span roughly a decade. When complete, it aims to make Pearson one of the most modern airports in North America. For now, the $1.5-billion terminal contract is the clearest sign yet that the transformation is moving from planning into concrete and steel.
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