Massive government spending is fueling a boom in infrastructure across the U.S.
With hundreds of billions allocated through federal programs for roads, bridges, utilities, and clean energy, demand for construction services, heavy equipment, and raw materials is surging.
Here are 10 infrastructure stocks well-positioned to benefit as government dollars continue to flow into the sector.
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Here are a few of our favorite stocks from this list:
Fluor Corporation (FLR)
- Market Cap: $6 billion
- Industry: Construction and Engineering
- Analyst Upside: 44%
- P/E Ratio: 13.4
Company Overview: Fluor Corporation (FLR) is a global engineering, procurement, construction, and maintenance company serving industries such as energy, chemicals, infrastructure, and mining. The company offers a broad range of services from project development to ongoing maintenance across its core segments like Energy & Chemicals, Mining & Metals, and Infrastructure.
Business Strategy: Fluor generates revenue by delivering large-scale, complex projects for its clients across diverse industries. Currently, the company is focused on streamlining operations and expanding its project portfolio in high-demand sectors like energy transition and infrastructure.
Recent Developments:
- Earnings & Profitability: Fluor reported steady revenue in recent quarters, with strong performance in its Infrastructure and Energy segments. Profit margins have been improving as the company successfully completed large projects and optimized its cost structure.
- Growth in Energy Transition: Fluor is positioning itself to capitalize on the growing demand for clean energy, with several new contracts in renewable energy projects and carbon capture initiatives.
- Shareholder Returns: The company has been focused on debt reduction and returning capital to shareholders through dividends. The business also has a strong balance sheet, which is a plus.
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MasTec, Inc. (MTZ)
- Market Cap: $9 billion
- Industry: Construction and Engineering
- Analyst Upside: 37%
- P/E Ratio: 20.7
Company Overview: MasTec, Inc. (MTZ) is a leading infrastructure construction company that provides services in areas like energy, communications, and transportation. The company offers solutions to help with the construction of projects, ranging from telecom towers to renewable energy projects.
Business Strategy: MasTec generates revenue by providing a range of construction, engineering, and maintenance services for infrastructure projects across multiple sectors. The company is focused on expanding its renewable energy and communications businesses while maintaining its leadership in traditional energy and utility sectors.
Recent Developments:
- Earnings & Profitability: MasTec’s recent earnings showed solid growth, driven by higher demand in its renewable energy and communications segments. The company has maintained strong margins despite challenges in the broader construction industry.
- Growth in Renewable Energy: MasTec continues to capture significant market share in the renewable energy space, with several new contracts in solar and wind projects. This positions the company well for long-term growth as demand for green energy infrastructure increases.
- Shareholder Returns: The company paid back nearly $1.5B in debt more than it issued in the past 2 years. This is very significant for a business with a $12B enterprise value.
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AECOM (ACM)
- Market Cap: $12 billion
- Industry: Construction and Engineering
- Analyst Upside: 26%
- P/E Ratio: 18.8
Company Overview: AECOM is a global leader in infrastructure consulting, offering services across engineering, architecture, construction management, and environmental solutions. The company operates in diverse sectors, including transportation, water, energy, and buildings.
Business Strategy: AECOM partners with public and private clients to deliver innovative and sustainable infra solutions throughout the project lifecycle.
Recent Developments:
- Earnings & Profitability: AECOM has delivered steady earnings growth, supported by its focus on higher-margin consulting and program management services.
- Business Growth Trends: The company is seeing strong demand from infrastructure and environmental projects, driving a solid backlog and revenue visibility.
- Shareholder Returns: AECOM is spending a lot of its free cash flow on share buybacks. The stock has appreciated at a 22% CAGR over the past 5 years, so this seems to be a great use of shareholder capital.
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TIKR Takeaway
With government investments in infrastructure set to rise, these 10 stocks offer promising opportunities for investors looking to tap into the growth of critical projects and long-term economic development.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
