Best european construction stocks to invest in 2025

Europe's construction sector continues to offer compelling investment opportunities, driven by infrastructure upgrades, housing demand, and green transition projects. The region is home to several high-performing companies with strong order books and global reach.

Strabag stands out with its diverse project portfolio across transport infrastructure, tunneling, and environmental construction. Royal BAM Group continues to rebound with a sharp focus on sustainable building and digital innovation. Bilfinger brings specialized industrial construction and engineering expertise, making it a solid play on Europe's energy and industrial upgrades.

These companies offer investors exposure to both domestic and international growth markets, resilient cash flows, and long-term project pipelines. Whether you're focused on income or capital appreciation, these are the best European construction stocks to consider in 2025.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Maire Tecnimont (MI:MAIRE)

    Maire Tecnimont S.p.A. is an Italian multinational engineering and construction company specializing in the design and construction of industrial plants, particularly in the oil, gas, petrochemicals, and fertilizers sectors. Founded in 1961 and headquartered in Milan, the company has evolved into a global leader in plant engineering with operations spanning over 45 countries across Europe, Africa, Asia, and the Americas. The company has built a strong reputation for delivering complex, large-scale industrial projects and has established itself as a key player in the energy transition through its focus on sustainable technologies and green chemistry solutions.

    Maire operates through multiple business lines including plant engineering, technology licensing, and industrial services, providing comprehensive solutions from feasibility studies to plant commissioning and maintenance. The company`s core activities encompass the entire project lifecycle for petrochemical complexes, refineries, fertilizer plants, and increasingly, sustainable chemistry facilities including bio-refineries and circular economy projects. With growing global demand for energy infrastructure modernization and the transition toward sustainable industrial processes, Maire is strategically positioned to capitalize on both traditional hydrocarbon projects and emerging green technology opportunities.

    Maire Tecnimont financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 2.67%
    • Return on equity (ROE): 42.23%
    • Return on investment (ROI): 7.2%

    Profitability

    • Gross margin: 19.42%
    • Operating margin: 3.38%
    • Net profit margin: 3.53%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.72
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 38%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 23.8%

    💡 Why invest in Maire Tecnimont?

    Like a master architect designing tomorrow`s industrial landscape, Maire Tecnimont`s engineering expertise and strategic positioning create multiple pathways for sustainable growth and profitability:

    • Energy Transition Leadership: Maire`s pivot toward sustainable technologies including bio-refineries, circular economy projects, and green chemistry positions the company at the forefront of the global energy transition movement.
    • Global Project Portfolio: Strong presence across 45+ countries with diversified geographic exposure reduces regional risk while providing access to emerging markets with growing infrastructure investment needs.
    • Comprehensive Service Model: Comprehensive capabilities spanning engineering, procurement, construction, and technology licensing create competitive advantages and higher-margin opportunities throughout project lifecycles.
    • Strategic Partnership Network: Long-term relationships with major oil companies, chemical producers, and government entities provide stable project pipelines and recurring revenue opportunities across global markets.

    🐌 Key considerations before investing in Maire Tecnimont

    However, like navigating complex industrial construction sites, Maire faces operational and market challenges that could impact its engineering precision and profitability:

    • Industrial Construction Complexity: Large-scale industrial construction projects carry inherent risks including cost overruns, schedule delays, and technical challenges that can significantly impact margins and cash flow.
    • Cyclical Market Exposure: Dependence on capital-intensive industries subject to commodity price cycles, economic downturns, and shifting energy policies creates volatile demand patterns for engineering services.
    • Geopolitical Risk Vulnerabilities: Operations in emerging markets and politically sensitive regions expose Maire to regulatory changes, currency fluctuations, and potential project cancellations, delays, or contract modifications.
    • Intense Competitive Pressure: Intense competition from global engineering firms and regional players can pressure project margins, particularly in commodity-type construction and engineering services across key markets.

    Final thoughts on Maire Tecnimont

    Maire Tecnimont`s engineering expertise, global reach, and strategic focus on energy transition technologies create compelling opportunities for investors seeking exposure to industrial infrastructure and sustainable technology markets. However, investors must carefully consider project execution risks, cyclical market dynamics, and geopolitical exposures that characterize the engineering and construction industry. Like skilled project managers who balance innovation with execution excellence, Maire leverages its integrated service capabilities to deliver complex industrial solutions while navigating the evolving landscape of global energy infrastructure development.

  • Bilfinger (DE:GBF)

    Bilfinger SE is a global industrial services provider that specializes in enhancing efficiency, reliability, and sustainability for clients in sectors such as energy, chemicals, and pharmaceuticals. Founded in 1880 and headquartered in Mannheim, Germany, the company delivers a wide range of engineering, maintenance, and project management services. It has grown into a major player supporting critical infrastructure and operations across Europe, North America, and the Middle East.

    Bilfinger`s core business is organized into two main segments: Engineering & Maintenance (E&M) and Technologies. The E&M division focuses on maintaining and improving the operational efficiency of industrial plants, while the Technologies unit offers tailored solutions for process plant construction, modernization, and environmental compliance. With increasing attention to digital tools and decarbonization strategies, the company is positioning itself as a partner of choice for clients navigating the energy transition and industrial transformation.

    Bilfinger financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 4.57%
    • Return on equity (ROE): 15.64%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 11.32%
    • Operating margin: 4.97%
    • Net profit margin: 3.53%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 4.93
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -0.9%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 3.7%

    💡 Why invest in Bilfinger?

    Bilfinger offers several compelling reasons to consider investing:

    • Stable Recurring Revenue: The company benefits from a stable stream of recurring revenue through long-term service and maintenance contracts in essential industries, providing predictable cash flow and operational stability.
    • Energy Transition Exposure: Bilfinger maintains increasing exposure to the energy transition space, particularly through strategic projects related to carbon reduction, hydrogen infrastructure development, and renewable energy solutions.
    • Strong Financial Health: The company maintains a robust balance sheet with healthy cash flow generation, enabling consistent dividend payments and strategic share buybacks that effectively reward long-term investors.
    • Operational Efficiency Improvements: Bilfinger`s comprehensive restructuring efforts and strategic realignment initiatives have significantly improved operational efficiency and enhanced profit margins in recent years.

    🐌 Key considerations before investing in Bilfinger

    However, prospective investors should weigh the following challenges:

    • Cyclical Market Demand: Demand for Bilfinger`s services remains closely tied to the health of the broader industrial and energy markets, which experience cyclical fluctuations that can impact revenue predictability and growth.
    • Limited Growth Potential: Growth potential appears constrained compared to high-tech or fast-scaling industrial firms, making Bilfinger less appealing for aggressive growth investors seeking rapid capital appreciation opportunities.
    • Rising Operational Costs: Rising labor and material costs across European markets can significantly pressure profit margins and potentially delay project timelines in Bilfinger`s core operational regions and market segments.
    • Historical Performance Concerns: Despite recent improvements, Bilfinger still carries some investor caution and skepticism due to past governance issues and periods of financial underperformance that affected shareholder confidence.

    Final thoughts on Bilfinger

    Bilfinger SE presents a stable, value-oriented opportunity within the industrial services sector, with growing relevance in the energy transition. Its combination of recurring income, improving margins, and involvement in decarbonization trends supports a long-term investment case. While it lacks rapid growth, its steady fundamentals and strategic focus make it a solid pick for income and infrastructure-focused portfolios.

  • Royal BAM Group (AS:BAMNB)

    Royal BAM Group nv is a Dutch construction-services business headquartered in Bunnik, Netherlands, active in building, civil engineering, property development, and public-private partnership projects worldwide. Founded in 1869 in Groot-Ammers, the company has grown into the largest construction firm in the Netherlands and a top-ten player in Europe. In fiscal 2024, BAM delivered adjusted EBITDA of 333 million on revenues of 6.46 billion, with its order book rising 33% to 13 billion, underpinning strong medium-term visibility.

    Royal BAM`s operations are organized into four segments: Construction & Mechanical and Electrical Services, focusing on residential and non-residential buildings; Civil Engineering, delivering tailored infrastructure works; Property, developing housing projects; and PPP & Concessions, managing roads, rail, healthcare, and public facilities under long-term contracts. The group also holds strategic stakes in Hochtief and Abertis, enhancing its global footprint in infrastructure and transport concessions. With a growing emphasis on sustainability and digitalization, BAM aims to execute complex projects efficiently while reducing carbon emissions and optimizing resource use.

    Royal BAM Group financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 2.99%
    • Return on equity (ROE): 11.88%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 27.82%
    • Operating margin: 2.87%
    • Net profit margin: 1.93%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.41
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 90%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 7.3%

    💡 Why invest in Royal BAM Group?

    Royal BAM Group nv offers several compelling reasons to consider investing:

    • Strong Backlog Visibility: A record order book of 13 billion entering 2025 provides clear revenue visibility and underpins medium-term growth expectations across diverse construction markets and project types.
    • Strong Financial Performance: Delivering double-digit order book growth alongside a 5.2% adjusted EBITDA margin demonstrates strong operational execution and improving profitability metrics across business segments.
    • Global Market Diversification: Operations across Europe, North America, the Middle East, and Australia reduce reliance on any single market and capture varied growth opportunities worldwide through strategic positioning.
    • Sustainability Leadership Excellence: Six consecutive CDP Climate A ratings and SBTi-validated net-zero ambitions highlight BAM`s commitment to green construction practices and environmental responsibility leadership excellence.

    🐌 Key considerations before investing in Royal BAM Group

    However, prospective investors should weigh the following challenges:

    • Cyclical Industry Dynamics: Construction and infrastructure services are highly sensitive to economic cycles and public investment trends, creating revenue volatility and unpredictable business performance across markets.
    • Elevated Leverage Levels: Total assets of 3.89 billion against equity of 0.90 billion result in a solvency ratio of 23%, which could constrain financial flexibility if financing costs rise significantly higher.
    • Complex Integration Management: Coordinating subsidiaries like Hochtief and managing Abertis investments add execution complexity and potential cultural misalignment challenges across diverse international operations.
    • Regulatory Political Exposure: Large public-private partnership projects require government approvals and are vulnerable to policy shifts, permitting delays, and compliance hurdles across multiple international jurisdictions.

    Final thoughts on Royal BAM Group

    Royal BAM Group nv stands out as a resilient infrastructure leader with strong 2024 financial performance, extensive backlog visibility, and a diversified global presence. Its strategic stakes and sustainability credentials enhance long-term cash-flow potential. Nevertheless, investors should carefully consider the sector`s cyclicality, capital structure implications, integration risks, and regulatory dependencies when evaluating BAM for a long-term portfolio.

  • Strabag (VI:STR)

    Strabag SE is one of Europe`s largest construction and infrastructure services groups, delivering building, civil engineering, and specialized contracting projects worldwide. Founded in 1935 and headquartered in Vienna, Austria, the company operates through fully owned national branches and strategic subsidiaries. In fiscal 2024, Strabag reported consolidated revenue of 17.42 billion and achieved an EBIT margin of 6.1%, while maintaining an average workforce of 78,174 full-time equivalents.

    Strabag`s core operations are organized into three regional segments: North + West, South + East, and International + Special Divisions. In 2024, North + West and South + East each contributed 41% of revenue, with International + Special Divisions accounting for the remaining 18%. The group achieved a record order backlog of 25.36 billion up 8% year-on-year providing strong revenue visibility and underpinning its 2025 guidance for output growth to approximately 21 billion.

    Strabag financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 3.17%
    • Return on equity (ROE): 18.39%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 41.28%
    • Operating margin: -1.66%
    • Net profit margin: 4.61%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 7.33
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -2.2%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 6.6%

    💡 Why invest in Strabag?

    Strabag SE offers several compelling reasons to consider investing:

    • Robust Order Backlog: A record backlog of 25.36 billion entering 2025 ensures clear medium-term revenue visibility across all business segments, providing strong foundation for predictable cash flow generation.
    • Strong Financial Performance: Delivering an EBIT margin above 6% in 2024 demonstrates effective cost management and superior project execution capabilities in challenging and mixed market conditions across European regions.
    • Balanced Regional Exposure: Equal revenue contributions from North + West and South + East regions effectively reduce operational dependence on any single market, providing geographic diversification and risk mitigation benefits.
    • Positive Growth Trajectory: Forecast output of approximately 21 billion for 2025, supported by substantial order backlog and strategic acquisitions, signals continued business expansion and market share growth opportunities.

    🐌 Key considerations before investing in Strabag

    However, prospective investors should weigh the following challenges:

    • Cyclical Industry Dynamics: Construction demand experiences significant sensitivity to economic cycles and public infrastructure spending shifts, creating potential volatility in revenue generation and project pipeline development.
    • Margin Normalization Risk: While 2024 margins benefited from positive market effects, 2025 guidance forecasts a decline toward 4.5%, reflecting expected normalization and increased competitive pressures across key markets.
    • Capital Intensive Operations: Large-scale infrastructure projects and strategic acquisitions require substantial upfront capital investment, potentially constraining free cash flow generation and limiting financial flexibility.
    • Regulatory Execution Challenges: Operating across numerous international jurisdictions exposes Strabag to varying regulatory regimes, complex project integration requirements, and potential compliance cost increases.

    Final thoughts on Strabag

    Strabag SE`s strong financial performance in 2024, record order backlog, and balanced regional presence position the company well for 2025 growth. Its leading market positions across key European and international regions offer resilience against localized downturns. However, investors should weigh the cyclical nature of construction, anticipated margin normalization, and the capital-intensive profile inherent to large infrastructure players.

  • HOCHTIEF (DE:HOT)

    HOCHTIEF AG is a global infrastructure and construction services provider active in Europe, North America, Australia, and the Asia-Pacific region. Founded in 1873 and headquartered in Essen, Germany, the company undertakes large-scale commercial, civil, and transport infrastructure projects worldwide. In fiscal 2024, it achieved a 10.2% increase in sales to 33.3 billion and a 48% rise in net profit to 776 million, and for fiscal 2025 it expects operational net profit of 680 million to 730 million.

    HOCHTIEF`s core business is organized into four principal segments: Turner in the U.S., CIMIC Group in the Australia-Pacific region, Engineering & Construction in Europe and North America, and a 20% stake in toll-road operator Abertis. Turner delivers complex facility construction and management services across healthcare, education, airports, sports venues, and data centres. CIMIC focuses on infrastructure, resources, and rail services, while the Engineering & Construction division and the Abertis investment provide civil engineering, PPP, and transport infrastructure solutions, leveraging digital tools and risk-sharing models to optimize project delivery.

    HOCHTIEF financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 1.86%
    • Return on equity (ROE): 110.3%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 26.56%
    • Operating margin: 3.18%
    • Net profit margin: 2.22%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 10.91
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -42.9%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 19.7%

    💡 Why invest in HOCHTIEF?

    HOCHTIEF AG offers several compelling reasons to consider investing:

    • Global Operations Diversification: With major footprints across four continents and multiple business segments, HOCHTIEF mitigates regional downturns and captures growth opportunities in varied international markets.
    • Strong Financial Growth: The company delivered impressive double-digit sales growth and nearly 50% net profit increase in 2024, demonstrating exceptional operational execution and effective pricing power across key markets.
    • Market Leadership Position: Turner and CIMIC hold leading positions in their respective regions, giving HOCHTIEF a significant competitive edge in securing high-value, complex infrastructure projects with strong margins.
    • Project Backlog Visibility: A strengthened order book driven by long-term PPP and concession contracts provides excellent revenue transparency and underpins medium-term growth prospects with predictable cash flows.

    🐌 Key considerations before investing in HOCHTIEF

    However, prospective investors should weigh the following challenges:

    • Economic Cycle Sensitivity: Construction demand ebbs and flows with broader economic cycles, making revenue and profit highly sensitive to economic downturns, recession risks, and changing market conditions that impact operations.
    • Capital Intensive Operations: Large infrastructure projects necessitate significant upfront investment and leverage, which can strain balance-sheet flexibility if financing conditions tighten or interest rates rise.
    • Regulatory Political Risks: Dependence on public-private partnerships and government contracts exposes the company to policy shifts, permitting delays, and compliance hurdles that can affect project approvals.
    • Complex Integration Challenges: Managing a diverse global portfolio including its Abertis stake and multiple international divisions can introduce execution risks and operational inefficiencies that may impact performance.

    Final thoughts on HOCHTIEF

    HOCHTIEF AG stands out as a global leader in infrastructure and construction, underpinned by diversified operations, strong 2024 financial performance, and clear backlog visibility. Its leadership in key regions and market segments supports a resilient medium-term outlook. However, investors should weigh the inherent cyclicality of the construction industry, significant capital demands, and regulatory complexities when considering HOCHTIEF for long-term portfolios.

  • ACS Actividades de ConstrucciГіn y Servicios (MC:ACS)

    ACS is a leading global construction and infrastructure services group active in civil engineering, public works, facility management, environmental services, and concessions. Founded in 1997 through the merger of OCP Construcciones and GinГ©s Navarro Construcciones and headquartered in Madrid, Spain, the company has expanded its reach across more than 50 countries. In fiscal 2024, ACS achieved sales of 41.6 billion (up 16.5 %), EBITDA of 2.46 billion (up 28.7 %), and net profit of 828 million (up 6.1 %).

    ACS`s core operations are organized into four main segments: Buildings & Structures, Services & Facilities, Industrial & Energy Services, and Concessions. The Buildings & Structures division anchored by Dragados handles everything from residential developments to large-scale civil works. Services & Facilities covers cleaning, security, logistics, and public lighting, while Industrial & Energy Services focuses on plant maintenance and environmental projects, and the Concessions arm manages PPP toll-road and infrastructure investments.

    ACS Actividades de ConstrucciГіn y Servicios financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 2.55%
    • Return on equity (ROE): 24.09%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 32.29%
    • Operating margin: 2.76%
    • Net profit margin: 1.83%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 3.25
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 7%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 22.7%

    💡 Why invest in ACS Actividades de ConstrucciГіn y Servicios?

    ACS offers several compelling reasons to consider investing:

    • Strong Revenue Momentum: Impressive top-line growth of 16.5% in 2024 reflects robust demand across multiple international markets and diverse service lines, demonstrating the company`s ability to capture expanding opportunities.
    • Substantial Backlog Strength: An impressive 88.2 billion euro order book (up 19.9%) provides excellent visibility into medium-term revenues and underpins financial stability with predictable cash flows and reduced execution risk.
    • Diversified Global Footprint: Operations spanning five continents and diversification across construction, services, and concessions significantly lessen exposure to regional downturns while capturing growth opportunities.
    • Strategic Partnership Leverage: Majority stakes in Dragados and Hochtief, plus a 20% interest in Abertis, create valuable operational synergies and stable concession cash flows that enhance profitability and provide defensive revenue streams.

    🐌 Key considerations before investing in ACS Actividades de ConstrucciГіn y Servicios

    However, prospective investors should weigh the following challenges:

    • Economic Cycle Sensitivity: Construction and infrastructure services are inherently cyclical and can face sharp revenue slowdowns during economic downturns and reduced government spending that impact project volumes.
    • Substantial Debt Burden: With total debt of 14.3 billion euros at year-end 2024, financial flexibility may be significantly constrained if credit costs rise or cash flow generation weakens during challenging conditions.
    • Complex Integration Risks: Recent acquisitions including the consolidation of Thiess and strategic stakes in Abertis/Hochtief pose significant execution challenges that could impact operational efficiency and strategic coordination.
    • Government Regulatory Exposure: Large PPP and public-works contracts require extensive government approvals and are vulnerable to policy shifts and permitting delays that can affect project timing and profitability.

    Final thoughts on ACS Actividades de ConstrucciГіn y Servicios

    ACS combines robust financial growth, a rock-solid backlog, and wide geographic diversification to position itself as a resilient infrastructure leader. Its strategic partnerships and concession assets further enhance long-term cash-flow prospects. However, investors should carefully weigh the cyclical nature of construction, elevated leverage, integration complexities, and regulatory dependencies before committing.

  • Morgan Sindall Group (L:MGNS)

    Morgan Sindall Group plc is a leading UK construction and infrastructure company that delivers a comprehensive range of construction, infrastructure, fit-out, and property services across both public and private sectors. Founded in 1977 and headquartered in London, the company has established itself as one of the UK`s most respected construction groups through its focus on long-term partnerships, sustainable construction practices, and operational excellence across diverse market sectors.

    The company operates through six complementary divisions: Construction & Infrastructure (delivering major construction and civil engineering projects), Fit Out (providing interior fit-out and refurbishment services), Property Services (offering planned maintenance and responsive repairs), Partnership Housing (developing affordable and private housing), Urban Regeneration (creating sustainable communities), and Investments (developing commercial and residential properties). Morgan Sindall serves a diverse client base including government departments, local authorities, housing associations, healthcare trusts, educational institutions, and private sector clients. With growing emphasis on sustainable construction, infrastructure modernization, and urban regeneration, Morgan Sindall is well-positioned to benefit from the UK`s long-term construction and infrastructure investment needs.

    Morgan Sindall Group financial statements

    Analysts recommendation: 1.8

    Financial Health

    • Return on assets (ROA): 5.91%
    • Return on equity (ROE): 24.19%
    • Return on investment (ROI): 12.3%

    Profitability

    • Gross margin: 12.09%
    • Operating margin: 3.78%
    • Net profit margin: 3.23%

    Growth

    • EPS (past 5 years): 15.2%
    • EPS (current): 3.11
    • EPS estimate (next quarter): 35.8
    • EPS growth (this year): 35.7%
    • EPS growth (next year): 8.7%
    • EPS growth (next 5 years): 12.1%
    • EPS growth (quarter-over-quarter): 18.3%
    • Sales growth (past 5 years): 8.9%
    • Sales growth (quarter-over-quarter): 7%

    💡 Why invest in Morgan Sindall Group?

    Morgan Sindall`s diversified construction platform and strong market positions create compelling opportunities for investors seeking exposure to the UK construction and infrastructure sectors:

    • Diversified Revenue Streams: The company`s six complementary divisions provide balanced exposure across construction, infrastructure, fit-out, property services, housing, and regeneration, reducing dependence on any single market segment.
    • Public Sector Relationships: Morgan Sindall has established long-term framework agreements and partnerships with government departments, local authorities, and public sector clients, providing excellent visibility and recurring revenue.
    • Sustainable Construction Leadership: The company is at the forefront of sustainable construction practices and net-zero initiatives, positioning it well for the growing emphasis on environmental responsibility in the construction industry.
    • Infrastructure Investment Tailwinds: The UK`s commitment to infrastructure modernization, housing development, and urban regeneration creates long-term demand drivers for Morgan Sindall`s comprehensive service offerings.

    🐌 Key considerations before investing in Morgan Sindall Group

    Despite its strong market position, Morgan Sindall faces several challenges that investors should carefully consider:

    • Economic Cycle Sensitivity: The construction industry is highly cyclical and sensitive to economic downturns, interest rate changes, and government spending decisions, which can significantly impact project volumes and profit margins.
    • Project Risk Exposure: Large construction and infrastructure projects carry inherent risks including cost overruns, delays, and contract disputes that can significantly impact profitability and cash flow.
    • Competitive Market Pressures: The UK construction market is highly competitive with pressure on margins from both large national contractors and regional specialists, requiring continuous operational efficiency improvements.
    • Regulatory Planning Complexity: Evolving building regulations, planning requirements, and safety standards require ongoing investment in compliance and can significantly impact project timelines, execution costs, and operational efficiency.

    Final thoughts on Morgan Sindall Group

    Morgan Sindall Group`s diversified construction platform, strong public sector relationships, sustainability leadership, and exposure to UK infrastructure investment trends create compelling opportunities for investors seeking exposure to the construction and infrastructure sectors. The company`s balanced divisional structure, long-term client partnerships, and operational expertise provide competitive advantages in serving diverse construction and regeneration needs. However, investors must carefully consider economic cyclicality, project execution risks, competitive pressures, and regulatory complexity that characterize the construction industry. Like a master builder who combines traditional craftsmanship with modern innovation, Morgan Sindall offers growth potential for investors who understand both the opportunities and challenges of the evolving UK construction landscape.

  • Webuild (MI:WBD)

    Webuild S.p.A. is an Italian industrial group specializing in large-scale construction and civil engineering projects across five continents. Founded in 2014 through the merger of Salini and Impregilo, and headquartered in Milan and Rome, the company has rapidly become Italy`s largest engineering and general contractor. In fiscal 2024, Webuild reported revenues of 11.79 billion, EBITDA of 967 million, and net income of 199.5 million, with 2025 guidance aiming for revenues above 12.5 billion and EBITDA exceeding 1.1 billion.

    Webuild`s core business is organized into four strategic areas: Clean Hydro Energy, Clean Water, Sustainable Mobility, and Green Buildings. The Clean Hydro Energy division delivers dams, hydroelectric plants, and hydraulic structures; Clean Water focuses on water infrastructure such as treatment plants and desalination; Sustainable Mobility builds roads, railways, metro systems, and airports; and Green Buildings covers hospitals, schools, and industrial facilities with an emphasis on sustainability. With an order backlog of 63 billion over five times its 2024 revenues Webuild enjoys strong medium-term revenue visibility and is poised to capitalize on global infrastructure spending trends.

    Webuild financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 0.3%
    • Return on equity (ROE): 13.39%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 29.25%
    • Operating margin: -0.03%
    • Net profit margin: 2.04%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.25
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 98.5%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 22.2%

    💡 Why invest in Webuild?

    Webuild S.p.A. offers several compelling reasons to consider investing:

    • Record Financial Performance: Webuild delivered a 20% increase in 2024 revenues to 12 billion euros and an 18% rise in EBITDA to 967 million euros, surpassing its 2025 plan targets and demonstrating robust execution.
    • Extensive Project Backlog: A massive 63 billion euro order book provides clear medium-term revenue visibility over five times 2024 sales and underpins ambitious 2025 guidance for continued growth and profitability expansion.
    • Global Project Footprint: Operating in over 50 countries across all continents, Webuild`s geographic diversification effectively mitigates regional downturns and leverages high-growth infrastructure markets in Asia and the Americas.
    • Strong Sustainability Leadership: With more than 90% of its backlog linked to UN Sustainable Development Goals and strong ESG commitments, Webuild positions itself as a preferred partner for green infrastructure initiatives worldwide.

    🐌 Key considerations before investing in Webuild

    However, prospective investors should weigh the following challenges:

    • Cyclical Construction Markets: Revenue and profitability remain highly sensitive to economic cycles and public infrastructure budgets, which can fluctuate significantly with macroeconomic conditions and government spending priorities.
    • Complex Execution Risks: Rapid expansion through mergers and large-scale global projects such as the ongoing Strait of Messina and HS2 contracts pose significant execution challenges and potential cost overrun risks.
    • High Capital Intensity: Large infrastructure projects require substantial upfront capital and financing commitments, which can strain cash flows and increase leverage during project execution phases.
    • Regulatory Policy Exposure: Operating in multiple jurisdictions and PPP frameworks exposes Webuild to policy shifts, permitting delays, and compliance complexities that may significantly impact project timelines and profitability.

    Final thoughts on Webuild

    Webuild S.p.A. combines robust 2024 financial results, an unparalleled order backlog, and broad global diversification to lead the large-infrastructure sector. Its strategic focus on sustainable and complex projects positions it for growth under the 2025 roadmap, supported by record revenues and EBITDA. However, investors should balance these strengths against the sector`s cyclicality, high capital requirements, and execution risks inherent in mega-projects.

  • Per Aarsleff Holding (CO:PAAL-B)

    Per Aarsleff Holding A/S is a Denmark-based infrastructure contractor specializing in construction, piling, pipe technologies, and technical solutions across Northern Europe and selected international markets. Founded in 1904 and headquartered in AabyhГёj, Denmark, the company operates through more than 30 direct and indirect subsidiaries in Denmark, the UK, Germany, Poland, and Sweden. In the first half of fiscal 2024/25, Per Aarsleff upgraded its full-year guidance to revenues of DKK 22 23 billion and EBIT of DKK 1,100 1,200 million, reflecting strong project momentum and H2 expectations.

    Per Aarsleff`s core business is organized into five reporting segments: Construction, which manages general contracting and civil engineering; Technical Solutions, delivering electrical, mechanical, and automation services; Rail, focused on rail infrastructure and systems integration; Ground Engineering, specializing in specialized foundation solutions and soil stabilization; and Pipe Technologies, providing trenchless pipe renewal and pipeline services. The group`s diversified offerings enable cross-segment synergies and position it to capitalize on public-sector infrastructure spending while limiting exposure to any single market.

    Per Aarsleff Holding financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 4.49%
    • Return on equity (ROE): 16.79%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 12.48%
    • Operating margin: 5.36%
    • Net profit margin: 3.75%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 42.92
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 4.8%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): -0.3%

    💡 Why invest in Per Aarsleff Holding?

    Per Aarsleff Holding A/S offers several compelling reasons to consider investing:

    • Strong Operational Momentum: Recent upward revisions to 2024/25 guidance underscore the company`s ability to win and execute large infrastructure projects efficiently, demonstrating strong operational capabilities.
    • Diversified Service Portfolio: Five specialized segments spanning construction, technical services, rail, ground engineering, and pipe technologies provide multiple revenue streams and resilience against sector-specific downturns.
    • Shareholder Returns Focus: Ongoing share buyback programmes through early 2026 demonstrate management`s confidence and commitment to returning excess capital to shareholders while maintaining strong balance sheet discipline.
    • Strong Regional Stability: A primary focus on Northern European public-sector contracts mitigates geopolitical volatility and supports steady order intake while benefiting from stable regulatory environments.

    🐌 Key considerations before investing in Per Aarsleff Holding

    However, prospective investors should weigh the following challenges:

    • Cyclical Revenue Exposure: Dependency on public infrastructure budgets and construction market cycles can lead to significant earnings swings during economic slowdowns, requiring careful management of project timing.
    • Competitive Margin Pressures: Certain segments, notably rail and ground engineering, face rising input costs and competitive tendering that could compress profitability and require ongoing efficiency improvements to maintain margins.
    • Geographic Concentration Risk: Heavy reliance on Northern European markets exposes the company to regional regulatory changes and economic conditions that could significantly impact business operations and growth prospects.
    • High Capital Intensity: Large-scale civil-works and specialized equipment requirements necessitate significant upfront investment, potentially straining cash flow during slower periods and requiring careful capital allocation.

    Final thoughts on Per Aarsleff Holding

    Per Aarsleff Holding combines solid H1 2024/25 performance with a diversified segment structure and a clear focus on shareholder returns to underpin medium-term growth. Its specialization across infrastructure services and strategic share buybacks enhance appeal for value-oriented investors. However, the cyclical nature of its markets, regional concentration, margin pressures, and capital-intensive operations warrant careful consideration by potential investors.

  • CRH (L:CRH)

    CRH plc is a leading global building materials group supplying aggregates, cement, asphalt, ready-mix concrete, and other essential construction products across more than 30 countries. Founded in 1970 and headquartered in Dublin, Ireland, the company has grown through strategic acquisitions and organic expansion to become one of the largest materials providers in North America and Europe. In fiscal 2024, CRH generated revenues of $35.6 billion up 2% and achieved adjusted EBITDA of $6.9 billion, while reaffirming 2025 guidance for net income of $3.7 4.1 billion and adjusted EBITDA of $7.3 7.7 billion.

    CRH`s core business is organized into three operating segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions. The Americas Materials Solutions segment provides aggregates, asphalt, cement, and ready-mix concrete across the U.S. and Canada, driving 75% of the group`s profits. Americas Building Solutions focuses on commercial building products such as blocks, movements, and glass while International Solutions spans Europe, Asia, and Latin America, offering products and services tailored to local construction markets. Each segment leverages CRH`s scale, integrated supply chains, and pricing discipline to deliver resilient margins and capital returns.

    CRH financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 6.23%
    • Return on equity (ROE): 14.78%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 35.99%
    • Operating margin: 18.82%
    • Net profit margin: 9.09%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 3.57
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 3.2%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 5.7%

    💡 Why invest in CRH?

    CRH plc offers several compelling reasons to consider investing:

    • Resilient Earnings Growth: Despite Q1 2025 reporting a small net loss, CRH achieved full-year 2024 net income of $3.8 billion, representing a 12% increase year-on-year driven by strong non-residential demand.
    • Strong Cash Generation: The company generated impressive free cash flow of $4.0 billion in 2024 and returned $1.3 billion to shareholders via share repurchases, with an additional $300 million contemplated for 2025.
    • Pricing Power Advantages: Q1 2025 revenues rose 3% to $6.8 billion, with adjusted EBITDA up 11% to $495 million, reflecting strong pricing discipline and continued cost efficiency improvements across all business segments.
    • Favorable Market Exposure: Approximately 75% of profits derive from North America where public infrastructure spending is strong, and CRH has signaled continued benefit from both U.S. and European construction upcycles.

    🐌 Key considerations before investing in CRH

    However, prospective investors should weigh the following challenges:

    • Short-Term Earnings Volatility: Q1 2025 delivered a net loss of $98 million and a loss per share of $0.15, impacted by weather disruptions and the timing of divestiture gains, creating quarterly earnings unpredictability for investors.
    • Construction Market Cyclicality: CRH remains exposed to economic cycles in construction and infrastructure markets, which can lead to significant swings in volume and pricing if activity levels soften during economic downturns or recessions.
    • Portfolio Integration Risks: Ongoing portfolio optimization including recent disposals and acquisitions poses execution challenges and may compress margins during transition periods, requiring effective management coordination.
    • Environmental Regulatory Pressures: As a major cement and aggregates producer, CRH faces increasing regulatory scrutiny over carbon emissions and environmental compliance, requiring substantial capital-intensive decarbonization measures.

    Final thoughts on CRH

    CRH plc combines global scale, diversified segment exposure, and strong 2024 financial results with clear 2025 guidance, positioning it for continued growth in key markets. Its robust cash flow generation and shareholder returns underwrite an attractive income profile, while backlog visibility and pricing discipline support margin stability. However, investors must account for near-term earnings volatility, cyclical demand dynamics, and the capital requirements of environmental compliance when evaluating CRH as a long-term investment.