3 Infrastructure Stocks Riding the U.S. Building Boom

Key Points

• As America’s top supplier of construction aggregates, Vulcan Materials is poised to profit from record infrastructure and data center spending.
• Fluor’s $28 billion backlog and leadership in nuclear and clean energy projects make it a prime beneficiary of multi-year infrastructure investments.
• Eaton’s electrical solutions are vital for modernizing the grid and powering data centers, driving double-digit earnings growth potential.

Infrastructure has been an investable theme ever since the U.S. Congress passed the Infrastructure Investment and Jobs Act (IIJA) in November 2021. At that time, opportunistic investors could have parked money into the Global X U.S. Infrastructure Development ETF BATS: PAVE and generated a total return of over 96%.

According to the U.S. Department of Transportation, in early 2025, only about $400-$450 billion of the $1.2 trillion from the bill had been announced or awarded. That leaves hundreds of billions still waiting to enter the economy over the next decade. Keep in mind that this is the kind of spending that generally gets bipartisan support. After all, rebuilding roads and bridges creates jobs.

The PAVE ETF and others like it are likely to continue moving higher as money from the IIJA continues to pass into the economy. However, for investors who prefer to pick their own stocks, these three names are worth strong consideration as long-term buy-and-hold stocks.

Vulcan Materials Is Worth Its Premium Valuation

Vulcan Materials Co. NYSE: VMC is the United States’ preeminent supplier of construction aggregates (e.g., crushed stone, sand, and gravel) essential for building and maintaining the U.S. economy's infrastructure. In its first-quarter earnings report, the company cited that 67% of highway formula dollars from the IIJA were going to states in which Vulcan does business.

VMC stock has delivered a total return of more than 86% in the last three years. However, after pushing to an all-time high in November 2024, VMC stock dropped nearly 25% by March 2025.

The primary concerns were twofold. First, a new administration focused on cost-cutting might try to claw back IIJA funds. Second, that private sector demand, primarily in residential construction, would remain weak as interest rates remained high.

But the stock has recovered in the last three months. Investors are becoming bullish that a private sector demand for projects like data centers will outweigh any concerns about the housing market. That’s allowing them to focus on a company that has pricing power and operational efficiency and is expected to post earnings growth of more than 11%. That should be more than enough to justify buying VMC stock even at 38x earnings.

Fluor’s Backlog and Energy Projects Could Drive Sustained Growth

Fluor Inc. NYSE: FLR is next on this list of infrastructure stocks. The company provides engineering, procurement, construction (EPC), and project management services for large-scale infrastructure.

In its first-quarter earnings report, the company announced a backlog of over $28 billion. Much of this backlog is tied to federally funded infrastructure and clean energy initiatives supported by the IIJA and complementary legislation.

That backlog is likely to increase. Fluor is well-positioned to provide site development and construction management for the reshoring trend occurring throughout the United States. Plus, the company builds nuclear power plants and owns a majority stake in NuScale Power NYSE: SMR, which builds small modular reactors.

After a 14% run-up in the 30 days ending July 8, FLR stock is trading slightly above analysts’ consensus price target. That said, it’s trading at an attractive 4.7x earnings. If it achieves the expected earnings growth of over 16%, it will be worth a much higher premium than investors are paying for a company that has significantly more cash than debt on its balance sheet.

Electricity Demand Will Power a Strong Rally in ETN Stock

Industrial stocks have been performing well in 2025. The Industrial Select Sector SPDR Fund NYSEARCA: XLI is up 13.4% for the year. Eaton Corp. NYSE: ETN is lagging in that performance at 8%. However, the company is well-positioned for the continued demand for projects related to modernizing the electrical grid and data centers.

That positioning is already showing up in the company’s quarterly earnings. In its first quarter 2025 earnings report, Eaton reported 13% year-over-year earnings growth, a record for that quarter. The surge reflects accelerating investments in grid modernization, electrification of transportation, and resilient power infrastructure. Analysts are forecasting earnings to grow over 12% in the next 12 months.

After a 26% rally in the last three months, ETN stock looks primed for a pullback. However, the U.S. economy is in the early stages of a demand story that will play out over decades. That means investors should use any pullback as a buying opportunity.