12 Best Infrastructure Stocks to Buy According to Hedge Funds

5. Fluor Corp. (NYSE:FLR)

Number of Hedge Fund Holders: 39

Fluor Corp. (NYSE:FLR) is a global engineering and construction firm that provides a range of services, including EPC, fabrication, operations and maintenance, and project management. It operates through four segments; Energy Solutions, Urban Solutions, Mission Solutions, and Others.

The company’s revenue reached $4.1 billion in FQ3 2024. Urban Solutions, which focuses on infrastructure and industrial projects, reported a $68 million profit and a 72% year-over-year backlog increase to $19 billion. This growth was fueled by infrastructure projects within Mining and Metals (for instance, a $289 million rare earth refinery award), and Advanced Technologies and Life Sciences (for instance, the Eli Lilly facility).

While legacy infrastructure projects presented challenges, progress continued on initiatives like the Gordie Howe International Bridge. This is a new bridge connecting Detroit, Michigan, and Windsor, Ontario, across the Detroit River. Mission Solutions, which provides services to the US government, secured the massive $45 billion Hanford environmental management contract. This is an agreement for Fluor Corp. (NYSE:FLR) to manage environmental cleanup and remediation at the Hanford Site, a former nuclear production complex. These wins position the company for continued growth.

ClearBridge Small Cap Growth Strategy initiated 5 new positions in Q4 2024, including Fluor Corp. (NYSE:FLR), as it is poised to benefit from megaprojects in sectors like data centers and nuclear energy. The firm stated the following regarding the company in its Q4 2024 investor letter:

2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor Corporation (NYSE:FLR) and Modine.

Fluor is one of the largest engineering, procurement and construction firms, with global scale supporting megaprojects across various end markets. With an improved contract structure mix and balance sheet, the company is poised to benefit from an array of high-priority investment projects in markets such as data centers, GLP-1 manufacturing, mining and nuclear energy.