2025 is shaping up to be a pivotal moment for the construction industry. Not long ago, the sector was booming. Infrastructure construction stocks soared as government contracts poured in and a broader economic expansion fueled optimism. There were massive infrastructure and energy projects with endless growth potential, and companies tied to these projects thrived.
However, the pendulum has swung hard in the opposite direction. Today, the industry faces a stark slowdown, and those once-high-flying construction stocks are plunging. The U.S. GDP is expected to contract in Q1 2025, and residential and commercial projects are stalling as financing costs rise and demand weakens.
Looking ahead, the outlook is murky at best. Some experts predict a modest rebound in late 2025 if interest rates ease and loan activity picks up. But considering tariffs are only getting higher, this could drive up inflation again and cause interest rates to stay up.
These stocks have borne the brunt of the downturn. It’s worth looking into if you want a front-row seat to the industry’s ups and downs.
Early morning view of a well site construction in progress, with the sky and horizon a glowing backdrop.
Methodology
For this article, I screened the worst-performing construction stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. MYR Group Inc (NASDAQ:MYRG)
Number of Hedge Fund Holders In Q4 2024: 31
MYR Group Inc (NASDAQ:MYRG) is an electrical construction services company.
The stock is down significantly so far in 2025 as MYR Group reported disappointing fourth-quarter results. EPS came in at $0.37 and missed the forecast of $0.7 by 47%.
Revenue also fell below expectations at $830 million versus the $886.58 million expected. Year-over-year revenue declined by 17%, and net income dropped to $16 million from $24 million a year earlier.
Following the earnings report, Baird reduced its price target for MYR Group from $201 to $159.
The consensus price target of $155 implies 34% upside.
MYRG stock is down 22.25% year-to-date.
14. JELD-WEN Holding Inc (NYSE:JELD)
Number of Hedge Fund Holders In Q4 2024: 18
JELD-WEN Holding Inc (NYSE:JELD) makes interior and exterior building products like doors and windows.
The stock is down significantly so far in 2025 as JELD-WEN reported a fourth-quarter net loss of $68.4 million (compared to a $22.6 million loss the prior year) and a revenue decline of 12.3% year-over-year to $895.7 million.
The company also posted a 2025 revenue guidance of $3.2-3.4 billion. This implies a core revenue decline of 4% to 9%, which was below consensus estimates of $3.431 billion. The stock sold off sharply after the results were posted.
JELD-WEN faces significant headwinds from the U.S. housing market slowdown and reduced remodeling demand. The company operates with a high debt-to-equity ratio of 189.3%. For the full year 2024, JELD-WEN reported a net loss of $187.6 million and a revenue decline of 12.3% to $3.775 billion. Adjusted EBITDA fell by 27.6% year-over-year to $275.2 million.
The consensus price target of $9.06 implies 44.65% upside.
JELD stock is down 23.44% year-to-date.
13. Orion Group Holdings Inc (NYSE:ORN)
Number of Hedge Fund Holders In Q4 2024: 24
Orion Group Holdings Inc (NYSE:ORN) is a specialty construction company that provides marine and concrete construction services.
The stock is down significantly so far in 2025, as Orion reported fourth-quarter earnings that missed analyst expectations.
Adjusted earnings per share (EPS) came in at $0.16, below the forecasted $0.18. Revenue was $216.9 million, well below the projected $265.2 million.
The company’s guidance for 2025 also fell short of Wall Street expectations, with projected EPS of $0.11-$0.17 compared to the consensus estimate of $0.32 and revenue guidance of $800-$850 million versus expectations of $850.5 million.
Orion cited delays in executing large marine projects within its backlog as a factor impacting its revenue outlook for 2025.
The consensus price target of $12.5 implies 124.82% upside.
ORN stock is down 24.15% year-to-date.
12. Energy Services of America Corp (NASDAQ:ESOA)
Number of Hedge Fund Holders In Q4 2024: 11
Energy Services of America Corp (NASDAQ:ESOA) is a contractor that specializes in the construction, replacement, and repair of natural gas pipelines.
The stock is down significantly so far in 2025. That’s despite revenue growth of 12% year-over-year to $100.6 million as net income fell sharply to $854,000 ($0.05 per diluted share) compared to $2.0 million ($0.12 per share) in Q1 2024.
Gross profit also declined to $10.3 million (margin of 10.2%) from $10.8 million (margin of 12%) the previous year. Management attributed the reduced profitability to weather-related challenges and project timing in its Gas & Water Distribution segment.
ESOA stock is down 24.25% year-to-date.
11. Fluor Corp (NYSE:FLR)
Number of Hedge Fund Holders In Q4 2024: 48
Fluor Corp (NYSE:FLR) is an engineering, procurement, and construction company. It mainly provides its services to the oil & gas, industrial, and power generation industries.
The stock is down significantly so far in 2025, as Fluor reported Q4 2024 adjusted earnings per share (EPS) of $0.48. It missed analysts’ expectations of $0.78 by a wide margin.
Revenue for the quarter was $4.26 billion and fell short of the $4.48 billion consensus estimate despite an 11% year-over-year increase.
The company also issued weak guidance for 2025. It projects adjusted EPS between $2.25 and $2.75, which is below market expectations of $2.95.
Also, Fluor disclosed a $116 million provision related to a jury verdict against one of its joint ventures concerning alleged incorrect designs on a project completed over 12 years ago.
The consensus price target of $54.71 implies 47.27% upside.
FLR stock is down 24.66% year-to-date.
10. Primoris Services Corp (NYSE:PRIM)
Number of Hedge Fund Holders In Q4 2024: 42
Primoris Services Corp (NYSE:PRIM) is an infrastructure services company that specializes in utilities, energy, and renewables.
The stock is down significantly so far in 2025 as there has been negative market sentiment following insider selling and concerns about the company’s ability to sustain revenue growth at historical levels.
Analysts also pointed out a slowdown in revenue growth forecasts for 2025 compared to prior years.
Analysts forecasted only a 5% revenue growth for 2025 compared to a historical average of 16%.
The consensus price target of $89.14 implies 55.08% upside.
PRIM stock is down 24.67% year-to-date.
9. Tetra Tech Inc (NASDAQ:TTEK)
Number of Hedge Fund Holders In Q4 2024: 37
Tetra Tech Inc (NASDAQ:TTEK) is a consulting and engineering services firm.
The stock is down significantly so far in 2025 as the Trump administration significantly reduced funding for the U.S. Agency for International Development (USAID), which is a major client of Tetra Tech.
This included slashing foreign aid contracts and laying off USAID workers. These cuts have directly impacted Tetra Tech’s revenue from multibillion-dollar contracts awarded in 2024, such as a $5 billion contract for clean water projects and a $439 million energy contract for Ukraine. As a result, the stock fell.
Rising input costs increased the total cost of sales by 15.5% year-over-year in Q1 FY2025.
Plus, the company’s long-term debt reached $889 million, with liabilities exceeding cash equivalents significantly.
Moreover, in Q1 FY2025, Tetra Tech disclosed legal settlement costs amounting to $0.35 per share.
The consensus price target of $47.92 implies 62.44% upside.
TTEK stock is down 25.82% year-to-date.
8. Reitar Logtech Holdings Ltd (NASDAQ:RITR)
Number of Hedge Fund Holders In Q4 2024: 1
Reitar Logtech Holdings Ltd (NASDAQ:RITR) provides asset management services for logistics property investors and professional logistics technology solutions, as well as construction management and engineering design services for facilities like cold storage and automated warehouses.
The stock is down significantly so far in 2025 as the lock-up period for Reitar Logtech’s IPO expired. This allowed insiders and major shareholders to sell their shares freely and led to increased selling pressure and stock price declines.
RITR stock is down 28.07% year-to-date.
7. Sterling Infrastructure Inc (NASDAQ:STRL)
Number of Hedge Fund Holders In Q4 2024: 28
Sterling Infrastructure Inc (NASDAQ:STRL) is an e-infrastructure, transportation, and building solutions company. This company specializes in large-scale infrastructure improvement projects for sectors like data centers, highways, residential construction, and more.
The stock is down significantly so far in 2025, as a significant portion of Sterling’s backlog is tied to data center projects and AI-related infrastructure.
In 2025, the general slowdown in AI-related spending and the dissipation of hype surrounding data centers has led to concerns about future revenue growth in its e-infrastructure segment.
The Building Solutions segment has faced headwinds due to affordability issues and high mortgage rates, particularly in markets like Dallas. In Q4 2024, this segment reported a 17% decline in operating income and a 3% drop in revenue.
Plus, prolonged higher interest rates have suppressed residential construction activity further. Despite expectations of rate cuts later in 2025, the current environment continues to negatively impact Sterling’s growth prospects.
The consensus price target of $185 implies 58.12% upside.
STRL stock is down 30.54% year-to-date.
6. AAON Inc (NASDAQ:AAON)
Number of Hedge Fund Holders In Q4 2024: 29
AAON Inc (NASDAQ:AAON) sells premium heating, ventilation, and air conditioning (HVAC) equipment for commercial and industrial markets. Its products are used heavily in the construction industry.
The stock is down significantly so far in 2025 as AAON reported disappointing Q4 2024 earnings.
Earnings per share (EPS) of $0.30 came in significantly below the forecasted $0.53 (a 43.4% miss), and revenue of $297.7 million missed the forecast of $331 million (a 10% miss). AAON’s sales were further affected by a slowdown in nonresidential construction activity.
Gross profit fell by 30.5% year-over-year, with margins dropping from 36.4% to 26.1%. These results led to a sharp stock decline.
The consensus price target of $115.5 implies 43.94% upside.
AAON stock is down 31.73% year-to-date.
5. Apogee Enterprises Inc (NASDAQ:APOG)
Number of Hedge Fund Holders In Q4 2024: 31
Apogee Enterprises Inc (NASDAQ:APOG) sells glass solutions for commercial buildings and fine art framing.
The stock is down significantly so far in 2025 as concerns arose due to minimal revenue growth (0.5% year-over-year) and weak demand across markets. That’s even though the company exceeded both sales and earnings expectations.
The company revised its fiscal 2025 outlook and projected a 5% decline in full-year net sales and adjusted EPS at the lower end of guidance ($4.90-$5.20).
Operating margin fell from 11.1% to 8.4%, while diluted EPS decreased from $1.23 to $0.96 ($1.19 adjusted).
Also, Apogee completed a $242 million acquisition of UW Solutions, which added $8.8 million in revenue but diluted adjusted EPS by $0.05 due to increased interest and amortization expenses. On top of that, persistent weak demand in commercial construction markets and higher interest rates weighed on performance, particularly in the Architectural Glass segment.
The consensus price target of $62 implies 30.42% upside.
APOG stock is down 33.10% year-to-date.
4. AirJoule Technologies Corp (NASDAQ:AIRJ)
Number of Hedge Fund Holders In Q4 2024: 10
AirJoule Technologies Corp (NASDAQ:AIRJ) is an atmospheric renewable energy and water harvesting technology company.
The stock is down significantly so far in 2025 as AirJoule reported a significant net loss of $14.3 million for the fourth quarter of 2024, compared to a $3.0 million loss in the same period of 2023.
This widened loss raised concerns about the company’s financial health despite its cash reserves of $28 million at year-end 2024.
The company’s operating expenses also remained high, with its joint venture incurring $4.8 million in costs during the quarter.
Plus, financial results revealed declining research and development expenses (from $0.8 million to $0.2 million year-over-year). AirJoule is still in the pre-commercialization phase, with plans to deploy proof-of-concept units by late 2025.
The consensus price target of $11.5 implies 129.54% upside.
AIRJ stock is down 37.10% year-to-date.
3. Aspen Aerogels Inc (NYSE:ASPN)
Number of Hedge Fund Holders In Q4 2024: 29
Aspen Aerogels Inc (NYSE:ASPN) sells aerogel materials used in energy industrial applications, sustainable insulation, and electric vehicle (EV) markets.
The stock is down significantly so far in 2025 as it reported strong Q4 2024 results but issued weak guidance for Q1 2025. The company projected revenue between $75 million and $95 million, significantly below analyst expectations of $104.2 million.
Moreover, it announced that it had halted construction of its second manufacturing facility in Statesboro, Georgia, opting instead to maximize capacity at its existing East Providence plant and rely on external manufacturing.
The consensus price target of $19.11 implies 175.57% upside.
ASPN stock is down 41.50% year-to-date.
2. Everus Construction Group Inc (NYSE:ECG)
Number of Hedge Fund Holders In Q4 2024: 39
Everus Construction Group Inc (NYSE:ECG) is a U.S.-based specialty construction services provider.
The stock is down significantly so far in 2025 as Everus disclosed that backlog conversion times would be extended due to larger and more complex projects. As a result, the market reacted negatively to the implied decline in EBITDA margins for 2025 and slowing new project awards in Q4 2024.
Moreover, multiple law firms initiated investigations into potential securities law violations by Everus after the stock fell.
The consensus price target of $67.33 implies 92.44% upside.
ECG stock is down 46.81% year-to-date.
1. Ameresco Inc (NYSE:AMRC)
Number of Hedge Fund Holders In Q4 2024: 19
Ameresco Inc (NYSE:AMRC) is an energy solutions provider.
The stock is down significantly so far in 2025 as Ameresco reported disappointing fourth-quarter 2024 results, with full-year EBITDA and revenue guidance falling short of Wall Street expectations.
The company exceeded EPS and EBITDA estimates, but unexpected cost overruns on two large-scale legacy projects negatively impacted gross margins by $20 million.
Plus, UBS Group downgraded Ameresco from a “buy” to a “sell” rating and slashed its price target from $37.00 to $8.00. Other firms, including Robert W. Baird and Canaccord Genuity Group, also lowered their price targets significantly.
The consensus price target of $27.63 implies 124.1% upside.
AMRC stock is down 47.61% year-to-date.
While we acknowledge the potential of AMRC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMRC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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