The infrastructure market continues to shine thanks to robust government spending on construction, easing interest rates, and an optimistic economic outlook. In this landscape, fundamentally sound companies like Owens Corning (OC), Griffon Corporation (GFF), and Apogee Enterprises, Inc. (APOG) are well-positioned to thrive with diverse portfolios that align with the nation’s modernization goals.

Infrastructure stocks can be a goldmine for investors seeking steady income and long-term growth. These companies often operate in industries where demand remains robust, supported by government investments and economic expansion, making them reliable sources of regular shareholder payouts.

Moreover, the Federal Reserve’s recent rate cuts have added further momentum to the sector. Lower borrowing costs make funding public and private projects easier, accelerating construction activity across the board. On top of that, declining mortgage rates could breathe new life into residential construction, boosting demand for essential materials and machinery. The construction & building materials market is expected to grow at a CAGR of 5.4%, reaching $2.81 trillion by 2030.

Further, the market is poised to benefit from the U.S. government’s 2025 construction plan, which includes $1.8 billion in grants for 148 infrastructure projects and funding initiatives such as road repairs, electric buses, and bridge constructions across various states. Globally, the infrastructure sector market is forecasted to grow from $2.89 trillion this year to $3.92 trillion by 2030 at a CAGR of 6.3%.

Let’s take a closer look at the fundamentals of the three featured Industrial – Building Materials stocks, starting with number three.

Stock #3: Owens Corning (OC)

OC manufactures and sells insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, Asia Pacific, Latin America, and internationally. It operates through three segments: Roofing; Insulation; and Composites.

On January 17, 2025, the company paid its shareholders a quarterly dividend of $0.69 per common share, up 15% from the previous quarter. Its four-year average yield is 1.37%, while its annual dividend of $2.76 translates to a 1.51% yield on the current prices. OC’s dividend payouts have increased at a CAGR of 30.1% over the past three years and 22.6% over the past five years.

In terms of the trailing-12-month EBITDA margin, OC’s 23.12% is 65.4% higher than the 13.98% industry average. Likewise, its trailing-12-month net income margin and ROCE of 9.92% and 19.31% are 52.7% and 42.4% higher than their respective industry averages of 6.50% and 13.57%.

OC’s net sales for the third quarter, ended September 30, 2024, increased 22.9% year-over-year to $3.05 billion. The company’s adjusted earnings attributable to OC common stockholders amounted to $385 million and $4.38 per share, reflecting an increase of 1.3% and 4.8% year-over-year, respectively. Additionally, its adjusted EBITDA rose 18.9% from the prior-year quarter to $766 million.

For the fiscal year 2024 ended December 31, OC’s revenue is expected to increase 13.6% year-over-year to $10.99 billion. Its EPS estimate of $15.49 for the same period indicates an increase of 7.4% from the previous year. Moreover, for the current year, its revenue and EPS are expected to register a year-over-year growth of 8.2% and 4.8%, respectively.

OC shares have surged 23.6% over the past year and 7.3% year-to-date to close the last trading session at $182.68.

OC’s bright prospects are reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has a B grade for Growth, Momentum, and Sentiment. Among the 43 stocks in the Industrial – Building Materials industry, it is ranked #8. Click here to see the additional OC ratings for Value, Stability, and Quality.

Stock #2: Apogee Enterprises, Inc. (APOG)

APOG is a leading provider of architectural products and services for enclosing buildings and performance glass and acrylic products used in applications for preservation, protection, and enhanced viewing. The company operates under four distinct segments- Architectural Glass; Architectural Framing Systems; Architectural Services; and Large-Scale Optical Technologies (LSO).

On January 9, 2025, APOG’s board of directors declared a quarterly dividend of $0.26 per share, reflecting an increase of 4% from the previous quarterly dividend rate of $0.25 per share. The dividend is payable to its shareholders on February 12, 2025. Moreover, this marks the company’s 12th consecutive year of dividend growth.

APOG’s four-year average yield is 1.88%, while its annual dividend of 1.04 translates to a 1.87% yield on current prices. Its dividend payouts have increased at CAGRs of 7.7% and 7.4% over the past three and five years, respectively.

On November 4, 2024, APOG announced the completion of its $242 million acquisition of UW Interco, LLC, enhancing its Large-Scale Optical segment and projecting significant revenue growth by fiscal 2026.

APOG’s trailing-12-month net income margin of 7.14% is 9.8% higher than the industry average of 6.50%. Likewise, its 20.11% trailing-12-month ROCE is 48.2% above the industry average of 13.57%.

During the third quarter of fiscal 2025, which ended November 30, 2024, APOG’s net sales increased marginally from the year-ago value to $341.34 million. Its adjusted operating income amounted to $35.41 million, while its non-GAAP net earnings came in at $26.11 million or $1.19 per share in the same period. Also, its adjusted EBITDA for the quarter stood at $45.80 million with a margin of 13.4%.

Street expects APOG’s EPS for the fiscal year 2025 (ending February 28) to increase 3.6% year-over-year to $4.94. Its revenue for the same period is expected to come in at $1.35 billion. For the fiscal year 2026, its EPS and revenue are expected to hit $4.28 and $1.37 billion, respectively.

The stock gained 4.9% over the past year to close the last trading session at $55.69.

APOG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

It also has a B grade for Value and Momentum. Out of 47 stocks in the same industry, APOG is ranked #7. To access APOG’s other ratings for Growth, Stability, Sentiment, and Quality, click here.

Stock #1: Griffon Corporation (GFF)

GFF, through its subsidiaries, provides consumer and professional home and building products internationally. It operates under the Consumer and Professional Products and Home & Building Products segments.

On December 18, 2024, the company paid its shareholders a quarterly dividend of $0.18 per share. With 13 years of consecutive dividend growth, GFF pays an annual dividend of $0.72 per share, which translates to a yield of 0.94% at the current share price. Its four-year average dividend yield is 3.70%. Moreover, its dividend payouts have increased at a CAGR of 24.1% over the past three years.

In terms of the trailing-12-month EBITDA margin, GFF’s 19.10% is 36.7% higher than the 13.98% industry average. Likewise, its 10.87% trailing-12-month levered FCF margin is 57.9% higher than the 6.88% industry average. Furthermore, the stock’s 40.26% trailing-12-month gross profit margin is 27.5% higher than the 31.59% industry average.

For the fourth quarter that ended September 30, 2024, GFF’s total revenues increased 2.8% year-over-year to $659.67 million. Its adjusted gross profit grew 7.8% from the year-ago value to $271.05 million, while its income from operations rose 40.6% from the prior year’s quarter to $111.67 million.

Moreover, the company’s adjusted net income and adjusted EPS came in at $70.94 million and $1.47, up 12.5% and 23.5% from the prior year’s quarter, respectively. Also, its adjusted EBITDA increased 13.4% year-over-year to $137.53 million.

Analysts expect GFF’s EPS for the quarter ended December 31, 2024, to increase 11.6% year-over-year to $1.19, while its revenue for the is expected to come in at $637.58 million. Moreover, the company topped the consensus revenue and EPS estimates in three of the trailing four quarters.

Over the past year, the stock has gained 32.7% to close the last trading session at $76.62.

It’s no surprise that GFF has an overall rating of A, equating to a Strong Buy in our POWR Ratings system. It has a B grade for Growth, Value, Momentum, and Quality. Within the Industrial – Building Materials industry, it is ranked first.

Beyond what is stated above, we’ve also rated GFF for Stability and Sentiment. Get all GFF ratings here.

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OC shares closed at $182.68 on Friday, up $3.40 (+1.90%). Year-to-date, OC has gained 7.69%, versus a 1.96% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

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