Welcome back to our Stock Pitch Series. Today, I’m going to focus on a FTSE 250 industrial stock with a StockRank of 98 and a ‘Super Stock’ rating. The company is Keller Group (LON:KLR). Here’s why it has caught my eye.
- At the time of publication, Ed Sheldon had no position in KLR.
- Share price at the time of publication: 2,256p
- Market cap: £1.6bn
The Pitch
Keller Group is the world's largest geotechnical specialist contractor. Providing a wide range of advanced foundation and ground improvement solutions, it operates across five continents, taking on more than 5,000 projects every year.
Areas of construction in which the company operates include commercial (e.g. data centres, distribution centres, hotels), residential, infrastructure, power, industrial, and institutional. Last year, around 59% of revenue came from North America while EME and Asia generated 28% and 13% of revenue respectively.
The Big Picture
Keller looks set to enjoy some powerful tailwinds in the years ahead. Right now, the US is in the midst of a ‘mega project’ construction boom, fuelled by the digital revolution, the energy transition, reshoring of critical industries, and federal legislation such as Donald Trump’s ‘One Big Beautiful Bill’ Act. Across the country, companies are building data centres, semiconductor manufacturing plants, energy infrastructure, and much more. Given that Keller effectively specialises in getting ground ready to build on – and generates a large proportion of its revenues in the US – it could be a major beneficiary of this construction boom.
The current US administration is prioritising ‘sovereign’ infrastructure: There is a focus on projects that ensure US dominance in technology (AI) and defence such as data centres, chip plants, and nuclear energy facilities.
The One Big Beautiful Bill Act (OBBBA) is supportive: The OBBBA provides broad financial incentives for US construction and clears the regulatory path for massive industrial builds.
Going Deeper
Looking at Keller’s 2025 results, the company is already benefitting from the supportive backdrop in the US. In North America, revenue growth outperformed the wider US construction market last year, driven by infrastructure spend.
Overall, group revenue for the year was £3.1 billion, up 5.9% at constant currency, while underlying diluted earnings per share (EPS) came in at 211.3p, up 5.7%. On the back of this performance,…
