3 UK Stocks Tied To Public Investment And Infrastructure Spending

Power is shifting in UK economic policy, with Andy Burnham’s 10-year plan pointing toward more devolution, heavier public involvement in utilities, transport, housing, and energy, and potential tax changes that could matter for every portfolio. For investors, the question is which businesses might be helped or held back if this vision gains traction. This article looks at three UK Infrastructure and Industrials screener stocks that appear well aligned with the themes of regional investment, public works, and government-backed projects, and explains why these companies could be among the potential beneficiaries of the proposed changes.

Overview: Morgan Advanced Materials is a UK headquartered specialist in carbon and ceramic components used in high performance applications, from furnaces and foundries to semiconductors, clean energy, transportation, and defence. Its products sit deep inside critical equipment and infrastructure, often as mission critical parts that need to handle extreme heat, friction, and precision.

Operations: Morgan Advanced Materials generates revenue across three main segments: Thermal Products at £349.9m, Technical Ceramics at £341.9m, Performance Carbon at £307.3m, and modest intercompany sales of £2.5m eliminated.

Market Cap: £588.9m

Investors looking at infrastructure, electrification, and reindustrialisation themes may find Morgan Advanced Materials worth a closer look, as it supplies the advanced materials that underpin energy, transport, and semiconductor systems targeted by long term public investment plans. The company combines exposure to higher value end markets with a large capex programme in semiconductors and a cost saving plan that, if delivered, could lift margins from a currently loss making position and support the forecast earnings recovery. At the same time, high debt, weak recent share performance versus the UK machinery sector, and a dividend that is not yet well covered by earnings mean the thesis depends on execution. The full story sits in how those trade offs balance out over the next few years.

Morgan Advanced Materials appears to be a classic recovery story in the making, with capex and cost savings potentially masking the real earnings power. Get the full context in the 2 key rewards and 2 important warning signs

Overview: Chemring Group is a UK headquartered defence and security company that supplies countermeasures, sensors, information systems, and energetic materials that help protect aircraft, ground forces, and critical infrastructure across the US, UK, Europe, Asia Pacific, and other international markets.

Operations: Chemring Group generates revenue primarily from two segments, with Sensors & Information contributing £177.4m and Countermeasures & Energetics contributing £334.6m.

Market Cap: £1.33b

Chemring Group sits at the intersection of defence spending, advanced sensing, and energetic materials, which could be an important mix if Andy Burnham’s push for more government intervention and regional investment leads to sustained demand for security and infrastructure capabilities. The company has a sizeable order book, grant backed expansion plans in energetics, and ongoing buybacks. However, investors also need to weigh recent pressure on margins, a relatively high P/E multiple, and funding risk given its reliance on external borrowing. In addition, policy changes, such as higher employment taxes and evolving defence reviews, can make the picture more complex than a simple growth story, which is where careful analysis can matter most.

Chemring Group’s mix of defence technology, sensors and energetics is attracting attention, but the real story sits in where expectations go next. To see how current market assumptions line up with future scenarios, review the analyst forecasts for Chemring Group

Overview: Norcros is a UK headquartered supplier of branded bathroom and kitchen products, from Triton electric showers and MERLYN enclosures to VADO taps and TAL tiling solutions. It serves consumers, housebuilders, architects, and trade customers across the UK, South Africa, Europe, and other international markets.

Operations: Norcros generates £393.4m of revenue from Building Products, with around £235.2m from the UK and £102.8m from South Africa, alongside smaller contributions from the rest of Europe and the rest of the world.

Market Cap: £265.0m

Norcros gives you targeted exposure to bathrooms, kitchens, and plumbing products that sit at the heart of UK and South African housing, refurbishment, and public building projects. This could matter if Andy Burnham’s push for more public investment and regional development gains momentum. Revenue sits at £393.4m and earnings growth has been strong. The dividend yield of 3.8% and a recent 11.3p per share payout point to an income angle. At the same time, thin net margins of 2.6%, reliance on external borrowing, exposure to South Africa, and a recent £23.0m one off loss mean execution and cash discipline remain crucial for Norcros.

Norcros looks like a housing and refurbishment play where £393.4m of revenue and a 3.8% yield could be masking the real story. To see how growth, margins, and that £23.0m one off loss fit together, review the analysis report for Norcros

The three stocks covered here are just a starting point, with the full UK Infrastructure and Industrials screener surfacing 38 more UK listed companies tied to infrastructure, construction, and industrial themes that could have equally compelling stories. Use Simply Wall St to identify and analyze the specific catalysts, financial health filters, and policy related narratives that matter most so you can focus on the highest conviction ideas in this space.

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Seeking Fresh Alternatives Beyond These Picks?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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