3 Infrastructure Stocks Tied To Rail And Bridge Upgrades In Europe

The temporary closure of London Charing Cross and Waterloo East has thrown a spotlight on how reliant daily life is on rail infrastructure, and on the companies that keep it working. A £20 million engineering project to refresh aging assets and repair Hungerford Bridge underlines how much capital and expertise this work demands. For investors, that raises a practical question: which stocks could benefit as rail and bridge upgrades stay on the agenda across Europe? This article walks through three stocks exposed to this news, explaining why each might belong on your research list.

Kongsberg Gruppen (OB:KOG)

Overview: Kongsberg Gruppen is a Norway based technology group that supplies advanced defense systems, subsea and maritime technologies, and digital solutions to governments and industrial customers worldwide, with products ranging from missiles and air defense systems to autonomous underwater vessels and remote weapon stations.

Operations: Kongsberg Gruppen reports NOK 2.1b from its Other segment, a NOK 34.8b segment adjustment and NOK 1.2b of eliminations, highlighting the importance of group wide adjustments and internal transactions in its reported revenue mix.

Market Cap: NOK 254.9b

Investors looking at Kongsberg Gruppen in the context of rail and infrastructure upgrades are getting exposure to a company that combines high tech defense systems with demand for complex engineering and subsea solutions. Record revenue of NOK 10.4b in Q2 2026, a NOK 158b order backlog and large missile contracts indicate a significant level of contracted work, while high recent earnings growth and a P/E above many peers show that expectations are already elevated. At the same time, reliance on government defense budgets, regulatory scrutiny on arms exports and higher financial risk from external borrowing mean that any slowdown in orders or policy shift could hit sentiment quickly. How those trade offs stack up is what really matters from here.

Kongsberg Gruppen’s record Q2 revenue, large order backlog and elevated P/E suggest something bigger may be unfolding beneath the surface, but the key question is whether expectations already stretch the story or still understate it, which is exactly what the analyst forecasts for Kongsberg Gruppen hints at before a crucial twist on how those contracts could play out.

Rockwool (CPSE:ROCK B)

Overview: Rockwool is a Denmark based manufacturer of stone wool insulation and related building solutions used in roofs, walls, façades and ceilings, as well as acoustic panels, fire protection systems and specialized materials for industrial, marine and horticultural applications, sold globally under brands such as ROCKWOOL, Rockfon and Grodan.

Operations: Rockwool generates most of its revenue from Insulation at €3.5b, with the Systems segment contributing €676m and eliminations of €295m reflecting internal transactions within the group.

Market Cap: DKK41.1b

Rockwool sits at the intersection of energy efficient building, tightening safety rules and large infrastructure projects. This is why the London rail closures matter for you as an investor. When bridges, stations and commercial buildings are refurbished, specifiers often look for non combustible, fire resistant and acoustically strong materials, and Rockwool’s stone wool products are designed for exactly that kind of work. The company pairs this exposure with capacity upgrades, electrified production and automation, aiming to support future margins even after a recent large one off loss and weak profit margin of 0.1%. Forecast double digit earnings growth and raised 2026 revenue guidance show what could go right if project pipelines and regulations keep supporting Rockwool’s core markets, but funding risks and volatile earnings mean the story is far from straightforward.

Rockwool’s earnings story appears to be in its early stages, with efficiency projects and tighter building rules pointing in the same direction. However, the real hinge is buried in the analyst forecasts for Rockwool

NCC (OM:NCC B)

Overview: NCC is a Nordic construction and civil engineering company that builds and maintains everything from housing, offices, schools and hospitals to tunnels, roads, railways and ports, while also producing materials like stone, asphalt and paving products and developing commercial properties in major urban areas.

Operations: NCC generates most of its revenue from NCC Infrastructure at SEK 16.9b, NCC Building Nordics at SEK 12.9b, NCC Building Sweden at SEK 12.2b and NCC Industry at SEK 12.8b. There is also a smaller SEK 0.6b contribution from NCC Property Development and SEK 1.4b of other items and eliminations.

Market Cap: SEK 16.7b

Investors who think rail and bridge upgrades will stay in focus may pay attention to NCC, which is already winning large Nordic transport and water projects while maintaining a strong balance sheet and low net debt that can support more work. The stock trades on a low P/S ratio of 0.3x versus both peers and the wider European construction sector. Analysts also note that current earnings reflect a depressed 0.1% margin and highlight the potential role of sustainability driven projects and an improved business mix. The catch is high debt, a dividend that is not fully backed by earnings and a recent loss, and that tension is a key part of the NCC story.

NCC’s low P/S, solid balance sheet, and rail exposure hint that the current pricing may be masking a bigger story, and the real twist sits inside the analysis report for NCC

The three stocks in this article are only a starting point, and the full Infrastructure and Engineering Services screener on Simply Wall St surfaces 22 more companies with equally compelling stories, all in one place via the Infrastructure and Engineering Services screener. Use the filters there to identify and analyze the specific catalysts, balance sheet strength, and contract narratives that matter most to you so you can focus on the highest conviction opportunities.

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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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