Substantial cost overruns and project delays at HS2’s Old Oak Common hub have pushed UK construction and infrastructure stocks back into the spotlight. When government projects run into trouble, some companies face tighter margins and funding pressure while others may see steadier long term work as clients seek stronger partners. This article focuses on the Old Oak Common news and how it might affect construction and engineering exposure. It will walk through three UK listed stocks that appear positioned to benefit from the current mix of contract scrutiny, project reviews and potential future spending decisions.
RS Group (LSE:RS1)
Overview: RS Group is a global distributor of maintenance, repair and operations products and related services, supplying everything from automation and electrification components to safety gear and building maintenance items to industrial customers across sectors such as manufacturing, facilities management and energy.
Operations: RS Group generates about £2.9b in revenue, with roughly £414.9m coming from its RS PRO own brand range and £2.47b from other product and service solutions across its international footprint.
Market Cap: £3.35b
RS Group gives you exposure to industrial demand without tying you to a single project or region, which can be useful when big UK infrastructure schemes like HS2 face delays and overruns. The company has been investing in digital procurement tools, acquisitions such as Distrelec and BPX, and its RS PRO range to support operating leverage and margin improvement, while still returning cash to shareholders through dividends and a £100m buyback announced in 2026. At the same time, management acknowledges pressure on margins and tougher conditions in the UK and EMEA, so the key question is whether recent investments and integration work will offset those headwinds and support the next leg of growth.
RS Group’s push into own brand products, digital tools and acquisitions could be reshaping its earnings profile. To see how this all comes together, and what the market might be overlooking, review the analysis report for RS Group
Severfield (LSE:SFR)
Overview: Severfield is a structural steel specialist that designs, fabricates and installs complex steelwork for projects such as offices, stadia, data centres, transport hubs and energy facilities across the UK, Europe and other markets.
Operations: Severfield generates about £454.3m of revenue, largely from its core construction operations at £442.5m, with £16.3m from Modular Solutions and a small negative contribution from central costs and eliminations.
Market Cap: £111.7m
Severfield stands out in the HS2 and wider infrastructure story because it already supplies complex steelwork to Old Oak Common and has an order book that includes transport, nuclear and data centre projects, which can help offset weakness in traditional UK construction. The company is still loss making, with a reported net loss of £35.6m and pressure on margins, and it relies fully on external funding, so execution errors on large jobs or bridge remedial work remain important risks. Analysts have noted that the stock trades on a low P/S compared with peers, and that a refreshed focus on higher quality projects and a flexible delivery model could influence Severfield’s long term earnings profile from here.
Severfield’s low P/S and exposure to higher quality projects could be masking a very different story to what the headline loss suggests. Get the full picture in the analysis report for Severfield
Travis Perkins (LSE:TPK)
Overview: Travis Perkins is a long established UK building materials distributor that supplies tradespeople and infrastructure contractors with everything from core timber and bricks to specialist heating, cooling and civils products through brands such as Travis Perkins, Toolstation, BSS, Keyline and CCF.
Operations: Travis Perkins generates about £4.52b of revenue, with £3.67b from its Merchanting division and £849.4m from Toolstation, almost entirely in the United Kingdom.
Market Cap: £1.44b
Travis Perkins sits at the intersection of UK housebuilding, repair and maintenance, and large projects like HS2, so the Old Oak Common overruns matter less for it than for single project contractors. The group has been working through weaker volumes and political delays to public sector work. Management highlights an improving backdrop as planning reform, infrastructure commitments and falling interest rates gradually support activity. At the same time, Travis Perkins is reshaping its cost base, modernising its ERP and digital tools and focusing more on specialist infrastructure and energy efficient products. The stock has unprofitable recent years, relies fully on external borrowings and faces execution risk from new systems and leadership. Its scale, low P/S multiple and exposure to any uplift in UK infrastructure make the full story more nuanced than the recent share price implies.
Travis Perkins looks like a stalled heavyweight where cost cuts, specialist infrastructure exposure and a low P/S could be masking a very different future. See how the story could shift in the analyst forecasts for Travis Perkins
The three stocks here are only a starting point, with the full UK construction and infrastructure screen surfacing 31 more companies with equally interesting stories in the UK Construction and Infrastructure Companies screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction opportunities in this part of the market.
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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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