An AI Infrastructure Play at 8x EBITDA
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always do your own due diligence before making investment decisions.
There’s a small-cap company headquartered in Mount Airy, North Carolina that is the largest domestic manufacturer of a product that goes into essentially every bridge, highway, parking deck, and building in America.
Revenue is growing 20%+, earnings more than doubled last year, and the stock trades at just ~8x normalized EBITDA. It has essentially no debt, a clean balance sheet, and a $700 million market cap that keeps it off most institutional radars.
Federal infrastructure spending is ramping. Data centers are the hottest construction market in America right now, and it’s not particularly close. And a set of tariffs that have been in place since 2018 just handed domestic producers like this one a structural pricing advantage over imports that they haven’t had in years…
Much to my disappointment, I’ve mostly missed the “picks and shovels” trade around the AI and data center buildout. I’ve watched it happen more than I’ve participated in it.
This time feels different. The numbers are real, the setup actually makes sense to me, and for once it doesn’t look like the market is already five steps ahead.