News Release
Under Construction: Four Stocks Capitalizing on the U.S. Building Boom
JFB PLD LEN TOL
The U.S. construction industry is showing robust growth in 2025, with total construction spending reaching an annualized $2.19 trillion as of March—up nearly 3% year-over-year. Residential demand remains strong amid affordability pressures, while commercial, industrial, and infrastructure projects continue steady expansion. This broad-based momentum is creating fertile ground for companies operating across the construction and real estate sectors to capitalize on rising opportunities and innovation. With that solid industry tailwind, let’s explore four stocks making waves in this dynamic market. JFB Construction Holdings (Nasdaq: JFB) continues to build on its momentum in 2025, announcing this week that it has signed over $69.5 million in new construction and development contracts across a broad range of verticals, including hospitality, commercial retail, industrial, high-end residential, and real estate development. The new deals come on the heels of a standout first quarter that saw JFB report a 93% year-over-year revenue increase, further solidifying its early status as one of the more intriguing small-cap entrants in the real estate and construction space. “This achievement is such an important milestone for our company,” said CEO Joseph F. Basile, III, noting that the diverse portfolio of new projects reinforces JFB’s ability to leverage its relationships and operational strengths across multiple sectors. “Our ability to keep our promises to our customers remains paramount to our continued success.” Since its Nasdaq debut in March via a $5.16 million IPO, JFB has been aggressive in securing high-value projects that reflect both its operational ambition and sector versatility. In April, the company kicked off construction on its largest residential development to date—a $21 million, 79-unit luxury townhome community in Port Salerno, Florida. That was followed by the announcement of a $15 million contract for a 103,000-square-foot luxury auto storage facility in Charlotte, NC, marking the company’s largest industrial project to date. Earlier this month, JFB deepened its push into the hospitality sector, signing two significant deals with Marriott Hotels. The first—a $18 million co-development of a new Courtyard by Marriott in Olive Branch, Mississippi—showcased JFB’s evolution into a true development partner. The second was a $6.7 million contract to convert a Holiday Inn into a Courtyard by Marriott in Melbourne, Florida. According to Basile, these back-to-back hospitality wins are expected to be “key to establishing long-term brand relationships and future pipeline growth.” Taken together, these recent announcements offer a clear picture of JFB’s post-IPO strategy: secure high-value, high-visibility projects across multiple sectors while reinforcing its brand as a versatile, trustworthy contractor with national reach. As of May, JFB has provided services in 36 states and is increasingly targeting regions with rapid population growth and infrastructure demand. JFB appears to be executing on its growth blueprint with speed and focus. The $69.5 million in new contracts is not only a headline number, it’s a statement that JFB aims to scale aggressively while maintaining the relationship-driven, hands-on approach that built its foundation. Prologis (NYSE: PLD) continues to reinforce its position as the backbone of global logistics infrastructure. The industrial REIT recently declared another $1.01 per-share quarterly dividend—unchanged from the March payout and part of a 5% year-over-year increase—underscoring its stability and ongoing commitment to shareholder returns. The company’s Q1 earnings report highlights a robust balance sheet, including $6.5 billion in available liquidity and a low debt-to-EBITDA ratio of 4.9x. With 96% of equity exposure and nearly all forecasted earnings through 2027 denominated in or hedged to the U.S. dollar, Prologis remains well insulated from currency volatility. In April, Prologis led an initiative with other major industrial REITs to standardize non-GAAP property metrics such as occupancy, retention, and rent change—an effort aimed at improving sector-wide transparency and investor comparability. The move reinforces Prologis' position as a sector leader not just in scale, but in setting best practices across the industry. With a weighted average interest rate of just 3.2% on total debt and a long-term funding horizon, PLD enters the second half of 2025 with substantial financial flexibility and sector-defining relevance. While smaller names are chasing growth, Prologis is proving that size and discipline remain powerful long-term advantages. Lennar Corporation (NYSE: LEN) continues to navigate a challenging housing market while executing its strategic shift toward an asset-light, technology-driven homebuilding model. The company reported first quarter 2025 revenues of $7.2 billion, driven by a 6% rise in home deliveries to 17,834, even as average sales prices softened slightly to $408,000 amid persistent affordability pressures. Lennar’s operational efficiency improved, with cycle times down 11% year over year and inventory turns increasing to 1.7 times, reflecting tighter inventory management. The company’s disciplined use of incentives, including interest rate buydowns, has helped maintain sales momentum and manage supply despite a macroeconomic environment marked by high inflation and consumer uncertainty. Financially, Lennar remains solid, ending the quarter with $2.3 billion in cash and no borrowings on its $3 billion revolving credit facility. Its balance sheet strength was further bolstered by a $703 million share repurchase program and the completion of the Millrose spin-off, which accelerates Lennar’s transition to a pure-play homebuilder. The acquisition of Rausch Coleman Homes expanded Lennar’s presence in key Southern and Midwestern markets, reinforcing its geographic footprint. Meanwhile, the company continues to grow its multifamily segment through Quarterra Multifamily, which recently launched leasing at The Ansel, a luxury apartment community in Frisco, Texas. Looking ahead, Lennar expects second quarter home deliveries of 19,500 to 20,500 and anticipates maintaining gross margins near 18%, underscoring its focus on balancing growth with profitability as market conditions evolve. Toll Brothers (NYSE: TOL) reported solid Q2 fiscal 2025 results on May 20, 2025, while expanding in luxury residential markets through new home communities and apartment developments. For the quarter ending April 30, 2025, Toll Brothers posted net income of $352.4 million, or $3.50 per diluted share, compared to $481.6 million, or $4.55 per share, a year earlier. The prior year included a $124 million land sale gain, which when excluded, offers a more comparable basis. Home sales revenues reached a record $2.71 billion, up 2% year-over-year, driven by a 10% increase in home deliveries to 2,899 units. Net signed contract value declined 11% to $2.60 billion, and backlog fell 7% to $6.84 billion. Margins remained steady with a home sales gross margin of 26.0%, slightly above last year’s 25.8%. Adjusted home sales gross margin stood at 27.5%, reflecting effective cost controls amid inflation. Chairman and CEO Douglas Yearley, Jr. highlighted Toll Brothers’ diversified luxury portfolio and strategic discipline, noting, “Record home sales revenues significantly exceeded expectations, underscoring broad appeal across price points and markets.” The company increased its quarterly dividend by 9% to $0.25 per share, signaling confidence in cash flow and shareholder returns. Toll Brothers Apartment Living, the rental division, recently opened Navona, a 400-unit luxury apartment community in Mesa, Arizona, featuring upscale finishes, smart home tech, and resort-style amenities tailored to one of Phoenix’s fastest-growing submarkets. In single-family housing, the company announced Toll Brothers at HighPoint, a gated Scottsdale community with 122 home sites priced from $1.9 million, and final opportunities to build in Laurel Pointe, Orlando, with homes from $1.7 million. Toll Brothers invested approximately $723 million in land during Q2, adding 4,380 lots and growing its land bank to roughly 78,600 lots to support future growth. The company reaffirmed fiscal 2025 guidance of 11,200 to 11,600 home deliveries and an adjusted home sales gross margin near 27.25%, ending the quarter with $686.5 million in cash and $2.19 billion in available credit. With its leadership in luxury homebuilding, expanding multifamily portfolio, and strong financial footing, Toll Brothers is positioned to meet ongoing demand for high-end housing. Disclaimers: RazorPitch Inc. "RazorPitch" is not operated by a licensed broker, a dealer, or a registered investment adviser. This content is for informational purposes only and is not intended to be investment advice. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. 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May 28, 2025 09:00 AM Eastern Daylight Time
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