Texas' Flood Resilience Boom: Where to Invest in Disaster-Proof Infrastructure

Folks, the floods of 2023 were a wake-up call for Texas—and now the state is pouring billions into building a flood-resistant future. And that means huge opportunities for investors. Let me break down where the money's flowing and which stocks are primed to ride this wave.

The Government Funding Surge: Billions at Work

Texas is in the middle of a historic infrastructure push. The state's $40 billion flood resilience plan (yes, you read that right) is backed by $1.2 billion in new allocations from lawmakers, with even more federal dollars trickling in. Programs like the Flood Infrastructure Fund (FIF) and Community Development Block Grant-Mitigation (CDBG-MIT) are the engines here.

Take the CDBG-MIT, which has $4.3 billion to spend on projects like modernizing building codes and floodplain buyouts. This isn't just bureaucracy—it's a goldmine for companies that can turn these plans into reality.

Public-Private Powerhouses: The Stocks to Watch

The real magic happens when governments partner with private firms. Here are the names you need to know:

1. WSP Global (WSP.N):
2. A $85 million contract with the Texas General Land Office to design coastal defenses like barrier islands and oyster reefs.
3. 30% of its North American revenue now comes from climate resilience projects.

5. Tetra Tech (TTEK.O):

6. Uses its proprietary RecoveryTrac® system to track post-disaster rebuilding, securing Texas contracts for infrastructure repairs.

7. A 90% repeat client rate keeps cash flowing.

8. ICF (ICFI.O):

9. Advising Texas on allocating $4.7 billion in unspent Hurricane Harvey funds.

10. Its climate risk analytics tools help cities qualify for FEMA grants.

11. TRC Companies (TRC.O):

12. Specializing in “living shorelines” (wetland restoration) and floodplain mapping.

13. 25% revenue growth in 2024 thanks to Texas projects.

14. Brookway (Private):

15. A Texas-based emergency management firm with rapid-response expertise (think flood rescue and mold remediation).
16. A potential IPO or acquisition target—keep an eye on this one!

Playing the Long Game: ETFs and Innovation

Don't just stick to individual stocks. The CI Global Sustainable Infrastructure ETF (CGRN) is a play on the entire sector, including firms like these. And for the bold, consider catastrophe bonds (like Swiss Re's offerings), which fund resilience projects while offering fixed-income exposure.

But the real sleeper play? Geospatial tech. Companies like Verisk Analytics (VRSK) and Arcadis (ARCD) are mapping flood risks and designing smarter infrastructure. Their tools are critical to Texas's “data-driven” approach to resilience—and their stocks have already surged 30% this year.

The Risks? Yes, but the Rewards Are Bigger

Texas faces a $44 billion funding gap in its plan, but that's where private capital steps in. Public-private partnerships (PPPs) will dominate here—think low-interest loans from programs like the Clean Water State Revolving Fund paired with equity from investors.

Even better: Texas isn't alone. Florida's Resilient Florida grants and NOAA's GulfCorps program create a regional market for firms like WSP and Tetra Tech.

Action Alert: Buy Now—Or Watch the Money Flow Past You

This isn't just about saving homes—it's about building the next big investment story. Here's my advice:
- Buy WSP.N and TTEK.O now—they're the architects of this boom.
- Add CGRN to your portfolio for diversified exposure.
- Keep an eye on Brookway for a potential breakout.

The floods of 2023 were a disaster—but they've birthed a once-in-a-generation opportunity. Don't miss the wave.

This isn't just about being smart—it's about being relentlessly optimistic in the face of adversity. Texas is leading the charge. Are you?