WeBuild's I-85 Project: A Roadmap to U.S. Infrastructure Growth

The U.S. infrastructure boom is gaining momentum, and WeBuild Group is positioning itself at the forefront with its $337 million contract for the Interstate 85 widening project in North Carolina. This initiative, part of a broader $635 million corridor expansion, exemplifies the growing demand for public-private partnerships (PPPs) to tackle critical infrastructure bottlenecks. For investors, the project highlights a compelling opportunity in construction firms with expertise in design-build delivery and PPPs—key to unlocking value in high-congestion corridors like I-85.

A Model for Modern Infrastructure Delivery

The Interstate 85 project, led by WeBuild subsidiary Lane Construction, is a prime example of the design-build model, which combines planning and construction into a single contract. This approach accelerates timelines and reduces costs, a critical advantage in projects where delays can escalate expenses by 20-30%, according to industry benchmarks. The four-mile segment of I-85—widening from six to eight lanes and rehabilitating six bridges—will begin construction in summer 2026, with future phases extending the project through 2040.

The project's scope underscores WeBuild's versatility. Beyond roadways, the firm is reconfiguring intersections into “reduced conflict designs” to cut accidents—a safety-first strategy resonating with regulators. Meanwhile, the design of the North Bridge, featuring Charlotte's city crown logo, reflects the growing emphasis on community-driven aesthetics in infrastructure.

The PPP Play: A Sustainable Pipeline for Growth

The Interstate 85 project is not an isolated case but part of a broader trend. The 2021 Bipartisan Infrastructure Law allocated $550 billion to U.S. infrastructure, prioritizing high-congestion corridors like I-85, which connects Raleigh and Charlotte, two of the Southeast's fastest-growing metro areas. WeBuild's role in this project signals its readiness to capitalize on this wave of spending.

PPPs, which transfer project risk to private entities while leveraging public funding, are increasingly favored for large-scale projects. For WeBuild, this model is a natural fit: its global experience in PPPs—from high-speed rail in Italy to bridges in the U.S.—gives it an edge in securing contracts where financial and operational risks are shared.

Investors should note that WeBuild's stock has risen steadily amid its U.S. expansion, but valuation multiples remain lower than peers like Fluor Corp. (FLR) or Bechtel (privately held). This gap could narrow as the I-85 project and others advance, particularly if the firm secures follow-on contracts in North Carolina or similar high-growth states like Texas or Florida.

Regional Momentum and Future Opportunities

The I-85 corridor's challenges—congestion, outdated bridges, and a high crash rate—mirror issues in other major U.S. thoroughfares. WeBuild's success here could open doors to similar projects. For instance, the “A” and “C” phases of the I-85 project, targeting an additional six miles and railroad bridges, are already in planning, with bids expected by late 2028. These phases, along with the broader $635 million program, suggest a multi-year revenue stream for WeBuild.

Moreover, the design-build model's efficiency is attracting state departments of transportation. North Carolina's use of this approach for I-85 aligns with similar strategies in California (I-5 widening) and Ohio (I-75 upgrades), signaling a nationwide shift. Firms like WeBuild that can deliver complex projects under tight timelines while managing regulatory hurdles will dominate this space.

Risks and Considerations

While the outlook is positive, risks remain. Delays in permitting, especially for railroad bridges in Phase C, could strain budgets. Additionally, inflationary pressures on construction materials—though moderated in 2024—may impact profit margins. WeBuild's ability to mitigate these risks through its global supply chain and PPP experience will be critical.

Investment Thesis: Buy WeBuild for U.S. Infrastructure Exposure

WeBuild's I-85 project is more than a single contract; it is a catalyst for long-term growth in U.S. infrastructure. The firm's expertise in design-build and PPPs positions it to win a share of the $550 billion federal pot and state-level initiatives. With a strong pipeline, scalable model, and undervalued stock, WeBuild offers asymmetric upside for investors focused on the infrastructure renaissance.

Recommendation: Investors with a 3–5 year horizon should consider accumulating WeBuild shares (WEB.MI) at current levels. Pair this with a watch on U.S. construction spending data and the firm's bid success rate for I-85's next phases.

In the race to modernize America's aging infrastructure, WeBuild is building more than roads—it's laying the groundwork for outsized returns.