Engineering and construction (E&C) issuers in the U.S. and Europe are poised to grow over the next several years, propelled by historically high infrastructure spending, a conducive regulatory environment, and large governmental incentives and stimuli to support energy transition. Growth in infrastructure investment will likely moderate due to more-disciplined spending from local Chinese governments amid their elevated leverage in 2024, but we expect Chinese state-owned enterprises (SOEs) will see above-average growth and take market share from smaller industry players. Geopolitical tensions are a key threat for E&C issuers globally due to inflation and supply chain disruptions from extended and escalating conflicts. Climate transition will dictate capital allocation and pave the way for E&C issuers to pursue new energy projects globally.