Energy intensive industrial stocks are suddenly back in focus after renewed military escalation between the U.S. and Iran, fresh attacks around the Gulf, and a sharp move in oil prices, with Brent down 4.34% and WTI below $70. When fuel and power are major inputs, even short term swings in oil can change the economics of production, cash flow, and investor sentiment. This article walks through three stocks from our Energy Intensive Industrial Stocks screener that appear positively exposed to this news and is intended to help you assess whether these opportunities fit your risk tolerance and portfolio goals.

Fresnillo (LSE:FRES)

Overview: Fresnillo is a long established Mexican miner focused on producing silver, gold, lead and zinc from a portfolio of large underground and open pit operations, with processing facilities that turn ore into concentrates and gold silver bars. It also leases mining equipment and provides exploration and administrative services within the group.

Operations: Fresnillo generates about $4.6b in revenue, primarily from its Herradura ($1.2b), Saucito ($1.0b), Juanicipio ($0.9b), Fresnillo ($0.7b), San Julián ($0.5b) and Ciénega ($0.2b) mines in Mexico, with only small contributions from Noche Buena and Other activities after adjustments.

Market Cap: £21.1b

Fresnillo gives you a large, established precious metals miner that is highly exposed to energy costs at a time when oil has just dropped sharply. This can influence mining cash costs and margins. The company currently reports a 31% ROE and a 30.3% net margin. Analysts expect double digit annual earnings growth, and the shares trade on a P/E of about 20.2x and at a premium valuation, which leaves less room for error. Funding relies fully on external borrowing and the dividend record is uneven, which adds financial and income risk. For investors who can accept volatility and project execution risk, Fresnillo offers a combination of operational improvement potential and sensitivity to both metal and energy prices that is not fully captured here.

High margins and a premium P/E suggest Fresnillo might be pricing in more than investors realise, so it is worth seeing how that stacks up against the 2 key rewards and 2 important warning signs

Sterling Infrastructure (STRL)

Overview: Sterling Infrastructure is a U.S. construction and engineering company that builds and services data centers, e-commerce and manufacturing sites, transport corridors, and concrete building foundations across multiple regions, including the Sun Belt and Rocky Mountains.

Operations: Sterling Infrastructure generates about US$2.9b in revenue, with roughly US$1.8b from e-Infrastructure Solutions, US$652.9m from Transportation Solutions, and US$385.7m from Building Solutions, almost all in the United States.

Market Cap: US$24.7b

Sterling Infrastructure stands out in this screener because its e-Infrastructure business is tied directly to data centers, e-commerce hubs, and advanced manufacturing projects, all sectors that rely on heavy site work and consistent energy supply. Its operations are fuel intensive and therefore sensitive to the recent drop in oil prices. Record backlog, strong demand in data centric projects, and acquisitions like Stone Ridge Contracting give the company years of potential work in hand. However, the stock already trades on a premium P/E and depends on continued mega project awards and government infrastructure funding. For investors, the key question is whether that growth and margin story justifies paying up for a highly cyclical, capital and labor intensive contractor at this stage of the cycle.

Sterling Infrastructure’s accelerating backlog and premium P/E suggest investors see something powerful in its story, but the real test is whether that growth fully supports the analyst forecasts for Sterling Infrastructure

Perimeter Solutions (PRM)

Overview: Perimeter Solutions supplies fire retardants, firefighting foams and services for government and commercial customers, alongside a Specialty Products segment that makes lubricant additives, phosphorus based chemicals, engineered machinery and automation solutions used in areas like mining, pesticides, batteries and complex medical devices. Founded in 1963 and based in Missouri, it sits at the intersection of wildfire management, specialty chemicals and high precision manufacturing.

Operations: Perimeter Solutions generates about US$705.9m in revenue, with around US$497.2m from Fire Safety and US$208.7m from Specialty Products.

Market Cap: US$5.6b

Perimeter Solutions provides exposure to wildfire protection, specialty chemicals and medical manufacturing at a time when energy intensive production can benefit from cheaper oil inputs and PFAS regulation is pushing customers toward cleaner firefighting chemistries. Its long term contracts with agencies like CAL FIRE and the Defense Logistics Agency can support steadier Fire Safety demand, while acquisitions such as MMT expand higher margin medical and automation exposure. At the same time, the stock carries elevated valuation multiples, relies fully on external borrowing and has a history of losses, with insider selling hinting at some caution. To judge whether the quality of these contracts and growth plans offsets those risks, investors may want to look beyond the headlines.

Perimeter Solutions sits at a crossroads of cleaner fire safety, specialty chemicals and medical manufacturing. Yet the market focus on losses and borrowing may be masking what really matters in the analysis report for Perimeter Solutions

The three stocks covered here are only a starting point, and the full screener has identified 59 more companies with equally compelling energy intensive stories inside the Energy-Intensive Industrial Stocks screener. Use Simply Wall St to analyze and filter these stocks by catalysts like energy exposure, balance sheet strength and future performance scores to help you identify the highest conviction opportunities for your watchlist.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.