In the first earnings season since President Donald Trump announced sweeping tariffs on most countries on April 2, several publicly traded construction firms reported mixed signals about the policy’s effects. While many executives painted a picture of resilience, some acknowledged a ripple of uncertainty filtering into the market.

Leaders at Irving, Texas-based Fluor Corp. emphasized that clients remained committed to moving projects forward despite a shifting economic landscape. “Most of their customers were forging ahead with plans in spite of broader uncertainty,” executives told investors during their earnings call. That sentiment was echoed by Granite Construction, headquartered in Watsonville, California. Company leadership reassured shareholders that funds from the Infrastructure Investment and Jobs Act (IIJA) continued to provide a strong pipeline of work and support steady demand.

Still, beneath the surface of these confident messages, more cautious tones emerged. Some construction executives noted signs of hesitancy among clients, particularly related to project planning and investment timelines.

Troy Rudd, CEO of Dallas-based AECOM, pointed to a handful of project delays and slower decision-making among clients. “The firm had seen delays and deferred decisions on a limited set of projects,” Rudd said, noting that this hesitancy affected the company’s quarterly revenue.

Likewise, executives at WSP, based in Montreal, cited broader economic and geopolitical instability as a barrier to new acquisitions. The company described the current market as “very unstable,” a climate that has cooled the appetite for mergers and acquisitions.

Meanwhile, Swedish contractor Skanska became one of the first major firms to revise its forward-looking expectations, adjusting its U.S. market forecast from “strong” to “stable.” The downgrade was notable given the robust project flow tied to federal infrastructure investments, signaling that international firms remain cautious as they monitor the evolving policy environment.

While none of the individual concerns raised may amount to a red flag on their own, taken together they suggest a shift in industry sentiment. The combination of rising tariffs and market instability appears to be introducing a new layer of caution among builders and clients alike, particularly as firms evaluate supply chain impacts, materials pricing, and geopolitical risks.

These early signals from major players may serve as a bellwether for the broader construction sector as it navigates economic and policy changes in the second quarter of 2025 and beyond. For now, the Infrastructure Investment and Jobs Act remains a steadying force, but uncertainty around trade policies could grow into a more pressing challenge if it begins to meaningfully influence bidding, procurement, and planning in future quarters.

Originally reported by Construction Dive.