Is BIP a good stock to buy? We came across a bullish thesis on Brookfield Infrastructure Partners L.P. on David & Moat Investments’s Substack. In this article, we will summarize the bulls’ thesis on BIP. Brookfield Infrastructure Partners L.P.’s share was trading at $37.60 as of March 6th. BIP’s trailing and forward P/E were 41.78 and 158.73 respectively according to Yahoo Finance.
Brookfield Infrastructure Partners L.P. engages in the utilities, transport, midstream, and data businesses. BIP closed 2025 with Funds From Operations (FFO) of $2.627 billion, marking a 6.4% year-over-year increase driven by inflation-linked contracts and new data center investments. The company successfully executed its asset rotation strategy, generating $2.77 billion in gross sales proceeds from mature assets such as the Australian export terminal and UK port stakes, recycling capital into higher-growth opportunities including U.S. fiber networks, industrial gas operations in Korea, and railcar platforms with GATX.
This disciplined capital allocation lifted return on invested capital to 14% while keeping invested capital flat, reflecting growth without dilution. Segmentally, transportation contributed 37% of FFO, utilities remained stable at 25%, and data surged to 16%, with AI Factory-related investments expected to drive further expansion and eventually become the second-largest segment. Corporate borrowings increased to $4.947 billion to finance growth, with non-recourse debt rising to $30.666 billion, yet no corporate maturities exist until 2027, supporting balance sheet stability.
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Brookfield Corporation monetizes BIP through dividends, incentive distribution rights, and management fees, which collectively generated $867 million in gross distributions in 2025, up 6.5% from the prior year. Looking ahead, management expects 6–9% organic growth in 2026, underpinned by AI Factories, digitalization, decarbonization, and strategic capital deployment, targeting 10%+ FFO per unit growth.
Key agreements, including a 1 GW Bloom Energy deal, enhance the data segment’s growth potential. Risks include execution delays in data center projects and interest rate pressure on non-recourse debt, though 90% of debt is fixed and inflation-indexed contracts mitigate financing costs. With a dividend yield of 5.1% and a valuation of 9.8x FFO, BIP presents an attractive investment, offering a turning point in growth, strong liquidity, and multiple catalysts for upside.