Industry Overview - The artificial intelligence (AI) sector, bolstered by the growth of cloud computing and data centers, is experiencing robust demand, particularly for data center capacity to manage and store cloud-based data [1] - The "magnificent 7" stocks are projected to invest $380 billion in 2025 for AI infrastructure development, representing a 54% year-over-year increase in capital expenditure [2] Company Summaries Comfort Systems USA Inc. (FIX) - FIX operates in the HVAC markets, providing services primarily in commercial and industrial sectors [7] - The demand for specialized HVAC solutions is increasing due to the data center boom driven by AI and cloud computing [8] - FIX has an expected revenue growth rate of 14.7% and earnings growth rate of 16.4% for the next year, with earnings estimates improving by 21.1% in the last 60 days [11] Vertiv Holdings Co (VRT) - VRT is a global provider of critical digital infrastructure and services for data centers and communication networks [12] - The company is expanding capacity to meet the growing demand for AI-enabled solutions, supported by strategic acquisitions [13] - VRT has an expected revenue growth rate of 20.7% and earnings growth rate of 26.3% for the next year, with earnings estimates improving by 0.4% over the last 30 days [15] Sterling Infrastructure Inc. (STRL) - STRL is an engineering firm benefiting from strong momentum in its E-Infrastructure business, which is the primary growth driver [16] - In Q3 2025, STRL's revenues from E-Infrastructure reached $417.1 million, growing approximately 58% year-over-year, with AI-powered data center market revenues rising over 125% [17] - STRL has an expected revenue growth rate of 19.1% and earnings growth rate of 14.6% for the next year, with earnings estimates improving by 8.8% in the last 30 days [19] Dominion Energy Inc. (D) - D is focused on strengthening its electric and natural gas infrastructure while adding renewable assets to achieve carbon neutrality by 2050 [20] - The company is experiencing increased demand from large data centers, which is enhancing its service performance [21] - D has an expected revenue growth rate of 6% and earnings growth rate of 5.9% for the next year, with earnings estimates improving by 0.3% over the last 30 days [22] Alcoa Corp. (AA) - AA is positioned as a potential dark horse in the AI-driven data center boom, as aluminum is critical for various data center components [23] - The company is exploring opportunities to unlock value from its closed sites with large power capacities for conversion into data centers [24] - AA has an expected revenue growth rate of 3.1% and earnings growth rate of 3.1% for the next year, with earnings estimates improving by 17.8% in the last seven days [24]

Industry Overview - The artificial intelligence (AI) sector, bolstered by the growth of cloud computing and data centers, is experiencing a robust demand scenario, with a significant surge in data center capacity needed to manage and store cloud-based data [1] - AI infrastructure capital expenditure (capex) is projected to exceed $1 trillion by 2028 according to Goldman Sachs and Bank of America, while JP Morgan and Citigroup forecast a cumulative total of $5 trillion by 2030. McKinsey & Co. estimates that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030 [2] Company Recommendations - Investors are advised to buy and hold five non-technology U.S. companies that are expected to benefit from the AI-driven data center boom in 2026. These companies have shown significant stock performance in 2025 [3] - The recommended companies include Comfort Systems USA Inc. (FIX), Vertiv Holdings Co. (VRT), Mirion Technologies Inc. (MIR), BWX Technologies Inc. (BWXT), and EMCOR Group Inc. (EME), all of which currently hold a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4] Company Insights Comfort Systems USA Inc. (FIX) - FIX operates primarily in the HVAC markets and is experiencing increased demand for specialized HVAC solutions due to the data center boom driven by AI and cloud computing [7][8] - The company is expanding its data center construction work, which is becoming a significant growth driver and attracting M&A activity [10] - Expected revenue and earnings growth rates for FIX are 14.7% and 16.4%, respectively, for the next year, with a 20.1% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [11] Vertiv Holdings Co. (VRT) - VRT is a leading provider of critical digital infrastructure for data centers and is benefiting from strong market demand and an extensive product portfolio [12][13] - The company is strategically expanding its capacity to meet the growing demand for AI-enabled solutions and has made acquisitions to enhance its service capabilities [13][14] - Expected revenue and earnings growth rates for VRT are 20.7% and 26.3%, respectively, for the next year, with a 6.8% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [15] Mirion Technologies Inc. (MIR) - MIR provides radiation detection and monitoring products and is focused on expanding its reach in the nuclear energy sector [16] - The company is integrating digital technologies into its radiation safety solutions and has recently partnered with Westinghouse Electric Company [17] - Expected revenue and earnings growth rates for MIR are 24.7% and 26.5%, respectively, for the next year, with a 1.6% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [18] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and is benefiting from strong bookings and government contracts, particularly in the nuclear sector [19][20] - The company's total backlog reached $7.4 billion, up 119% year over year, driven by robust federal demand and a growing pipeline [21] - Expected revenue and earnings growth rates for BWXT are 14.5% and 9.9%, respectively, for the next year, with a 0.2% improvement in the Zacks Consensus Estimate for next year's earnings over the last seven days [24] EMCOR Group Inc. (EME) - EME is a leading provider of critical infrastructure to AI-powered data centers, focusing on electrical infrastructure and cooling systems [25] - The company is gaining traction in the data center construction market, which is contributing to its expanding performance obligations [26][27] - Expected revenue and earnings growth rates for EME are 5.9% and 8.6%, respectively, for the next year, with a 1.2% improvement in the Zacks Consensus Estimate for next year's earnings over the last 30 days [28]

Core Insights - The private credit market is experiencing positive developments due to deregulation, according to Churchill Asset Management President and CEO Ken Kencel [1] - Mid-market companies are actively engaging in a data center boom, indicating growth opportunities in this sector [1] Group 1 - Deregulation in the private credit market is viewed as a net positive by industry leaders [1] - The participation of mid-market companies in the data center boom highlights a significant trend in the market [1]

Drax Group's shares jumped to the highest in more than three years as optimism grows that UK utilities will cash in on the data center boom. https://t.co/iDW3w2wULY ...

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.33, a 32% increase year-over-year [5][14] - Revenues increased by 9.6%, from $435.3 million to $477 million, primarily due to rate increases [14][15] - The company expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 due to non-recurring benefits [6][21] Business Line Data and Key Metrics Changes - Both water and natural gas businesses performed well, contributing to the overall growth [5] - Water business revenue increased by approximately $27.9 million, while natural gas contributed $6.3 million to revenue growth [14][15] - The natural gas division has successfully installed over 60,000 Intellis gas meters, exceeding its 2025 goal [9] Market Data and Key Metrics Changes - The combined entity from the merger with American Water will serve over 5 million connections across 17 states [3] - The company has a robust rate base approaching $34 billion, positioning it as a leading water and wastewater utility in the U.S. [3] Company Strategy and Development Direction - The merger with American Water is seen as a transformational opportunity to create synergies and enhance financial strength [3][4] - The company aims to invest approximately $1.4 billion in infrastructure improvements for 2025 [6] - The focus on expanding water and wastewater business through acquisitions is expected to drive long-term growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth potential in both water and gas platforms, with an expected compounded annual growth rate of 8% for the combined utility rate base [21][22] - The company is committed to maintaining a strong balance sheet and consistent dividend growth while managing regulatory activities effectively [22][23] Other Important Information - The company has made a $26 million investment in a data center project in Greene County, Pennsylvania, which is expected to enhance its operational capabilities [10][11] - The company is actively pursuing additional data center development opportunities, reflecting the growing demand in the sector [12][13] Summary of Q&A Session - No questions were taken during this earnings call, and the company will return to its normal Q&A process for the year-end call in February 2026 [24][25]

Industry Trend - The data-center boom is significantly impacting Georgia, with numerous building sites emerging [1] Political Impact - The rise of data centers in Georgia is introducing new political considerations to the state [1]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company Offerings - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Promotional Offer - A two-week free trial is available for new subscribers, allowing them to explore the services related to oil and gas investments [2]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Group 1 - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] - Subscribers are offered a two-week free trial to explore the services related to oil and gas investments [2]

Core Insights - CRH PLC is identified as a leading beneficiary of the AI boom, particularly in the heavy materials sector, according to Kathryn Thompson, CEO of Thompson Research Group [1] - The company anticipates significant growth driven by the data center boom, as discussed by CEO Jim Mintern during an earnings call [2] - CRH expects robust demand in infrastructure supported by government and EU funding, with positive momentum in nonresidential markets and a gradual recovery in residential construction [3] Company Overview - CRH PLC is the largest building materials company in North America and Europe, supplying products for various construction and infrastructure projects [4] - The company’s product range includes aggregates, cement, asphalt, and concrete, as well as utility infrastructure and outdoor living solutions [4] - CRH is currently trading at 8.7 times the estimated cash flow for 2025, which is lower than its vertically integrated peers trading at up to 13 times cash flow [5]

Power Supply Costs - The data center boom added $7.3 billion (十亿) in power-supply costs on the largest US grid [1] Impact on Consumers - Increased power bills for nearly a fifth (20%) of Americans from the Midwest to the mid-Atlantic [1]