Key Points
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Watts Water Technologies and ATI both benefit from real, physical demand tied to AI infrastructure and aerospace.
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Both companies have strong fundamentals, but still come with risks that require patience and a long-term mindset.
Watts Water Technologies (NYSE: WTS) reported record full-year 2025 results with sales of $2.44 billion, an 8% increase, and diluted earnings per share of $10.17, up 17% from the previous year. The company projects 8% to 12% sales growth for 2026 as demand for data center infrastructure increases, particularly in cooling and water management systems. U.S. data center power demand is expected to grow from 25 gigawatts in 2024 to 106 gigawatts by 2035.
ATI Inc. (NYSE: ATI), a manufacturer of titanium alloys and components for aerospace and defense, achieved sales of $4.6 billion in fiscal year 2025, a 5% increase. The company’s aerospace and defense revenue now makes up 68% of its sales, reflecting strong demand. ATI’s operating cash flow reached $614 million, up 51% from the previous year. The company has secured long-term titanium supply agreements with Boeing and Airbus, indicating robust prospects amid rising aircraft production needs.
