Industrial manufacturer Worthington Enterprises has been riding the hot wave of the artificial-intelligence data center boom-not through chips or servers, but by keeping the technology cool.
CEO Joe Hayek attributed Worthington's strong fiscal first-quarter performance to the growing demand for their engineered ASME tanks for data center cooling, or heavy-duty, certified metal pressure tanks constructed to safely hold and circulate fluid in a high-tech cooling system for computer servers. The tank is built entirely up to code from guidelines set by the American Society of Mechanical Engineers.
Hayek added that the company has also generated more free cash flow and holds a healthy balance sheet, allowing for greater flexibility to invest in and pursue other growth opportunities.
Investors appeared optimistic after the company released its earnings for the fiscal first quarter ended Aug. 31. Shares of Worthington Enterprises rose 3.3% to $60.79 on Wednesday.
As AI and high-performance computing continue to expand, data centers generate massive heat, fueling a spike in demand for specialized cooling infrastructure.
Worthington also manufactures portable propane tanks for the Coleman brand under an official licensing agreement active since December 2011.
Sales in Worthington's business equipment branch increased by 16% in the latest quarter, which the company attributed to mostly acquisitions. In their tools and gas cylinder branch, sales grew by 8% driven by higher volume and higher average selling prices.
Net sales grew 13% to $343.9 million, above Wall Street's calls for $331.3 million. Adjusted earnings of 82 cents a share surpassed analysts' estimates of 75 cents a share.
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