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Investing.com -- JPMorgan has identified several standout SMid Cap industrial companies positioned to benefit from growing AI and data center infrastructure demands. These companies stand to benefit from increasing power demand from the AI industry, while also maintaining strong market positions in their respective industrial niches.
The industrial sector continues to evolve with increasing technology integration, particularly as AI infrastructure expands globally. JPMorgan’s analysis highlights companies with both traditional industrial strengths and emerging technology exposure, creating potential value opportunities in the SMid Cap space.
With approximately $7 billion market capitalization and $1 billion in revenue, Mirion boasts impressive 24.5% EBITDA margins. The company has established itself as a global leader in radiation safety technologies, commanding the #1 market share in 17 of 19 markets it serves. Its Nuclear & Safety segment, representing about 70% of revenue, supports approximately 95% of nuclear reactors worldwide, with roughly 80% of revenue derived from the installed base. The Medical segment (30% of revenue) maintains a presence in the top 100 cancer centers in the United States.
Mirion Technologies reported third-quarter 2025 adjusted earnings per share of $0.12, which surpassed analyst forecasts, on revenue of $223.1 million.
Valmont, with an $8 billion market cap and $4 billion in revenue, achieves a 13.5% adjusted operating income margin. The company leads in center pivot and linear irrigation equipment while also manufacturing poles, towers, and lighting structures. Its Infrastructure segment (75% of revenue) maintains a substantial $1.6 billion backlog driven by utility and telecommunication demand. The Agriculture segment (25%) features the globally recognized Valley brand, a leader in pivot irrigation.
In recent developments, Valmont Industries reported third-quarter 2025 earnings and revenue that exceeded expectations and raised its full-year EPS guidance. Following the results, both Stifel and DA Davidson raised their price targets on the company.
With a market cap of approximately $9 billion and $6 billion in revenue, Regal Rexnord delivers a 22% EBITDA margin. The company provides highly engineered components and subsystems for power conversion, transmission, and application. Its business spans three main segments: Industrial Powertrain Solutions (45% of revenue) offering engineered transmission products; Automation & Motion Control (28%) providing conveying automation, aerospace components, and motion control solutions; and Power Efficiency Solutions (28%) designing AC and DC motors, fans, and blowers.
Regal Rexnord announced third-quarter 2025 revenue of $1.5 billion, which was above forecasts, though its adjusted earnings per share of $2.51 slightly missed expectations.
Gates Industrial, with a $6 billion market cap and $3.5 billion in revenue, generates a 22.5% adjusted EBITDA margin. The company is experiencing growth in mobility and data center revenue as a global leader in engineered flow and motion control, supplying components for applications ranging from EVs to construction. Its Power Transmission segment (60% of revenue) leads in high-performance belts, tensioners, and system solutions, while the Fluid Power segment (40%) supplies hoses, couplings, and hydraulic systems.
More recently, Gates Industrial posted mixed third-quarter 2025 results, with earnings per share of $0.39 beating estimates while revenue of $856 million came in just below forecasts.
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