U.S. Machinery & Construction: Q2’26 Company Question Pack

Research evidence excerpt

U.S. Machinery & Construction: Q2’26 Company Question Pack

Equity Research

13 May 2026

U.S. Machinery & Construction

Q2’26 Company Question Pack

Into conference season, we're updating our question pack for

all companies under coverage. Many of the questions are

focused on tariff implications, length of today’s cycle, U.S. Machinery & Construction POSITIVE

business quality, and 2026 expectations. U.S. Machinery & Construction

Adam Seiden, CFA

After a multi-month period that's felt like a year, fundamentals haven't fluctuated as much +1 212 526 2212

as sentiment has. End-market fundamentals generally align with year-end trends (i.e. adam.seiden@barclays.com

construction and ag. end markets) but not everywhere. A few have somewhat improved (i.e. CVs BCI, US

and light-construction equipment), a few have somewhat slowed (i.e. refuse, fire), but Tyler Russell

consistent is an appetite to own anything/everything related to power/AI. There’s been green +1 212 526 7584

shoots in some atypically long machinery down-cycles that feel sustainable (i.e. welding, PMI is tyler.russell@barclays.com

growing) and others where sustainability is still more suspect (i.e. food equipment, restaurant BCI, US

commentary mixed at best). Middle East headwinds were limited for all (machinery and E&C)

while energy security, data centers, and inflation-related questions were more in focus.

In machinery and rentals sentiment is positive, with rental negativity unwinding. OEM

production and rental time utilization seems better balanced exiting the quarter vs coming into

it. Willingness to push price seems stronger exiting the quarter vs. coming into it, too. Backlogs

spanning multiple years seem to be winnowing (ex. Power) while backlogs that span multiple

quarters are growing (i.e. aerials).