1Q26 Earnings Wrap: Bullish US With Catalysts Ahead

Research evidence excerpt

1Q26 Earnings Wrap: Bullish US With Catalysts Ahead

EUROPE | Infrastructure EquityMayResearch14, 2026

KEY STOCKS FEATURED INCLUDE:1Q26 Earnings Wrap: Bullish US With

TICKER RATING PRICE TARGETCatalysts Ahead

BBY LN BUY 985.00p

Q1 saw the sector outperform against increased macro volatility and higher FER SM HOLD €60.00

energy costs. Demand for infrastructure rising, as energy, defence, and FER HOLD $70.26

AI all move into sharper focus, and at the same time, profits continue to

be well protected by inflation linkage. US Contracting (ACS, BBY, SKAB)

still looks well placed as momentum in Europe softens, while share

KEY CHANGES INCLUDE:

price weakness elsewhere (AENA, FRA, CLNX) looks increasingly attractive

against improving fundamentals. TICKER RATING PRICE TARGET

BBY LN BUY 985.00p (900.00p)

Infrastructure outperforms in Q1. Through the first quarter, our coverage is up +15% on a FER HOLD $70.26 ($69.11)

weighted avg. basis (vs. SXXP +3%), mainly driven by HOT/ACS and growing US Construction

demand. Airports by contrast have been the standout underperformers, reflecting their

direct exposure to the Iran conflict through lost Middle East traffic and jet fuel supply

concerns. European contracting exposure has been more mixed, with Eiffage and Vinci

missing estimates, starting the year slowly as Construction PMIs took another step down in

April.

A preference for US Construction. US exposure has outperformed YTD, reflecting guidance

upgrades and improving sentiment across the contracting space through the quarter. We see

re-rating well justified, as growth across non-resi markets accelerates, led in particular by data

centers which we continue to see as a long-term growth driver for the sector. We remain bullish