European Capital Goods: Cautious on construction; Prefer diversified exposure

Research evidence excerpt

European Capital Goods: Cautious on construction; Prefer diversified exposure

Equity Research

19 May 2026

European Capital Goods

Cautious on construction; Prefer SIGNATURE

diversified exposure

We take a cautious stance on construction-exposed stocks European Capital Goods

given the uncertain macro backdrop. Heat pumps face NEUTRAL

affordability headwinds, Pools see near-term destocking in European Capital Goods

Rajesh Patki

the US, and the Lighting market is being squeezed by +44 (0)20 3555 5193

competition. Beijer is our preferred pick while Nibe and rajesh.patki@barclays.com

Barclays, UK

Signify are key UWs. Vlad Sergievskii

+44 (0)20 7116 1117

vlad.sergievskii@barclays.com

 Listen

George Featherstone, CFA

+44 (0)20 3555 8585

Initiating coverage. We are adding three stocks to our European Capital Goods coverage – george.featherstone@barclays.com

Aalberts, Ariston and Beijer Ref – and transferring coverage of Fluidra, Nibe and Signify to Rajesh Barclays, UK

Patki (see the individual reports, published concurrently). All six stocks are predominantly

Timothy Lee, CFA

exposed to the construction end-market. We take a relatively cautious stance on the outlook for +44 (0)20 7773 6879

residential construction in the current geopolitical environment given rising inflation, which timothy.lee@barclays.com

could prompt central banks to turn more hawkish. Barclays, UK

End-market outlook: Four of the six stocks are focused on the European residential HVAC Madalena Azevedo

+44 (0)20 7773 3616market, for which we provide a deep dive in this report. Our key takeaway is that we expect

madalena.amadogomesdeazevedo@barclays.c

limited growth in the EU (low-single-digit growth over 2026-30) until we see either a rates- om