The Learning Curve: Industrial Highlights — Going With the Current

Research evidence excerpt

The Learning Curve: Industrial Highlights — Going With the Current

May 17, 2026 | 15:55 ET~

Industrial Machinery, Supplies & Components

The Learning Curve: Industrial Highlights — Going Industrial Machinery, Supplies & Components

With the Current Daniel DiCicco, CFA Analyst

daniel.dicicco@bmo.com (333) 274-9893

Legal Entity: BMO Capital Markets Corp.

Bottom Line:

Earnings have subsided, but we saw solid updates from Siemens and Ralliant

in addition to more positive data center commentary (stop me if you have heard

this before) as Siemens called out triple-digit order growth and Applied Materials

was strong. We have China potentially looking to buy Boeing planes for the first time

since 2017 and Ford pivoting into another electrification-related foray (causal $2 billion

into battery storage). We continue to see large-scale investment in the U.S. (Toyota

announced $2 billion plant and $13 billion LNG export in the Gulf moving forward).

Meanwhile, SpaceX and Google are talking data centers in space. Conference season

and mid-quarter updates from companies start to heat up the next few weeks.

Month to date the XLI (industrials) is down 1.6% while SPY is up 2.9% and the XLK (tech)

is up 10.5%. Most of our coverage has taken a hit (HON only flat name).

Key Points

Earnings winding down, but more early-cycle signs. Siemens called out early signs

of industrial cycle inflection, particularly in China and short-cycle automation (and

emphasized no clear evidence of pre-buy). The company also experienced broad-

based order strength across electrification and automation. Ralliant highlighted some

pockets of recovery in Western Europe and China organic growth was 5% supported by

AI and energy-related projects. At the same time, we are still seeing larger-scale project