Wells Fargo Non-Residential Construction Tracker

Research evidence excerpt

Wells Fargo Non-Residential Construction Tracker

Equity Research

Industry Update — May 19, 2026

Industrials

Wells Fargo Non-Residential Construction

Tracker

Manufacturing, Power & Data Center Acceleration

Continues

Our Call Jerry Revich, CFA

The recovery in 40% of private non-residential verticals accelerated in April led by Semis, Equity Analyst | Wells Fargo Securities, LLC

Jerry.Revich@wellsfargo.com | 212-214-5458

Power, and Data Centers. Reiterate positive outlook on Machinery.

Aaron Rakers, CFA

Equity Analyst | Wells Fargo Securities, LLC

Lead indicators are accelerating ahead of expectations in 40% of private non-res Aaron.Rakers@wellsfargo.com | 314-875-2508

construction verticals. We forecast an acceleration in private non-res construction from Joe Quatrochi, CFA

2025's -3% to +4.5% in 2026E and +6.3% in 2027E. Semis starts were +39% y/y LTM. Equity Analyst | Wells Fargo Securities, LLC

Power starts were +62% LTM, and we forecast +30% Utility capex in 2026E. Data Center Joe.Quatrochi@wellsfargo.com | 314-875-2055

starts kept accelerating and are >80% above LTM capex. Retail starts improved 14% y/y. Michael Sison

We reiterate Overweight ratings on URI/HRI/CAT/DE. Equity Analyst | Wells Fargo Securities, LLC

Michael.Sison@wellsfargo.com | 440-662-9664

Implications: Sam Margolin

The Machinery group continues to benefit from a supply-driven recovery, with used Sam.Margolin@wellsfargo.com | 212-214-8496

earthmoving inventory down 13% y/y. We see the next leg coming from the demand Blaine Heck, CFA

side recovery. In our view, the April data supports accelerating private non-res growth Equity Analyst | Wells Fargo Securities, LLC

in 2026E (+4.5%) and 2027E (+6.3%). We reiterate Overweight ratings on OEMs Blaine.Heck@wellsfargo.com | 410-662-2556