Global Industrial Perspectives — June 2026

Research evidence excerpt

Global Industrial Perspectives — June 2026

S Distis (+13%) are now outperforming US Machinery

(+9%) and our Multis (+7%) in '26. China & European sectors continue to lag. Exhibit 3 - Global Cap

Goods NTM P/E

23.0xReal time industrial data points remain strong. Global PMIs climbed higher in May, 22.0x

21.0x

20.0x

driven by sequential acceleration from the US (up 1pt to a multi-year high of 54.0) 19.0x18.0x

17.0x

16.0xand continued strength in Japan at 54.5. Europe ticked down (-1pt to 51.6; Germany 15.0x14.0x

-1pt to 50.1, UK up slightly to 53.9). The uptick in our capex expectations index (CXI), 13.0x Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

strong SK exports and surging machine tool orders are also supportive of positive Global Capital Goods 1-YR Median 5-YR Median

Source: FactSet, Wolfe Research

short-cycle momentum. Clearly, we are keeping an eye on high energy prices and

inflation, but so far the damage appears quite contained to housing and consumer

categories. See Pages 4-7 for more details.

We published our latest inventory outlook last week, and note that inventories

remain balanced in aggregate (LINK). Bottom line, there was some weak evidence for Nigel Coe, CPA; CFA

pre-buy, concentrated in construction and consumer channels. Overall, we continue to ncoe@wolferesearch.com

see evidence for expanding short cycle industrial demand as noted during our recent (646) 582-9259

View Nigel’s Researchconference (LINK). View Comp Table

Capex trends have accelerated, led by strong data center investment (LINK). Brad Hewitt

Consensus estimates point to +22% growth in 2026 (+5pts since March) and implies bhewitt@wolferesearch.com

(646) 582-9256

capex/sales in the 10.7% zone (highest ever). Growth leadership remains with Data