EEMI Benchmarking Book

Research evidence excerpt

EEMI Benchmarking Book

Equity Research

Multi Company Update — June 11, 2026

Electrical Equipment & Multi-Industry

Our Call Joseph O'Dea

We've compiled 30 slides as a quick reference on historical metrics and select forecasts Equity Analyst | Wells Fargo Securities, LLC

Joseph.Odea@wellsfargo.com | 212-214-5993

across organic growth, operating costs, innovation spend, per employee performance, and

Zachary Schechtmancapital efficiency. LINK TO EEMI BENCHMARKING BOOK

Equity Analyst | Wells Fargo Securities, LLC

Zachary.Schechtman@wellsfargo.com | 212-214-8014

Organic growth: Over the past 4 years, the top organic growers in our group have been Judah Esses

TT, ETN and SPXC, led by data center strength. Lowest growers have been MMM, DOV Associate Equity Analyst | Wells Fargo Securities, LLC

and OTIS, led by tough 2023 demand conditions. Over the next couple years, we expect Judah.E.Esses@wellsfargo.com

recent top growers to remain at the top, with improving growth among laggards and a

narrowing spread between top and bottom.

Innovation spend trends: R&D doesn't always include all the spend associated w/

innovation efforts, but we use R&D % of sales as a gauge of companies investing the most

and least in innovation. FTV, ROK, MMM, HON and EMR rank highest, spending ~4-6% of

revenue on R&D. FTV, EMR and ROK rank highest on adj gross margin in our group. While

innovation seems to help margin power, it's not an obvious driver of outgrowth. MMM has

spoken to R&D driving growth recently, and pricing power to help margins.

Getting the most out of employees: On revenue per employee, SPXC, TT and CARR rank

highest, between $450-500k / employee. OTIS, EMR and JCI get the fewest revenue $

per employee, in the $200-$250k range. On SG&A / employee, FTV, SPXC and AYI spend

the most.