Wolfe Industrial Weekly #959

Research evidence excerpt

Wolfe Industrial Weekly #959

Electrical Equipment & Multi-Industry

Distributors - Market Underweight

Industrial Technology - Market Weight

Multi-Industry - Market Weight

Wolfe Industrial Weekly #959 June 15, 2026

US Ressie HVAC Update: Back to 8m Units This Year? Exhibit 1 - EE/MI

Performance for Week

Ended Jun 12The Wolfe Byte

SWK 6.5%

GTES 5.9%

4.1%The early HVAC data have been encouraging following another month of growth CARRVNT 4.0%

RRX 3.9%

HAYW 3.8%

EMR 3.6%

3.0%in April and the northern states are finally cooking. Let's not get too far ahead of MMMHON 3.0%

ROK 2.8%

IR 2.4%

PH 2.4%the summer selling season, but the math points to an >8m unit market, putting NDSN 1.9%

ITW 1.9%

NVT 1.8%

DOV 1.2%upside biases to FY26e. SPXC 1.0%

EE/MI Median 0.9%

JCI 0.9%

PNR 0.9%

VRT 0.8%

GEV 0.8%

LII 0.7%

S&P 500 0.6%

OTIS 0.6%

GGG 0.3%Our EE/MI coverage ended last week up +0.9%, nosing ahead of the S&P500 TT 0.3%

AME 0.3%

XYL 0.1%

HUBB 0.0%

FPS -0.2%(+0.6%) and our Distributor group (flat). Performance was led by names most ETN -1.1%

ITT -1.2%

ZBRA -1.6%

FTV -1.9%impacted by Iran war sentiment, following renewed hopes of a deal. This led MAIR -2.8%

VLTO -3.1%

-4% -2% 0% 2% 4% 6% 8%investors to step back into recent underperformers such as SWK (+6.5%), GTES

(5.6%), and VNT (+4.0%). Meanwhile, EMR (+3.6%) and HON (+3.0%) benefited Source: Wolfe Research, FactSet Exhibit 2 - US Cap Goods

from expectations of an eventual Middle East rebuild, and long term energy security Subsector Performance

tailwinds. AI/Electrical stocks (ETN, HUBB, VRT, GEV) continued to lag, but VLTO for Week Ended Jun 12

Diversified Manufacturing 4.4%(-3.1%), MAIR (-2.8%), and FTV (-1.9%) led to the downside. For the Distributors,