US Electrical Equipment & Multi-Industry "EE/MI Morning Note - GEV MOU, ..."

Research evidence excerpt

US Electrical Equipment & Multi-Industry "EE/MI Morning Note - GEV MOU, ..."

Global Research

18 June 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - GEV MOU, ESAB, CXT

previews, +Warehouse Automation & China Industrial, Diversified

Construction Amit MehrotraAnalyst

amit.mehrotra@ubs.com

+1-201-352 1410

GEV MOU- News reports (here) indicated earlier this week that GEV has signed a Neal Burk

Analystmemorandum of understanding with Venezuela's government to potentially make

neal.burk@ubs.com

available 1 gigawatt of energy within its first 24 months and more than ‌5 gigawatts over

+1-212-713 4066

four years. The President, speaking alongside GEV Power's CEO said it's a "historic step"

for the country in order to "restore...its electricity supply". While the initial scope is Pratap Singh

Analystrelatively modest at 1GW, we think the broader read-through is that global demand for

pratap-za.singh@ubs.com

gas power equipment and grid reliability solutions remains broad-based, extending well +1-212-821 3112

beyond U.S. data center-related demand. It also serves as a counter point to recent

concerns about peaking orders, in our view. To this point, we published our 2Q preview Zachary Walljasper

Associate Analystfor GEV earlier this week (here), where we said "our sense is order momentum remains

zachary.walljasper@ubs.com

strong, with emphasis on the "at least" in "at least 110GW" of backlog by year end (vs. +1-212-713 9829

100 at the end of 1Q). So, we think the recent concern around order momentum

slowing is likely too pessimistic". Click here for the full preview.

ESAB preview- We expect 2Q results to show improving but still subdued growth

trends. With shares trading at just 16x NTM P/E, we think that little improvement in