Wells Fargo Non-Residential Construction Tracker

Research evidence excerpt

Wells Fargo Non-Residential Construction Tracker

Equity Research

Industry Update — June 17, 2026

Industrials

Wells Fargo Non-Residential Construction

Tracker

Further Acceleration Across Power, Semis, and Data Center

Our Call Jerry Revich, CFA

Lead indicators are accelerating ahead of expectations in 40% of private non-res Equity Analyst | Wells Fargo Securities, LLC Jerry.Revich@wellsfargo.com | 212-214-5458

construction verticals - suggesting potential for 8-10% private non-res construction

Aaron Rakers, CFAspending growth in 2027E vs. our estimate of +6%.

Equity Analyst | Wells Fargo Securities, LLC

Aaron.Rakers@wellsfargo.com | 314-875-2508

Lead indicators over the past month have been ahead of expectations. SEMI.org upped Joe Quatrochi, CFA

its 2026 Americas semi fab capex outlook by 33%, and sees ~75% growth in 2027. Power Equity Analyst | Wells Fargo Securities, LLC

starts were up >100% y/y LTM, including power projects and an LNG project. Data center Joe.Quatrochi@wellsfargo.com | 314-875-2055

starts are now ~2x current capex. Retail and Office starts were both up >10% y/y. WFS's Michael Blum

Midstream Energy analyst Michael Blum projects a 15% 2026-28 CAGR in N America Equity Analyst | Wells Fargo Securities, LLC

pipeline capex. Michael.J.Blum@wellsfargo.com | 212-214-5037

Shahriar (Shar) Pourreza, CFA

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

Shahriar.Pourreza@wellsfargo.com | 212-214-5422

Implications Michael Sison

The Machinery group is benefiting from a supply-driven recovery - used inventories Michael.Sison@wellsfargo.com | 440-662-9664

down 14% y/y. As lead indicators for US non-residential construction recovery accelerate, Sam Reid

we see a sustained multi-year recovery.