Utilities: 2026 Half Time For Utilities

Research evidence excerpt

Utilities: 2026 Half Time For Utilities

Idea

July 2, 2026 03:35 PM GMT

Morgan Stanley & Co. International plc+MUtilities | Europe Robert Pulleyn

Equity Analyst and Commodity Strategist

2026 Half Time For Utilities Robert.Pulleyn@morganstanley.comMorgan Stanley Europe S.E., Paris Branch+ +44 20 7425-4388

Arthur Sitbon, CFA

We see a largely positive results season ahead and provide 22 EquityArthur.Sitbon@morganstanley.comAnalyst +33 1 42 90 71-03

early stock previews assessing scope for guidance upgrades. We

Morgan Stanley & Co. International plc+

expect Utilities performance to continue through 2H26 after Sarah E Lester, CFA

~5% outperformance YTD. EquitySarah.Lester@morganstanley.comAnalyst +44 20 7425-0551

Marina Fuentes Juan

Research AssociateKey Takeaways

Marina.Fuentes.Juan@morganstanley.com +44 20 7425-2268

Our early sector preview includes 22 stocks into 2Q/1H Results season

Utilities

Position positive for Engie, Iberdrola, Orsted, Endesa, Naturgy, & CEZ vs cautious Europe

Verbund & Fortum. Industry View Attractive

We see scope for guidance upgrades across several stocks & consensus EPS

upgrades more likely than downgrades.

We expect continued outperformance from European Utilities through 2H26.

Analyst top picks of National Grid, Orsted & Engie.

We expect a largely positive 2Q/1H results season: We see potential for higher

guidance at 1H results across many stocks and consensus upgrades likely for more

stocks than downgrades. We see the most likely candidates for guidance upgrades

as Engie, Iberdrola, Endesa, Naturgy, & CEZ. Likewise we think RWE will likely

increase guidance to reflect 1Q one-off, albeit underlying most likely remains

unchanged. Outside of guidance updates, we expect the majority of stocks to de-risk