European Capital Goods: Warehouse automation: back on the radar

Research evidence excerpt

European Capital Goods: Warehouse automation: back on the radar

Equity Research

3 July 2026

European Capital Goods

Warehouse automation: back on

the radar

Sector from has shifted from 'darling' to out of favour amid European Capital Goods

expectation resets (e.g. macro/inflation) and NEUTRAL Unchanged

forklift competition concerns. We see slower truck growth as European Capital Goods

Timothy Lee, CFAreasonable, but competition manageable; warehouse

automation momentum is steady, with negatives mostly +44timothy.lee@barclays.com(0)20 7773 6879

priced into valuations. Barclays, UK

Vlad Sergievskii

+44 (0)20 7116 1117The warehouse automation sector has shifted from being a darling last year to out of favour YTD

vlad.sergievskii@barclays.com

(admittedly not a great call from us), driven by a reset in expectations (macro, interest rate, Barclays, UK

inflation, Germany) as well as forklift competition concerns. While 2Q26 forklift orders may be

distorted by pre-buy, we think lower growth assumptions are fair (e.g. we are already LSD below George Featherstone, CFA

+44 (0)20 3555 8585consensus on KGX ITS orders/revenue), and we continue to see warehouse automation industry

george.featherstone@barclays.com

demand momentum as satisfactory, albeit with a need to monitor (e.g. interest rate Barclays, UK

expectations). We also view forklift competition as manageable, with peers still able to pass

through price hikes. More importantly, we believe valuations have already priced in most of the Rajesh Patki

+44 (0)20 3555 5193negatives (e.g. KGX's current share price already reflects the low end of FY26 adj.EBIT guidance).

rajesh.patki@barclays.com

We trim forecasts and PTs slightly mainly for KGX/JUNG, but stay constructive on the space on Barclays, UK