DEM #676: Broad positive capex revisions in 2026

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DEM #676: Broad positive capex revisions in 2026

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Industrials/Multi-Industry

DEM #676: Broad positive capex revisions

in 2026

Price Objective Change

’26 capex revised up since start of the year 12 June 2026

In this week’s Deus Ex Machina, we revisit bottom-up capex estimates. 2026 capex Equity

estimates have broadly seen positive revisions since the beginning of the year but have Americas

seen negative revisions for Chemical. For 2026, capex estimates have been particularly Industrials/Multi-Industry

revised up in Semis, MLPs (midstream), and Industrials. 2027 capex estimate revisions Andrew Obin

have been mixed, with three categories revised up since the start of the year and four Research Analyst

revised down. On a net basis, capex forecasts for 2026 were revised up compared to BofAS+1 646 855 1817

before 1Q26 earnings reports, Chemicals was the one category revised down. On a net andrew.obin@bofa.com

basis, capex forecasts for 2027 were revised up compared to before 1Q26 earnings David Ridley-Lane, CFA

Research Analyst

reports, with the exception on Chemicals and MLPs. Semis is expected to have large BofAS

incremental capex in 2026. Utilities is expected to have the second largest incremental +1 646 855 2907

david.ridleylane@bofa.com

capex in 2026 and key names with exposure are Buy-rated GE Vernova, Eaton, and

Devin Leonard

Emerson. Research Analyst

BofAS

Strong capex revisions for Semis and MLPs +1devin.leonard@bofa.com646 855 3698

Analysts forecast Industrials capex to grow +16.1% y/y in 2026, up from +6.7% y/y at

the beginning of the year. In addition to being up YTD, Industrials capex for 2026 has

risen 140bps since end of April when we last looked at capex forecasts, but 2027 capex

is only up 10bps.