US Electrical Equipment & Multi-Industry: EE/MI Morning Note - 2Q Preview for GEV, HUBB, CGNX & SPXC

Research evidence excerpt

US Electrical Equipment & Multi-Industry: EE/MI Morning Note - 2Q Preview for GEV, HUBB, CGNX & SPXC

Global Research

16 June 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - 2Q Preview for GEV,

HUBB, CGNX & SPXC Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

Below we offer our 2Q previews for HUBB, GEV, CGNX, and SPXC. Also, see our prior +1-201-352 1410

notes previewing FAST (here), TT, IR and OTIS (here), NVT (here) and JCI and LII (here).

Neal Burk

GEV- We think 2Q results can be a positive catalyst for GEV shares. Our sense is order neal.burk@ubs.com

momentum remains strong, with emphasis on the "at least" in "at least 110GW" of +1-212-713 4066

backlog by year end (vs. 100 at the end of 1Q). So, we think the recent concerns around Pratap Singh

order momentum slowing is likely too pessimistic. We also see another raise to Analyst

Electrification expectations as likely, reflecting notable traction in new business pratap-za.singh@ubs.com

opportunities following the Prolec acquisition. +1-212-821 3112

Zachary Walljasper

For 2Q, we model sales and EBITDA towards the high end of guidance, but could see Associate Analyst

upside driven by continued margin expansion in Power (led by price and productivity) zachary.walljasper@ubs.com

+1-212-713 9829

and continued strength in Electrification sales growth.

In Power we model a 16% year over year increase in organic sales along with

30% incremental margin. Our assumptions result in segment EBITDA margin

of 18.3%, a bit ahead of GEV's guided range of 17-18% but we think

achievable given Power incrementals have been trending well above 30%. See

also see potential for incremental margins in the segment to notably step up in

2H.