Highlights from the Lowlands

Research evidence excerpt

Highlights from the Lowlands

European Midcaps

Equity Research

July 3, 2026

Aalberts (AALB NA, Buy) On the Horizon: Accelerating Semicon momentum driving upgrades. Aalberts interim results on July 23rd are expected

to show a clear inflection in earnings momentum drive by Semis and M&A, with an earnings upgrade cycle helping to narrow discount to peers.

We expect 1H26 results to highlight a clear inflection in earnings momentum, with EBITA projected at c.€226m, ~3% ahead of consensus, driven

by a sharp recovery in the Semicon segment and strong performance from the GVT acquisition. Growth is expected to accelerate through the

year (c.4% in 1Q to ~11% in 2Q), supported by demand linked to AI-related infrastructure, while Building and Industry provide a stable earnings

base following portfolio optimisation. The company is already seeing earnings upgrades (FY26 EBITA +4%), with expectations for double-digit

growth to return into FY27 as capacity expansion comes through. Despite strong share price performance, valuation remains at a discount to

peers and history, offering scope for further re-rating as growth becomes more visible.

DEME (DEME BB, Buy) New dredging vessel order. DEME is strengthening its market-leading dredging franchise with a new 22,000 m³ trailing

suction hopper dredger (TSHD), representing a €150m–€350m investment in future earnings capacity and competitive positioning. The vessel is

expected to deliver a step-change in operational efficiency, lowering dredging costs per cubic meter, while reducing emissions intensity versus

existing assets. The investment enhances DEME's ability to capture growing demand across capital and maintenance dredging, land reclamation

and offshore infrastructure projects, supporting margin resilience and long-term returns.