US Electrical Equipment & Multi-Industry: EE/MI Morning Note - HVAC sell through, VNT

Research evidence excerpt

US Electrical Equipment & Multi-Industry: EE/MI Morning Note - HVAC sell through, VNT

Global Research

7 July 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - HVAC sell through, VNT

Industrial, Diversified

Amit Mehrotra

HVAC sell through remains soft in May- HARDI distributors sales (sell-through) were Analyst

flat year over year in May adjusted for number of billings days, moderating from 5% amit.mehrotra@ubs.com

average growth in the last three months. This implies that volume was down year over +1-201-352 1410

year in the first month of the cooling season, indicating subdued end customer demand. Neal Burk

This is broadly consistent with our recent expert call with HARDI, that indicated that end Analyst

customer demand remains relatively stable but is not showing signs of improvement. neal.burk@ubs.com

Additionally, the press release highlighted that weather comps are quite tough during +1-212-713 4066

June / July, which could limit potential weather related benefits. However, we note that Pratap Singh

the recent comments from HVAC OEMs have been incrementally constructive on Analyst

residential hvac, which could also suggest lower initial expectations and some inventory pratap-za.singh@ubs.com

build up. Therefore, demand backdrop in June / July will be an important indicator for +1-212-821 3112

improvement in the overall industry. Zachary Walljasper

Associate Analyst

VNT completes divestiture of Teletrac Navman- Yesterday, Vontier announced the zachary.walljasper@ubs.com

+1-212-713 9829completion of the previously announced sale of the majority of Teletrac Navman, global

fleet management, telematics and asset management business. Following the

completion of the transaction, we are making small adjustments to our model as the