JPM | Industrial Strength Morning Messages: Decent earnings in a tough tape - although Yara is a shocker

Research evidence excerpt

JPM | Industrial Strength Morning Messages: Decent earnings in a tough tape - although Yara is a shocker

Specialist Sales J P M O R G A N

17 July 2026

JPM | Industrial Strength Morning Messages: Decent earnings in a tough

tape - although Yara is a shocker

Sam Edmunds

+44 207 742 8733

sam.edmunds@jpmorgan.com

Today: ABBN SW, CRST LN, ATCOA SS

In Focus Today

• Good Morning. Not a nice tape this morning with the tech sell off deepening. For European industrials this saw the DC

complex (Schneider, Legrand, Prysmian etc..) sell off sharply despite evidence of ongoing underlying demand from earnings.

We have suspended ratigns and estimates for both ABB and Rotork following yesterday’s announcement. I am a taker of

feeback if you would like to share thoughts though. Atlas Copco traded better on its beat, however, which we think was due

to the breadth of its beat - with VT doing well as expected but CT, IT and PT all beating expectations as well. Management

(by their own standards) were genuinely enthusiastic on the call despite the ‘flat’ q/q guidance. Phil’s post-results wrap is

HEREand note he has taken his forecasts up for 26/27/28E. Earnings today support the improving cycle thesis with SKF,

Assa, Volvo (trucks) all beating. Trelleborg’s +8% OSG for Q2 also impressed (see Chit’s post results wrap below). Is it

enough? We likely see electricals under ongoing pressure given the semi sell off. The big question is whether the market is

telling us something has actually changed - or this is a seasonal risk-off wobble offering a buying opportunity. I tend

towards the latter - but have not got a tough enough glove to catch the falling knife.

• VOLVO CAR - ANALYST FIRST TAKE (HERE): Our Take: All in all, a difficult second quarter for the firm working on