ESG Express: Buckle Up Earnings Ahead

Research evidence excerpt

ESG Express: Buckle Up Earnings Ahead

Global Research

17 July 2026ab

ESG Express Equities

AmericasBuckle Up Earnings Ahead

Global Sustainability

Shneur Z. Gershuni, CFA

North American Trucks - EPA announces proposed changes to 2027 truck Analyst

emissions regulations shneur.gershuni@ubs.com

The EPA has announced long-awaited proposed changes to its 2027 emissions +1-212-713 3974

regulations for trucks. There are four primary changes that were unveiled. (Full Report). Kathryn Graves, PhD

Scaled back the extended warranty provision Associate Analyst

kathryn.graves@ubs.com

Proposed nonconformance penalties (NCPs) +1-212-713 4871

Elimination of deratements and vehicle speed restriction for engines

Pushout of the start of longer useful life requirements Thi

s is an

The EPA was expected to remove the extended warranty requirements while keeping the ImageMNOx reductions, and to introduce nonconformance penalties to afford OEMs more time

to fully develop products (vs. leaving nonconformance undefined and at risk). Our team

thinks this is likely a modest positive for truck stocks, mainly due to the greater certainty,

but there are still a number of open questions.

Solstice Advanced Materials Inc - Deal or No Deal...Upgrade to Buy

On Monday our team upgraded SOLS to Buy from Neutral. They believe that SOLS

financial mix is upgraded post the ESI deal, and see a path to mid-teens-plus EPS growth

that is not priced in. Our team doesn't think this deal reflects an either/or for Electronics

vs Nuclear investments, and sees both contributing to >10% annual EBITDA growth and

~18% EPS growth in our team's PF outlook. We think SOLS leverage will touch near 3x

on a 2027e basis, but will de-lever quickly and leave room for Solstice to invest in

brownfield UF6/nuclear expansions.