European Capital Goods: Evolving thoughts and read-through from recent results

Research evidence excerpt

European Capital Goods: Evolving thoughts and read-through from recent results

J P M O R G A N Europe Equity Research

27 July 2026

European Capital Goods

Evolving thoughts and read-through from recent results

Two-plus weeks into Q2'26 reporting, the underlying signal remains European Capital Goods

ACconstructive, with power generation, datacentre/electrification still printing Phil Buller

good demand, but the share price reactions have turned notably more two- (44-20) 3493-9403

sided, as several structurally strong names have sold off on elevated phil.buller@jpmorgan.com

expectations rather than on any deterioration in fundamentals. The clearest Akash Gupta AC

example is the c.9% move in GE Vernova on results day despite an order book-to- (44-20) 7742-7978

bill of ~2.2x, which in turn dragged Siemens Energy and Vestas lower on read- akash.z.gupta@jpmorgan.com

across that our analysts view as misplaced. Elsewhere, mining orders "missed" Chitrita C Sinha AC

against very high bars even as the medium-term capex thesis firmed; elevators (44-20) 7742-7176

chitrita.sinha@jpmorgan.com

confirmed the familiar pattern of soft new equipment and resilient service-and-

Jeremy Casparmodernisation; and short-cycle/semi-cap data points (Atlas Copco, VAT, TSMC,

(44-20) 3493-5188

Yaskawa) accelerated further. The cautionary pockets are idiosyncratic and well- jeremy.caspar@jpmorgan.com

flagged, namely a Jungheinrich profit warning on margin, a Pentair pre- J.P. Morgan Securities plc

announcement on Pool destocking, Vesuvius guidance downgrade on FY profit,

and continued GTD weakness at Weg. Specialist Sales contact details:

Sam Edmunds - Specialist Sales -

Power generation & renewables: the cycle is broadening, not fading. GE European Industrials