US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Top Takeaways From Earnings So Far; +More

Research evidence excerpt

US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Top Takeaways From Earnings So Far; +More

Global Research

27 July 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note – Top Takeaways From

Earnings So Far; +More Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

We still have a long way to go before the end of reporting season, but several themes are +1-201-352 1410

beginning to emerge from the results reported so far.

Neal Burk

Growth is improving. Average and median year-over-year organic growth for Multi- neal.burk@ubs.com

Industry companies in 2Q is 8% and 6%, respectively —300bp and 100bp above the +1-212-713 4066

growth reported in 1Q. One quarter does not make a trend, but the improvement is Pratap Singh

consistent with the inflection in the ISM and the broadening we are seeing in non-AI Analyst

capital spending. pratap-za.singh@ubs.com

+1-212-821 3112

As we highlighted in our daily note last week (here), there has been a “meaningful Zachary Walljasper

positive revision in 2027 capex expectations.” Spending plans are also becoming more Associate Analyst

broad-based: 45% of S&P 500 companies are now expected to increase capex by more zachary.walljasper@ubs.com

+1-212-713 9829

than 10%, compared with 35% at this point last year.

We expect organic growth to continue improving as the non-AI capex recovery Thi

progresses through its early innings. s is an3M’s quarter has the potential to be thesis-changing. Of last week’s reports, we ImageM

came away most positive on 3M. Organic growth inflected meaningfully to 5.4%, from

1.2% in 1Q, reflecting both cyclical improvement and increasing traction from longer-

cycle initiatives, including new-product introductions and operational improvements.