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

04 August 2026

European Capital Goods

Evolving thoughts and read-through from recent results

We’re two-thirds of the way through earnings season in a market that has turned European Capital Goods

ACdistinctly two-sided, punishing names where valuations were over-extended (see Phil Buller

Figures 10 & 11 for insight) despite fundamentals remaining objectively strong in (44-20) 3493-9403

both absolute and sequential terms (see e.g. Figures 1 thru 4). M&A has also phil.buller@jpmorgan.com

featured strongly, most of which we cannot comment on due to restrictions, but the Akash Gupta AC

reactions have typically been slightly negative. Given the proposed use of treasury (44-20) 7742-7978

shares to partially finance one of those deals, we have run a screen on the scale of akash.z.gupta@jpmorgan.com

the treasury share optionality across our coverage and highlighted the evolution of Chitrita C Sinha AC

accumulation versus cancellation by company too (see Figures 7 thru 9), which (44-20) 7742-7176

chitrita.sinha@jpmorgan.com

shines Siemens in an unexpectedly positive light, having canceled more shares in

Jeremy Casparvalue terms than the rest of our coverage. Based on peer read-across so far (detailed

(44-20) 3493-5188

below), Siemens AG and Siemens Energy results in the coming days should be jeremy.caspar@jpmorgan.com

strong, with SIE still able to surprise to the upside from China in DI and operating J.P. Morgan Securities plc

leverage in SI, in our view. For ENR, we expect a strong underlying result and FY

outlook update, at a time when there is good valuation support for the shares (see Specialist Sales contact details: