Truist Securities Conference Preview: Machinery, Infrastructure Services, and Multi-Industry / Industrial Tech

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Truist Securities Conference Preview: Machinery, Infrastructure Services, and Multi-Industry / Industrial Tech

es into the Conference: Year-to-date stock performance has been strong for the broader industrial group

supported by secular growth across key markets including power defined broadly, data centers, aerospace & defense,

76 Page Document and infrastructure / mega projects; as well as a broadening cyclical recovery in construction equipment, commercial

vehicle / transport, semiconductor, commercial HVAC, and mining. Even process / oil & gas markets are showing signs

of life. For 2026, farm equipment is the only market that has deteriorated further with OEs now forecasting South America

Reasons for this report down ~15% versus down ~5% expected previously. Concerns that continued tariff noise and the conflict in the Middle

East would result in demand destruction have not yet materialized. In fact, US Manufacturing PMI surprised on the

✓ Truist Securities Hosted Event Preview upside in May at 54.0 with Production and New Orders at 56.8 and 54.3, respectively. Industrial orders and backlog

✓ Conference Preview ended strong in the first quarter, growing in the double-digit range for some industrials. However, there is still a disconnect

✓ Key Questions for Management between strong order growth and more muted organic growth, which begs the question if organic growth can surprise

on the upside in the second half of 2026. Industrials continue to manage price/cost effectively, with easier comparisons

in the second half of the year providing potential upside to incremental margins. Given the robust industrial demand

in 2026, the question becomes: which end markets are best set up for growth in 2027? We believe farm equipment