European Industrials: Forklifts - cyclical weakness more than reflected in valuation

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European Industrials: Forklifts - cyclical weakness more than reflected in valuation

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European Industrials

Forklifts - cyclical weakness more than

reflected in valuation

Estimate Change

We remain cautious regarding European short cycle 19 June 2026

We continue to believe that the backdrop of the Iran conflict is delaying a short cycle Equity

recovery that we had expected at the beginning of the year. Both KION and Jungheinrich Europe

have meaningful exposure to European industrial production and should therefore face Industrials

topline pressure through 2026. Q1 benefited from pre-buy activity ahead of the April

price increases, however, we expect this effect to reverse in Q2, with order growth ToreResearchFangmannAnalyst >>

slowing and likely falling below prior year levels. Our Q2 order estimates are 2% and 5% Merrill Lynch (DIFC)

below consensus for KION and Jungheinrich. That said, we view the current weakness as +971tore.fangmann@bofa.com4 425 8210

largely reflected in share prices, with both stocks underperforming SXNP by >40ppts

Benjamin Heelan >>

YTD. Any evidence of stabilisation or early recovery in end markets should act as a Research Analyst

catalyst for a meaningful share price rerating, in our view. Merrill Lynch (DIFC)

+44 20 7996 5723

Input prices vs pre orders – we expect Q2 margin pressure benjamin.heelan@bofa.com

Alexander Jones, CFA >>

We expect margin pressure in Q2 as input prices have risen on the back of the Iran Research Analyst

conflict. At the same time, a significant portion of Q2 deliveries stems from orders MLI (UK)

placed ahead of April price increases, limiting pricing pass through. This creates a +44alexander.jones2@bofa.com20 7995 5828

negative price cost dynamic, particularly visible in Q2 and to some extent in Q3.