The Learning Curve: Industrial Highlights — Connecting Dots

研报英文原文证据摘录

The Learning Curve: Industrial Highlights — Connecting Dots

June 21, 2026 | 16:34 ET~

Industrial Machinery, Supplies & Components

The Learning Curve: Industrial Highlights — Industrial Machinery, Supplies & Components

Connecting Dots Daniel DiCicco, CFA Analyst

daniel.dicicco@bmo.com (333) 274-9893

Legal Entity: BMO Capital Markets Corp.

Bottom Line:

Industrials are back? The XLI had another strong week and is now +4.5% in June

and +10.3% over the last three months. Multi, machinery, and electricals all posted

solid weeks while pure defense continues to lag. We are seeing optimism on the end

of U.S.-Iran, but BMW called out weaker demand in China and headwinds stemming

from the Middle East. FERC (Federal Energy Regulatory Commission) making a

concerted effort to accelerate data center grid connections. This has been a key

hurdle many suppliers have cited (despite still posting lofty orders and growth). Another

Aerospace supplier IPO on the horizon (engine + gas turbine). Deals in general seem

to be picking up and company sentiment surrounding pipelines feels very strong.

Waymo recalling a bunch of driverless taxis (I thought one of those looked at me weird

in San Fran the other week). Catching up with our coverage list this week.

Key Points

Deal and pipeline sentiment strong. On 6/16, ITT (ITT; Outperform rated) announced

a $31 million aerospace bolt-on that will help bolster its supply chain and aerospace

connector portfolio. Bloomberg highlighting Siemens Energy is weighing future steps

on the Transformation of Industry business (develops and produces compressors, steam

turbines, and energy storage systems). Doncasters is looking to IPO (ticker DPC); it

produces high-precision alloy components for engines and industrial gas turbines

(quite the thematic combo).