Monthly Performance Report

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Monthly Performance Report

July 1, 2026 Monthly Performance Report

Halftime Report: Decent 1H with Momentum into 2HUTILITIES Alex Kania

WHAT YOU SHOULD KNOW: Decent first half of the year for utilities. Utilities rose 6.5% (212) 527-3572 akania@btig.com

in 1H, about 300 bp short of the S&P 500. This was the 9th best half since 2000 and 17th Will Paterno relative to the S&P. In our view the fundamental setup for the space is better today vs. (332) 400-5158 wpaterno@btig.com

the start of the year, and we believe utilities continue to be in a sweet spot benefiting

Julia Messina from the generational demand growth opportunity while also being defensive at the

(212) 588-6563 jmessina@btig.com right times. Risks remain on politics/affordability and the variability of interest rates.INDUSTRY

■ Fundamental picture has improved... Expectations on the sector were fairly muted

going into the year, with politics and execution risk front of mind. We would

argue that the overall picture for the sector today is better - hyperscaler capex

continues to drift up, a series of utilities boosted growth outlooks, and perhapsREPORT most importantly, growth trajectories are starting to be extended out to the

mid-2030s. We continue to see a solid setup for the space, as the electrics in

particular benefit from the generational growth opportunity while still exhibiting

defensive characteristics.

■ ...Risks remain politics and interest rates. Interest rates worked against the sector

with the 10-year closing June out at about 4.44%, up ~25 bp vs. the start of the year.

Movements will continue to be important to the space over the balance on the

margin. Politics will be very important too given the fall elections and affordability

concerns could keep shifting focus to utilities.