US Electrical Equipment & Multi-Industry: EE/MI Morning Note - Call today, GWW/GTES/AOS previews, Macro

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US Electrical Equipment & Multi-Industry: EE/MI Morning Note - Call today, GWW/GTES/AOS previews, Macro

Global Research

25 June 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note - Call today, GWW/GTES/

AOS previews, Macro Industrial, Diversified

Amit Mehrotra

Analyst

amit.mehrotra@ubs.com

REMINDER-We're hosting our weekly UBS Industrials call today at 11am ET, where +1-201-352 1410

we'll discuss what's most top of mind for the sector. Click here to register for the call.

Neal Burk

GWW preview- We think the quarter is largely tracking in line with expectations. The neal.burk@ubs.com

results should show sustained momentum in volume and stable price; however, margins +1-212-713 4066

should be down sequentially higher than typical seasonality due to elevated shipping Pratap Singh

costs, private label inventory sell-through and higher marketing expenses. Lower fuel Analyst

costs could be an incremental tailwind to margin in the second half of the year, but pratap-za.singh@ubs.com

impact in 2Q would be minimal. For High touch solutions segment, we model volume +1-212-821 3112

growth improving to 7%, up from 5% in 2Q. This is consistent with improving ISM Zachary Walljasper

manufacturing, which shows strong correlation historically (see Figure 1). Our pricing Associate Analyst

tracker indicates that pricing should remain consistent with the first quarter. Based on zachary.walljasper@ubs.com

these, we model $11.26 EPS in 2Q, which includes 12.5% organic sales growth and +1-212-713 9829

15.3% operating margin. Our more specific 2Q expectations are as follows:

Gross margins are expected to be down 100bps sequentially, which includes

20bps headwinds from increased shipping costs and another 20bps related to sell-