TIC datapoints and end market update: Constructive end-market trends going into 2027 support our view of growth acceleration at BVI and SGS

We update some datapoints we presented earlier this year, where we framed a mixed backdrop for the TIC names. Going into 2027, we feel more positive around end-market strength, framed around particular megatrends. We expect AI to be a consistent theme, whether this is related to commissioning of datacenters in the construction side, increased AI-related certifications of systems/products or continued strength in critical minerals. This is mirrored through global capex trends as presented by our European capital goods team, where upward capex revisions across end-markets point to a recovery that is increasingly broad-based, albeit with clear direct and indirect AI-related tailwinds throughout. We are OW both SGS and BVI and expect organic growth acceleration in 2027 vs. 2026 for both names. We remain above consensus for 2027 growth, particularly for Bureau Veritas, where we forecast 6.9% organic vs. 6.0% BBG consensus.