European Capital Goods Q3 2026 Preview Pack - V2

We expect a strong quarter ahead with virtually all channel checks continuing to point to strong trends in Electrification and Data Centres, continuing gradual recovery in short cycle and discrete industrial automation and largely stable Buildings-related end markets. We see scope for some upgrades to full-year growth outlooks across the Electrification space, and we continue to highlight that current 2027 consensus expectations in this area overall look conservative in the light of strong H1 announced order intake combined with our expectations for Q3. In terms of stock-picking, we focus on four areas: 1/ Electrification and Data Centres secular growth, top conviction Buy ideas Siemens Energy, Schneider, Prysmian and Halma; 2/ the mining capex upcycle, preferring FLSmidth and Metso, with Weir our top pick into Q3; 3/ short-cycle recovery exposure with focus on value and self-help, top Buys Siemens, Volvo, KION and Renishaw;