Europe Capital Goods 1Q26 Heatmap and CNH Update

Goldman Sachs reviews the tail-end of the 1Q26 reporting season for European Capital Goods, noting strong AI-related demand but persistent macro headwinds. The firm downgrades CNH Industrial to Neutral and adjusts estimates for several key coverage names.

Key Takeaways

• 1.AI and datacenter-related activity are significantly boosting capital goods demand, now representing over 40% of the Capex Tracker.
• 2.1Q26 earnings showed a disconnect where 77% of companies beat on orders, but 69% missed on sales due to lengthening lead times and macro volatility.
• 3.CNH Industrial has been downgraded to Neutral due to weakening agricultural demand in North America and higher tariff headwinds.

Table of Contents

• Multi-industry toolkit
• GS Europe Multi-Industry Coverage
• GS Global Industrial Multi-Industry Heatmap
• Methodology
• Assa Abloy (Neutral)
• Atlas Copco (Neutral)
• Konecranes (Buy)
• Signify (Buy)
• SKF (Sell)
• Disclosure Appendix

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