Intel stock extends gains after report of possible U.S. government stake
Investing.com -- European capital goods companies are showing signs of recovery in the second half of 2025, with electrical equipment manufacturers leading the way, according to JP Morgan analysts.
The sector outperformed expectations during the second quarter reporting season, with orders beating estimates by approximately 5% on average, while sales exceeded forecasts by 1.11 times for business-to-business companies.
European Purchasing Managers’ Index (PMI) and residential indicators are displaying clear signs of sequential acceleration from previously low levels, though performance varies significantly across different market segments.
Companies in the electrical equipment space demonstrated particularly strong results. Siemens (ETR:SIEGn) Energy upgraded its guidance ahead of an important Capital Markets Day scheduled for November. Cable manufacturers Nexans (EPA:NEXS) and Prysmian (BIT:PRY) delivered margins that surpassed consensus estimates.
Legrand (EPA:LEGD) increased its medium-term organic growth guidance during its earnings call, driven by continued strength in its U.S. data center business.
In the distribution segment, Rexel (EPA:RXL) and Wesco reported encouraging results, also benefiting from strong U.S. performance, while noting early positive signs in the European residential market.
Other industrial segments presented a more mixed picture, though analysts observed general indications of sequential improvement looking toward the second half of 2025. Warehouse automation demand for Kion appears solid, while mining orders were described as generally good.
Process industry commentary was typically positive, and companies like Timken delivered above-consensus organic performance, suggesting that underlying general demand is beginning to turn a corner despite remaining slightly negative.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.