By Nina Kienle
European industrial companies will be closely monitored by investors this earnings season, with trends expected to decelerate amid the U.S tariffs backdrop. Analysts expect guidance for 2025 to be limited as the tariff path remains unpredictable. Here is what to know:
WHAT TO WATCH
--European industrial companies are expected to provide muted commentary and point to decelerating trends as a result of U.S. tariffs uncertainty, analysts said. Despite support from wider trends such as electrification, the sector isn't immune to a global slowdown, JP Morgan analysts said. The hoped-for improvement in the second half of the year in general industrial demand is now at risk of not materializing, analysts broadly agreed. Most companies were conservative in setting 2025 guidance to begin with and JP Morgan doesn't expect any major surprises in first-quarter updates.
--There is the risk of wider impacts from tariffs on supply chains, although most companies are now more equipped to mitigate the direct effects after having localized or diversified supply chains, JP Morgan analysts said. "Retaliatory tariffs announced by China suggest the pinch point is on U.S.-China trade flows," HSBC analysts added. Overall, the 90-day pause is an important signal for the sector and broader industrial confidence, Morgan Stanley analysts said.
-- First-quarter demand looked fairly similar to that in the fourth quarter, in terms of end-market and geographic trends, Barclays analysts said. Deutsche Bank Research analysts are generally forecasting below consensus, with Legrand and Siemens Energy among the few exceptions, Gael de-Bray and Nabil Najeeb said. HSBC analysts will focus on a variety of points including regional cost breakdown, direct U.S. and China flows, as well as investment plans. JP Morgan analysts will focus on orders and demand commentary.
WHEN COMPANIES ARE SCHEDULED TO REPORT:
-- ABB 1Q results: Thursday
-- Schneider Electric 1Q results: April 28
-- Legrand 1Q results: May 7
-- Siemens 2Q results: May 15
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
April 14, 2025 08:22 ET (12:22 GMT)
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