<div id="readability-page-1"><div><p>Bank of America has compiled a list of European engineering companies for 2026, with a few favorites and a few that can be avoided. The list includes a number of Swedish companies.</p><p>BofA expects strong capex investments to broaden with a European short-cycle and construction recovery in 2026, driving EPS growth of 19 percent. The sector's valuation of 13 times EV/EBITA is considered attractive despite a premium to the 2010–2019 average. Siemens and Siemens Energy are the most convincing among the stocks on the list. </p><p>In the large-cap segment, Volvo, Siemens, Siemens Energy, and Schneider Electric are highlighted as attractive choices. In the small- and mid-cap segment, SKF, Nibe, Wärtsilä, Weir, and Kion are favored. Among the stocks to avoid are Alfa Laval, Assa Abloy, Epiroc, Traton, Trelleborg, and Vestas. </p><p>Assa Abloy, Epiroc, Alfa Laval, and Vestas are recommended as underperformers due to weaker prospects in their respective end markets. Assa Abloy is expected to be weighed down by continued weak US housing construction in the first half of 2025, while Epiroc is expected to face margin pressure that is not reflected in its valuation. Alfa Laval is expected to see lower order intake from the marine sector, and Vestas is affected by political and tariff-related uncertainty in the US.</p><p>Siemens, Siemens Energy, Schneider, and Volvo receive a buy recommendation due to strong thematic and cyclical drivers. Volvo is highlighted for a bottoming out in trucks and the benefit of US tariffs.</p></div></div>

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<p>Bank of America recommends buying Volvo, Siemens, Siemens Energy, and Schneider Electric due to strong thematic and cyclical drivers. Volvo benefits from US tariffs and a bottoming out in trucks. Assa Abloy, Epiroc, Alfa Laval, and Vestas are recommended as underperformers due to weaker market prospects. BofA expects EPS growth of 19% in 2026 driven by capex investments and a European construction recovery.</p>

Volvo receives a buy recommendation on BofA's engineering list for 2026 - Epiroc and Assa Abloy receive an underperform recommendation.