AI, manufacturing expected to boost European industrials in 2026

European industrial firms are projected to see stronger earnings in 2026, driven by increased demand for AI infrastructure, electrification, and a manufacturing rebound, according to Bloomberg Intelligence.

The Stoxx Europe 600 industrials index is expected to post nearly 13% earnings-per-share growth in 2026, up from 6.6% in 2025.

Companies such as Schneider Electric, Siemens Energy, and Prysmian are seen as key beneficiaries of the ongoing data center expansion and AI-related investments.

Analysts note that Schneider Electric’s power and digital offerings, alongside Siemens Energy’s robust order backlog, provide these firms with earnings stability.

Germany’s €500 billion infrastructure stimulus and increased defense spending in Europe are expected to support firms like Rheinmetall, Leonardo, and Saab.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

European grid constraints may delay the AI infrastructure earnings boost projected for 2026

Average connection times sit at 4 years 1. Germany, the UK, Ireland and the Netherlands have shortages or moratoriums 1. Frankfurt has 126 data centers and no spare power, with new high-performance hookups (high-capacity grid hookups) unlikely before the mid-2030s 2.
Data centers use up to 40% of Frankfurt’s electricity 2. NRM, the local electricity network company, gets 5 to 10 qualified requests annually for 50 to 100 megawatt links 2. Building substations and related infrastructure takes 5 or more years 3. That lag can push revenue for Schneider Electric and Siemens Energy past 2026 into 2027 to 2028 because shipments and commissioning wait on secured capacity 2 3.

Grid interconnection service providers can capture value from Europe’s 7–10 year connection queue backlog

FLAP-D markets face 7 to 10 year queues, and Ireland paused new links until 2028 4. The UK moved from first-come-first-served to a first ready, first connected system that prioritizes projects able to prove readiness 1. That shift lifts demand for partners who speed up permitting and design.
Vendors offering interconnection permitting software, power availability analysis tools, and project management services can target the longest queues 3. Germany’s requests create ghost capacity, which ties up unused power, so operators need more realistic allocations versus preliminary asks 3.
Specialists that navigate Italy’s faster 3 year process can charge premium fees 1. Others guide shifts into Nordic markets with faster timelines 4. Examples include Sweden and Norway. Finland, Denmark and Iceland fit that profile too.