E65: You Can’t Spell Industrials Without “AI"
KEY TAKEAWAYS
- Citi Research identifies AI as a primary megatrend driving substantial growth for industrial companies in power thermal and electrical management sectors positioning them as key AI enablers
- Despite potential capacity constraints AI capital expenditure continues to fuel strong double-digit revenue growth and operating margin expansion for industrials with peak investment still years out
- Beyond direct AI investments, a broader industrial rebound is emerging supported by deglobalization "build in America" initiatives and fiscal policies broadening market opportunities
Anne Malone, North America Head of Research, sits down with Andrew Kaplowitz, Head of U.S. Industrials Research, to discuss themes shaping Industrials in 2026. The lead theme is AI, with capex growth permeating everything in the sector. But topics from the broadening thesis to M&A and U.S. federal policy are also attracting investor attention.
This podcast contains thematic content and is not intended to be investment research, nor does it constitute financial, economic, legal, tax, or accounting advice. This podcast is provided for information purposes only and does not constitute an offer or solicitation to purchase or sell any financial instruments. The contents of this podcast are not based on your individual circumstances and should not be relied upon as an assessment of suitability for you of a particular product, security, or transaction. The information in this podcast is based on generally available information, and although obtained from sources believed by Citi to be reliable, its accuracy and completeness are not guaranteed. Past performance is not a guarantee or indication of future results. This podcast may not be copied or distributed, in whole or in part, without the express written consent of Citi. Copyright 2026, Citigroup Global Markets, Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup, Inc. or its affiliates and are used and registered throughout the world.
Anne Malone, Head of North America and Latin America Equity Research
Anne Malone was named Head of North America and Latin America Equity Research 2022; promoted from Deputy Director, a role she held since 2018. Anne started at the firm in 1996 as an Analyst covering Medical Technology stocks. She has held several positions since then, in both Equity Research and Citi Asset Management, taking on roles that utilized her analytical, product, and people skills. Prior to joining Citi she was a Medical Device Analyst at Bear Stearns. Anne graduated from the St Leo College with a degree in Finance and a minor in Economics. She is a CFA Charter holder.
Andrew Kaplowitz, Head of U.S. Industrials Research
Andy Kaplowitz is a Managing Director and U.S. Industrial Sector Head covering the Multi-Industry / Conglomerates and Engineering & Construction sectors. Prior to joining Citi Research in 2015, Andy had several roles in equity research for Barclays/Lehman Brothers from 2001 through 2015. Andy most recently was a Managing Director covering Machinery and Engineering Construction at Barclays since 2011. Prior to that, Andy was a Senior Analyst covering Engineering and Construction stocks since 2006 and Mining Equipment since 2008. Andy has been a Top 3-ranked analyst in Engineering and Construction from 2009 through 2016 in Institutional Investor’s annual All America Research Poll and also held a runner-up position in Machinery from 2012 through 2014. Andy holds a Bachelor of Arts degree from Rutgers University and an MBA degree from the Kellogg School of Management.
