Harbor AlphaEdge Small Cap Earners ETF (EBIT)
ARCA ARCA Primary 
Vestas: Strong Execution Supports A Higher Quality Business
Vestas Wind Systems is transitioning from a cyclical turbine manufacturer to a stable, profitable renewable energy infrastructure supplier. Q1 2026 marked a turning point with 14.4% revenue growth, 3.2% EBIT margin, and $76.1 billion in backlog, signaling robust operational recovery. The fast-growing service segment, with a 16.3% EBIT margin, now anchors profitability and provides multi-year revenue visibility.
Amazon Q1 Preview: Watch The Capex And EBIT Margins Print
Amazon.com, Inc.'s 2026 capex ramp near 200 billion is broad-based, backed by customer commitments, and consistent with its long-term market-leadership investment playbook, so I see it as strategically positive. AWS is ceding some cloud market share to Azure and Google Cloud, but absolute revenue growth and remaining performance obligations still point to a strong multi‑year demand pipeline. AMZN's custom Trainium chips target superior price‑performance, with strong customer adoption, which can structurally lift AWS EBIT margins by several hundred basis points over time.
RENK Group: A Pure Play On Europe's Defense Boom
RENK Group remains a 'Buy', with 18–29% upside potential based on 2026 earnings and operating leverage from defense-driven growth. 2025 saw revenues rise 20% to €1.37B, with defense sales now 74% of the total and adjusted EBIT margin expanding to 16.9%. Guidance for 2026 targets over €1.5B in sales (10%+ growth) and adjusted EBIT of €255–285M, supporting margin expansion to 17–19%.
MTU Aero Engines: This 17% Drop Is A Buying Opportunity
MTU Aero Engines (MTUAY, MTUAF) remains a strong buy, with recent share price declines creating a more attractive long-term entry point. 2025 delivered 16% sales growth and 29% EBIT growth, with margins reaching 15.5%—years ahead of 2030 targets, despite GTF-related headwinds. 2026 guidance calls for 8.6% sales growth and 3.7% EBIT growth, with margin compression from higher GTF mix and ramp-up costs, but free cash flow could rise 19–45%.
Magna's EBIT Margin Set to Rise in 2026: What's Driving It?
MGA's margin push gains traction as cost cuts, automation and restructuring lift EBIT, with 2026 guidance signaling further expansion ahead.
LegalZoom: EBIT Needs To Grow
LegalZoom delivered a strong quarter with 18% revenue growth, accelerating subscription growth to 20% y/y, and positive ARPU trends. Retention improved, especially in younger cohorts, and DIFM/concierge services are gaining traction, supporting a healthier customer funnel and higher-value monetization. Despite gross margin expansion, rising expenses led to EBIT and net income declines; EBIT growth must align with revenue for a more bullish stance.
Electrolux: Margin Expansion Signals A Long‑Awaited Comeback
Electrolux is driving a strong margin recovery, with gross margin rising to 16.5% and EBIT margin expanding from 0.8% to 2.8% as cost cuts more than offset external headwinds. SEK 4bn in 2025 cost efficiencies and SEK 1.2bn in Q4 drove EBIT growth, with strong product cost reductions offsetting tariffs, FX pressure, and higher innovation spending. Europe and Latin America led profitability with 4.1% and 7.7% margins, while North America struggled under tariffs, FX headwinds, price pressure, and intense competitive dynamics.
Saipem: Chartering Not Showing Pressure On EBITDA
Saipem SpA faces Q3 EBIT deceleration due to increased vessel leasing, but management expects Q4 EBIT growth as those vessels get scheduled in Q4 and beyond. Offshore asset-based services show limited margin improvement, with utilization rates near maximum and backlog expected to nearly double from outstanding tenders. Legacy onshore projects represent just 13% of SAPMF revenues and are nearing completion to improve overall margin.
Nike outperforms on topline but China EBIT misses estimates
Nike Inc (NYSE:NKE, XETRA:NKE) reported second-quarter earnings on Thursday that beat Wall Street revenue expectations, though earnings per share fell compared with the same period last year. The sportswear giant posted revenue of $12.43 billion, slightly above analysts' estimate of $12.24 billion.
Engie: Data Center Tailwinds And Higher 2025 Guide - Buy Reiterated
Engie's Q3 was supportive, with 2025 EBIT (ex-nuclear) guided to the upper half of €8–9bn, with 2026 earnings set to accelerate. ENGIY's infrastructure division delivered 33% EBIT growth, providing downside protection and recurring earnings amid energy market normalization. Renewable and battery storage capacity expansion, plus data center partnerships, are expected to drive significant EBITDA growth over the next three years.
Ralph Lauren: Trend Reverting North American EBIT Makes The Stock Attractive
In FY 2025, Ralph Lauren saw appealing financial results, with revenue up 6.75% and operating income surging 23.2%, supported by increasing margins. Despite long-term North American sales declines, in FY 2025, the trend reverted, and operating income grew higher than 15% in that region. The trade agreement between the United States and Vietnam is a tailwind for the apparel industry, particularly for RL, as it is its major sourcing destination.
Harbor AlphaEdge Small Cap Earners ETF Q1 2025 Commentary
During the first quarter, the Harbor AlphaEdge Small Cap Earners ETF (“ETF”) returned -6.99% (NAV), slightly underperforming the Harbor AlphaEdge Small Cap Earners Index, which returned -6.92%, and outperforming its benchmark, the Russell 2000® Index, which returned –9.48%. Harbor's Business Cycle Regime indicator continues to signal late-cycle conditions with market sentiment remaining in risk-seeking mode at the end of the first quarter. As our base case, we expect risk assets to experience continued positive returns in the coming quarters, with economic growth remaining resilient.
