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Australian (ASX) Industrials Sector Analysis

UpdatedDec 18, 2025
DataAggregated Company Financials
Companies126
  • 7D0.6%
  • 3M-1.0%
  • 1Y9.5%
  • YTD9.2%

Last week, the Industrials industry hasn't moved much but SGH is up 3.5% in that time. As for the the longer term, the industry is up 9.5% over the past 12 months. Earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

Has the Australian Industrials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 18 Dec 2025AU$240.2bAU$145.1bAU$8.1b20.7x29.5x1.7x
Sat, 15 Nov 2025AU$240.6bAU$145.3bAU$8.2b20.4x29.4x1.7x
Mon, 13 Oct 2025AU$250.1bAU$146.3bAU$8.2b19.8x30.5x1.7x
Wed, 10 Sep 2025AU$244.8bAU$145.9bAU$8.2b20x29.8x1.7x
Fri, 08 Aug 2025AU$241.6bAU$144.7bAU$8.4b18x28.7x1.7x
Sun, 06 Jul 2025AU$234.6bAU$144.5bAU$8.4b17x27.9x1.6x
Tue, 03 Jun 2025AU$233.1bAU$144.9bAU$8.4b17x27.6x1.6x
Thu, 01 May 2025AU$224.3bAU$144.9bAU$8.2b16.4x27.2x1.5x
Sat, 29 Mar 2025AU$222.4bAU$146.5bAU$8.4b16x26.6x1.5x
Mon, 24 Feb 2025AU$217.4bAU$122.9bAU$7.0b18.7x31.1x1.8x
Wed, 22 Jan 2025AU$211.3bAU$121.7bAU$6.7b19.6x31.5x1.7x
Fri, 20 Dec 2024AU$206.7bAU$122.5bAU$6.7b19.3x30.8x1.7x
Sun, 17 Nov 2024AU$205.4bAU$120.5bAU$6.6b20.2x31.3x1.7x
Tue, 15 Oct 2024AU$206.1bAU$120.6bAU$6.5b20x31.7x1.7x
Thu, 12 Sep 2024AU$205.0bAU$123.4bAU$6.3b18.7x32.4x1.7x
Sat, 10 Aug 2024AU$195.1bAU$121.0bAU$5.6b18.1x35.1x1.6x
Mon, 08 Jul 2024AU$190.1bAU$120.6bAU$5.4b17.9x35.3x1.6x
Wed, 05 Jun 2024AU$192.5bAU$121.0bAU$5.4b17.8x35.7x1.6x
Fri, 03 May 2024AU$192.8bAU$122.4bAU$5.8b18.5x33.2x1.6x
Sun, 31 Mar 2024AU$201.7bAU$122.3bAU$5.9b18.7x34.3x1.6x
Tue, 27 Feb 2024AU$193.3bAU$120.6bAU$5.6b17.1x34.5x1.6x
Thu, 25 Jan 2024AU$186.2bAU$118.2bAU$4.8b18.5x38.9x1.6x
Sat, 23 Dec 2023AU$187.7bAU$117.7bAU$4.7b17.3x39.8x1.6x
Mon, 20 Nov 2023AU$177.7bAU$118.4bAU$4.8b16.6x37x1.5x
Wed, 18 Oct 2023AU$175.3bAU$118.9bAU$4.9b16.7x36x1.5x
Fri, 15 Sep 2023AU$179.5bAU$118.5bAU$4.8b16.5x37.2x1.5x
Sun, 13 Aug 2023AU$183.8bAU$112.2bAU$3.1b17.8x58.9x1.6x
Tue, 11 Jul 2023AU$175.0bAU$111.3bAU$3.6b18.1x49x1.6x
Thu, 08 Jun 2023AU$175.2bAU$109.9bAU$3.5b17.8x50.1x1.6x
Sat, 06 May 2023AU$177.0bAU$109.8bAU$3.5b18.2x50.8x1.6x
Mon, 03 Apr 2023AU$162.4bAU$99.5bAU$3.5b17.9x46.2x1.6x
Wed, 01 Mar 2023AU$149.2bAU$93.4bAU$3.4b17.4x43.5x1.6x
Fri, 27 Jan 2023AU$146.4bAU$87.1bAU$3.7b19.2x39.9x1.7x
Sun, 25 Dec 2022AU$142.7bAU$87.6bAU$3.7b18.9x38.3x1.6x
Price to Earnings Ratio

38.3x


Total Market Cap: AU$142.7bTotal Earnings: AU$3.7bTotal Revenue: AU$87.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 35.8x202320242025
Current Industry PE
  • Investors are pessimistic on the Australian Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 29.5x which is lower than its 3-year average PE of 35.8x.
  • The industry is trading close to its 3-year average PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 30% per year over the last three years.
  • Revenues for these companies have grown 18% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Australian Industrials sector?

AU Market-0.028%
Industrials0.57%
Aerospace & Defense6.96%
Airlines4.62%
Electrical4.43%
Logistics3.33%
Trade Distributors2.90%
Building2.68%
Construction0.63%
Commercial Services0.23%
Industrials-0.49%
Professional Services-0.58%
Transportation-0.65%
Infrastructure-0.82%
Machinery-5.13%
Industry PE
  • Investors are most optimistic about the Aerospace & Defense industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 57.3%, which is lower than the prior year's growth of 239.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Aerospace & Defense industry, expecting annual earnings growth of 57% over the next 5 years.
  • However this is lower than its past earnings growth rate of 239% per year.
  • In contrast, the Airlines industry is expected to see its earnings grow by 7.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SGH SGHAU$46.083.5%
+AU$629.8m		1.7%PE38.5x
EOS Electro Optic Systems HoldingsAU$7.2753.7%
+AU$490.1m		557.9%PS12.2x
QAN Qantas AirwaysAU$10.053.0%
+AU$429.8m		12.9%PE9.3x
DRO DroneShieldAU$2.4918.0%
+AU$347.0m		301.6%PE405.4x
REH ReeceAU$12.682.8%
+AU$216.3m		-44.8%PE24.7x

Latest News

WOR
AU$12.45
Worley
7D
-1.4%
1Y
-6.7%
QAN
AU$10.05
Qantas Airways
7D
3.0%
1Y
12.9%

Here's Why Qantas Airways (ASX:QAN) Has Caught The Eye Of Investors

Dec 16
Here's Why Qantas Airways (ASX:QAN) Has Caught The Eye Of Investors
MAD
AU$7.25
Mader Group
7D
-5.0%
1Y
16.9%

MAD: Future Earnings Multiple Is Expected To Offset Modest Margin Compression

Analysts have raised their price target for Mader Group from approximately $6.15 to $8.29 per share, citing expectations of slightly faster revenue growth and a higher future earnings multiple, despite a modestly lower profit margin and marginally higher discount rate. Valuation Changes Fair Value: increased from approximately A$6.15 to A$8.29 per share.
DRO
AU$2.49
DroneShield
7D
18.0%
1Y
301.6%

DRO: Index Inclusion And Defence Partnerships Will Support Future Upside Potential

Analysts have modestly increased their price target for DroneShield to $5.15, reflecting slightly higher long term growth and valuation assumptions, despite largely unchanged fair value estimates. What's in the News Critical Infrastructure Technologies signs a new NDA with DroneShield to integrate Counter Unmanned Aerial Systems capabilities into the Nexus 20 platform requested by the Ukrainian Ministry of Defence, advancing design work on a secure, resilient defence system (Key Developments) The Nexus 20 program, covering 50 platforms, moves forward with parallel telecommunications and C UAS integration in partnership frameworks that already include Babcock International, Nokia, and Ericsson (Key Developments) DroneShield is added to the S and P ASX 200 Index, which may increase its visibility and potential inclusion in institutional portfolios (Key Developments) DroneShield is also added to the S and P ASX 200 Industrials Sector Index, reinforcing its status as a notable participant in the Australian industrials universe (Key Developments) Valuation Changes Fair Value: Unchanged at A$5.15 per share, indicating stable long term intrinsic value assumptions.
MND
AU$26.24
Monadelphous Group
7D
3.9%
1Y
94.8%

With EPS Growth And More, Monadelphous Group (ASX:MND) Makes An Interesting Case

Dec 15
With EPS Growth And More, Monadelphous Group (ASX:MND) Makes An Interesting Case
DOW
AU$7.87
Downer EDI
7D
-0.9%
1Y
45.5%

DOW: Chevron Contract And Higher Multiple Will Shape Balanced Outlook

Analysts have nudged their price target for Downer EDI higher from A$7.75 to A$8.50. This reflects slightly stronger medium term revenue growth expectations and a willingness to ascribe a higher future earnings multiple, despite modestly softer margin forecasts.
EOS
AU$7.27
Electro Optic Systems Holdings
7D
53.7%
1Y
557.9%

EOS: Index Inclusions Will Support Stronger Profit Margin Expansion

Analysts have sharply increased their price target for Electro Optic Systems Holdings from A$5.45 to A$11.18, citing higher expected revenue growth, a significantly stronger profit margin outlook, and a lower future P E multiple that together support a materially higher valuation. What's in the News Electro Optic Systems Holdings Limited (ASX:EOS) added to the S&P/ASX Small Ordinaries Index, signaling greater visibility among small cap investors (Index Constituent Adds) Electro Optic Systems Holdings Limited (ASX:EOS) added to the S&P/ASX 300 Index, broadening inclusion across mainstream Australian equity benchmarks (Index Constituent Adds) Valuation Changes The Fair Value Estimate has risen significantly from A$5.45 to A$11.18, implying a materially higher assessed intrinsic value for Electro Optic Systems Holdings.
SGH
AU$46.08
SGH
7D
3.5%
1Y
1.7%

SGH: Stronger Margins And Revenue Outlook Will Support Future Upside Potential

Analysts have trimmed their price target on SGH slightly from 60 dollars to 59 dollars, reflecting a modestly higher discount rate, stronger expectations for revenue growth and profit margins, and a lower assumed future earnings multiple. Valuation Changes Fair Value: Reduced slightly from A$60.00 to A$59.00, reflecting a modestly less optimistic valuation.
REH
AU$12.68
Reece
7D
2.8%
1Y
-44.8%

REH: Share Buyback Will Support Margins And Future Earnings Power

Analysts have lowered their price target on Reece from approximately $19.52 to $14.04. This reflects a more cautious view on margins and valuation multiples, even as revenue growth expectations improve.
ASB
AU$6.24
Austal
7D
-2.8%
1Y
105.9%

ASB: AI Digital Twin Expansion Will Support Stronger Long Term Earnings Potential

Analysts have nudged their price target on Austal slightly higher to reflect a modest improvement in fair value to around $8.10 per share. This is supported by expectations of slightly faster revenue growth and a richer future earnings multiple, despite some pressure on margins and a marginally lower discount rate.
TCL
AU$14.39
Transurban Group
7D
-1.6%
1Y
7.0%
CWY
AU$2.58
Cleanaway Waste Management
7D
-1.9%
1Y
-3.4%

Cleanaway Waste Management Limited (ASX:CWY) Not Flying Under The Radar

Dec 07
Cleanaway Waste Management Limited (ASX:CWY) Not Flying Under The Radar
TEA
AU$4.18
Tasmea
7D
-4.3%
1Y
39.8%
VGN
AU$3.42
Virgin Australia Holdings
7D
6.2%
1Y
n/a
ALX
AU$4.85
Atlas Arteria
7D
1.5%
1Y
5.7%
SLX
AU$7.33
Silex Systems
7D
-16.6%
1Y
46.6%