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Australian (ASX) Industrials Sector Analysis

UpdatedFeb 03, 2026
DataAggregated Company Financials
Companies125
  • 7D-1.6%
  • 3M-0.6%
  • 1Y8.9%
  • YTD-0.7%

The Industrials is pretty flat in the last 7 days, but Reece has stood out, gaining 6.8%. As for the the longer term, the industry is up 7.8% over the past 12 months. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 03 Feb 2026AU$242.7bAU$144.3bAU$8.0b21.2x30.2x1.7x
Thu, 01 Jan 2026AU$244.0bAU$144.9bAU$8.1b20.9x30x1.7x
Sat, 29 Nov 2025AU$246.9bAU$145.4bAU$8.2b20.3x30.2x1.7x
Mon, 27 Oct 2025AU$250.1bAU$145.0bAU$8.2b20.1x30.7x1.7x
Wed, 24 Sep 2025AU$245.9bAU$146.0bAU$8.2b20x30x1.7x
Fri, 22 Aug 2025AU$249.5bAU$144.7bAU$8.3b18x30x1.7x
Sun, 20 Jul 2025AU$240.0bAU$144.7bAU$8.4b17.4x28.5x1.7x
Tue, 17 Jun 2025AU$236.6bAU$144.8bAU$8.4b16.8x28x1.6x
Thu, 15 May 2025AU$231.4bAU$144.7bAU$8.2b17x28.2x1.6x
Sat, 12 Apr 2025AU$215.5bAU$146.6bAU$8.4b15.9x25.7x1.5x
Mon, 10 Mar 2025AU$222.9bAU$146.4bAU$8.4b16.7x26.7x1.5x
Wed, 05 Feb 2025AU$210.0bAU$121.7bAU$6.7b19.7x31.3x1.7x
Fri, 03 Jan 2025AU$208.1bAU$122.6bAU$6.7b19x31x1.7x
Sun, 01 Dec 2024AU$210.0bAU$121.4bAU$6.6b20.2x31.9x1.7x
Tue, 29 Oct 2024AU$200.3bAU$120.2bAU$6.5b19.8x30.7x1.7x
Thu, 26 Sep 2024AU$205.7bAU$122.9bAU$6.3b18.9x32.8x1.7x
Sat, 24 Aug 2024AU$205.1bAU$121.9bAU$5.9b17.5x34.6x1.7x
Mon, 22 Jul 2024AU$196.7bAU$120.7bAU$5.4b18.1x36.4x1.6x
Wed, 19 Jun 2024AU$192.2bAU$121.0bAU$5.4b17.8x35.6x1.6x
Fri, 17 May 2024AU$195.0bAU$121.8bAU$5.8b17.9x33.6x1.6x
Sun, 14 Apr 2024AU$200.8bAU$122.2bAU$5.8b18.5x34.5x1.6x
Tue, 12 Mar 2024AU$198.2bAU$122.0bAU$5.8b17x33.9x1.6x
Thu, 08 Feb 2024AU$187.1bAU$117.7bAU$4.9b18.3x38.3x1.6x
Sat, 06 Jan 2024AU$187.9bAU$118.0bAU$4.8b18.2x39.5x1.6x
Mon, 04 Dec 2023AU$177.7bAU$118.0bAU$4.8b16.8x37.3x1.5x
Wed, 01 Nov 2023AU$167.3bAU$118.7bAU$4.9b16.6x34.4x1.4x
Fri, 29 Sep 2023AU$177.4bAU$118.6bAU$4.8b16.7x36.6x1.5x
Sun, 27 Aug 2023AU$178.8bAU$116.8bAU$4.1b17.3x43.8x1.5x
Tue, 25 Jul 2023AU$181.9bAU$111.1bAU$3.5b18.9x51.3x1.6x
Thu, 22 Jun 2023AU$179.0bAU$109.8bAU$3.5b18.4x51.4x1.6x
Sat, 20 May 2023AU$178.2bAU$110.1bAU$3.5b17.5x50.9x1.6x
Mon, 17 Apr 2023AU$175.8bAU$109.9bAU$3.5b18.2x50.4x1.6x
Wed, 15 Mar 2023AU$146.1bAU$94.0bAU$3.5b16.5x41.7x1.6x
Fri, 10 Feb 2023AU$148.6bAU$88.1bAU$3.8b20x38.7x1.7x
Price to Earnings Ratio

38.7x


Total Market Cap: AU$148.6bTotal Earnings: AU$3.8bTotal Revenue: AU$88.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 35.5x202420252026
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 30.4x which is lower than its 3-year average PE of 35.5x.
  • 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 28% 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-1.47%
Industrials-1.65%
Logistics1.17%
Transportation0.46%
Trade Distributors0.23%
Industrials0%0
Infrastructure-0.029%
Construction-0.061%
Building-1.34%
Commercial Services-1.42%
Airlines-1.68%
Professional Services-3.10%
Machinery-6.51%
Electrical-6.73%
Aerospace & Defense-17.69%
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 59.3%, 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 59% 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
REH ReeceAU$14.735.5%
+AU$473.6m		-34.4%PE28.6x
TCL Transurban GroupAU$13.880.5%
+AU$218.0m		5.8%PE325.1x
ALQ ALSAU$24.661.1%
+AU$132.0m		53.2%PE46.2x
DOW Downer EDIAU$8.001.8%
+AU$92.4m		42.1%PE42.5x
DBI Dalrymple Bay InfrastructureAU$4.972.7%
+AU$64.4m		40.8%PE28x

Latest News

EOS
AU$8.18
Electro Optic Systems Holdings
7D
-19.6%
1Y
602.1%

EOS: Higher Profitability And P/E Expansion Will Lift Future Share Appeal

Analysts now place the fair value for Electro Optic Systems Holdings at A$12.00, up from A$1.58, citing updated assumptions regarding revenue growth, profit margins, and the future P/E multiple. Valuation Changes Fair Value Estimate: Reset from A$1.58 to A$12.00, indicating a materially higher assessed value per share based on the updated model inputs.
DBI
AU$4.97
Dalrymple Bay Infrastructure
7D
2.7%
1Y
40.8%

DBI: Quarterly Distribution And Refined Assumptions Will Support Measured Fair Value Outlook

Analysts have nudged their price target on Dalrymple Bay Infrastructure slightly higher to A$5.06 from about A$5.04, citing updated assumptions for discount rates, revenue growth, profit margins and future P/E multiples in their valuation work. What's in the News Declared a quarterly distribution of A$0.061250 per fully paid ordinary stapled security for the quarter ended September 30, 2025, with a record date of December 15, 2025 (Key Developments) Ex date for the A$0.061250 quarterly distribution set for December 12, 2025, determining which holders are entitled to receive the payout (Key Developments) Payment of the A$0.061250 quarterly distribution scheduled for December 19, 2025, providing a clear timetable for the cash flow to holders (Key Developments) Valuation Changes Fair Value: Price target fine tuned from A$5.04 to A$5.06, reflecting a very small adjustment in the valuation model.
REH
AU$14.73
Reece
7D
5.5%
1Y
-34.4%

Estimating The Intrinsic Value Of Reece Limited (ASX:REH)

Jan 31
Estimating The Intrinsic Value Of Reece Limited (ASX:REH)
WOR
AU$13.38
Worley
7D
0.9%
1Y
-6.0%

WOR: FY2026 Guidance Will Support A More Positive Outlook

Analysts have nudged their price target for Worley slightly lower, from A$16.51 to A$16.44. This reflects modest adjustments to the discount rate and expected future P/E multiple, while revenue growth and profit margin assumptions are broadly unchanged.
BXB
AU$22.55
Brambles
7D
-0.9%
1Y
17.1%

Brambles Limited's (ASX:BXB) Popularity With Investors Is Under Threat From Overpricing

Jan 28
Brambles Limited's (ASX:BXB) Popularity With Investors Is Under Threat From Overpricing
SGH
AU$46.61
SGH
7D
-1.6%
1Y
-3.2%
CWY
AU$2.41
Cleanaway Waste Management
7D
-4.0%
1Y
-10.7%
TCL
AU$13.88
Transurban Group
7D
0.5%
1Y
5.8%

TCL: Tunnel Opening And Distribution Outlook Will Shape Fairly Valued Profile

Analysts have modestly adjusted their valuation framework for Transurban Group, keeping the fair value estimate steady at A$14.36 while refining assumptions around the discount rate, profit margin and future P/E to better reflect current expectations for earnings quality and risk. What's in the News West Gate Tunnel Project is scheduled to open to traffic on Sunday 14 December 2025, providing an alternative to the West Gate Bridge and a new connection between the West Gate Freeway, the Port of Melbourne and CityLink (Key Developments).
CPU
AU$32.87
Computershare
7D
-7.0%
1Y
-4.3%

CPU: AGM Update And New Buy Ratings Will Support Balanced FY26 Outlook

Narrative Update The updated analyst price target for Computershare has shifted from about A$37.40 to about A$36.40. Analysts attribute the change to modest adjustments in fair value, discount rate and growth assumptions, along with recent upgrades to Buy from Citi and Goldman Sachs that were supported by the company’s AGM update.
DRO
AU$3.72
DroneShield
7D
-11.0%
1Y
490.5%

Why Investors Shouldn't Be Surprised By DroneShield Limited's (ASX:DRO) 36% Share Price Surge

Jan 27
Why Investors Shouldn't Be Surprised By DroneShield Limited's (ASX:DRO) 36% Share Price Surge
NWH
AU$5.42
NRW Holdings
7D
2.5%
1Y
61.8%

NWH: Earnings Outlook And Dividend Will Continue To Support Measured Fair Value

Narrative Update Analysts have edged their price target for NRW Holdings higher to A$5.45 from A$5.23, reflecting updated assumptions for slightly stronger revenue growth, modestly higher profit margins and a higher future P/E multiple. Valuation Changes Fair Value: The updated estimate increased slightly from A$5.23 to A$5.45.
VNT
AU$5.55
Ventia Services Group
7D
-5.5%
1Y
46.1%

Returns On Capital Are A Standout For Ventia Services Group (ASX:VNT)

Jan 24
Returns On Capital Are A Standout For Ventia Services Group (ASX:VNT)
SPZ
AU$1.37
Smart Parking
7D
10.5%
1Y
53.1%

SPZ: Stable Margins And High Future P/E Will Support Upside Potential

Analysts have maintained their price target for Smart Parking at A$1.45, noting only minor adjustments to assumptions regarding the discount rate, revenue growth, profit margin and future P/E that do not significantly alter their overall valuation view. Valuation Changes Fair Value: Unchanged at A$1.45 per share, indicating no shift in the overall price target.
ASB
AU$6.88
Austal
7D
-8.5%
1Y
77.3%

ASB: AI Digital Twin Role Will Shape Balanced Outlook And Execution Risks

Analysts have lifted their price target on Austal, citing slightly lower required returns, a small uptick in expected revenue growth and profit margin, and a marginally reduced future P/E assumption as reasons for the updated valuation. Analyst Commentary Recent valuation work on Austal reflects a more cautious tone from some bearish analysts, even as headline price targets have been adjusted.
DOW
AU$8.00
Downer EDI
7D
1.8%
1Y
42.1%

DOW: Long Term NZ Road And Chevron Contracts Will Support Upside Outlook

Narrative Update on Downer EDI Analysts have lifted their fair value estimate for Downer EDI from A$8.50 to A$8.85, citing refreshed assumptions around revenue growth, profit margins, discount rates and future P/E multiples. What’s in the News Selected as preferred contractor for NZ Transport Agency Waka Kotahi road network maintenance across four state highway contracts in Central Waikato, Taranaki, Tairawhiti and Coastal Otago, with services scheduled to commence in May 2026, subject to final terms (Client Announcement).
ALQ
AU$24.66
ALS
7D
1.1%
1Y
53.2%

ALQ: Raised FY26 Guidance And Dividend Will Support Higher Future Returns

Analysts have nudged their price target for ALS up by A$1 to A$27, citing slightly adjusted assumptions around fair value, discount rate, revenue growth, profit margin and future P/E to reflect updated expectations. What's in the News ALS raised its fiscal 2026 guidance to target 6% to 8% organic revenue growth, up from 5% to 7%, and is aiming for steady margin improvement in FY26 (Corporate Guidance, Key Developments).