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Australian (ASX) Industrials Sector Analysis

UpdatedDec 31, 2025
DataAggregated Company Financials
Companies125
  • 7D-1.0%
  • 3M-1.1%
  • 1Y11.3%
  • YTD10.8%

Over the last 7 days, the Industrials industry has remained flat, although notably Redox gained 3.4%. As for the the longer term, the industry is up 10% 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
Wed, 31 Dec 2025AU$243.8bAU$144.9bAU$8.1b21.1x30x1.7x
Fri, 28 Nov 2025AU$246.5bAU$145.4bAU$8.2b20.4x30.1x1.7x
Sun, 26 Oct 2025AU$250.1bAU$145.0bAU$8.2b20.1x30.7x1.7x
Tue, 23 Sep 2025AU$245.1bAU$146.0bAU$8.2b20.1x29.8x1.7x
Thu, 21 Aug 2025AU$242.4bAU$144.5bAU$8.3b18.1x29.2x1.7x
Sat, 19 Jul 2025AU$240.0bAU$144.6bAU$8.4b17.4x28.5x1.7x
Mon, 16 Jun 2025AU$236.1bAU$144.9bAU$8.4b16.7x28x1.6x
Wed, 14 May 2025AU$230.2bAU$144.8bAU$8.2b17.1x28x1.6x
Fri, 11 Apr 2025AU$216.6bAU$146.8bAU$8.4b15.9x25.8x1.5x
Sun, 09 Mar 2025AU$222.8bAU$146.4bAU$8.4b16.7x26.6x1.5x
Tue, 04 Feb 2025AU$211.9bAU$121.8bAU$6.7b19.5x31.6x1.7x
Thu, 02 Jan 2025AU$208.0bAU$122.7bAU$6.7b19x30.9x1.7x
Sat, 30 Nov 2024AU$210.0bAU$121.4bAU$6.6b20.2x31.9x1.7x
Mon, 28 Oct 2024AU$200.0bAU$120.3bAU$6.5b20.2x30.6x1.7x
Wed, 25 Sep 2024AU$206.8bAU$123.0bAU$6.3b19x32.9x1.7x
Fri, 23 Aug 2024AU$205.0bAU$121.6bAU$5.8b18.3x35.5x1.7x
Sun, 21 Jul 2024AU$196.7bAU$120.7bAU$5.4b18.1x36.4x1.6x
Tue, 18 Jun 2024AU$189.4bAU$121.0bAU$5.4b17.7x35.1x1.6x
Thu, 16 May 2024AU$192.8bAU$121.9bAU$5.8b17.8x33.2x1.6x
Sat, 13 Apr 2024AU$200.8bAU$122.2bAU$5.8b18.5x34.5x1.6x
Mon, 11 Mar 2024AU$200.8bAU$122.0bAU$5.8b17x34.3x1.6x
Wed, 07 Feb 2024AU$185.7bAU$117.8bAU$4.9b18.5x37.9x1.6x
Fri, 05 Jan 2024AU$188.0bAU$117.9bAU$4.7b18.4x39.6x1.6x
Sun, 03 Dec 2023AU$177.7bAU$118.0bAU$4.8b16.8x37.3x1.5x
Tue, 31 Oct 2023AU$166.7bAU$118.7bAU$4.9b16.6x34.3x1.4x
Thu, 28 Sep 2023AU$178.2bAU$118.7bAU$4.9b16.9x36.7x1.5x
Sat, 26 Aug 2023AU$178.8bAU$116.8bAU$4.1b17.2x43.8x1.5x
Mon, 24 Jul 2023AU$181.2bAU$111.1bAU$3.5b18.9x51.1x1.6x
Wed, 21 Jun 2023AU$180.2bAU$109.7bAU$3.5b18.4x51.9x1.6x
Fri, 19 May 2023AU$177.9bAU$110.1bAU$3.5b17.9x50.7x1.6x
Sun, 16 Apr 2023AU$175.8bAU$109.9bAU$3.5b18.2x50.4x1.6x
Tue, 14 Mar 2023AU$147.0bAU$94.0bAU$3.5b16.6x42x1.6x
Thu, 09 Feb 2023AU$148.7bAU$88.0bAU$3.8b19.6x38.8x1.7x
Sat, 07 Jan 2023AU$140.4bAU$87.4bAU$3.7b19.2x37.9x1.6x
Price to Earnings Ratio

37.9x


Total Market Cap: AU$140.4bTotal Earnings: AU$3.7bTotal Revenue: AU$87.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 35.7x20242025
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 30.0x which is lower than its 3-year average PE of 35.7x.
  • 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-0.74%
Industrials-0.97%
Electrical0.45%
Commercial Services-0.086%
Transportation-0.11%
Construction-0.17%
Trade Distributors-0.34%
Airlines-0.49%
Professional Services-0.70%
Logistics-1.07%
Building-1.32%
Infrastructure-2.10%
Industrials-2.15%
Machinery-3.00%
Aerospace & Defense-4.23%
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 58.8%, 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$13.402.7%
+AU$216.3m		-40.1%PE26.1x
QAN Qantas AirwaysAU$10.381.0%
+AU$148.2m		15.7%PE9.6x
BXB BramblesAU$22.960.3%
+AU$108.7m		19.3%PE24.1x
QUB Qube HoldingsAU$4.770.6%
+AU$53.1m		20.2%PE74.6x
DBI Dalrymple Bay InfrastructureAU$5.012.0%
+AU$49.6m		39.2%PE28.2x

Latest News

EOS
AU$9.44
Electro Optic Systems Holdings
7D
2.1%
1Y
629.0%
BXB
AU$22.96
Brambles
7D
0.3%
1Y
19.3%

Is Brambles (ASX:BXB) A Risky Investment?

Dec 28
Is Brambles (ASX:BXB) A Risky Investment?
SGH
AU$46.45
SGH
7D
-1.4%
1Y
0.7%

SGH: Modest Margin And Revenue Improvements Will Support Future Upside

Analysts have reaffirmed their price target for SGH at $59.00 per share, citing only marginal improvements in projected revenue growth, profit margins, and discount rate that support maintaining their prior valuation rather than raising it. Valuation Changes Fair Value: Unchanged at $59.00 per share, indicating that minor model adjustments do not justify a revised target price.
REH
AU$13.40
Reece
7D
2.7%
1Y
-40.1%

REH Will Face Weaker Margins Despite Expanded Share Buyback Program

Analysts have trimmed their price target on Reece from 12.50 dollars to 10.00 dollars, reflecting slightly higher perceived risk, a modestly stronger revenue growth outlook, and expectations for lower profit margins and valuation multiples. What's in the News Reece increased its equity buyback authorization by AUD 50 million on December 22, 2025, lifting the total program size to AUD 85 million (company announcement).
RDX
AU$3.04
Redox
7D
1.7%
1Y
-33.3%

RDX: Future Returns Will Reflect Stable Outlook And Slightly Higher Profitability

Analysts have modestly lifted their price target on Redox, citing slightly faster projected revenue growth, a marginally higher long term profit margin, and a small reduction in the assumed discount rate. Together, these factors support an updated fair value estimate of $3.16 per share.
ASB
AU$6.69
Austal
7D
-2.0%
1Y
115.8%

ASB: AI Digital Twin Expansion Will Shape Measured Outlook For Defense-Focused Shipbuilder

Analysts have raised their price target for Austal from 5.58 dollars to 7.10 dollars, citing expectations for stronger revenue growth, slightly improved profit margins and a higher future price to earnings multiple. What's in the News Austal is partnering with Edge Total Intelligence and Sabel Systems to showcase AI powered digital twin solutions at the Smart Cities Connect Fall Conference and Expo in National Harbor, Maryland, highlighting applications for contested logistics, smart cities and smart bases, and infrastructure risk management (Key Developments) The company is contributing its maritime and shipyard expertise to demonstrations on leveraging AI driven technologies to enhance public shipyard and depot operations, underscoring Austal's move deeper into advanced digital and AI enabled defense solutions (Key Developments) Production ready solutions involving Austal and its partners will be presented at the Digital Twin Pavilion, positioning the company within an ecosystem of AI and digital twin providers serving government and infrastructure customers (Key Developments) Valuation Changes Fair Value: raised from A$5.58 to A$7.10, a material upward revision in the assessed share valuation.
CPU
AU$34.14
Computershare
7D
-0.6%
1Y
0.6%

CPU Outlook Will Weigh FY26 Delivery Confidence Against Modest FX And Rate Headwinds

Analysts have nudged their average price target on Computershare slightly lower, trimming fair value by about A$0.26 to roughly A$37.26, as modestly higher discount rate assumptions offset confidence in management's FY26 guidance and recent broker upgrades. Analyst Commentary Street research has turned incrementally more constructive on Computershare, with several recent rating upgrades highlighting a better balance of risk and reward into FY26, even as some targets edge lower on FX and discount rate adjustments.
TCL
AU$14.21
Transurban Group
7D
-1.7%
1Y
6.1%

Is Transurban Group (ASX:TCL) A Risky Investment?

Dec 25
Is Transurban Group (ASX:TCL) A Risky Investment?
DOW
AU$7.95
Downer EDI
7D
-0.9%
1Y
51.4%

Does Downer EDI (ASX:DOW) Have A Healthy Balance Sheet?

Dec 25
Does Downer EDI (ASX:DOW) Have A Healthy Balance Sheet?
QUB
AU$4.77
Qube Holdings
7D
0.6%
1Y
20.2%

QUB: Takeover Offer And Stable Outlook Will Likely Support Balanced Future Returns

Analysts have nudged their price target on Qube Holdings slightly higher to approximately $5.00 per share, citing marginal improvements in discount rate assumptions and stable long term growth and profitability expectations. What's in the News Macquarie Asset Management has entered into a process deed to acquire Qube Holdings in an all cash transaction valuing the company at AUD 9.2 billion, or AUD 5.20 per share (Key Developments) The proposed acquisition is contingent on satisfactory completion of due diligence on Qube and its operations by Macquarie Asset Management (Key Developments) Completion also requires a Scheme Implementation Agreement on customary terms, unanimous recommendation from the Qube Board, and final approvals from both Qube and Macquarie Asset Management (Key Developments) Regulatory clearances from the Foreign Investment Review Board and the Australian Competition and Consumer Commission are required before the deal can proceed (Key Developments) UBS is acting as financial advisor and Allens as legal advisor to Qube Holdings for the proposed transaction (Key Developments) Valuation Changes Fair Value Estimate remained unchanged at approximately A$4.99 per share, reflecting stable long term assumptions.
QAN
AU$10.38
Qantas Airways
7D
1.0%
1Y
15.7%

QAN: Lower Risk Outlook Will Support Stronger Future Share Price Upside

Analysts have nudged their Qantas Airways price target slightly higher to reflect modestly lower perceived risk and marginally improved long term earnings visibility, even as fair value estimates remain broadly unchanged. Valuation Changes Fair Value: Unchanged at A$12.09 per share, indicating no material revision to the central valuation estimate.
DBI
AU$5.01
Dalrymple Bay Infrastructure
7D
2.0%
1Y
39.2%
DRO
AU$3.08
DroneShield
7D
-6.4%
1Y
302.6%

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.
ALQ
AU$22.04
ALS
7D
-0.8%
1Y
46.2%

ALQ: Future Dividend And Margin Trends Will Support Measured Outlook

Analysts have modestly raised their price target for ALS to $22.47 per share, reflecting slightly improved long term assumptions for the discount rate, revenue growth, and profit margin. What's in the News ALS Limited raised its fiscal 2026 guidance, now expecting 6 to 8% organic revenue growth, up from 5 to 7%, with steady margin improvement projected for FY26 (company guidance).
RWC
AU$3.86
Reliance Worldwide
7D
1.3%
1Y
-23.1%
ALX
AU$4.88
Atlas Arteria
7D
-1.6%
1Y
2.7%