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Australian (ASX) Industrials Sector Analysis

UpdatedMar 28, 2026
DataAggregated Company Financials
Companies126
  • 7D1.1%
  • 3M-7.0%
  • 1Y3.4%
  • YTD-6.8%

Transurban Group is up 2.3%, leading the way for the Industrials industry, which has gained 1.1%. Meanwhile, Electro Optic Systems Holdings actually underperformed within the industry, shrinking 15% in the last week. This means that the industry has gained 3.4% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 29 Mar 2026AU$227.6bAU$148.7bAU$8.3b17.8x27.6x1.5x
Tue, 24 Feb 2026AU$247.6bAU$144.9bAU$8.4b19.3x29.3x1.7x
Thu, 22 Jan 2026AU$245.5bAU$144.8bAU$8.1b20.8x30.3x1.7x
Sat, 20 Dec 2025AU$242.1bAU$145.1bAU$8.1b20.6x29.7x1.7x
Mon, 17 Nov 2025AU$240.5bAU$145.2bAU$8.2b20.4x29.5x1.7x
Wed, 15 Oct 2025AU$246.9bAU$146.4bAU$8.2b19.8x30.1x1.7x
Fri, 12 Sep 2025AU$244.8bAU$146.0bAU$8.2b20x29.8x1.7x
Sun, 10 Aug 2025AU$242.4bAU$144.7bAU$8.4b18.2x28.8x1.7x
Tue, 08 Jul 2025AU$234.7bAU$144.7bAU$8.4b16.9x27.8x1.6x
Thu, 05 Jun 2025AU$236.0bAU$144.9bAU$8.4b16.8x27.9x1.6x
Sat, 03 May 2025AU$226.2bAU$144.8bAU$8.2b16.7x27.5x1.6x
Mon, 31 Mar 2025AU$222.7bAU$146.5bAU$8.4b16x26.6x1.5x
Wed, 26 Feb 2025AU$213.5bAU$123.0bAU$6.9b18x30.7x1.7x
Fri, 24 Jan 2025AU$212.4bAU$121.5bAU$6.7b19.7x31.8x1.7x
Sun, 22 Dec 2024AU$206.0bAU$122.5bAU$6.7b19.2x30.7x1.7x
Tue, 19 Nov 2024AU$206.1bAU$120.5bAU$6.6b20.4x31.4x1.7x
Thu, 17 Oct 2024AU$205.1bAU$120.7bAU$6.5b19.7x31.4x1.7x
Sat, 14 Sep 2024AU$208.7bAU$123.4bAU$6.3b18.6x33x1.7x
Mon, 12 Aug 2024AU$195.2bAU$121.0bAU$5.6b18.1x35.1x1.6x
Wed, 10 Jul 2024AU$189.7bAU$120.6bAU$5.4b18.1x35.2x1.6x
Fri, 07 Jun 2024AU$195.3bAU$120.9bAU$5.4b18.1x36.3x1.6x
Sun, 05 May 2024AU$194.0bAU$122.3bAU$5.8b18.4x33.4x1.6x
Tue, 02 Apr 2024AU$201.7bAU$122.3bAU$5.9b18.7x34.3x1.6x
Thu, 29 Feb 2024AU$196.2bAU$121.6bAU$5.8b17.6x33.6x1.6x
Sat, 27 Jan 2024AU$186.0bAU$118.2bAU$4.8b18.4x38.9x1.6x
Mon, 25 Dec 2023AU$187.6bAU$117.7bAU$4.7b17.3x39.7x1.6x
Wed, 22 Nov 2023AU$177.0bAU$118.3bAU$4.8b16.6x37x1.5x
Fri, 20 Oct 2023AU$171.8bAU$118.8bAU$4.9b16.6x35.2x1.4x
Sun, 17 Sep 2023AU$181.5bAU$118.6bAU$4.8b16.4x37.5x1.5x
Tue, 15 Aug 2023AU$182.9bAU$112.1bAU$3.1b17.6x58.6x1.6x
Thu, 13 Jul 2023AU$177.8bAU$111.2bAU$3.6b18.5x50x1.6x
Sat, 10 Jun 2023AU$175.1bAU$109.9bAU$3.5b18.3x50.1x1.6x
Mon, 08 May 2023AU$177.0bAU$109.8bAU$3.5b18.2x50.9x1.6x
Wed, 05 Apr 2023AU$172.1bAU$109.8bAU$3.5b16.9x49.3x1.6x
Price to Earnings Ratio

49.3x


Total Market Cap: AU$172.1bTotal Earnings: AU$3.5bTotal Revenue: AU$109.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 34.8x202420252026
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 27.6x which is lower than its 3-year average PE of 34.8x.
  • 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 33% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market0.78%
Industrials1.10%
Trade Distributors5.02%
Building2.81%
Transportation2.06%
Airlines1.41%
Machinery1.40%
Infrastructure1.34%
Professional Services1.03%
Industrials0%0
Commercial Services-0.041%
Construction-0.065%
Electrical-0.56%
Logistics-1.81%
Aerospace & Defense-6.04%
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 59.1%, which is lower than the prior year's growth of 240.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Machinery industry, expecting annual earnings growth of 63% over the next 5 years.
  • This is better than its past earnings growth rate of 27% per year.
  • In contrast, the Transportation industry is expected to see its earnings grow by 7.8% 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
TCL Transurban GroupAU$14.072.3%
+AU$998.5m		5.7%PE91.8x
SGH SGHAU$41.775.7%
+AU$918.9m		-18.1%PE34.1x
REH ReeceAU$14.244.0%
+AU$338.3m		-9.0%PE31.3x
WOR WorleyAU$11.094.3%
+AU$208.3m		-25.0%PE15.9x
AZJ Aurizon HoldingsAU$3.982.6%
+AU$168.3m		28.4%PE22x

Latest News

RDX
AU$3.43
Redox
7D
8.5%
1Y
18.3%

RDX: Upcoming Dividend Payout Will Support A Positive Repricing Outlook

Analysts have nudged their price target on Redox lower to A$4.20 from A$4.40, reflecting updated assumptions for slightly softer revenue growth, a modestly higher discount rate, firmer profit margins, and a reduced future P/E multiple. What's in the News Redox declared an ordinary fully paid dividend of A$0.065 per share for the six months to December 31, 2025, providing investors with clarity on the upcoming payout schedule (Key Developments).
CPU
AU$27.93
Computershare
7D
0.9%
1Y
-30.5%

CPU: Citi Upgrade And Dividend And EPS Guidance Will Support Bullish Setup

Analysts have adjusted their fair value estimate for Computershare to A$35.94 per share. They link this change to refined assumptions on discount rates, profit margins, and future P/E, along with recent research upgrades and a new A$39.60 price target from the Street.
GNP
AU$7.39
GenusPlus Group
7D
-5.3%
1Y
158.4%
MGH
AU$4.48
MAAS Group Holdings
7D
-9.5%
1Y
21.7%
SGH
AU$41.77
SGH
7D
5.7%
1Y
-18.1%

SGH: Potential Bingo Deal And 2026 Guidance Will Support Further Upside

Analysts have kept their A$56.00 price target for SGH unchanged, as small updates to the discount rate, revenue growth assumptions and profit margin expectations largely offset one another in their refreshed valuation work. What's in the News SGH is reported to be a serious contender to acquire Bingo Industries, a waste management company carrying between A$800 million and A$1,000 million of debt, in a sale process run by MA Moelis for Macquarie Group (Key Developments).
REH
AU$14.24
Reece
7D
4.0%
1Y
-9.0%

REH: FY26 EBIT Guidance And Dividend Outlook Will Support Rerating Potential

Analysts have lifted the price target for Reece to A$15.61 from A$15.43, reflecting updated views on revenue growth, margins and P/E assumptions following recent research updates from major brokers. Analyst Commentary Bullish Takeaways Bullish analysts highlight the recent upgrade as a sign that updated revenue and margin assumptions can support the revised A$15.61 price target without relying on aggressive P/E multiples.
QUB
AU$4.89
Qube Holdings
7D
-0.6%
1Y
24.1%

QUB: Higher Fully Franked Dividend And EPSA Guidance Will Support Balanced Future Returns

Analysts have made a small upward adjustment to their A$ price target for Qube Holdings, reflecting slightly higher assumptions for fair value, discount rate, revenue growth, profit margins and future P/E multiples in their updated models. What's in the News Directors declared a fully franked interim dividend of A$0.0535 per share for the six months ended 31 December 2025, payable on 9 April 2026, with a record date of 4 March 2026 and ex date of 3 March 2026 (company announcement).
ALX
AU$4.39
Atlas Arteria
7D
-3.3%
1Y
-10.2%
AZJ
AU$3.98
Aurizon Holdings
7D
2.6%
1Y
28.4%

AZJ: Higher Payout And Neutral Rating Will Shape Steady Near Term Outlook

Aurizon Holdings' analyst price target has been reset to A$3.80, with analysts citing a first half earnings beat, intact guidance and a higher 90% dividend payout ratio, while also pointing to a reduced valuation gap as the key reason for the change. Analyst Commentary Bullish Takeaways Bullish analysts view the first half earnings beat as a sign that Aurizon is executing well against its current guidance, which can support confidence in near term cash flows.
BXB
AU$22.24
Brambles
7D
-0.5%
1Y
9.1%

BXB: Dividend Commitment And Stable Guidance Will Support A Positive Outlook

Analysts have made a small upward adjustment to Brambles' implied value, with the price target moving from A$25.82 to A$25.84. This change reflects only minor tweaks to assumptions around discount rate, revenue growth, profit margin and future P/E.
SXE
AU$2.80
Southern Cross Electrical Engineering
7D
-5.1%
1Y
79.5%

SXE: Future Returns Will Rely On Stable Margins And Undervalued Earnings Multiple

Analysts have kept their fair value estimate for Southern Cross Electrical Engineering steady at A$3.59, with only marginal tweaks to inputs such as the discount rate, revenue growth, profit margin and future P/E feeding into an unchanged overall price target. Valuation Changes Fair Value: A$3.59 is unchanged, with no adjustment to the overall valuation outcome.
QAN
AU$8.45
Qantas Airways
7D
1.3%
1Y
-10.0%

QAN: Recent Pullback And Class Action Settlement Will Support Future Upside

Qantas Airways' analyst price target has been revised slightly lower to A$11.25 from A$12.00, with analysts pointing to the recent 20% share price pullback as a key reason for seeing better value at current levels. Analyst Commentary Bullish Takeaways Bullish analysts see the recent 20% share price pullback as creating a more appealing entry point relative to their revised A$11.25 price target.
DRO
AU$3.88
DroneShield
7D
-6.5%
1Y
308.4%

Recurring SaaS And Expanding Pipeline Will Reshape Counter Drone Market Trajectory

Catalysts About DroneShield DroneShield provides integrated hardware, software and SaaS solutions for detecting and defeating drones and other unmanned threats across military and civilian markets. What are the underlying business or industry changes driving this perspective?
TCL
AU$14.07
Transurban Group
7D
2.3%
1Y
5.7%
EOS
AU$8.46
Electro Optic Systems Holdings
7D
-14.5%
1Y
504.3%
WOR
AU$11.09
Worley
7D
4.3%
1Y
-25.0%