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Australian (ASX) Industrials Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies125
  • 7D0.4%
  • 3M-0.6%
  • 1Y11.2%
  • YTD0.4%

Over the last 7 days, the Industrials industry has remained flat, although notably DroneShield gained 21%. The past year has been better, since the industry has gained 11% in that time. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 Jan 2026AU$245.3bAU$144.9bAU$8.1b20.7x30.2x1.7x
Wed, 10 Dec 2025AU$240.8bAU$145.0bAU$8.1b20.6x29.6x1.7x
Fri, 07 Nov 2025AU$243.7bAU$145.3bAU$8.2b20.2x29.8x1.7x
Sun, 05 Oct 2025AU$248.8bAU$146.0bAU$8.2b20x30.3x1.7x
Tue, 02 Sep 2025AU$246.8bAU$146.1bAU$8.2b19.8x30x1.7x
Thu, 31 Jul 2025AU$241.2bAU$144.7bAU$8.4b18.1x28.6x1.7x
Sat, 28 Jun 2025AU$233.8bAU$144.8bAU$8.4b16.8x27.7x1.6x
Mon, 26 May 2025AU$230.3bAU$144.6bAU$8.2b16.8x28.1x1.6x
Wed, 23 Apr 2025AU$215.4bAU$146.1bAU$8.3b15.5x25.9x1.5x
Fri, 21 Mar 2025AU$219.4bAU$146.5bAU$8.4b16x26.2x1.5x
Sun, 16 Feb 2025AU$218.8bAU$121.5bAU$7.1b20.5x30.9x1.8x
Tue, 14 Jan 2025AU$208.1bAU$121.9bAU$6.7b19.5x30.9x1.7x
Thu, 12 Dec 2024AU$207.3bAU$122.2bAU$6.7b20.5x31.1x1.7x
Sat, 09 Nov 2024AU$204.2bAU$120.1bAU$6.5b20.1x31.4x1.7x
Mon, 07 Oct 2024AU$204.2bAU$120.5bAU$6.5b19.8x31.5x1.7x
Wed, 04 Sep 2024AU$207.4bAU$122.2bAU$6.2b18.7x33.2x1.7x
Fri, 02 Aug 2024AU$202.2bAU$121.3bAU$5.5b18.5x37x1.7x
Sun, 30 Jun 2024AU$191.9bAU$120.9bAU$5.4b17.5x35.6x1.6x
Tue, 28 May 2024AU$186.6bAU$120.8bAU$5.1b17.8x36.9x1.5x
Thu, 25 Apr 2024AU$196.3bAU$122.2bAU$5.8b18.5x33.8x1.6x
Sat, 23 Mar 2024AU$198.2bAU$122.3bAU$5.9b18.3x33.7x1.6x
Mon, 19 Feb 2024AU$191.5bAU$119.0bAU$5.2b17.4x36.9x1.6x
Wed, 17 Jan 2024AU$185.5bAU$118.2bAU$4.8b18.2x38.8x1.6x
Fri, 15 Dec 2023AU$181.5bAU$117.9bAU$4.7b17.6x38.2x1.5x
Sun, 12 Nov 2023AU$174.7bAU$118.7bAU$4.9b16.5x36x1.5x
Tue, 10 Oct 2023AU$173.7bAU$118.7bAU$4.9b16.2x35.8x1.5x
Thu, 07 Sep 2023AU$181.6bAU$118.6bAU$4.9b17x37.3x1.5x
Sat, 05 Aug 2023AU$182.9bAU$111.5bAU$3.6b19.1x50.9x1.6x
Mon, 03 Jul 2023AU$180.0bAU$110.0bAU$3.5b18.5x51.8x1.6x
Wed, 31 May 2023AU$177.1bAU$110.3bAU$3.5b18.4x50x1.6x
Fri, 28 Apr 2023AU$177.6bAU$110.1bAU$3.5b18.2x50.6x1.6x
Sun, 26 Mar 2023AU$159.4bAU$99.6bAU$3.5b17.2x45.3x1.6x
Tue, 21 Feb 2023AU$148.7bAU$88.8bAU$3.0b18.8x49.5x1.7x
Thu, 19 Jan 2023AU$145.5bAU$87.2bAU$3.7b19x39.5x1.7x
Price to Earnings Ratio

39.5x


Total Market Cap: AU$145.5bTotal Earnings: AU$3.7bTotal Revenue: AU$87.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 35.6x202420252026
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 30.2x which is lower than its 3-year average PE of 35.6x.
  • 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 Market0.16%
Industrials0.36%
Aerospace & Defense14.49%
Logistics3.28%
Building3.03%
Construction2.40%
Trade Distributors2.10%
Electrical1.20%
Transportation0.52%
Professional Services0.35%
Industrials-0.10%
Commercial Services-0.53%
Infrastructure-1.27%
Airlines-1.72%
Machinery-12.23%
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 57.2%, 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
DRO DroneShieldAU$4.0221.5%
+AU$648.5m		443.2%PE654.8x
ASB AustalAU$8.0618.9%
+AU$538.2m		161.7%PE37.8x
ALQ ALSAU$22.733.0%
+AU$340.1m		45.2%PE42.6x
SGH SGHAU$47.531.5%
+AU$284.4m		2.7%PE39.7x
WOR WorleyAU$13.084.2%
+AU$268.3m		-5.4%PE16.2x

Latest News

REH
AU$13.76
Reece
7D
3.1%
1Y
-39.0%

REH: Buyback And Index Change Will Shape Margins And Earnings Outlook

Analysts have inched up their price target for Reece to A$14.04 from A$14.04, reflecting small adjustments to fair value, discount rate assumptions, revenue growth expectations and profit margin forecasts, along with a slightly lower future P/E multiple. What's in the News Reece Limited (ASX:REH) authorized a share repurchase program on November 27, 2025, with capacity to buy back up to A$35 million of shares, funded from existing cash and debt facilities, with the program running until December 11, 2026 (company announcement).
SGH
AU$47.53
SGH
7D
1.5%
1Y
2.7%

SGH: Higher Assumed Profitability And Lower Future P/E Will Support Upside

Analysts have revised their fair value estimate for SGH from US$59.00 to US$54.50, citing updated assumptions regarding discount rate, revenue growth, profit margin, and future P/E that slightly adjust their risk and earnings outlook. Valuation Changes Fair Value: revised from US$59.00 to US$54.50, representing a modest downward adjustment in the estimated share value.
ASB
AU$8.06
Austal
7D
18.9%
1Y
161.7%

ASB: AI Digital Twin Roles Will Support Measured Long Term Earnings Outlook

Analysts have modestly adjusted their price targets on Austal, citing refined assumptions around revenue growth, profit margins and future P/E expectations. Collectively, these changes point to a slightly higher fair value estimate for the shares than previously modeled.
DOW
AU$7.88
Downer EDI
7D
-1.3%
1Y
52.4%

DOW: Long Term NZ Road And Chevron Contracts Will Shape Balanced Outlook

Analysts have kept their fair value estimate for Downer EDI steady at A$8.50, with only small tweaks to assumptions around discount rate, revenue growth, profit margin and future P/E, resulting in a largely unchanged price target view. 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 work scheduled to commence in May 2026, subject to finalising contract terms (Client Announcements).
ALQ
AU$22.73
ALS
7D
3.0%
1Y
45.2%

We Think ALS (ASX:ALQ) Can Stay On Top Of Its Debt

Jan 07
We Think ALS (ASX:ALQ) Can Stay On Top Of Its Debt
QAN
AU$10.31
Qantas Airways
7D
-1.7%
1Y
10.4%

Calculating The Intrinsic Value Of Qantas Airways Limited (ASX:QAN)

Jan 07
Calculating The Intrinsic Value Of Qantas Airways Limited (ASX:QAN)
BXB
AU$22.71
Brambles
7D
-0.4%
1Y
16.9%

BXB: Small Model Adjustments Will Support A Steady Medium-Term Outlook

The analyst price target for Brambles has edged from A$24.80 to A$24.67, with analysts pointing to fine tuning of discount rate, revenue growth, profit margin, and forward P/E assumptions rather than any major shift in their view. Valuation Changes Fair value was trimmed slightly from A$24.80 to A$24.67 per share, reflecting minor model adjustments rather than a change in the core view.
CVL
AU$1.67
Civmec
7D
14.0%
1Y
26.5%
SLX
AU$6.64
Silex Systems
7D
-25.5%
1Y
13.3%
DRO
AU$4.02
DroneShield
7D
21.5%
1Y
443.2%

DRO: Index Inclusion Will Support Future Upside Potential

Analysts have trimmed their fair value estimate for DroneShield from A$5.15 to A$4.70, reflecting slightly higher assumed discount rates and a modestly lower future P/E multiple in their models. Valuation Changes Fair Value: reduced from A$5.15 to A$4.70 per share.
CPU
AU$33.74
Computershare
7D
-1.2%
1Y
0.3%

Computershare Limited's (ASX:CPU) Intrinsic Value Is Potentially 36% Above Its Share Price

Jan 05
Computershare Limited's (ASX:CPU) Intrinsic Value Is Potentially 36% Above Its Share Price
TCL
AU$13.95
Transurban Group
7D
-1.6%
1Y
3.5%

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

Dec 25
Is Transurban Group (ASX:TCL) A Risky Investment?
WOR
AU$13.08
Worley
7D
4.2%
1Y
-5.4%
SSM
AU$2.15
Service Stream
7D
-5.3%
1Y
41.4%
RWC
AU$3.99
Reliance Worldwide
7D
3.6%
1Y
-21.0%
VGN
AU$3.33
Virgin Australia Holdings
7D
-4.3%
1Y
n/a