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Australian (ASX) Industrials Sector Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies125
  • 7D2.3%
  • 3M1.3%
  • 1Y10.5%
  • YTD2.0%

In the last week, the Industrials industry is up 2.3%, with Reece leading the way, up 13%. In the same time, Qantas Airways was down 10.0%. In the last 12 months, the industry was up 11%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 27 Feb 2026AU$249.4bAU$146.8bAU$8.4b20.7x29.8x1.7x
Sun, 25 Jan 2026AU$246.7bAU$144.4bAU$8.1b20.9x30.6x1.7x
Tue, 23 Dec 2025AU$244.1bAU$145.0bAU$8.1b20.7x30x1.7x
Thu, 20 Nov 2025AU$236.9bAU$145.5bAU$8.2b19.9x28.9x1.6x
Sat, 18 Oct 2025AU$248.5bAU$146.3bAU$8.2b19.7x30.3x1.7x
Mon, 15 Sep 2025AU$244.6bAU$145.8bAU$8.2b20.3x29.9x1.7x
Wed, 13 Aug 2025AU$241.2bAU$144.8bAU$8.4b18.3x28.6x1.7x
Fri, 11 Jul 2025AU$235.1bAU$144.5bAU$8.4b17.1x27.9x1.6x
Sun, 08 Jun 2025AU$236.2bAU$144.9bAU$8.4b17x28x1.6x
Tue, 06 May 2025AU$225.6bAU$144.6bAU$8.2b16.4x27.5x1.6x
Thu, 03 Apr 2025AU$220.3bAU$146.4bAU$8.4b16.1x26.4x1.5x
Sat, 01 Mar 2025AU$227.4bAU$146.3bAU$8.4b17.6x27.1x1.6x
Mon, 27 Jan 2025AU$213.1bAU$121.4bAU$6.7b19.6x32x1.8x
Wed, 25 Dec 2024AU$208.9bAU$122.5bAU$6.7b18.7x31.1x1.7x
Fri, 22 Nov 2024AU$206.0bAU$120.6bAU$6.6b19.8x31.4x1.7x
Sun, 20 Oct 2024AU$207.0bAU$121.1bAU$6.6b19.6x31.6x1.7x
Tue, 17 Sep 2024AU$208.4bAU$122.9bAU$6.3b18.7x33.2x1.7x
Thu, 15 Aug 2024AU$198.2bAU$120.6bAU$5.5b18.1x35.9x1.6x
Sat, 13 Jul 2024AU$193.8bAU$120.5bAU$5.4b18.1x36x1.6x
Mon, 10 Jun 2024AU$195.6bAU$121.1bAU$5.4b18x36.2x1.6x
Wed, 08 May 2024AU$196.4bAU$122.0bAU$5.8b18.6x33.8x1.6x
Fri, 05 Apr 2024AU$200.0bAU$122.1bAU$5.8b18.4x34.2x1.6x
Sun, 03 Mar 2024AU$198.0bAU$122.3bAU$5.9b17.1x33.6x1.6x
Tue, 30 Jan 2024AU$186.5bAU$118.2bAU$4.8b17.8x39x1.6x
Thu, 28 Dec 2023AU$188.6bAU$117.6bAU$4.7b17.3x40x1.6x
Sat, 25 Nov 2023AU$176.1bAU$118.3bAU$4.8b17x36.8x1.5x
Mon, 23 Oct 2023AU$171.0bAU$118.9bAU$4.9b16.4x35.1x1.4x
Wed, 20 Sep 2023AU$179.5bAU$118.5bAU$4.8b16.9x37.2x1.5x
Fri, 18 Aug 2023AU$180.1bAU$113.9bAU$3.9b17.9x45.7x1.6x
Sun, 16 Jul 2023AU$181.2bAU$110.9bAU$3.5b18.8x51.4x1.6x
Tue, 13 Jun 2023AU$175.1bAU$109.8bAU$3.5b18.3x50.2x1.6x
Thu, 11 May 2023AU$178.2bAU$109.8bAU$3.5b17.2x51.2x1.6x
Sat, 08 Apr 2023AU$173.0bAU$110.0bAU$3.5b17.2x49.4x1.6x
Mon, 06 Mar 2023AU$147.7bAU$93.6bAU$3.5b16.9x42.4x1.6x
Price to Earnings Ratio

42.4x


Total Market Cap: AU$147.7bTotal Earnings: AU$3.5bTotal Revenue: AU$93.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Industrials Sector Price to Earnings3Y Average 35.2x202420252026
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 29.8x which is lower than its 3-year average PE of 35.2x.
  • 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 34% per year over the last three years.
  • Revenues for these companies have grown 16% 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 Market1.42%
Industrials2.31%
Commercial Services5.33%
Trade Distributors5.19%
Transportation4.03%
Machinery2.46%
Construction1.97%
Professional Services1.37%
Electrical1.00%
Infrastructure0.49%
Airlines-0.34%
Logistics-0.66%
Aerospace & Defense-1.50%
Building-1.50%
Industrials-1.87%
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 70.7%, which is lower than the prior year's growth of 240.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Aerospace & Defense industry, expecting annual earnings growth of 71% over the next 5 years.
  • However this is lower than its past earnings growth rate of 240% per year.
  • In contrast, the Transportation industry is expected to see its earnings grow by 8.0% 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$15.7513.5%
+AU$1.2b		-8.5%PE34.6x
TCL Transurban GroupAU$14.202.3%
+AU$1.1b		6.6%PE92.7x
BXB BramblesAU$24.922.2%
+AU$729.9m		18.1%PE26x
DRO DroneShieldAU$3.6916.8%
+AU$493.9m		344.6%PE965.1x
DOW Downer EDIAU$8.498.7%
+AU$447.7m		52.4%PE37.7x

Latest News

DRO
AU$3.69
DroneShield
7D
16.8%
1Y
344.6%
CWY
AU$2.58
Cleanaway Waste Management
7D
5.7%
1Y
0%
ALX
AU$4.92
Atlas Arteria
7D
4.7%
1Y
-5.6%
WOR
AU$11.71
Worley
7D
-12.2%
1Y
-24.7%
QAN
AU$9.67
Qantas Airways
7D
-10.0%
1Y
3.0%
BXB
AU$24.92
Brambles
7D
2.2%
1Y
18.1%
CPU
AU$30.33
Computershare
7D
-2.9%
1Y
-26.5%

CPU: Citi Upgrade And Raised FY26 Outlook Will Support Bullish Setup

Analysts have trimmed their fair value estimate for Computershare to A$35.79 from A$35.97, citing updated assumptions for discount rates, revenue growth, profit margins and future P/E, as well as recent Street research, including Citi's upgrade of the stock with an A$39.60 price target. Analyst Commentary Bullish Takeaways Bullish analysts highlight the recent upgrade to a Buy rating as support for a more constructive view on Computershare’s ability to execute against earnings expectations, even with more conservative assumptions now embedded in the fair value model.
TCL
AU$14.20
Transurban Group
7D
2.3%
1Y
6.6%
REH
AU$15.75
Reece
7D
13.5%
1Y
-8.5%
SSM
AU$2.03
Service Stream
7D
-8.1%
1Y
20.1%
ASB
AU$5.12
Austal
7D
-14.2%
1Y
22.2%
MMS
AU$15.98
McMillan Shakespeare
7D
-8.4%
1Y
2.5%

MMS: Share Buyback Plan Will Support Returns Despite Lower Profit Margins

Analysts have trimmed their price target for McMillan Shakespeare from A$19.98 to A$18.21, citing updated assumptions around discount rates, profit margins and revenue growth, as well as a slightly higher future P/E multiple. What's in the News The Board of Directors authorized a share buyback plan on February 23, 2026, signaling an intention to return capital to shareholders over time (Key Developments).
SGH
AU$46.48
SGH
7D
-2.8%
1Y
-10.8%

SGH: Future Returns Will Rely On Dividend Income And Margin Strength

Analysts have raised their fair value estimate for SGH from A$46.69 to A$49.08, citing updated assumptions around revenue growth, profit margins and future P/E as key drivers behind the higher price target. What's in the News SGH Limited declared an ordinary dividend of A$0.32000000 per share for the six month period ended December 31, 2025, classified as a dividend increase event (Key Developments).
DOW
AU$8.49
Downer EDI
7D
8.7%
1Y
52.4%

DOW: Buyback And NZ Road Contracts Will Support A Measured Outlook

Analysts have lifted their price target on Downer EDI from A$7.70 to A$8.23, reflecting updated assumptions around revenue growth, profit margins, discount rates and future P/E following recent bullish Street research. Analyst Commentary Bullish Takeaways Bullish analysts see the revised A$8.23 target as better aligning with their updated revenue and margin assumptions, which they believe are now more in step with recent research views.
ALQ
AU$25.48
ALS
7D
3.5%
1Y
54.5%

ALQ: Future Earnings Assumptions And P/E Expectations Will Support Measured Outlook

Analysts have lifted their A$ fair value estimate for ALS to about A$23.72 from roughly A$22.47, pointing to updated assumptions on discount rates, revenue growth, profit margins and future P/E expectations following recent research. Analyst Commentary Bullish Takeaways Bullish analysts view the higher A$23.72 fair value estimate as more in line with updated assumptions on discount rates and future P/E expectations.
VGN
AU$3.15
Virgin Australia Holdings
7D
-4.5%
1Y
n/a

Transformation Program And Loyalty Expansion Will Shape A Stronger Long Term Airline Story

Catalysts About Virgin Australia Holdings Virgin Australia Holdings operates a full service and value-focused airline group in Australia, supported by its Velocity Frequent Flyer loyalty program and regional charter operations. What are the underlying business or industry changes driving this perspective?