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Australian (ASX) Industrials Sector Analysis

UpdatedJan 30, 2026
DataAggregated Company Financials
Companies125
  • 7D-1.1%
  • 3M-1.1%
  • 1Y8.6%
  • YTD0.3%

Over the last 7 days, the Industrials industry has dropped 1.1%, driven by declines in DroneShield and Computershare of 26% and 4.8%, respectively. In contrast, Reece has gained 7.9%. This takes the industry's 12 month performance to a gain of 8.6%. Looking forward, 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
Fri, 30 Jan 2026AU$245.2bAU$144.1bAU$8.0b21.1x30.6x1.7x
Sun, 28 Dec 2025AU$245.0bAU$144.9bAU$8.1b21x30.2x1.7x
Tue, 25 Nov 2025AU$242.4bAU$145.6bAU$8.2b20.4x29.5x1.7x
Thu, 23 Oct 2025AU$249.8bAU$146.3bAU$8.2b20x30.5x1.7x
Sat, 20 Sep 2025AU$243.6bAU$146.0bAU$8.2b20x29.7x1.7x
Mon, 18 Aug 2025AU$244.1bAU$144.5bAU$8.1b18.2x30x1.7x
Wed, 16 Jul 2025AU$236.3bAU$144.5bAU$8.4b17.7x28.1x1.6x
Fri, 13 Jun 2025AU$237.3bAU$144.8bAU$8.4b16.9x28.1x1.6x
Sun, 11 May 2025AU$228.9bAU$144.8bAU$8.2b16.8x27.8x1.6x
Tue, 08 Apr 2025AU$207.8bAU$147.2bAU$8.5b15.1x24.6x1.4x
Thu, 06 Mar 2025AU$226.6bAU$146.5bAU$8.4b16.8x27.1x1.5x
Sat, 01 Feb 2025AU$214.9bAU$121.7bAU$6.7b19.4x32.1x1.8x
Mon, 30 Dec 2024AU$210.2bAU$122.6bAU$6.7b18.7x31.3x1.7x
Wed, 27 Nov 2024AU$210.1bAU$121.4bAU$6.6b19.3x31.8x1.7x
Fri, 25 Oct 2024AU$201.6bAU$120.2bAU$6.5b19.9x31x1.7x
Sun, 22 Sep 2024AU$207.6bAU$123.1bAU$6.3b19.1x33x1.7x
Tue, 20 Aug 2024AU$201.7bAU$120.6bAU$5.5b18.2x36.5x1.7x
Thu, 18 Jul 2024AU$197.6bAU$120.6bAU$5.4b18.2x36.7x1.6x
Sat, 15 Jun 2024AU$191.4bAU$121.0bAU$5.4b17.8x35.5x1.6x
Mon, 13 May 2024AU$195.8bAU$121.6bAU$5.8b18.3x33.8x1.6x
Wed, 10 Apr 2024AU$200.2bAU$122.1bAU$5.8b18.6x34.3x1.6x
Fri, 08 Mar 2024AU$200.6bAU$122.1bAU$5.9b17.3x34.3x1.6x
Sun, 04 Feb 2024AU$187.8bAU$118.5bAU$4.8b18.5x39x1.6x
Tue, 02 Jan 2024AU$189.0bAU$117.7bAU$4.7b18.6x40x1.6x
Thu, 30 Nov 2023AU$175.5bAU$118.1bAU$4.8b16.5x36.8x1.5x
Sat, 28 Oct 2023AU$167.7bAU$118.8bAU$4.9b16.4x34.4x1.4x
Mon, 25 Sep 2023AU$178.1bAU$118.5bAU$4.8b17.2x36.9x1.5x
Wed, 23 Aug 2023AU$179.3bAU$114.4bAU$4.1b17.7x44.2x1.6x
Fri, 21 Jul 2023AU$181.2bAU$110.9bAU$3.5b18.8x51.4x1.6x
Sun, 18 Jun 2023AU$178.1bAU$109.5bAU$3.5b18.4x51.5x1.6x
Tue, 16 May 2023AU$179.0bAU$110.0bAU$3.5b18.5x51.2x1.6x
Thu, 13 Apr 2023AU$175.2bAU$110.0bAU$3.5b18.2x50.1x1.6x
Sat, 11 Mar 2023AU$148.0bAU$94.1bAU$3.5b16.7x42.1x1.6x
Mon, 06 Feb 2023AU$150.6bAU$87.3bAU$3.7b19.9x40.7x1.7x
Price to Earnings Ratio

40.7x


Total Market Cap: AU$150.6bTotal Earnings: AU$3.7bTotal Revenue: AU$87.3bTotal 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 30.6x 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 29% 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 Market0.64%
Industrials-1.11%
Machinery5.22%
Trade Distributors2.20%
Transportation2.00%
Logistics0.88%
Building0.78%
Infrastructure0.36%
Construction0.085%
Industrials0%0
Professional Services-1.75%
Electrical-2.18%
Commercial Services-2.81%
Airlines-3.30%
Aerospace & Defense-16.48%
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 59.4%, 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$14.807.9%
+AU$664.3m		-38.1%PE28.7x
TCL Transurban GroupAU$13.951.0%
+AU$436.1m		4.3%PE326.7x
ALQ ALSAU$24.642.3%
+AU$284.2m		50.0%PE46.1x
AZJ Aurizon HoldingsAU$3.694.2%
+AU$257.1m		12.5%PE20.9x
ALX Atlas ArteriaAU$4.972.9%
+AU$203.1m		-2.0%PE24.1x

Latest News

WOR
AU$13.41
Worley
7D
3.1%
1Y
-7.3%

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.
REH
AU$14.80
Reece
7D
7.9%
1Y
-38.1%
QAN
AU$10.07
Qantas Airways
7D
-2.6%
1Y
6.9%

The Trend Of High Returns At Qantas Airways (ASX:QAN) Has Us Very Interested

Jan 28
The Trend Of High Returns At Qantas Airways (ASX:QAN) Has Us Very Interested
BXB
AU$22.40
Brambles
7D
-2.5%
1Y
13.1%

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$46.42
SGH
7D
-0.8%
1Y
-3.4%
TCL
AU$13.95
Transurban Group
7D
1.0%
1Y
4.3%

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$32.71
Computershare
7D
-4.8%
1Y
-7.0%

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$3.32
DroneShield
7D
-25.7%
1Y
395.5%

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
ASB
AU$6.98
Austal
7D
-8.6%
1Y
82.2%

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.
MND
AU$31.14
Monadelphous Group
7D
4.1%
1Y
97.0%

MND: Acquisition-Led Expansion Will Likely Sustain Downside Risk Despite Higher Fair Value Estimate

Analysts have lifted their price target on Monadelphous Group to A$24.05 from A$23.39, citing updated assumptions around revenue growth, discount rates, profit margins and future P/E as the key drivers of their revised view. What's in the News At the 2025 Annual General Meeting, Managing Director Zoran Bebic said Monadelphous Group will look for acquisitions, supported by what he described as a strong balance sheet.
DOW
AU$8.05
Downer EDI
7D
3.5%
1Y
40.5%

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).
EOS
AU$8.68
Electro Optic Systems Holdings
7D
-16.1%
1Y
617.4%
VGN
AU$3.13
Virgin Australia Holdings
7D
-3.7%
1Y
n/a
AZJ
AU$3.69
Aurizon Holdings
7D
4.2%
1Y
12.5%

AZJ: Fair Outlook Will Balance Lower Margin Assumptions And Higher Future P/E

The analyst price target for Aurizon Holdings has been increased to A$3.45 from A$3.40, with analysts citing updated assumptions for revenue growth, profit margins, the discount rate, and future P/E as the key drivers of this adjustment. Valuation Changes Fair Value: updated from A$3.40 to A$3.45, a small uplift in the modelled estimate.
ALQ
AU$24.64
ALS
7D
2.3%
1Y
50.0%

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).
ALX
AU$4.97
Atlas Arteria
7D
2.9%
1Y
-2.0%