Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Australian (ASX) Industrials Sector Analysis

UpdatedDec 26, 2025
DataAggregated Company Financials
Companies125
  • 7D2.4%
  • 3M1.2%
  • 1Y11.4%
  • YTD11.4%

The Industrials industry is up 2.4% in the last week, with DroneShield up 32%. This takes the industry's 12 month performance to a gain of 11%. 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
Sat, 27 Dec 2025AU$245.0bAU$144.9bAU$8.1b21x30.2x1.7x
Mon, 24 Nov 2025AU$236.0bAU$145.6bAU$8.2b20.1x28.7x1.6x
Wed, 22 Oct 2025AU$251.8bAU$146.3bAU$8.2b20.1x30.7x1.7x
Fri, 19 Sep 2025AU$243.2bAU$145.8bAU$8.2b20.9x29.7x1.7x
Sun, 17 Aug 2025AU$244.1bAU$144.5bAU$8.1b18.2x30x1.7x
Tue, 15 Jul 2025AU$234.4bAU$144.5bAU$8.4b17.7x27.9x1.6x
Thu, 12 Jun 2025AU$236.4bAU$144.9bAU$8.4b17.1x28x1.6x
Sat, 10 May 2025AU$229.0bAU$144.9bAU$8.2b16.8x27.8x1.6x
Mon, 07 Apr 2025AU$213.4bAU$147.2bAU$8.5b15.8x25.2x1.4x
Wed, 05 Mar 2025AU$228.6bAU$146.6bAU$8.4b16.8x27.2x1.6x
Fri, 31 Jan 2025AU$214.2bAU$121.7bAU$6.7b19.5x32x1.8x
Sun, 29 Dec 2024AU$210.2bAU$122.6bAU$6.7b18.7x31.3x1.7x
Tue, 26 Nov 2024AU$211.0bAU$121.1bAU$6.6b19.8x32.1x1.7x
Thu, 24 Oct 2024AU$203.9bAU$120.2bAU$6.5b20.2x31.3x1.7x
Sat, 21 Sep 2024AU$207.6bAU$123.1bAU$6.3b19.2x33x1.7x
Mon, 19 Aug 2024AU$202.5bAU$120.6bAU$5.5b18x36.6x1.7x
Wed, 17 Jul 2024AU$194.9bAU$120.6bAU$5.4b18x36.2x1.6x
Fri, 14 Jun 2024AU$192.8bAU$120.9bAU$5.4b17.9x35.8x1.6x
Sun, 12 May 2024AU$196.1bAU$122.0bAU$5.8b18.3x33.7x1.6x
Tue, 09 Apr 2024AU$199.2bAU$122.1bAU$5.9b18.3x34x1.6x
Thu, 07 Mar 2024AU$198.1bAU$122.3bAU$5.9b17x33.6x1.6x
Sat, 03 Feb 2024AU$187.8bAU$118.2bAU$4.8b18.5x39.2x1.6x
Mon, 01 Jan 2024AU$189.0bAU$117.7bAU$4.7b18.6x40.1x1.6x
Wed, 29 Nov 2023AU$175.5bAU$118.2bAU$4.8b16.6x36.7x1.5x
Fri, 27 Oct 2023AU$168.3bAU$118.9bAU$4.9b16.8x34.5x1.4x
Sun, 24 Sep 2023AU$178.1bAU$118.5bAU$4.8b17.2x36.9x1.5x
Tue, 22 Aug 2023AU$179.9bAU$114.0bAU$3.9b17.7x45.5x1.6x
Thu, 20 Jul 2023AU$181.1bAU$111.0bAU$3.5b18.6x51.2x1.6x
Sat, 17 Jun 2023AU$178.1bAU$109.5bAU$3.5b18.4x51.5x1.6x
Mon, 15 May 2023AU$178.6bAU$110.1bAU$3.5b17.9x50.9x1.6x
Wed, 12 Apr 2023AU$174.3bAU$110.0bAU$3.5b17.9x49.8x1.6x
Fri, 10 Mar 2023AU$148.9bAU$94.0bAU$3.5b17.5x42.4x1.6x
Sun, 05 Feb 2023AU$150.6bAU$87.3bAU$3.7b19.9x40.7x1.7x
Tue, 03 Jan 2023AU$140.3bAU$87.5bAU$3.7b18.8x37.7x1.6x
Price to Earnings Ratio

37.7x


Total Market Cap: AU$140.3bTotal Earnings: AU$3.7bTotal Revenue: AU$87.5bTotal 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 30.2x which is lower than its 3-year average PE of 35.8x.
  • 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 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 Market2.32%
Industrials2.38%
Aerospace & Defense21.41%
Machinery9.05%
Construction4.05%
Electrical2.97%
Trade Distributors2.65%
Airlines2.26%
Transportation2.21%
Professional Services1.98%
Commercial Services0.82%
Infrastructure0.71%
Building0.37%
Industrials-0.20%
Logistics-0.90%
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 58.5%, 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
DRO DroneShieldAU$3.2918.3%
+AU$465.7m		338.7%PE535.7x
SGH SGHAU$47.121.3%
+AU$251.9m		1.6%PE39.4x
REH ReeceAU$13.052.8%
+AU$222.4m		-43.5%PE25.4x
TCL Transurban GroupAU$14.460.5%
+AU$218.0m		4.6%PE338.6x
ALX Atlas ArteriaAU$4.962.9%
+AU$203.1m		5.5%PE24.1x

Latest News

SGH
AU$47.12
SGH
7D
1.3%
1Y
1.6%

Is There An Opportunity With SGH Limited's (ASX:SGH) 26% Undervaluation?

Dec 26
Is There An Opportunity With SGH Limited's (ASX:SGH) 26% Undervaluation?
TCL
AU$14.46
Transurban Group
7D
0.5%
1Y
4.6%

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

Dec 25
Is Transurban Group (ASX:TCL) A Risky Investment?
BXB
AU$22.88
Brambles
7D
-0.7%
1Y
18.9%

BXB: Slightly Higher Expected Multiple Will Support A Balanced Medium-Term Outlook

Analysts have slightly raised their price target on Brambles to reflect a modest improvement in fair value to $24.80. This change is driven by marginally lower discount rates, steady revenue growth assumptions, and a slightly higher forecast future P/E multiple.
MGH
AU$5.40
MAAS Group Holdings
7D
10.9%
1Y
15.4%
SKS
AU$3.93
SKS Technologies Group
7D
-4.1%
1Y
103.1%

SKS: Future Earnings Potential Will Likely Sustain Margins And Support Fair Pricing

Analysts have nudged their price target for SKS Technologies Group slightly higher to reflect a modest recalibration of discount rate assumptions and future valuation multiples, while leaving the underlying fair value estimate steady at approximately $3.97 per share. Valuation Changes Fair Value: Unchanged at approximately A$3.97 per share, indicating no material shift in the core valuation outcome.
REH
AU$13.05
Reece
7D
2.8%
1Y
-43.5%

Investor Optimism Abounds Reece Limited (ASX:REH) But Growth Is Lacking

Dec 20
Investor Optimism Abounds Reece Limited (ASX:REH) But Growth Is Lacking
DBI
AU$4.91
Dalrymple Bay Infrastructure
7D
-2.2%
1Y
35.6%
LAU
AU$0.68
Lindsay Australia
7D
-2.9%
1Y
-23.2%
DRO
AU$3.29
DroneShield
7D
18.3%
1Y
338.7%

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.
EOS
AU$9.25
Electro Optic Systems Holdings
7D
9.0%
1Y
611.5%

EOS: Index Inclusions Will Support Stronger Profit Margin Expansion

Analysts have sharply increased their price target for Electro Optic Systems Holdings from A$5.45 to A$11.18, citing higher expected revenue growth, a significantly stronger profit margin outlook, and a lower future P E multiple that together support a materially higher valuation. What's in the News Electro Optic Systems Holdings Limited (ASX:EOS) added to the S&P/ASX Small Ordinaries Index, signaling greater visibility among small cap investors (Index Constituent Adds) Electro Optic Systems Holdings Limited (ASX:EOS) added to the S&P/ASX 300 Index, broadening inclusion across mainstream Australian equity benchmarks (Index Constituent Adds) Valuation Changes The Fair Value Estimate has risen significantly from A$5.45 to A$11.18, implying a materially higher assessed intrinsic value for Electro Optic Systems Holdings.
BWN
AU$0.46
Bhagwan Marine
7D
-3.2%
1Y
-30.0%

Is Bhagwan Marine Limited (ASX:BWN) Trading At A 34% Discount?

Nov 27
Is Bhagwan Marine Limited (ASX:BWN) Trading At A 34% Discount?
ALX
AU$4.96
Atlas Arteria
7D
2.9%
1Y
5.5%
KPG
AU$8.10
Kelly Partners Group Holdings
7D
-4.4%
1Y
-24.4%
SLX
AU$8.62
Silex Systems
7D
6.9%
1Y
72.4%
XRF
AU$1.93
XRF Scientific
7D
-3.3%
1Y
2.1%
EHL
AU$1.26
Emeco Holdings
7D
-1.6%
1Y
36.2%

Emeco Holdings Limited (ASX:EHL) Shares Fly 25% But Investors Aren't Buying For Growth

Sep 19
Emeco Holdings Limited (ASX:EHL) Shares Fly 25% But Investors Aren't Buying For Growth