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U.K. (FTSE) Industrials Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies167
  • 7D7.1%
  • 3M5.0%
  • 1Y29.4%
  • YTD7.1%

BAE Systems is up 17%, leading the way for the Industrials industry, which has gained 7.1%. In the last 12 months, the industry was up 29%. Looking forward, earnings are forecast to grow by 7.1% annually.

Sector Valuation and Performance

Has the U.K. Industrials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026UK£452.5bUK£276.0bUK£20.6b18.1x22x1.6x
Tue, 09 Dec 2025UK£409.1bUK£276.2bUK£20.8b16.6x19.7x1.5x
Thu, 06 Nov 2025UK£433.8bUK£270.5bUK£20.4b18x21.3x1.6x
Sat, 04 Oct 2025UK£440.4bUK£270.7bUK£20.4b17.9x21.6x1.6x
Mon, 01 Sep 2025UK£421.5bUK£274.4bUK£19.8b17.1x21.3x1.5x
Wed, 30 Jul 2025UK£339.9bUK£253.7bUK£13.6b17.3x25x1.3x
Fri, 27 Jun 2025UK£337.6bUK£257.1bUK£13.9b17.4x24.4x1.3x
Sun, 25 May 2025UK£336.2bUK£266.1bUK£13.8b16.4x24.3x1.3x
Tue, 22 Apr 2025UK£309.5bUK£267.3bUK£14.8b14.9x20.9x1.2x
Thu, 20 Mar 2025UK£323.2bUK£267.8bUK£14.8b16.4x21.9x1.2x
Sat, 15 Feb 2025UK£333.2bUK£265.7bUK£14.9b17.9x22.4x1.3x
Mon, 13 Jan 2025UK£315.4bUK£270.7bUK£15.2b16.4x20.7x1.2x
Wed, 11 Dec 2024UK£321.7bUK£269.4bUK£15.0b17.5x21.4x1.2x
Fri, 08 Nov 2024UK£325.2bUK£262.4bUK£14.5b17.1x22.4x1.2x
Sun, 06 Oct 2024UK£315.7bUK£261.2bUK£14.1b16.8x22.3x1.2x
Tue, 03 Sep 2024UK£320.6bUK£260.8bUK£14.1b18.5x22.8x1.2x
Thu, 01 Aug 2024UK£330.2bUK£265.8bUK£15.2b18x21.8x1.2x
Sat, 29 Jun 2024UK£321.0bUK£265.7bUK£14.9b17.4x21.6x1.2x
Mon, 27 May 2024UK£328.4bUK£266.0bUK£14.8b18.3x22.2x1.2x
Wed, 24 Apr 2024UK£316.0bUK£264.2bUK£13.8b17.2x22.8x1.2x
Fri, 22 Mar 2024UK£321.2bUK£265.7bUK£13.7b17.3x23.4x1.2x
Sun, 18 Feb 2024UK£310.8bUK£268.6bUK£14.2b15.3x21.9x1.2x
Tue, 16 Jan 2024UK£317.6bUK£289.3bUK£14.5b15.4x21.9x1.1x
Thu, 14 Dec 2023UK£311.5bUK£289.8bUK£14.4b15x21.6x1.1x
Sat, 11 Nov 2023UK£291.5bUK£283.9bUK£13.5b14.4x21.7x1x
Mon, 09 Oct 2023UK£292.8bUK£282.5bUK£13.2b14.8x22.2x1x
Wed, 06 Sep 2023UK£292.9bUK£280.4bUK£12.6b15.3x23.2x1x
Fri, 04 Aug 2023UK£298.7bUK£279.3bUK£12.8b14.9x23.3x1.1x
Sun, 02 Jul 2023UK£298.3bUK£271.6bUK£11.6b14.6x25.8x1.1x
Tue, 30 May 2023UK£292.5bUK£271.6bUK£11.7b14x25.1x1.1x
Thu, 27 Apr 2023UK£295.0bUK£266.9bUK£12.0b15.1x24.5x1.1x
Sat, 25 Mar 2023UK£288.1bUK£267.6bUK£12.1b15.4x23.9x1.1x
Mon, 20 Feb 2023UK£289.4bUK£234.9bUK£11.0b16.9x26.4x1.2x
Wed, 18 Jan 2023UK£279.1bUK£232.3bUK£11.2b18x24.9x1.2x
Price to Earnings Ratio

24.9x


Total Market Cap: UK£279.1bTotal Earnings: UK£11.2bTotal Revenue: UK£232.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 22.6x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Industrials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 22.6x.
  • The 3-year average PS ratio of 1.2x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 22% per year over the last three years.
  • Revenues for these companies have grown 5.9% 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 U.K. Industrials sector?

GB Market1.88%
Industrials7.11%
Aerospace & Defense10.94%
Trade Distributors6.21%
Marine and Shipping6.20%
Commercial Services5.53%
Professional Services5.11%
Machinery4.68%
Electrical3.88%
Construction3.50%
Infrastructure2.85%
Industrials1.65%
Building1.36%
Transportation1.18%
Airlines0.27%
Logistics0%0
Industry PE
  • Investors are most optimistic about the Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings decline of 25.5%, which is worse than the prior year's decline of 19.9%.
Forecasted Growth
  • Analysts are most optimistic on the Electrical industry, expecting annual earnings growth of 34% over the next 5 years.
  • This is better than its past earnings growth rate of 18% per year.
  • In contrast, the Infrastructure industry is expected to see its earnings decline by 26% 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
BA. BAE SystemsUK£20.5317.0%
+UK£8.9b		72.2%PE30.9x
RR. Rolls-Royce HoldingsUK£12.948.1%
+UK£8.5b		123.0%PE18.8x
REL RELXUK£31.786.5%
+UK£3.5b		-16.6%PE30x
AHT Ashtead GroupUK£55.949.7%
+UK£2.0b		14.2%PE22x
EXPN ExperianUK£34.784.4%
+UK£1.3b		0.6%PE31.2x

Latest News

HAS
UK£0.52
Hays
7D
-4.6%
1Y
-26.2%

HAS: Share Buyback And CEO Return Will Support Shares Despite Cautious Views

Analysts have trimmed their average price target for Hays to £0.44 from £0.61, reflecting concerns that cyclical headwinds and structural challenges could keep earnings subdued for longer, even though some still see limited upside with a £0.55 target. Analyst Commentary Recent research on Hays points to a mixed backdrop, with some analysts focusing on valuation support and others highlighting ongoing cyclical and structural pressures that could weigh on execution and earnings visibility.
EXPN
UK£34.78
Experian
7D
4.4%
1Y
0.6%

EXPN: AI Mortgage Scoring Advances Will Support Upside In Ongoing Credit Score Battle

Analysts have trimmed their average price target for Experian by about £0.25 per share while maintaining a constructive view. They point to recent share price weakness and the potential for artificial intelligence driven mortgage opportunities to support the long term story.
BA.
UK£20.53
BAE Systems
7D
17.0%
1Y
72.2%

BA.: Sector Caution And U.S. Shutdown Risk Will Restrain Overheated Expectations

Narrative Update The updated analyst price targets for BAE Systems now center around £19.50 to £18.60 per share. This reflects a modestly lower fair value estimate and slightly adjusted growth, discount rate and P/E assumptions, as analysts balance sector wide caution with valuation driven support.
DPLM
UK£56.60
Diploma
7D
6.9%
1Y
36.0%
PAGE
UK£2.27
PageGroup
7D
-2.8%
1Y
-27.1%

PAGE: Lowered Expectations Should Set Up Earnings Resilience Through 2025

Narrative update on PageGroup Analysts have trimmed their price expectations for PageGroup, with a recent cut in the target to £2.15 from £2.55. This reflects concerns that cyclical pressures combined with structural challenges in European employment services could keep earnings lower for longer.
BAB
UK£14.69
Babcock International Group
7D
15.4%
1Y
201.0%

Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)

Jan 08
Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)
EZJ
UK£5.03
easyJet
7D
-2.2%
1Y
-1.0%

EZJ: Rising Costs Will Pressure Margins And Keep Shares Underperforming

Analysts have reduced their outlook on easyJet, with the average price target moving lower from around £6.00 to roughly £5.20 per share. This reflects concerns about competitive pressure and rising costs, as well as slightly adjusted long term growth and margin assumptions.
RR.
UK£12.94
Rolls-Royce Holdings
7D
8.1%
1Y
123.0%
JET2
UK£13.98
Jet2
7D
-1.1%
1Y
-4.2%

Is Jet2 (LON:JET2) Using Too Much Debt?

Jan 06
Is Jet2 (LON:JET2) Using Too Much Debt?
DCC
UK£44.46
DCC
7D
-2.2%
1Y
-12.5%

DCC: Share Buyback And Dividend Record Will Shape A Cautious Outlook

Analysts now place their price target for DCC at $47.08, up from $44.91. This reflects updated assumptions around discount rates, revenue trends, margins, and future P/E that they see as better aligning the valuation with the company’s current risk and earnings profile.
AHT
UK£55.94
Ashtead Group
7D
9.7%
1Y
14.2%

AHT: Share Buybacks And Dividend Policy Will Support A Higher Price

Analysts have lifted their fair value estimate for Ashtead Group from £66.00 to about £74.60. This reflects updated assumptions for revenue growth, profit margins and future P/E levels in their models.
RTO
UK£4.71
Rentokil Initial
7D
6.3%
1Y
24.8%

RTO: Lower Discount Rate And Margin Outlook Will Support Fair Value Steadiness

Analysts have raised their price target for Rentokil Initial by approximately 2 percent. They cited a modestly lower discount rate and an improved profit margin outlook, which more than offset slightly reduced revenue growth expectations and a marginally lower future earnings multiple.
REL
UK£31.78
RELX
7D
6.5%
1Y
-16.6%

Shareholders Would Enjoy A Repeat Of RELX's (LON:REL) Recent Growth In Returns

Dec 29
Shareholders Would Enjoy A Repeat Of RELX's (LON:REL) Recent Growth In Returns
WIL
UK£2.95
Wilmington
7D
-5.4%
1Y
-22.0%
VP.
UK£5.26
Vp
7D
-4.4%
1Y
-7.7%
TFW
UK£2.75
FW Thorpe
7D
-3.3%
1Y
-9.7%