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U.K. (FTSE) Industrials Sector Analysis

UpdatedMay 27, 2026
DataAggregated Company Financials
Companies166
  • 7D3.6%
  • 3M-3.4%
  • 1Y3.3%
  • YTD-0.03%

Over the last 7 days, the Industrials industry has risen 3.6%, driven by gains from Rolls-Royce Holdings of 8.3%. This takes the industry's 12 month performance to a gain of 3.3%. As for the next few years, earnings are expected to grow by 8.5% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 May 2026UK£393.1bUK£255.5bUK£20.1b18.1x19.6x1.5x
Fri, 24 Apr 2026UK£397.5bUK£254.4bUK£19.6b17x20.2x1.6x
Sun, 22 Mar 2026UK£381.4bUK£252.0bUK£19.8b16.1x19.2x1.5x
Tue, 17 Feb 2026UK£427.3bUK£275.8bUK£20.7b18.7x20.7x1.5x
Thu, 15 Jan 2026UK£443.6bUK£276.0bUK£20.5b17.9x21.6x1.6x
Sat, 13 Dec 2025UK£411.4bUK£276.4bUK£20.7b16.7x19.9x1.5x
Mon, 10 Nov 2025UK£417.4bUK£270.2bUK£20.3b17.5x20.5x1.5x
Wed, 08 Oct 2025UK£434.9bUK£270.6bUK£20.3b17.7x21.4x1.6x
Fri, 05 Sep 2025UK£421.7bUK£274.6bUK£19.8b17.1x21.3x1.5x
Sun, 03 Aug 2025UK£427.3bUK£275.2bUK£19.9b17x21.4x1.6x
Tue, 01 Jul 2025UK£340.4bUK£257.3bUK£13.8b17.8x24.6x1.3x
Thu, 29 May 2025UK£336.2bUK£253.0bUK£13.6b16.8x24.8x1.3x
Sat, 26 Apr 2025UK£314.6bUK£267.1bUK£14.8b14.9x21.2x1.2x
Mon, 24 Mar 2025UK£320.0bUK£267.4bUK£14.9b16.3x21.5x1.2x
Wed, 19 Feb 2025UK£336.5bUK£265.5bUK£14.9b17.9x22.6x1.3x
Fri, 17 Jan 2025UK£323.4bUK£270.8bUK£15.2b17x21.2x1.2x
Sun, 15 Dec 2024UK£321.3bUK£269.9bUK£15.1b17.5x21.2x1.2x
Tue, 12 Nov 2024UK£327.6bUK£267.2bUK£14.9b16.9x21.9x1.2x
Thu, 10 Oct 2024UK£317.3bUK£261.3bUK£14.1b17.6x22.4x1.2x
Sat, 07 Sep 2024UK£313.8bUK£261.0bUK£14.0b17.9x22.3x1.2x
Mon, 05 Aug 2024UK£313.2bUK£262.5bUK£14.1b17.9x22.2x1.2x
Wed, 03 Jul 2024UK£317.4bUK£265.6bUK£14.9b17.6x21.4x1.2x
Fri, 31 May 2024UK£323.4bUK£266.1bUK£14.9b17.6x21.8x1.2x
Sun, 28 Apr 2024UK£315.0bUK£263.9bUK£13.8b17.2x22.8x1.2x
Tue, 26 Mar 2024UK£319.3bUK£263.7bUK£13.7b17.2x23.3x1.2x
Thu, 22 Feb 2024UK£310.1bUK£268.6bUK£14.2b15.4x21.9x1.2x
Sat, 20 Jan 2024UK£317.1bUK£289.2bUK£14.5b15.4x21.9x1.1x
Mon, 18 Dec 2023UK£314.2bUK£289.5bUK£14.4b15.5x21.9x1.1x
Wed, 15 Nov 2023UK£294.7bUK£283.4bUK£13.4b14.8x22x1x
Fri, 13 Oct 2023UK£297.3bUK£282.6bUK£13.2b14.4x22.6x1.1x
Sun, 10 Sep 2023UK£295.6bUK£281.4bUK£12.9b15.1x22.9x1.1x
Tue, 08 Aug 2023UK£299.7bUK£279.2bUK£12.7b15x23.7x1.1x
Thu, 06 Jul 2023UK£293.4bUK£271.6bUK£11.6b14.5x25.3x1.1x
Sat, 03 Jun 2023UK£296.8bUK£271.2bUK£11.6b14.1x25.5x1.1x
Price to Earnings Ratio

25.5x


Total Market Cap: UK£296.8bTotal Earnings: UK£11.6bTotal Revenue: UK£271.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 22.1x202420252026
Current Industry PE
  • Investors are pessimistic on the British 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 19.6x which is lower than its 3-year average PE of 22.1x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 20% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the U.K. Industrials sector?

GB Market1.80%
Industrials3.62%
Electrical9.47%
Airlines8.58%
Aerospace & Defense6.81%
Transportation6.05%
Machinery3.93%
Construction2.53%
Building2.43%
Trade Distributors2.43%
Industrials1.29%
Infrastructure0.30%
Marine and Shipping0.074%
Logistics0%0
Commercial Services-0.31%
Professional Services-3.20%
Industry PE
  • Investors are most optimistic about the Marine and Shipping industry which is trading above its 3-year average PE ratio of 57.4x.
    • Analysts are expecting annual earnings growth of 9.8%, which is higher than its past year's earnings growth of 1.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 55% over the next 5 years.
  • This is better than its past earnings decline of 63% per year.
  • In contrast, the Industrials industry is expected to see its earnings decline by 3.2% 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
RR. Rolls-Royce HoldingsUK£12.618.3%
+UK£8.0b		48.1%PE17.8x
BA. BAE SystemsUK£19.904.6%
+UK£2.5b		4.7%PE27.4x
IAG International Consolidated Airlines GroupUK£4.128.4%
+UK£1.4b		23.3%PE6.1x
RS1 RS GroupUK£6.8213.6%
+UK£381.8m		20.3%PE19.7x
BAB Babcock International GroupUK£10.637.7%
+UK£370.3m		15.5%PE18.1x

Latest News

EZJ
UK£3.77
easyJet
7D
10.9%
1Y
-32.2%
IAG
UK£4.12
International Consolidated Airlines Group
7D
8.4%
1Y
23.3%
Narrative Update • May 26

IAG: Dividend And Buyback Plans Will Support Future Repricing Potential

Analysts have slightly lifted the blended price target for International Consolidated Airlines Group, with ongoing revisions in the range of £0.15 to £0.40 per share as they factor in updated fair value estimates, revenue expectations and margin assumptions. Analyst Commentary Recent research on International Consolidated Airlines Group is mixed, but you can see a clear group of bullish analysts who are focusing on valuation support, execution on current plans and potential for revenue growth.
RR.
UK£12.61
Rolls-Royce Holdings
7D
8.3%
1Y
48.1%
Narrative Update • May 26

RR.: FY25 Beat And Buyback Programme Will Support Higher Future P E

Rolls-Royce Holdings' analyst price target has been maintained at £17.40, with analysts citing a mix of higher sector price targets from several banks and adjustments to growth, discount rate and margin assumptions. Analyst Commentary Recent research updates on Rolls-Royce show a cluster of bullish analysts lifting their price targets, which helps explain why the consensus target has held steady at £17.40 despite mixed adjustments elsewhere.
BAB
UK£10.63
Babcock International Group
7D
7.7%
1Y
15.5%
Analysis Article • May 26

If EPS Growth Is Important To You, Babcock International Group (LON:BAB) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
BOY
UK£8.37
Bodycote
7D
23.4%
1Y
51.1%
QQ.
UK£4.84
QinetiQ Group
7D
15.4%
1Y
-1.0%
EXPN
UK£25.80
Experian
7D
-4.8%
1Y
-31.1%
New Narrative • May 23

AI And Data Platforms Will Drive Future Market Leadership And Margin Expansion

Catalysts About Experian Experian supplies data, analytics, decisioning and consumer credit services to businesses and individuals worldwide. What are the underlying business or industry changes driving this perspective?
RTO
UK£4.65
Rentokil Initial
7D
-1.6%
1Y
31.3%
JDG
UK£45.80
Judges Scientific
7D
-7.5%
1Y
-41.6%
RS1
UK£6.82
RS Group
7D
13.6%
1Y
20.3%
BA.
UK£19.90
BAE Systems
7D
4.6%
1Y
4.7%
Narrative Update • May 19

BA.: Firmer Defence Backdrop Will Offset Softer 2026 Guidance Risks

Analysts have lifted BAE Systems' blended price target to £2,438, reflecting slightly firmer revenue growth and margin assumptions, along with recent target increases from several research houses. Analyst Commentary Recent research activity around BAE Systems has clustered around incremental price target moves, with some analysts highlighting execution and growth questions even as headline targets sit above current levels.
BNZL
UK£23.58
Bunzl
7D
-1.7%
1Y
-2.7%
MRO
UK£4.82
Melrose Industries
7D
-0.7%
1Y
1.2%
Narrative Update • May 14

MRO: Execution On Cash Returns And P/E Assumptions Will Shape Balanced Prospects

Narrative Update The analyst price target for Melrose Industries has been trimmed to around £4.70 from about £4.72, with analysts citing refreshed coverage, mixed target revisions, and updated assumptions on discount rate, revenue growth, profit margins, and future P/E to support the change. Analyst Commentary Recent Street research on Melrose Industries presents a split view, with some bullish voices alongside more cautious updates.
REL
UK£24.33
RELX
7D
-3.7%
1Y
-41.0%
Narrative Update • May 08

REL: Q4 Earnings Resilience And Buybacks Will Support Future Multiple

Analysts have slightly reduced their fair value estimate for RELX to £36.18 from £36.42. This change reflects modestly lower revenue growth assumptions and a marginally lower future P/E multiple, while still pointing to Q4 earnings resilience and limited observable impact from AI concerns.
AT.
UK£4.74
Ashtead Technology Holdings
7D
-9.9%
1Y
6.9%
VP.
UK£4.51
Vp
7D
-5.1%
1Y
-23.3%