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U.K. (FTSE) Industrials Sector Analysis

UpdatedAug 26, 2026
DataAggregated Company Financials
Companies161
  • 7D0.1%
  • 3M10.1%
  • 1Y12.1%
  • YTD11.2%

Over the last 7 days, the Industrials industry has dropped 1.5%, driven by BAE Systems declining 5.7%. In the past year, the industry has gained 11%. Looking forward, earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 26 Aug 2026UK£434.9bUK£258.2bUK£16.6b20.2x26.1x1.7x
Fri, 24 Jul 2026UK£406.4bUK£255.7bUK£19.7b19.1x20.7x1.6x
Sun, 21 Jun 2026UK£401.4bUK£255.8bUK£19.8b17.4x20.3x1.6x
Tue, 19 May 2026UK£380.8bUK£254.6bUK£19.8b16.7x19.3x1.5x
Thu, 16 Apr 2026UK£411.1bUK£254.3bUK£19.7b17.1x20.9x1.6x
Sat, 14 Mar 2026UK£396.2bUK£251.9bUK£20.0b16.9x19.8x1.6x
Mon, 09 Feb 2026UK£414.8bUK£275.7bUK£20.5b18.2x20.2x1.5x
Wed, 07 Jan 2026UK£437.6bUK£275.8bUK£20.5b17.6x21.3x1.6x
Fri, 05 Dec 2025UK£410.1bUK£276.1bUK£20.8b16.8x19.7x1.5x
Sun, 02 Nov 2025UK£434.4bUK£270.3bUK£20.4b18.2x21.3x1.6x
Tue, 30 Sep 2025UK£436.9bUK£271.2bUK£20.5b17.3x21.3x1.6x
Thu, 28 Aug 2025UK£423.0bUK£274.2bUK£19.8b17x21.4x1.5x
Sat, 26 Jul 2025UK£344.6bUK£253.9bUK£13.7b17.9x25.2x1.4x
Mon, 23 Jun 2025UK£334.4bUK£257.2bUK£13.8b17x24.3x1.3x
Wed, 21 May 2025UK£340.1bUK£266.1bUK£14.2b16.8x23.9x1.3x
Fri, 18 Apr 2025UK£309.6bUK£267.3bUK£14.8b14.9x20.9x1.2x
Sun, 16 Mar 2025UK£321.3bUK£267.9bUK£14.8b16.8x21.7x1.2x
Tue, 11 Feb 2025UK£330.6bUK£265.8bUK£14.9b17.4x22.2x1.2x
Thu, 09 Jan 2025UK£314.0bUK£270.3bUK£15.2b16.5x20.7x1.2x
Sat, 07 Dec 2024UK£329.7bUK£269.5bUK£15.0b18.1x21.9x1.2x
Mon, 04 Nov 2024UK£316.9bUK£262.7bUK£14.6b17x21.8x1.2x
Wed, 02 Oct 2024UK£318.4bUK£260.7bUK£14.1b18.1x22.6x1.2x
Fri, 30 Aug 2024UK£323.0bUK£260.8bUK£14.1b18.5x22.9x1.2x
Sun, 28 Jul 2024UK£325.2bUK£265.8bUK£15.2b17.8x21.4x1.2x
Tue, 25 Jun 2024UK£325.1bUK£265.9bUK£14.9b18x21.9x1.2x
Thu, 23 May 2024UK£324.7bUK£261.1bUK£13.5b17.8x24.1x1.2x
Sat, 20 Apr 2024UK£309.6bUK£264.0bUK£13.7b17.2x22.6x1.2x
Mon, 18 Mar 2024UK£312.5bUK£265.4bUK£13.7b16.9x22.8x1.2x
Wed, 14 Feb 2024UK£301.4bUK£268.4bUK£14.1b15x21.3x1.1x
Fri, 12 Jan 2024UK£315.5bUK£289.2bUK£14.5b15.4x21.8x1.1x
Sun, 10 Dec 2023UK£308.7bUK£289.5bUK£14.5b14.8x21.3x1.1x
Tue, 07 Nov 2023UK£286.1bUK£283.5bUK£13.5b14.2x21.2x1x
Thu, 05 Oct 2023UK£291.4bUK£282.6bUK£13.2b14.8x22.1x1x
Sat, 02 Sep 2023UK£294.0bUK£280.5bUK£12.6b15.3x23.3x1x
Price to Earnings Ratio

23.3x


Total Market Cap: UK£294.0bTotal Earnings: UK£12.6bTotal Revenue: UK£280.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 21.8x202420252026
Current Industry PE
  • Investors are optimistic on the British Industrials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 25.9x which is higher than its 3-year average PE of 21.8x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 9.5% per year over the last three years.
  • Meanwhile revenues for these companies have declined 2.7% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

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

GB Market1.70%
Industrials0.10%
Building3.81%
Machinery3.21%
Professional Services3.15%
Airlines2.98%
Electrical1.86%
Trade Distributors1.01%
Infrastructure0.48%
Industrials0.23%
Commercial Services0.17%
Logistics0%0
Construction-0.22%
Marine and Shipping-0.76%
Transportation-1.30%
Aerospace & Defense-2.17%
Industry PE
  • Investors are most optimistic about the Aerospace & Defense industry which is trading above its 3-year average PE ratio of 24.8x.
    • Analysts are expecting annual earnings growth of 13.8%, which is higher than its past year's earnings decline of 9.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 46% 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 17% 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
REL RELXUK£26.183.1%
+UK£1.4b		-26.0%PE20.2x
EXPN ExperianUK£30.094.7%
+UK£1.2b		-21.0%PE24.2x
WEIR WeirUK£29.1012.5%
+UK£835.8m		17.8%PE28.4x
IAG International Consolidated Airlines GroupUK£4.424.0%
+UK£739.8m		12.6%PE7.4x
MRO Melrose IndustriesUK£5.104.6%
+UK£279.1m		-13.5%PE39.7x

Latest News

CHRT
UK£11.94
Cohort
7D
-11.7%
1Y
-6.4%
QQ.
UK£5.26
QinetiQ Group
7D
-4.4%
1Y
9.2%
EXPN
UK£30.09
Experian
7D
4.7%
1Y
-21.0%
Narrative Update • Aug 21

EXPN: Consistent Credit Bureau Execution Will Support Rerating Potential

Experian's analyst price targets have seen only modest adjustments, with recent changes around £3,500 to £3,812, supported by analysts pointing to consistent execution through 2026 and perceived upside across the credit bureau sector. Analyst Commentary Recent research on Experian points to a generally constructive tone, with bullish analysts focusing on consistent execution and perceived room for the valuation to better reflect that track record.
RR.
UK£15.30
Rolls-Royce Holdings
7D
-0.5%
1Y
44.7%
Narrative Update • Aug 21

RR.: Widebody Reliance And Execution Concerns Will Likely Cap Future Upside

Analysts have lifted the fair value estimate for Rolls-Royce Holdings from £11.12 to £13.61 as they factor in higher price targets across the Street, modestly higher profit margin assumptions and a richer future P/E profile, while applying a slightly higher discount rate and more measured revenue growth expectations. Analyst Commentary Recent Street research on Rolls-Royce Holdings shows a cluster of higher price targets and generally positive ratings, including several Buy, Overweight and Outperform stances from large global banks.
IAG
UK£4.42
International Consolidated Airlines Group
7D
4.0%
1Y
12.6%
Narrative Update • Aug 19

IAG: Dividend Resumption And Earnings Framework Will Drive Future Share Returns

Analysts have modestly raised their fair value estimate for International Consolidated Airlines Group to £5.43 from £5.05, reflecting updated assumptions around revenue growth, profit margins, discount rate and future P/E, alongside recent Street price target revisions in both directions. Analyst Commentary Recent Street research on International Consolidated Airlines Group shows a mix of optimism and caution, with several large banks refining their price targets in both euro and pence terms.
BAB
UK£10.93
Babcock International Group
7D
-4.0%
1Y
7.0%
Narrative Update • Aug 18

BAB: Protected UK Defense Contracts Will Support Future Earnings Re Rating

The updated analyst price target for Babcock International Group has been trimmed from £16.75 to £16.05. This reflects a slightly lower fair value alongside recent Street research that combines modest target cuts with generally supportive views on the company’s position in core UK defence contracts and its ongoing execution.
VLX
UK£6.14
Volex
7D
14.3%
1Y
74.2%
Narrative Update • Aug 16

VLX: Medical Margin Execution And Buyback Shift Will Shape Future Repricing Potential

Volex's analyst price target has increased to £6.00 from £5.90, with analysts citing the Kepler SignalTek acquisition and its potential to support the medical segment's margins as key reasons for the higher valuation. Analyst Commentary Recent research on Volex has been broadly constructive, with price targets in the range of 600 GBp to 670 GBp and an emphasis on the role of the Kepler SignalTek acquisition in supporting the medical segment.
BA.
UK£20.98
BAE Systems
7D
-5.7%
1Y
18.4%
MRO
UK£5.10
Melrose Industries
7D
4.6%
1Y
-13.5%
CHG
UK£5.54
Chemring Group
7D
-9.0%
1Y
1.7%
BBY
UK£8.86
Balfour Beatty
7D
-1.9%
1Y
51.6%
SPX
UK£71.60
Spirax Group
7D
2.1%
1Y
-1.1%
WEIR
UK£29.10
Weir
7D
12.5%
1Y
17.8%
Analysis Article • Aug 09

Why Weir Group's (LON:WEIR) Shaky Earnings Are Just The Beginning Of Its Problems

The Weir Group PLC's ( LON:WEIR ) stock showed strength, with investors undeterred by its weak earnings report. While...
GDWN
UK£178.40
Goodwin
7D
-6.7%
1Y
87.4%
IMI
UK£31.02
IMI
7D
1.7%
1Y
34.1%
Narrative Update • Aug 05

IMI: M&A Pipeline And Growing Dividends Will Support Future Capital Deployment

Analysts have raised their price target for IMI to £31.28 from £30.61, citing updated assumptions for revenue growth, profit margins, a lower discount rate and a revised future P/E multiple. What's in the News for IMI IMI is seeking bolt on acquisitions that fit its existing business model, with management highlighting a strong M&A pipeline focused on differentiated, scalable technology and an expanded installed base and aftermarket presence.
REL
UK£26.18
RELX
7D
3.1%
1Y
-26.0%
Narrative Update • Aug 03

REL: AI Data Assets And Buybacks Will Support Future Earnings Multiple

Analysts have nudged their fair value estimate for RELX lower to about £33.91 from roughly £35.83, reflecting slightly higher discount rate assumptions alongside updated views on revenue growth, profit margins and future P/E multiples, informed by recent price target increases and positive commentary on the durability of growth in key divisions and the role of new AI products. Analyst Commentary Recent Street research on RELX shows a mix of optimism about growth durability and AI opportunities, with some caution around valuation and segment level risks.