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U.K. (FTSE) Industrials Sector Analysis

UpdatedApr 11, 2026
DataAggregated Company Financials
Companies165
  • 7D2.4%
  • 3M-5.5%
  • 1Y20.7%
  • YTD1.1%

Over the last 7 days, the Industrials industry has risen 2.4%, driven by gains from Rolls-Royce Holdings of 6.6%. This takes the industry's 12 month performance to a gain of 21%. Looking forward, earnings are forecast to grow by 8.8% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Apr 2026UK£401.6bUK£254.4bUK£19.7b16.9x20.4x1.6x
Tue, 10 Mar 2026UK£400.3bUK£253.5bUK£19.9b17.2x20.1x1.6x
Thu, 05 Feb 2026UK£414.9bUK£275.5bUK£20.5b18.4x20.2x1.5x
Sat, 03 Jan 2026UK£422.5bUK£275.9bUK£20.7b17.3x20.5x1.5x
Mon, 01 Dec 2025UK£406.2bUK£276.2bUK£20.8b16.8x19.5x1.5x
Wed, 29 Oct 2025UK£438.3bUK£270.4bUK£20.4b18x21.5x1.6x
Fri, 26 Sep 2025UK£432.6bUK£271.4bUK£20.6b17.2x21x1.6x
Sun, 24 Aug 2025UK£424.8bUK£274.3bUK£19.8b17.4x21.5x1.5x
Tue, 22 Jul 2025UK£348.1bUK£258.1bUK£13.9b17.9x25.1x1.3x
Thu, 19 Jun 2025UK£337.5bUK£257.2bUK£13.8b17.1x24.5x1.3x
Sat, 17 May 2025UK£336.4bUK£266.0bUK£14.2b16.6x23.7x1.3x
Mon, 14 Apr 2025UK£301.0bUK£267.9bUK£14.9b14.7x20.2x1.1x
Wed, 12 Mar 2025UK£314.8bUK£267.9bUK£14.9b16.5x21.1x1.2x
Fri, 07 Feb 2025UK£331.2bUK£265.8bUK£14.9b17.7x22.3x1.2x
Sun, 05 Jan 2025UK£312.1bUK£270.0bUK£15.2b16.9x20.6x1.2x
Tue, 03 Dec 2024UK£327.7bUK£269.7bUK£15.1b17.3x21.8x1.2x
Thu, 31 Oct 2024UK£316.1bUK£262.6bUK£14.5b16.7x21.7x1.2x
Sat, 28 Sep 2024UK£321.9bUK£260.7bUK£14.1b17.8x22.9x1.2x
Mon, 26 Aug 2024UK£316.4bUK£261.1bUK£14.1b18.5x22.4x1.2x
Wed, 24 Jul 2024UK£320.6bUK£265.7bUK£14.9b18.3x21.5x1.2x
Fri, 21 Jun 2024UK£324.7bUK£265.9bUK£14.9b18x21.8x1.2x
Sun, 19 May 2024UK£325.7bUK£262.4bUK£13.9b17.4x23.4x1.2x
Tue, 16 Apr 2024UK£315.4bUK£263.9bUK£13.8b17.2x22.9x1.2x
Thu, 14 Mar 2024UK£312.9bUK£265.2bUK£13.7b16.7x22.8x1.2x
Sat, 10 Feb 2024UK£305.5bUK£268.5bUK£14.1b15.5x21.6x1.1x
Mon, 08 Jan 2024UK£315.3bUK£289.2bUK£14.5b15.7x21.8x1.1x
Wed, 06 Dec 2023UK£302.0bUK£288.5bUK£14.1b15.1x21.5x1x
Fri, 03 Nov 2023UK£287.2bUK£283.8bUK£13.5b14.3x21.2x1x
Sun, 01 Oct 2023UK£294.2bUK£282.6bUK£13.2b15.2x22.3x1x
Tue, 29 Aug 2023UK£288.1bUK£280.2bUK£12.6b14.9x22.9x1x
Thu, 27 Jul 2023UK£297.2bUK£272.4bUK£11.4b14.7x26.2x1.1x
Sat, 24 Jun 2023UK£293.3bUK£271.6bUK£11.7b14.9x25.1x1.1x
Mon, 22 May 2023UK£297.1bUK£271.1bUK£11.7b14.7x25.4x1.1x
Wed, 19 Apr 2023UK£297.9bUK£266.9bUK£12.1b15.2x24.7x1.1x
Price to Earnings Ratio

24.7x


Total Market Cap: UK£297.9bTotal Earnings: UK£12.1bTotal Revenue: UK£266.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 22.2x202420252026
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 22.2x.
  • The 3-year average PS ratio of 1.3x 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 18% 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 Market1.87%
Industrials2.40%
Electrical8.19%
Building7.61%
Infrastructure7.28%
Machinery7.07%
Construction6.32%
Airlines6.21%
Industrials5.49%
Trade Distributors5.16%
Transportation2.55%
Commercial Services2.32%
Aerospace & Defense1.87%
Marine and Shipping0.60%
Logistics0%0
Professional Services-1.35%
Industry PE
  • Investors are most optimistic about the Marine and Shipping industry which is trading above its 3-year average PE ratio of 41.0x.
    • Analysts are expecting annual earnings growth of 10.2%, 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 53% over the next 5 years.
  • This is better than its past earnings decline of 20% per year.
  • In contrast, the Industrials industry is expected to see its earnings decline by 15% 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£12.676.6%
+UK£6.5b		82.6%PE18x
IAG International Consolidated Airlines GroupUK£3.885.8%
+UK£925.9m		61.3%PE6x
DPLM DiplomaUK£67.007.6%
+UK£637.0m		76.9%PE48.6x
WEIR Weir GroupUK£30.987.3%
+UK£546.9m		46.4%PE32.4x
IMI IMIUK£28.188.2%
+UK£518.7m		69.6%PE22x

Latest News

BA.
UK£21.94
BAE Systems
7D
-4.2%
1Y
32.4%
CWR
UK£3.07
Ceres Power Holdings
7D
-9.0%
1Y
457.2%
HAS
UK£0.30
Hays
7D
-5.8%
1Y
-54.9%
SMIN
UK£24.98
Smiths Group
7D
5.5%
1Y
40.7%
ROSE
UK£3.65
Rosebank Industries
7D
11.3%
1Y
-28.4%
IMI
UK£28.18
IMI
7D
8.2%
1Y
69.6%
QQ.
UK£4.77
QinetiQ Group
7D
-0.8%
1Y
26.2%
SPX
UK£74.18
Spirax Group
7D
7.7%
1Y
28.2%
MRO
UK£5.26
Melrose Industries
7D
-0.7%
1Y
29.9%

MRO: Future Cash Returns Will Reflect Rising Earnings Visibility From Buybacks And Dividend Policy

Analysts have adjusted their blended price target for Melrose Industries to account for Deutsche Bank's lower target of £5.70 and Citi's higher target of £7.63, citing updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E expectations. Analyst Commentary Recent research shows a split in how analysts frame the risk and reward around Melrose Industries, with some lifting fair value assumptions while others take a more cautious stance when updating discount rates, revenue growth and margin inputs.
EXPN
UK£25.69
Experian
7D
-0.9%
1Y
-23.4%

EXPN: Data And AI Expansion Will Support Future Upside Despite Higher Required Returns

Experian's updated analyst price target edges lower to £4,100 from £4,700 as analysts adjust their views in line with slightly softer growth assumptions, a modestly higher discount rate and a small reduction in expected future P/E multiples. Analyst Commentary Bullish Takeaways Bullish analysts are comfortable maintaining positive ratings even with the lower £4,100 target, which suggests they still see upside potential relative to current fundamentals and execution.
REL
UK£24.65
RELX
7D
-2.4%
1Y
-34.0%

REL: Q4 Resilience To AI Concerns Will Support Future Multiple Re Rating

Narrative Update on RELX The updated analyst price target for RELX has shifted slightly, with fair value moving from about £37.14 to around £36.67. Analysts are factoring in a marginally higher discount rate and a slightly lower future P/E multiple, while recent research highlights steady guidance and limited immediate impact from AI related concerns.
IAG
UK£3.88
International Consolidated Airlines Group
7D
5.8%
1Y
61.3%

IAG: Dividend Restart And CFO Transition Will Support Future Earnings Profile

Analysts have trimmed the blended price target for International Consolidated Airlines Group by about £0.04, citing slightly higher discount rate assumptions, a modestly softer profit margin outlook, and updated revenue growth expectations alongside a marginally lower future P/E input. Analyst Commentary Recent Street research on International Consolidated Airlines Group points to a mixed but generally cautious stance on valuation, with several firms revisiting their price targets and ratings to reflect updated assumptions on margins, revenue and risk.
WEIR
UK£30.98
Weir Group
7D
7.3%
1Y
46.4%

WEIR: Future Execution And M&A Pipeline Are Expected To Support Higher P/E

The analyst price target for Weir Group has been trimmed slightly to £34.05 from £34.19, as analysts factor in a mix of recent target increases and reductions from major banks while keeping core assumptions on growth, margins and P/E broadly stable. Analyst Commentary Recent research on Weir Group reflects a mix of higher and lower price targets, with most adjustments clustering in the £32.00 to £38.00 range.
BAB
UK£12.58
Babcock International Group
7D
-1.4%
1Y
83.0%

Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching

Apr 03
Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching
DPLM
UK£67.00
Diploma
7D
7.6%
1Y
76.9%

DPLM: 2026 Guidance And Bank Revisions Will Support Premium P/E View

The analyst price target for Diploma has moved higher to £66.56. This change is supported by recent target upgrades from multiple banks and updated assumptions around modestly higher revenue growth, profit margins, and a slightly lower future P/E multiple.
RR.
UK£12.67
Rolls-Royce Holdings
7D
6.6%
1Y
82.6%

RR.: FY25 Beat And New Buyback Plan Will Support Stronger Outlook

Narrative Update The updated analyst price target for Rolls-Royce Holdings reflects a shift in valuation inputs, with a slightly lower fair value estimate and P/E assumption, alongside higher projected revenue growth and profit margins. Analysts are responding to recent price target increases to £12.50 and £16.00 following the company's FY25 performance and 2026 guidance.