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U.K. (FTSE) Industrials Sector Analysis

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies167
  • 7D7.1%
  • 3M3.6%
  • 1Y27.2%
  • YTD5.9%

Rolls-Royce Holdings is up 11%, leading the way for the Industrials industry, which has gained 7.1%. In the last 12 months, the industry was up 27%. Looking forward, earnings are forecast to grow by 7.2% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 09 Jan 2026UK£446.9bUK£275.9bUK£20.5b17.8x21.8x1.6x
Sun, 07 Dec 2025UK£408.7bUK£276.2bUK£20.8b16.8x19.6x1.5x
Tue, 04 Nov 2025UK£433.9bUK£270.3bUK£20.4b18.3x21.3x1.6x
Thu, 02 Oct 2025UK£439.8bUK£270.7bUK£20.5b17.7x21.5x1.6x
Sat, 30 Aug 2025UK£421.4bUK£274.4bUK£19.8b17.1x21.3x1.5x
Mon, 28 Jul 2025UK£344.2bUK£253.8bUK£13.6b18x25.4x1.4x
Wed, 25 Jun 2025UK£333.3bUK£256.8bUK£13.8b17.1x24.2x1.3x
Fri, 23 May 2025UK£337.3bUK£266.1bUK£14.2b16.3x23.8x1.3x
Sun, 20 Apr 2025UK£309.6bUK£267.3bUK£14.8b14.9x20.9x1.2x
Tue, 18 Mar 2025UK£320.9bUK£267.8bUK£14.8b16.7x21.7x1.2x
Thu, 13 Feb 2025UK£333.0bUK£265.8bUK£14.9b17.6x22.4x1.3x
Sat, 11 Jan 2025UK£315.6bUK£270.7bUK£15.2b16.4x20.7x1.2x
Mon, 09 Dec 2024UK£329.7bUK£269.5bUK£15.0b18.1x21.9x1.2x
Wed, 06 Nov 2024UK£318.9bUK£262.5bUK£14.5b17.2x21.9x1.2x
Fri, 04 Oct 2024UK£316.8bUK£261.4bUK£14.1b16.6x22.4x1.2x
Sun, 01 Sep 2024UK£322.2bUK£260.8bUK£14.1b18.6x22.9x1.2x
Tue, 30 Jul 2024UK£325.1bUK£265.8bUK£15.2b17.4x21.4x1.2x
Thu, 27 Jun 2024UK£321.1bUK£266.0bUK£14.9b17.7x21.6x1.2x
Sat, 25 May 2024UK£326.2bUK£261.1bUK£13.4b18.3x24.3x1.2x
Mon, 22 Apr 2024UK£309.2bUK£264.3bUK£13.7b17.2x22.5x1.2x
Wed, 20 Mar 2024UK£314.1bUK£265.4bUK£13.7b16.9x22.9x1.2x
Fri, 16 Feb 2024UK£306.0bUK£268.5bUK£14.1b15.3x21.6x1.1x
Sun, 14 Jan 2024UK£319.1bUK£289.2bUK£14.5b15.5x22x1.1x
Tue, 12 Dec 2023UK£309.9bUK£289.5bUK£14.5b14.8x21.4x1.1x
Thu, 09 Nov 2023UK£289.2bUK£283.7bUK£13.5b14.4x21.5x1x
Sat, 07 Oct 2023UK£292.8bUK£282.4bUK£13.2b14.8x22.3x1x
Mon, 04 Sep 2023UK£294.0bUK£280.5bUK£12.6b15.3x23.3x1x
Wed, 02 Aug 2023UK£300.2bUK£276.5bUK£12.3b14.6x24.4x1.1x
Fri, 30 Jun 2023UK£293.4bUK£271.8bUK£11.6b14.6x25.2x1.1x
Sun, 28 May 2023UK£292.5bUK£271.6bUK£11.7b14x25x1.1x
Tue, 25 Apr 2023UK£298.9bUK£266.9bUK£12.1b15.7x24.8x1.1x
Thu, 23 Mar 2023UK£292.0bUK£267.3bUK£12.1b15.8x24.1x1.1x
Sat, 18 Feb 2023UK£289.4bUK£235.0bUK£11.0b16.9x26.4x1.2x
Mon, 16 Jan 2023UK£277.5bUK£232.4bUK£11.2b17.8x24.7x1.2x
Price to Earnings Ratio

24.7x


Total Market Cap: UK£277.5bTotal Earnings: UK£11.2bTotal Revenue: UK£232.4bTotal 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 Market1.28%
Industrials7.07%
Aerospace & Defense12.91%
Trade Distributors4.41%
Airlines3.81%
Machinery3.80%
Commercial Services3.60%
Electrical3.39%
Professional Services2.76%
Construction2.39%
Marine and Shipping2.07%
Industrials0.88%
Infrastructure0.66%
Logistics0%0
Transportation-0.037%
Building-0.099%
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 26.0%, 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
RR. Rolls-Royce HoldingsUK£12.7310.7%
+UK£10.3b		118.9%PE18.4x
BA. BAE SystemsUK£20.2318.0%
+UK£9.2b		70.5%PE30.5x
REL RELXUK£31.484.2%
+UK£2.3b		-17.3%PE29.7x
AHT Ashtead GroupUK£54.847.8%
+UK£1.7b		10.5%PE21.6x
BAB Babcock International GroupUK£14.5016.7%
+UK£1.0b		191.2%PE25.1x

Latest News

IAG
UK£4.36
International Consolidated Airlines Group
7D
5.2%
1Y
39.4%
BA.
UK£20.23
BAE Systems
7D
18.0%
1Y
70.5%
BAB
UK£14.50
Babcock International Group
7D
16.7%
1Y
191.2%

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

Jan 08
Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)
STEM
UK£1.81
SThree
7D
-5.1%
1Y
-34.2%
HAS
UK£0.52
Hays
7D
-8.3%
1Y
-28.2%
EZJ
UK£5.05
easyJet
7D
-1.0%
1Y
-2.3%

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£12.73
Rolls-Royce Holdings
7D
10.7%
1Y
118.9%
DCC
UK£44.14
DCC
7D
-4.7%
1Y
-14.2%

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£54.84
Ashtead Group
7D
7.8%
1Y
10.5%

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£4.66
Rentokil Initial
7D
4.0%
1Y
20.1%

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£31.48
RELX
7D
4.2%
1Y
-17.3%

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
MRO
UK£6.24
Melrose Industries
7D
6.1%
1Y
11.0%

MRO: Future Cash Returns Will Rise As Earnings Outlook Strengthens

Analysts have raised their price target on Melrose Industries from £6.00 to £7.50 per share, citing a slightly higher expected future earnings multiple and continued confidence in the company’s long term growth and profitability profile. Analyst Commentary Following the latest target price increase to 750 GBp, bullish analysts point to both an improving earnings outlook and a higher justified valuation multiple, while more cautious voices focus on execution risks and the durability of end market demand.
NXR
UK£3.17
Norcros
7D
-5.4%
1Y
26.8%

NXR: Higher Dividend And M&A Pipeline Will Drive Future Shareholder Returns

Analysts have nudged their price target on Norcros slightly higher to align with modestly improved long term valuation assumptions, reflecting incremental adjustments to the discount rate and future earnings expectations. What's in the News Norcros is actively pursuing bolt on acquisitions, with management cultivating relationships with owners and entrepreneurs over a 1 to 3 year horizon to maintain a well developed M&A pipeline (Interim Results Presentation).
PAGE
UK£2.23
PageGroup
7D
-5.2%
1Y
-30.5%

PAGE: Modest Profit Downgrade Will Still Support Medium-Term Resilience

Analysts have modestly increased their price target on PageGroup to reflect a slightly higher implied valuation, citing stable growth and margin assumptions, as well as a marginally higher discount rate and forward earnings multiple in their refreshed models. What's in the News PageGroup lowered its 2025 operating profit guidance and now expects full-year operating profit to be broadly in line with consensus of GBP 21.5 million.
BNZL
UK£20.46
Bunzl
7D
-1.4%
1Y
-38.0%
FGP
UK£1.88
FirstGroup
7D
-1.3%
1Y
19.6%

FGP: Dividend And Buyback Will Support Stronger Shareholder Returns Ahead

Analysts have nudged their price target on FirstGroup higher, lifting fair value from £2.39 to £2.50 as they factor in slightly improved revenue expectations despite a modestly softer margin and higher discount rate. What's in the News Board proposes an interim dividend of 2.2 pence per share for H1 2026, up from 1.7 pence in H1 2025.