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U.K. (FTSE) Industrials Sector Analysis

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies167
  • 7D4.4%
  • 3M0.2%
  • 1Y25.6%
  • YTD3.7%

The Industrials industry is up 4.4% in the last week, with Rolls-Royce Holdings up 7.9%. This means that the industry has gained 26% over the past year. Looking forward, earnings are forecast to grow by 7.3% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Mon, 31 Jul 2023UK£300.4bUK£276.2bUK£12.3b14.8x24.4x1.1x
Wed, 28 Jun 2023UK£291.6bUK£271.5bUK£11.7b14.8x25x1.1x
Fri, 26 May 2023UK£291.0bUK£271.5bUK£11.7b14.4x24.8x1.1x
Sun, 23 Apr 2023UK£298.6bUK£266.9bUK£12.0b15.7x24.8x1.1x
Tue, 21 Mar 2023UK£286.5bUK£267.1bUK£12.1b14.8x23.7x1.1x
Thu, 16 Feb 2023UK£285.5bUK£234.2bUK£10.9b17.1x26.2x1.2x
Sat, 14 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 Market1.90%
Industrials4.37%
Aerospace & Defense8.48%
Airlines4.50%
Trade Distributors2.80%
Machinery2.73%
Electrical2.72%
Commercial Services2.00%
Construction1.29%
Infrastructure0.85%
Professional Services0.38%
Logistics0%0
Transportation-0.21%
Industrials-0.22%
Marine and Shipping-0.81%
Building-1.48%
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 25.9%, 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 33% 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£12.599.5%
+UK£9.1b		117.8%PE18.2x
BA. BAE SystemsUK£19.2612.4%
+UK£6.3b		61.8%PE29x
REL RELXUK£31.424.0%
+UK£2.2b		-16.8%PE29.7x
AHT Ashtead GroupUK£54.747.6%
+UK£1.6b		10.5%PE21.7x
BAB Babcock International GroupUK£14.4115.9%
+UK£984.8m		193.1%PE25x

Latest News

BAB
UK£14.41
Babcock International Group
7D
15.9%
1Y
193.1%
BRCK
UK£0.53
Brickability Group
7D
-5.0%
1Y
-12.0%
HAS
UK£0.55
Hays
7D
-3.0%
1Y
-27.7%
EZJ
UK£5.05
easyJet
7D
-1.2%
1Y
-3.4%

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£12.59
Rolls-Royce Holdings
7D
9.5%
1Y
117.8%
DCC
UK£44.98
DCC
7D
-2.9%
1Y
-12.8%

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£54.74
Ashtead Group
7D
7.6%
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.
EXPN
UK£34.44
Experian
7D
2.4%
1Y
-0.3%
REL
UK£31.42
RELX
7D
4.0%
1Y
-16.8%

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£6.31
Melrose Industries
7D
7.2%
1Y
13.6%

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.
BA.
UK£19.26
BAE Systems
7D
12.4%
1Y
61.8%

BA.: NATO-Fueled Demand Will Face Execution And Budget Uncertainty

Analysts have raised their price target on BAE Systems by approximately 12 percent to reflect stronger expected revenue growth, slightly higher margins, and robust, geographically diversified demand from NATO countries. This demand is anticipated to support a higher future valuation multiple.
IAG
UK£4.32
International Consolidated Airlines Group
7D
4.3%
1Y
40.8%

IAG: Heathrow Dominance And Buybacks Will Drive Stronger Future Shareholder Returns

Analysts have nudged their consolidated price target for International Consolidated Airlines Group higher to around GBP 5.00 per share, up from roughly GBP 4.75, citing a modestly lower perceived risk profile, slightly stronger long term profitability, and supportive recent rating and target upgrades from major brokerages. Analyst Commentary Recent research updates on International Consolidated Airlines Group point to a generally constructive stance, with several firms lifting their price targets and highlighting the company as a preferred way to play the European airline recovery.
ITRK
UK£45.96
Intertek Group
7D
-0.6%
1Y
-3.9%

Why You Should Care About Intertek Group's (LON:ITRK) Strong Returns On Capital

Dec 23
Why You Should Care About Intertek Group's (LON:ITRK) Strong Returns On Capital
BNZL
UK£20.32
Bunzl
7D
-2.1%
1Y
-37.6%
FGP
UK£1.89
FirstGroup
7D
-1.0%
1Y
20.8%

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.
JHD
UK£1.35
James Halstead
7D
-1.5%
1Y
-23.5%