Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Industrials Sector Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies167
  • 7D1.3%
  • 3M8.0%
  • 1Y17.7%
  • YTD3.0%

The Industrials industry is up 2.0% in the last week, with BAE Systems up 5.5%. In the last 12 months, the industry was up 18%. 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
Wed, 25 Feb 2026UK£434.9bUK£277.0bUK£20.8b19.2x20.9x1.6x
Fri, 23 Jan 2026UK£437.7bUK£275.9bUK£20.5b18x21.4x1.6x
Sun, 21 Dec 2025UK£422.5bUK£276.3bUK£20.7b16.9x20.4x1.5x
Tue, 18 Nov 2025UK£411.7bUK£274.9bUK£20.6b17.5x20x1.5x
Thu, 16 Oct 2025UK£427.9bUK£270.3bUK£20.3b17.8x21x1.6x
Sat, 13 Sep 2025UK£433.1bUK£271.0bUK£20.6b17.3x21.1x1.6x
Mon, 11 Aug 2025UK£421.2bUK£274.1bUK£19.8b17.3x21.3x1.5x
Wed, 09 Jul 2025UK£341.9bUK£257.5bUK£13.9b17.7x24.6x1.3x
Fri, 06 Jun 2025UK£339.2bUK£253.1bUK£13.6b17x25x1.3x
Sun, 04 May 2025UK£327.9bUK£267.3bUK£14.2b15.4x23.1x1.2x
Tue, 01 Apr 2025UK£312.8bUK£267.2bUK£14.8b15.4x21.1x1.2x
Thu, 27 Feb 2025UK£326.2bUK£267.0bUK£15.0b17.3x21.8x1.2x
Sat, 25 Jan 2025UK£330.0bUK£270.3bUK£15.1b17.6x21.8x1.2x
Mon, 23 Dec 2024UK£313.4bUK£269.8bUK£15.1b17x20.7x1.2x
Wed, 20 Nov 2024UK£320.4bUK£268.1bUK£15.1b17x21.2x1.2x
Fri, 18 Oct 2024UK£324.7bUK£261.2bUK£14.1b17.2x23x1.2x
Sun, 15 Sep 2024UK£320.1bUK£261.2bUK£14.1b18.4x22.8x1.2x
Tue, 13 Aug 2024UK£313.4bUK£262.4bUK£14.2b17.6x22x1.2x
Thu, 11 Jul 2024UK£321.6bUK£265.2bUK£14.8b17.7x21.7x1.2x
Sat, 08 Jun 2024UK£325.7bUK£266.0bUK£14.9b17.7x21.9x1.2x
Mon, 06 May 2024UK£314.4bUK£262.4bUK£13.7b16.5x22.9x1.2x
Wed, 03 Apr 2024UK£317.3bUK£263.7bUK£13.7b17.2x23.1x1.2x
Fri, 01 Mar 2024UK£312.8bUK£268.7bUK£14.1b15x22.1x1.2x
Sun, 28 Jan 2024UK£323.7bUK£285.0bUK£14.3b15.7x22.7x1.1x
Tue, 26 Dec 2023UK£318.5bUK£289.4bUK£14.4b16x22.1x1.1x
Thu, 23 Nov 2023UK£299.5bUK£287.0bUK£13.7b15.4x21.8x1x
Sat, 21 Oct 2023UK£282.3bUK£282.8bUK£13.2b14.2x21.4x1x
Mon, 18 Sep 2023UK£300.1bUK£281.8bUK£12.9b15.4x23.2x1.1x
Wed, 16 Aug 2023UK£295.2bUK£279.5bUK£12.7b14.8x23.3x1.1x
Fri, 14 Jul 2023UK£291.5bUK£271.8bUK£11.6b14.2x25.1x1.1x
Sun, 11 Jun 2023UK£297.6bUK£271.1bUK£11.7b14.4x25.5x1.1x
Tue, 09 May 2023UK£292.0bUK£268.8bUK£12.7b14.8x23x1.1x
Thu, 06 Apr 2023UK£290.4bUK£266.7bUK£12.1b15.2x24.1x1.1x
Sat, 04 Mar 2023UK£288.5bUK£261.2bUK£11.8b16.6x24.5x1.1x
Price to Earnings Ratio

24.5x


Total Market Cap: UK£288.5bTotal Earnings: UK£11.8bTotal Revenue: UK£261.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 22.4x202420252026
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 22.4x.
  • 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 21% 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 Market1.22%
Industrials1.29%
Infrastructure3.63%
Marine and Shipping3.61%
Aerospace & Defense2.34%
Professional Services1.39%
Trade Distributors1.27%
Industrials1.12%
Machinery0.93%
Building0.16%
Logistics0%0
Electrical-0.39%
Construction-0.47%
Transportation-0.63%
Commercial Services-1.04%
Airlines-3.02%
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 14.4%, which is less than its past year's earnings decline of 19.9%.
Forecasted Growth
  • Analysts are most optimistic on the Electrical industry, expecting annual earnings growth of 44% 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 14% 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
BA. BAE SystemsUK£21.415.5%
+UK£3.3b		56.7%PE30.9x
RR. Rolls-Royce HoldingsUK£13.101.0%
+UK£1.1b		113.0%PE18.9x
REL RELXUK£22.732.2%
+UK£762.6m		-41.8%PE19.9x
AHT Ashtead GroupUK£52.522.6%
+UK£532.9m		12.0%PE20.7x
BAB Babcock International GroupUK£14.033.8%
+UK£258.4m		115.8%PE24.3x

Latest News

BBY
UK£7.63
Balfour Beatty
7D
-1.8%
1Y
66.5%
EXPN
UK£25.61
Experian
7D
1.2%
1Y
-33.2%

EXPN: AI Mortgage And Data Partnerships Will Support Future Upside

Analysts have trimmed their price targets on Experian, with one major firm cutting its target by £0.83. The change reflects slightly adjusted assumptions on fair value, discount rate and forward P/E, rather than a change in the core growth or margin outlook.
REL
UK£22.73
RELX
7D
2.2%
1Y
-41.8%

REL: AI Execution Risk Repricing Will Support Future Multiple Re Rating Potential

Analysts have trimmed their fair value estimate for RELX, cutting the price target by £4.48 to reflect slightly lower assumed profit margins and a reduced future P/E. Revenue growth expectations, however, remain in line with recent ranges reported in Street research.
IAG
UK£4.34
International Consolidated Airlines Group
7D
-2.6%
1Y
35.0%

IAG: Higher Fair Value And CFO Succession Will Support Future Shareholder Returns

Analysts have raised their fair value estimate for International Consolidated Airlines Group from approximately £4.73 to around £4.99 per share. This change incorporates updated assumptions, including a slightly lower discount rate, modestly higher revenue growth and profit margin expectations, and a higher future P/E multiple.
MRO
UK£6.40
Melrose Industries
7D
-4.4%
1Y
3.4%

MRO: Future Cash Returns Will Reflect Balanced Execution And Sector Repricing Risks

Analysts have slightly increased their fair value estimate for Melrose Industries, supported by a higher Street price target of £7.63, up from £7.35, after revisiting assumptions on the discount rate, revenue growth, profit margins and future P/E multiples. Analyst Commentary Recent Street commentary around Melrose Industries focuses on how the updated fair value work lines up with the new price target of £7.63, up from £7.35.
GDWN
UK£252.00
Goodwin
7D
-6.0%
1Y
259.0%
WIZZ
UK£12.96
Wizz Air Holdings
7D
-9.3%
1Y
-17.1%
BA.
UK£21.41
BAE Systems
7D
5.5%
1Y
56.7%

BA.: Defence Order Momentum And 2026 Visibility Will Support Earnings Repricing

The updated analyst price target for BAE Systems edges up from £25.51 to £26.00. This change reflects analysts' mixed but generally constructive research in recent weeks, including higher price targets after slightly ahead of expectation fiscal 2025 results and revised outlooks into 2026.
RTO
UK£4.46
Rentokil Initial
7D
-1.2%
1Y
11.0%
EZJ
UK£4.71
easyJet
7D
-4.2%
1Y
-4.2%

EZJ: Improved Earnings Assumptions Will Support Upside At Current P/E

Analysts have adjusted their price targets on easyJet, with the consensus moving to £8.00 as they factor in slightly lower discount rates, modestly higher revenue growth expectations, and a marginally stronger profit margin outlook, while still applying a similar forward P/E assumption. Analyst Commentary Recent research opinions on easyJet have been mixed, with one upgrade and one downgrade in close succession.
BAB
UK£14.03
Babcock International Group
7D
3.8%
1Y
115.8%

BAB: Higher P/E And Mixed Ratings Will Test Execution And Cash Delivery

Narrative Update: Babcock International Group Analyst Target Shift The analyst fair value estimate for Babcock International Group has moved from £11.15 to £12.80. This reflects updated assumptions on revenue growth, profit margins and future P/E multiples, in line with recent target changes from several banks that have raised their price objectives, while others have turned more cautious on the shares.
DPLM
UK£56.35
Diploma
7D
2.5%
1Y
25.5%

DPLM: Higher Street Objectives And 2026 Guidance Will Support Premium P/E View

Analysts have lifted their blended price target on Diploma by £4.50, citing recent target increases from multiple banks and steady assumptions around growth, margins and P/E expectations. Analyst Commentary Recent price target changes on Diploma point to a more supportive stance from the Street, with analysts adjusting their models while keeping core assumptions around growth, margins and P/E in focus.
AHT
UK£52.52
Ashtead Group
7D
2.6%
1Y
12.0%

AHT: Buybacks And Progressive Dividend Policy Will Support Further Upside

Analysts have raised their price target on Ashtead Group to £77.32 from £74.60, reflecting updated assumptions around revenue, profit margins and future P/E multiples in their models. What's in the News The Board reaffirmed full year Group rental revenue guidance for 2025/26 in a range of 0% to 4%, giving investors a clear view of the company’s current expectations for top line rental growth (Key Developments).
RR.
UK£13.10
Rolls-Royce Holdings
7D
1.0%
1Y
113.0%

RR.: Turnaround Progress And Quantum Advances Will Support Stronger Long Term Prospects

Analysts have lifted their price target on Rolls-Royce Holdings, with our fair value estimate moving from £15.68 to £16.25, citing updated assumptions around revenue growth, profit margins and future P/E multiples supported by recent positive research on Ultrafan and the wider turnaround story. Analyst Commentary Recent Street research has leaned constructive, with bullish analysts pointing to both the ongoing business turnaround and the potential of the Ultrafan program as key parts of the Rolls-Royce equity story.
RS1
UK£6.93
RS Group
7D
-3.8%
1Y
9.8%

RS1: Stabilizing End Markets And Efficiency Work Will Support A Balanced Outlook

Narrative update The analyst price target for RS Group has been revised modestly higher to £7.23 from £7.16. Analysts point to an upgraded stance on the shares, along with expectations around stabilizing end markets and efficiency gains, as key supports for the updated view.
SMIN
UK£26.94
Smiths Group
7D
2.2%
1Y
32.6%

SMIN: Buyback Commitment And Upgrades Will Shape Balanced Risk Reward Profile

Our updated view nudges Smiths Group's fair value estimate to £28.16 per share, with analysts pointing to recent price target increases at several banks and slightly firmer margin and P/E assumptions as key supports for this change. Analyst Commentary Recent Street research has been broadly supportive of Smiths Group, with several banks adjusting price targets upward and one major house upgrading its rating.