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

U.K. (FTSE) Industrials Sector Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies165
  • 7D6.1%
  • 3M-3.8%
  • 1Y20.5%
  • YTD-1.3%

BAE Systems is up 11%, leading the way for the Industrials industry, which has gained 6.1%. In the last 12 months, the industry was up 20%. Looking forward, earnings are forecast to grow by 8.6% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Apr 2026UK£392.3bUK£254.8bUK£19.7b16.1x19.9x1.5x
Tue, 03 Mar 2026UK£443.5bUK£279.3bUK£21.2b19.1x21x1.6x
Thu, 29 Jan 2026UK£427.0bUK£275.2bUK£20.4b17.9x20.9x1.6x
Sat, 27 Dec 2025UK£418.3bUK£276.0bUK£20.7b16.8x20.2x1.5x
Mon, 24 Nov 2025UK£402.3bUK£275.8bUK£20.8b16.9x19.4x1.5x
Wed, 22 Oct 2025UK£427.6bUK£269.9bUK£20.3b17.6x21.1x1.6x
Fri, 19 Sep 2025UK£434.0bUK£271.3bUK£20.6b17.5x21.1x1.6x
Sun, 17 Aug 2025UK£422.6bUK£274.5bUK£19.8b17.1x21.4x1.5x
Tue, 15 Jul 2025UK£344.5bUK£258.2bUK£13.9b17.9x24.8x1.3x
Thu, 12 Jun 2025UK£337.1bUK£256.8bUK£13.8b17.2x24.5x1.3x
Sat, 10 May 2025UK£327.3bUK£267.6bUK£14.3b16x22.8x1.2x
Mon, 07 Apr 2025UK£297.1bUK£267.6bUK£14.9b14.5x20x1.1x
Wed, 05 Mar 2025UK£327.0bUK£267.8bUK£14.9b17.2x22x1.2x
Fri, 31 Jan 2025UK£330.7bUK£270.1bUK£15.1b17.6x21.9x1.2x
Sun, 29 Dec 2024UK£312.4bUK£269.8bUK£15.1b17.1x20.6x1.2x
Tue, 26 Nov 2024UK£328.6bUK£269.8bUK£15.4b17.1x21.3x1.2x
Thu, 24 Oct 2024UK£318.3bUK£261.4bUK£14.2b16.8x22.5x1.2x
Sat, 21 Sep 2024UK£319.4bUK£260.7bUK£14.0b17.7x22.7x1.2x
Mon, 19 Aug 2024UK£318.2bUK£262.1bUK£14.2b18.3x22.4x1.2x
Wed, 17 Jul 2024UK£326.8bUK£265.4bUK£14.7b18x22.2x1.2x
Fri, 14 Jun 2024UK£329.7bUK£265.6bUK£14.8b17.9x22.2x1.2x
Sun, 12 May 2024UK£325.0bUK£263.0bUK£13.8b17.2x23.5x1.2x
Tue, 09 Apr 2024UK£316.9bUK£263.7bUK£13.7b17.2x23.1x1.2x
Thu, 07 Mar 2024UK£311.9bUK£269.1bUK£14.0b15.2x22.3x1.2x
Sat, 03 Feb 2024UK£323.8bUK£285.2bUK£14.3b15.3x22.6x1.1x
Mon, 01 Jan 2024UK£320.4bUK£289.4bUK£14.5b15.8x22.1x1.1x
Wed, 29 Nov 2023UK£299.9bUK£287.5bUK£13.7b15.4x21.9x1x
Fri, 27 Oct 2023UK£278.7bUK£282.8bUK£13.2b13.8x21.1x1x
Sun, 24 Sep 2023UK£295.5bUK£282.5bUK£13.0b15.4x22.8x1x
Tue, 22 Aug 2023UK£286.3bUK£279.7bUK£12.6b14.6x22.8x1x
Thu, 20 Jul 2023UK£297.8bUK£272.4bUK£11.6b14.5x25.7x1.1x
Sat, 17 Jun 2023UK£301.9bUK£271.2bUK£11.7b14.2x25.9x1.1x
Mon, 15 May 2023UK£294.0bUK£269.0bUK£12.7b14.8x23.1x1.1x
Wed, 12 Apr 2023UK£292.3bUK£266.8bUK£12.1b15.4x24.2x1.1x
Price to Earnings Ratio

24.2x


Total Market Cap: UK£292.3bTotal Earnings: UK£12.1bTotal Revenue: UK£266.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Industrials Sector Price to Earnings3Y Average 22.3x202420252026
Current Industry PE
  • Investors are pessimistic on the British Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 19.9x which is lower than its 3-year average PE of 22.3x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.5x.
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 Market4.54%
Industrials6.08%
Aerospace & Defense8.65%
Commercial Services4.91%
Professional Services4.63%
Electrical3.97%
Trade Distributors3.53%
Industrials3.49%
Marine and Shipping3.36%
Machinery2.99%
Construction2.97%
Airlines2.71%
Building2.12%
Transportation1.71%
Logistics0%0
Infrastructure-1.42%
Industry PE
  • Investors are most optimistic about the Marine and Shipping industry which is trading above its 3-year average PE ratio of 39.0x.
    • 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 52% 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
BA. BAE SystemsUK£22.8910.7%
+UK£6.6b		50.8%PE33.2x
RR. Rolls-Royce HoldingsUK£11.897.2%
+UK£6.6b		80.3%PE16.9x
REL RELXUK£25.255.5%
+UK£2.3b		-33.8%PE21.9x
EXPN ExperianUK£25.923.6%
+UK£781.0m		-20.1%PE22.6x
RTO Rentokil InitialUK£4.886.7%
+UK£772.5m		46.1%PE55.9x

Latest News

BA.
UK£22.89
BAE Systems
7D
10.7%
1Y
50.8%

BA.: Sector Caution Around Softer 2026 Outlook Will Restrain Overheated Expectations

BAE Systems' analyst fair value has moved from £15.83 to £18.76 per share, with the change supported by higher Street price targets clustered around £19.50 to £24.38 and analyst commentary referencing recent results that were slightly ahead of expectations and updated outlooks. Analyst Commentary Recent research points to a mixed tone around BAE Systems, with several price target increases sitting alongside rating downgrades and more cautious framing of future results.
BAB
UK£12.76
Babcock International Group
7D
10.5%
1Y
86.1%

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

Apr 03
Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching
SDY
UK£0.19
Speedy Hire
7D
-5.1%
1Y
6.8%
RTO
UK£4.88
Rentokil Initial
7D
6.7%
1Y
46.1%
DPLM
UK£62.25
Diploma
7D
6.5%
1Y
67.3%

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.
KIE
UK£1.96
Kier Group
7D
-0.7%
1Y
67.5%

KIE: Neutral Stance Will Balance Fusion Contract Upside And Execution Risks

Analysts have lowered their price target for Kier Group from £2.20 to £2.15, citing slightly softer assumptions on revenue growth, profit margins and future P/E multiples. This has resulted in a modest recalibration of fair value expectations.
EXPN
UK£25.92
Experian
7D
3.6%
1Y
-20.1%
RR.
UK£11.89
Rolls-Royce Holdings
7D
7.2%
1Y
80.3%

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.
WATR
UK£2.13
Water Intelligence
7D
-11.3%
1Y
-33.4%
MCON
UK£0.58
Mincon Group
7D
-4.1%
1Y
63.4%
RS1
UK£5.60
RS Group
7D
-1.0%
1Y
9.7%

RS1: Reliability Solutions And Overweight Rating Will Support 2026 Upside Potential

Analysts have trimmed the RS Group price target to £7.70 from £7.90, reflecting slightly updated fair value and P/E assumptions. They still indicate an outlook they view as supportive for the shares.
REL
UK£25.25
RELX
7D
5.5%
1Y
-33.8%

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

Narrative Update on RELX The analyst price target for RELX has been adjusted slightly, with recent Street research pointing to mixed moves in implied £ price levels as analysts weigh resilient Q4 results against ongoing uncertainty around artificial intelligence impacts. Analyst Commentary Recent Street commentary on RELX reflects a split view, with some analysts highlighting resilient execution around Q4 results and others focusing on valuation and ongoing uncertainty around artificial intelligence.
IAG
UK£3.67
International Consolidated Airlines Group
7D
3.1%
1Y
54.3%

IAG: Dividend Resumption And CFO Succession Will Support Future Shareholder Returns

Analysts have trimmed their blended price target on International Consolidated Airlines Group to about £4.98 from roughly £4.99, reflecting slightly higher assumed discount rates, as well as updated views on revenue growth, profit margins and future P/E. Recent Street research shows a mix of target cuts from Deutsche Bank, RBC and Citi, and an increase from Morgan Stanley, plus a ratings upgrade from Barclays.
HAS
UK£0.32
Hays
7D
-3.0%
1Y
-54.6%

HAS: Cyclical And Structural Pressures Will Set Up Future Earnings Recovery

Narrative update on Hays Analysts have cut Hays’ average price target by around £0.04. This reflects recent reductions in formal targets from firms such as Morgan Stanley, RBC Capital and Jefferies as they factor in tougher cyclical and structural conditions and a slightly higher assumed P/E multiple.
AVG
UK£5.40
Avingtrans
7D
-3.6%
1Y
71.4%
ASY
UK£4.64
Andrews Sykes Group
7D
-4.3%
1Y
-7.9%