Direct Answer
16 SEC filers are classified under the Standard Industrial Classification codes that describe the industrial electronics industry, and their latest annual reports show $37.2 billion of combined revenue and a median operating margin of 10.4%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Industrial electronics makers produce controls, sensors, power supplies and automation components used in factories, energy and infrastructure. Demand follows industrial investment and electrification. The first numbers to compare across companies here are orders and backlog, gross margin and end-market mix.
Key Industry Metrics
- Orders and backlog: New orders and those awaiting delivery. Orders lead shipments and follow factory and infrastructure investment, so backlog shows demand ahead and shrinking orders warn of slowing projects.
- Gross margin: Revenue left after components, assembly and labor. Engineered controls and sensors earn more than commodity parts, so mix and pricing largely explain margin differences.
- End-market mix: Sales divided among factory automation, energy, transport and infrastructure. It shows which spending cycles drive results, and a diverse mix can soften swings.
- Distribution inventory: Parts held by distributors. High channel stock means distributors may cut orders until it clears, so shipments can fall below real end demand for a time.
- Organic growth: Sales growth excluding acquisitions and currency. It shows the underlying demand trend, which can differ widely from reported growth when deals or exchange rates move.
Primary Macro Drivers
- Industrial production and capex: Manufacturers and utilities investing in plants and grids buy controls and sensors, so capital spending drives orders and backlog.
- Automation and electrification: Factories adding robots and electric equipment need more control parts per site, raising content and orders.
- Component supply: Availability of chips and parts affects how fast orders ship, appearing in backlog and gross margin.
- Reshoring: Companies moving production closer to home build new plants that need control and power equipment, supporting orders.
Major Risks
- Cyclical demand: Industrial spending slows when growth weakens, cutting orders quickly; watch orders, backlog and organic growth.
- Distributor destocking: Distributors that built stock pause purchases until it clears, so sales can fall below true end demand; watch distribution inventory and book-to-bill.
- Competition: Rivals and lower-cost suppliers push price in standard parts, narrowing gross margin; watch gross margin and share commentary.
- Raw material costs: Metals and component costs can rise before prices adjust, squeezing gross margin; watch pass-through clauses and cost commentary.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Industrial Electronics Filers in the SEC Record
16 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3670, 3823. Their latest fiscal years end between 2025 and 2026, and together they reported $37.2 billion of revenue. Median revenue growth over the prior year was 5.2%. Median operating margin was 10.4% and median net margin 5.1%. Median total liabilities were 38% of total assets, and 10 of 16 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Roper Technologies Inc | $7.9 billion | 12.3% | 28.3% | 19.4% | FY 2025 |
| Ametek Inc/ | $7.4 billion | 6.6% | 25.8% | 20.0% | FY 2025 |
| Hubbell Inc | $5.8 billion | 3.8% | 20.7% | 15.2% | FY 2025 |
| Keysight Technologies, Inc. | $5.4 billion | 8.0% | 16.3% | 15.8% | FY 2025 |
| Fortive Corp | $4.2 billion | 1.9% | 17.3% | 12.8% | FY 2025 |
| Mks Inc | $3.9 billion | 9.6% | 13.4% | 7.5% | FY 2025 |
| Cognex Corp | $994 million | 8.7% | 16.3% | 11.5% | FY 2025 |
| Universal Display Corp \pa\ | $651 million | 0.5% | 38.2% | 37.2% | FY 2025 |
The 8 largest of 16 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Industrial Electronics guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Industrial Electronics industry?
Key performance indicators for the Industrial Electronics industry include: Orders and backlog, Gross margin, End-market mix, Distribution inventory, Organic growth. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Industrial Electronics industry?
The Industrial Electronics industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Industrial Electronics industry?
The primary risks for Industrial Electronics companies include: Cyclical demand, Distributor destocking, Competition, Raw material costs. Investors should assess each company's exposure to these factors and its track record of navigating them.