Industrials Lead the Market
- Stephen H Akin
- Jul 29
- 4 min read
Updated: Oct 17
The industrials sector is currently leading U.S. equity market performance in 2025, outpacing all other sectors of the S&P 500 with a year-to-date gain of approximately 15%—over double the increase of the overall index
Industrials YTD Gain 15% more than double the overall index
The industrials sector is currently leading U.S. equity market performance in 2025, outpacing all other sectors of the S&P 500 with a year-to-date gain of approximately 15%—over double the increase of the overall index. This strength follows robust returns in 2024 and reflects sustained investor optimism bolstered by several themes and structural trends:
Reshoring and Onshoring: Companies are increasing domestic manufacturing and infrastructure spending to reduce supply chain risks, reinforced by legislation like the Infrastructure Investment and Jobs Act and the CHIPS Act.
Aerospace and Defense: These industries have contributed significantly due to increased geopolitical tensions and new government spending, with the aerospace and defense subsector up 30% this year.
Technological Upgrades and AI: Automation, robotics, and artificial intelligence are enabling U.S. and European industries to modernize operations—part of what some are calling a new industrial revolution.
Demand for Infrastructure and Electrification: Projects in clean energy, EV charging, and domestic infrastructure are creating positive multi-year tailwinds.
Despite the strong rally, sector resilience will be put to the test as earnings season unfolds, especially with recent slowing manufacturing data (such as a sharp drop in the global manufacturing PMI in July). Industrial firms remain sensitive to economic cycles, capital expenditures, and macro policy uncertainty, but current momentum is buoyed by large public and private investments and favorable policy incentives.
In summary, industrials "leading the way" refers to their current outperformance in equity markets, driven by strategic reshoring, defense spending, technology transformation, and policy support, even as near-term macroeconomic headwinds and earnings risks persist
Boeings "Turnaround Year"
The aerospace giant lost $176 million in the three months ended June 30, down from $1.09 billion a year earlier. Revenue rose 35% to $22.75 billion from $16.87 billion. Adjusting for one-time items, Boeing reported a loss of $433 million or $1.24 a share, better than the loss analysts expected.
Boeing slashed its quarterly losses as sales jumped after it delivered the most airplanes since 2018.
The aerospace giant lost $176 million in the three months ended June 30, down from $1.09 billion a year earlier.
Boeing executives will host an earnings conference call at 10:30 a.m. ET.
“Change takes time, but we’re starting to see a difference in our performance across the business,” CEO Kelly Ortberg said in a note to staff outlining improvements across Boeing’s businesses.
“If we continue to tackle the important work ahead of us and focus on safety, quality and stability, we can navigate the dynamic global environment and make 2025 our turnaround year,” he said.
Boeing has been getting better by many metrics under Ortberg, a former aerospace executive and engineer who took the top job last August. Its airplane deliveries have improved, its production has become more stable and even once-critical airline CEOs have praised Boeing’s leadership.
Please Note: This information on Boeing is provided for informational purposes only. This is not a recommendation to make a transaction in the shares of the company.
Companies involved in specialty machinery for various industrial applications are seeing increased demand.
MP Materials Corp. is an American company specializing in rare earth materials, and it operates the Mountain Pass mine in California, which is the only active rare earth mining and processing facility in the United States. The company is headquartered in Las Vegas, Nevada, and focuses on producing neodymium-praseodymium (NdPr), a key material in high-strength permanent magnets used in electric vehicles, wind turbines, and advanced electronics. MP Materials trades on the NYSE under the ticker MP.
Key points about MP Materials:
The company is central to U.S. efforts to build a domestic rare earth supply chain and reduce dependency on foreign—especially Chinese—sources.
In July 2025, both the U.S. Department of Defense and Apple announced major investments in MP Materials as part of initiatives to secure American access to critical rare earth elements, including a new large-scale rare earth magnet facility ("10X Facility").
MP Materials recently started producing NdPr metal and magnets at its Texas facility, the first of its kind in the United States, in partnership with General Motors and Apple.
The Department of Defense's stake in MP Materials is part of a multibillion-dollar deal and aims to ensure a stable, strategically independent supply of essential materials for the U.S. defense sector, with a planned 15% equity stake and long-term price guarantees.
MP Materials is executing a three-stage plan: mining/concentrate production, refining/separating rare earths, and finished magnet production—making it the only U.S. company attempting full vertical integration from mine to magnet.
The Mountain Pass mine, discovered in 1949, once supplied most of the world's rare earths. The mine’s life expectancy is about 24 years.
With global demand for rare earth elements set to triple by 2035, MP Materials is considered of critical national and industrial importance.
Recent developments include new U.S. and Saudi partnerships, increased tariffs on Chinese rare earth products, and significant international interest in MP Materials shares from entities such as Hancock Prospecting and Chinese-affiliated Shenghe Resources.
MP Materials is positioned as a cornerstone of Western supply chains for rare earths and advanced manufacturing, particularly as geopolitical tensions heighten the need for resource security.
Please Note: This information on MP Materials is provided for informational purposes only. This is not a recommendation to make a transaction in the shares of the company.
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