Sector Report4 min read
Industrials: 14 A-Grades and Five Failures
Half the sector earns A-grades while Boeing burns cash. The spread tells you everything about where quality lives.
Mar 20, 2026
VRSKUNPUBERNSC+11
Aerospace, defense, manufacturing, transportation, and logistics
Sector classifications follow the GICS industry standard.
Companies ranked by free cash flow margin
Health grades across the sector
| # | Symbol | Grade | FCF Margin |
|---|---|---|---|
| 1 | VRSK | A | 38.8% |
| 2 | UNP | B | 22.4% |
| 3 | UBER | A | 18.8% |
| 4 | NSC | A | 17.7% |
| 5 | LYFT | A | 17.7% |
| 6 | ODFL | A | 17.4% |
| 7 | ITW | A | 16.9% |
| 8 | PH | A | 16.8% |
| 9 | ROK | A | 16.3% |
| 10 | GE | A | 15.8% |
| 11 | EMR | B | 14.8% |
| 12 | HON | B | 14.5% |
| 13 | TT | A | 13.2% |
| 14 | ETN | A | 12.9% |
| 15 | FAST | A | 12.8% |
| 16 | CSX | C | 12.1% |
| 17 | WM | C | 11.2% |
| 18 | CAT | B | 11.0% |
| 19 | PCAR | C | 10.6% |
| 20 | LMT | A | 9.2% |
| 21 | RTX | C | 8.4% |
| 22 | NOC | C | 7.9% |
| 23 | GD | D | 7.5% |
| 24 | DE | D | 7.2% |
| 25 | CMI | B | 7.1% |
| 26 | MMM | F | 5.6% |
| 27 | UPS | D | 5.4% |
| 28 | JCI | F | 4.1% |
| 29 | FDX | F | 3.4% |
| 30 | BA | F | -2.1% |
Half the sector earns A-grades while Boeing burns cash. The spread tells you everything about where quality lives.
The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.