Despite a weak UK manufacturing backdrop, Jefferies has named seven industrial stocks as its top picks for 2026. The brokerage favors companies with strong fundamentals and earnings visibility, rather than betting on a broad cyclical recovery. Its outlook comes as the UK sector faces subdued PMI data and uneven end-market conditions.

The preferred list includes Bodycote, Chemring, Elementis, Volution, IMI, Rotork, and XP Power. Jefferies cites specific drivers for each, from Bodycote's civil aerospace exposure to Chemring's defense market diversification. For example, Rotork's capital allocation and balance sheet metrics are seen as among the strongest in its coverage.

Jefferies forecasts average UK industrials earnings per share growth of about 8% for 2026. The sector's share prices rose roughly 11% last year. Investors will watch whether these company-specific strengths can offset broader macroeconomic headwinds, particularly in manufacturing and construction markets.