
Corbin Advisors Releases Quarterly Industrial Sentiment Survey®: A Global Investor Perspective on Growth, Challenges, and Optimism for 2025
Key Findings and Sentiment Overview: A Shift Toward Optimism in the Industrial Sector as Investors Prepare for 2025
Corbin Advisors, a strategic consultancy focused on value realization across the globe, has unveiled its latest quarterly Industrial Sentiment Survey®. This survey, part of the esteemed Inside The Buy-Side® research publication, was conducted between December 13, 2024, and January 10, 2025. Responses were collected from 34 institutional investors and sell-side analysts worldwide, all of whom actively cover the Industrial Sector. Collectively, these buy-side firms manage approximately $2.1 trillion in assets, with $247 billion invested in the Industrials sector.
The survey reveals a shift in sentiment towards a more optimistic outlook for 2025, following a fourth-quarter outlook marked by muted demand. Investors, while cautious about the pace of growth, are focusing on opportunities for expansion and growth as they look ahead. This shift in perspective has been a key theme in the survey’s findings.
Fourth-Quarter Outlook: Performance Expectations and Investor Sentiment
While investors expect fourth-quarter results to largely meet consensus estimates, year-over-year performance is anticipated to show improvement, driven by expectations of subdued demand. Notably, optimism surrounding the 2025 outlook has grown, despite ongoing challenges such as inflation, tariffs, and policy uncertainty.
Diverging Views and Increased Optimism: A Look at the Investor Pulse
Following the previous quarter’s survey, which found mixed views and a rise in bearish sentiment, the latest survey shows a marked increase in optimism for 2025. Investors now appear more focused on growth, with over 60% describing their sentiment as Bullish or Neutral to Bullish, a significant rise from 40% last quarter. Conversely, bearish sentiment has fallen sharply to under 10%, down from 30% in the previous quarter.
Executive Tone: A Reflection of Investor Sentiment
Interestingly, there has been a growing divergence between investor sentiment and executive tone. While investors have become more optimistic, executives have remained cautious. Nonetheless, the number of investors who perceive executive tone as Bullish or Neutral to Bullish has increased to 44%, up from 27% in the prior quarter. This reflects the rising confidence in the sector, particularly as investors are ahead of executives in their expectations for growth.
Rebecca Corbin, Founder and CEO of Corbin Advisors, commented on the findings: “Despite emerging and persistent challenges such as tariffs, inflation, and policy uncertainties, confidence is building around stronger annual guidance for both revenue and earnings. Reinvestment remains the leading preferred use of cash, with appetites for mergers and acquisitions (M&A) growing. Corbin Advisors.”

Expectations for Q4 Results: Corbin Advisors
As for the fourth-quarter results, most investors expect performance to be in line with expectations. About 58% anticipate that results will be “In Line” sequentially, with only 25% expecting better-than-expected outcomes, down from 38% last quarter. Additionally, investors predict that key financial metrics such as Revenue, EPS, Margins, and Free Cash Flow (FCF) will remain flat or meet consensus expectations. Notably, nearly three-quarters of investors predict results will align with consensus estimates—the highest level of alignment in 11 quarters.
Corbin Advisors : Optimism and Focus on Growth
While the fourth quarter is expected to deliver modest improvements, the outlook for full-year 2025 is far more optimistic. Investors are projecting higher revenue and earnings per share (EPS) guidance for 2025, with more than half expecting these metrics to exceed the previous year’s levels.
Two-thirds of investors believe that 2025 Industrial organic growth will surpass 2024 levels, with a majority expecting a post-election rebound in orders. As a result, there has been a notable shift in priorities, with 73% of investors now prioritizing growth over margins—a significant reversal from the previous quarter, when only 39% emphasized growth.
Policy Uncertainty and Tariff Concerns: Key Challenges for 2025
Despite the optimism, challenges such as policy uncertainty, tariffs, and inflation continue to pose risks for the Industrial sector. Investors are particularly concerned about inflation, with 27% anticipating worsening conditions over the next six months—an increase from 17% in the previous quarter. While 64% expect inflation to remain the same, the growing number of investors anticipating a deterioration in economic conditions suggests caution in the year ahead.
Capital Allocation Preferences: Reinvestment and M&A Lead the Way
The survey reveals a continued focus on reinvestment as the leading use of cash, with 80% of investors favoring reinvestment over other capital allocation strategies, up from 55% last quarter. M&A activity has also gained favor, with 37% of investors citing it as a preferred capital allocation strategy—surpassing debt reduction (28%). The growing appetite for bolt-on acquisitions has surged, with 100% of investors favoring such deals, the highest level recorded in two years. On the other hand, interest in large or transformational acquisitions has declined, with only 10% of investors expressing support for these types of deals, down from 37% in the previous quarter.
Investor Activity: A Positive Outlook on Capex and PMI
Looking to global economic indicators, 64% of investors expect global capital expenditure (Capex) to improve over the next six months, up 18% from the previous quarter. Additionally, 73% anticipate an improvement in the global Purchasing Managers’ Index (PMI), a 19% increase, signaling optimism about global industrial activity and growth.
Sector-Specific Views: Diverging Sentiment Across Sub-Sectors
The survey also highlighted shifts in sentiment across various sub-sectors. Commercial Aerospace saw the most significant increase in bullish sentiment, followed by Industrial Equipment, Water, and Materials. However, concerns about interest rates have driven bearish sentiment in sectors such as Non-Residential Construction and Building Products. Despite this, sectors like Defense continue to perform well, with steady investor confidence.
A Stock Picker’s Market with Stronger Outlook for 2025
Corbin Advisors, the latest Industrial Sentiment Survey® suggests that investors are increasingly optimistic about the Industrial sector’s growth prospects in 2025. However, the pace of growth remains a central concern. While investors are enthusiastic about long-term growth opportunities, they remain cautious about short-term performance, particularly in light of ongoing challenges such as inflation and tariffs.
One portfolio manager, whose firm has over $22 billion invested in the Industrial sector, summed up the sentiment by stating, “My sentiment toward Industrials is bullish, but you have to pick your spots. It is a real stock picker’s market.” As the sector prepares for 2025, investors will be closely watching the pace of growth and the impact of global economic and policy factors on Industrial performance.
Corbin Advisors
Read more: Corbin Advisors Publishes Q4 2024 Inside The Buy-Side® Industrial Sentiment Survey