Some of the strongest ASX performers in 2025 are not the ones making headlines, they are the industrials quietly doing the work.
ASX industrial shares rarely steal the spotlight. They do not promise AI revolutions or exponential user growth. Instead, they quietly compound through maintenance contracts, infrastructure backlogs, and steady execution.
That is exactly why many of the best industrial performers tend to move in long, durable cycles, rather than sharp bursts. When the market rotates away from hype and back toward earnings, cash flow, and asset-heavy work, these businesses often regain momentum.
In 2025, two such companies have done just that. Duratec Ltd (ASX: DUR) and Tasmea Ltd (ASX: TEA) have both materially outperformed the broader market this year, even after meaningful pullbacks from their highs.
The question investors are now asking is a sensible one: are these pullbacks an opportunity, or simply a pause?
Why quality industrials can outperform for years
Industrials tend to benefit from structural tailwinds that are slow-moving but powerful. Government infrastructure spending, defence investment, asset remediation, and essential maintenance do not disappear in tougher conditions. In many cases, they become more important.
That creates long visibility over revenue, recurring work, and incremental margin improvement. The trade-off is that these companies rarely trade at “panic” valuations unless something genuinely breaks. For consistent performers, share price pullbacks tend to be about valuation digestion, not business deterioration.
Duratec and Tasmea fit this pattern closely.
Duratec: asset protection with growing visibility
Duratec specialises in the remediation, protection, and life extension of critical infrastructure, spanning defence, mining, energy, marine, and transport assets. Its work focuses on preserving existing infrastructure rather than building from scratch, a theme that has gained momentum as governments prioritise asset longevity and cost efficiency
In FY25, Duratec delivered steady financial growth, with revenue rising to $573 million and operating earnings (EBITDA) up more than 11%. The business also continued expanding its footprint through targeted acquisitions and deeper exposure to defence-related projects, which now form a meaningful pipeline for the years ahead
Despite that operational strength, currently the Duratec share price is down roughly 17.5% from its 52-week and all-time highs. Even so, it remains up more than 20% year to date (not including dividends), comfortably ahead of the All Ordinaries Index (INDEXASX: XAO)(ASX: XAO), which has returned about 6% over the same period.
The pullback appears less about deteriorating fundamentals and more about the market cooling after a strong run.
Tasmea: integrated services with recurring revenue
Tasmea operates a national network of more than 20 industrial services businesses, delivering maintenance, shutdown, and engineering services across mining, utilities, defence, renewables, and water infrastructure.
A key feature of Tasmea’s model is its emphasis on long-term service agreements, which provide revenue visibility and resilience. In FY25, the company delivered strong earnings growth, upgraded guidance, and reinforced confidence in its acquisition-led strategy, including higher-margin electrical services expansion
The market rewarded that execution earlier in the year. Tasmea shares are up more than 34% year to date, again far exceeding the broader index. However, after such a strong run, the stock has pulled back over 23% from its highs, reflecting sentiment consolidation rather than a change in business quality.
Is this “blood on the streets”?
Probably not.
Both Duratec and Tasmea remain good companies at fair prices, rather than trading at deep discounts. Their pullbacks improve future return potential, but they do not yet scream margin-of-safety territory.
For long-term investors, that distinction matters. Quality industrials tend to reward patience over timing. They occasionally offer dramatic entry points, and the better businesses often deliver dependable compounding when bought with realistic expectations.
