Is this ASX industrials stock a buy after a 20% pullback from all-time highs?

The Tasmea Ltd (ASX: TEA) share price has cooled sharply in recent weeks, falling close to 20% from its November peak.

That pullback comes after a blistering run earlier in 2025, when the ASX industrials stock surged more than 115% in just six months and firmly put itself on investors’ radars.

So has Tasmea flown too close to the sun, or is this the kind of pullback long-term investors tend to watch closely?

What does Tasmea actually do?

Tasmea operates a portfolio of specialist industrial service businesses across Australia and New Zealand. Its operations span asset maintenance, engineering services, infrastructure support, and industrial contracting — work that tends to be recurring, non-discretionary, and closely tied to essential infrastructure.

That positioning has become increasingly attractive as capital spending cycles lift across energy, utilities, transport, and industrial assets. Unlike more cyclical industrials, Tasmea’s exposure is spread across maintenance and operational services rather than one-off construction projects.

This has helped underpin steady revenue growth and improve earnings visibility, which has been a major driver behind the share price rally seen through the first half of 2025.

Why the Tasmea share price surged in 2025

Tasmea’s strong performance this year has been driven by a combination of operational execution and sector tailwinds.

The company has continued to expand margins, integrate acquisitions effectively, and benefit from ongoing demand for outsourced industrial services. At the same time, broader market interest has shifted toward profitable, cash-generative industrial growth stocks after several ASX stalwarts began to stumble.

As one recent analysis highlighted, investors have increasingly looked beyond traditional blue chips and into businesses offering steady growth without relying on speculative narratives.

Tasmea fitted that brief neatly.

Brokers still see upside

Despite the recent pullback, at least one broker remains constructive on the outlook.

A recent broker note suggested Tasmea still has meaningful upside potential from current levels, pointing to earnings momentum, disciplined capital allocation, and ongoing demand across its end markets.

Importantly, the broker’s thesis does not rely on short-term multiple expansion. Instead, it assumes continued growth in revenue and profits as infrastructure owners prioritise maintenance, reliability, and compliance over the coming years.

That distinction matters in a market where sentiment can swing quickly.

Short-term nerves versus long-term fundamentals

None of this guarantees a rising share price in the near term.

Equity markets remain on edge, valuations across many sectors are being reassessed, and even high-quality ASX growth stocks are not immune to bouts of volatility. After such a strong run earlier in the year, some degree of consolidation was always likely.

However, long-term investors tend to focus less on month-to-month share price fluctuations and more on whether a business can sustainably grow its earnings over many years.

If Tasmea continues to execute in 2026 as it has recently — growing revenue, maintaining margins, and deploying capital sensibly — history suggests that the share price should eventually reflect that progress, even if the path is uneven.

Foolish Takeaway 

Tasmea’s pullback looks less like a structural break and more like a pause after a rapid ascent.

For investors hunting ASX stocks for growth with exposure to real-world infrastructure and industrial services, Tasmea remains one to watch. The business fundamentals appear intact, sector tailwinds remain supportive, and broker sentiment suggests the long-term growth story is far from over.

Whether the current price proves attractive will ultimately depend on time horizon — and patience.

The post Is this ASX industrials stock a buy after a 20% pullback from all-time highs? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.