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U.K. (FTSE) Aerospace & Defense Industry Analysis

UpdatedMay 30, 2026
DataAggregated Company Financials
Companies13
  • 7D4.6%
  • 3M-2.4%
  • 1Y30.9%
  • YTD10.5%

The Aerospace & Defense industry is up 6.4% in the last week, with Rolls-Royce Holdings up 7.1%. During this same period, the Melrose Industries underperformed, falling 7.6%. This takes the industry's 12 month performance to a gain of 31%. Looking forward, earnings are forecast to grow by 3.3% annually.

Industry Valuation and Performance

Has the U.K. Aerospace & Defense Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 30 May 2026UK£185.9bUK£61.9bUK£8.8b26.1x21.1x3x
Mon, 27 Apr 2026UK£172.1bUK£61.9bUK£8.5b27x20.3x2.8x
Wed, 25 Mar 2026UK£178.4bUK£61.9bUK£8.5b24.6x21.1x2.9x
Fri, 20 Feb 2026UK£196.8bUK£60.3bUK£8.4b26.5x23.5x3.3x
Sun, 18 Jan 2026UK£191.6bUK£59.4bUK£8.3b26.8x23.1x3.2x
Tue, 16 Dec 2025UK£162.6bUK£59.4bUK£8.3b23.3x19.6x2.7x
Thu, 13 Nov 2025UK£170.2bUK£59.3bUK£8.3b25.1x20.6x2.9x
Sat, 11 Oct 2025UK£175.5bUK£59.3bUK£8.3b25.1x21.3x3x
Mon, 08 Sep 2025UK£162.8bUK£59.3bUK£8.3b25x19.7x2.7x
Wed, 06 Aug 2025UK£164.0bUK£59.3bUK£8.3b23.3x19.9x2.8x
Fri, 04 Jul 2025UK£74.8bUK£38.6bUK£2.1b28.9x35.9x1.9x
Sun, 01 Jun 2025UK£73.8bUK£38.4bUK£2.0b30x36.6x1.9x
Tue, 29 Apr 2025UK£64.9bUK£38.4bUK£2.3b24.9x27.8x1.7x
Thu, 27 Mar 2025UK£62.9bUK£38.5bUK£2.3b24.7x26.9x1.6x
Sat, 22 Feb 2025UK£53.4bUK£38.5bUK£2.4b21.6x22.7x1.4x
Mon, 20 Jan 2025UK£51.4bUK£36.7bUK£2.2b20.4x23x1.4x
Wed, 18 Dec 2024UK£49.3bUK£36.7bUK£2.2b20.1x22.1x1.3x
Fri, 15 Nov 2024UK£53.3bUK£36.6bUK£2.2b20x24.2x1.5x
Sun, 13 Oct 2024UK£50.9bUK£36.3bUK£2.2b18.2x23.4x1.4x
Tue, 10 Sep 2024UK£52.6bUK£36.3bUK£2.2b21.1x24.2x1.4x
Thu, 08 Aug 2024UK£53.2bUK£36.4bUK£2.2b20.8x24.4x1.5x
Sat, 06 Jul 2024UK£53.4bUK£34.8bUK£2.1b22.5x25.4x1.5x
Mon, 03 Jun 2024UK£57.9bUK£34.8bUK£2.1b24x27.6x1.7x
Wed, 01 May 2024UK£55.5bUK£34.6bUK£2.1b22.2x26.8x1.6x
Fri, 29 Mar 2024UK£56.7bUK£34.6bUK£2.1b22.6x27.4x1.6x
Sun, 25 Feb 2024UK£52.6bUK£39.1bUK£2.0b20.3x25.8x1.3x
Tue, 23 Jan 2024UK£58.5bUK£41.0bUK£2.2b25.9x26.7x1.4x
Thu, 21 Dec 2023UK£55.3bUK£41.0bUK£2.2b25.5x25.2x1.3x
Sat, 18 Nov 2023UK£53.8bUK£40.9bUK£2.2b31x24.4x1.3x
Mon, 16 Oct 2023UK£53.9bUK£40.7bUK£2.2b28.7x24.7x1.3x
Wed, 13 Sep 2023UK£52.8bUK£40.7bUK£2.2b27.7x24.2x1.3x
Fri, 11 Aug 2023UK£52.9bUK£40.4bUK£2.0b24.2x26.8x1.3x
Sun, 09 Jul 2023UK£49.6bUK£38.7bUK£1.8b20.9x27.5x1.3x
Tue, 06 Jun 2023UK£49.5bUK£38.7bUK£1.8b17.7x27.3x1.3x
Price to Earnings Ratio

27.3x


Total Market Cap: UK£49.5bTotal Earnings: UK£1.8bTotal Revenue: UK£38.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 25x202420252026
Current Industry PE
  • Investors are pessimistic on the British Aerospace & Defense industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 20.9x which is lower than its 3-year average PE of 25.0x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 69% per year over the last three years.
  • Revenues for these companies have grown 17% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Industrials industry?

GB Market-0.27%
Industrials2.40%
Aerospace & Defense4.57%
Aerospace and Defense4.57%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
RR. Rolls-Royce HoldingsUK£13.377.1%
+UK£7.3b		54.4%PE18.9x
BA. BAE SystemsUK£20.231.5%
+UK£836.9m		6.4%PE27.8x
BAB Babcock International GroupUK£10.973.1%
+UK£161.2m		17.1%PE18.7x
QQ. QinetiQ GroupUK£5.045.6%
+UK£137.9m		1.3%PE24.4x
CHRT CohortUK£13.8215.6%
+UK£85.2m		-6.4%PE34.7x

Latest News

RR.
UK£13.37
Rolls-Royce Holdings
7D
7.1%
1Y
54.4%
CHRT
UK£13.82
Cohort
7D
15.6%
1Y
-6.4%
QQ.
UK£5.04
QinetiQ Group
7D
5.6%
1Y
1.3%
Analysis Article • May 28

We Like QinetiQ Group's (LON:QQ.) Earnings For More Than Just Statutory Profit

Shareholders appeared to be happy with QinetiQ Group plc's ( LON:QQ. ) solid earnings report last week. According to...
CHG
UK£5.49
Chemring Group
7D
4.3%
1Y
13.7%
BAB
UK£10.97
Babcock International Group
7D
3.1%
1Y
17.1%
Analysis Article • May 26

If EPS Growth Is Important To You, Babcock International Group (LON:BAB) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
AVON
UK£17.34
Avon Technologies
7D
1.6%
1Y
-1.4%
Narrative Update • May 25

AVON: Dividend Strength And New Order Will Support Future Upside Potential

Analysts have trimmed their fair value estimate for Avon Technologies slightly to £21.68, reflecting updated views on revenue growth, profit margins, discount rate and future P/E, supported by recent Street research commentary. Analyst Commentary Bullish Takeaways Bullish analysts see the revised £21.68 fair value as supported by updated assumptions on revenue growth, suggesting current forecasts are more closely aligned with recent industry commentary.
SNR
UK£2.88
Senior
7D
0.2%
1Y
69.5%
Narrative Update • May 19

SNR: Fair Takeover Offer And Dividends Will Shape Risk Balanced Outlook

Analysts have trimmed their fair value estimate for Senior to about £2.88 from £3.02, citing recent downgrades that frame the stock as fairly valued at around £2.85 and reflect slightly higher discount rate assumptions along with a more conservative P/E outlook. Analyst Commentary Recent research points to a more muted stance on Senior, with the stock now framed as fairly valued around £2.85 to £2.88 and rating cuts that highlight both execution upside and risk.
BA.
UK£20.23
BAE Systems
7D
1.5%
1Y
6.4%
Narrative Update • May 19

BA.: Firmer Defence Backdrop Will Offset Softer 2026 Guidance Risks

Analysts have lifted BAE Systems' blended price target to £2,438, reflecting slightly firmer revenue growth and margin assumptions, along with recent target increases from several research houses. Analyst Commentary Recent research activity around BAE Systems has clustered around incremental price target moves, with some analysts highlighting execution and growth questions even as headline targets sit above current levels.
MRO
UK£4.71
Melrose Industries
7D
-7.6%
1Y
0.6%
Narrative Update • May 14

MRO: Execution On Cash Returns And P/E Assumptions Will Shape Balanced Prospects

Narrative Update The analyst price target for Melrose Industries has been trimmed to around £4.70 from about £4.72, with analysts citing refreshed coverage, mixed target revisions, and updated assumptions on discount rate, revenue growth, profit margins, and future P/E to support the change. Analyst Commentary Recent Street research on Melrose Industries presents a split view, with some bullish voices alongside more cautious updates.
RCFX
UK£0.075
RC Fornax
7D
-0.7%
1Y
-82.4%
MSI
UK£16.25
MS INTERNATIONAL
7D
-2.1%
1Y
41.9%