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

UpdatedAug 28, 2025
DataAggregated Company Financials
Companies13
  • 7D2.6%
  • 3M11.0%
  • 1Y66.4%
  • YTD62.8%

Over the last 7 days, the Aerospace & Defense industry has risen 1.1%, driven by gains from Rolls-Royce Holdings of 3.0%. This takes the industry's 12 month performance to a gain of 69%. As for the next few years, earnings are forecast to decline by 2.1% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 28 Aug 2025UK£160.2bUK£59.3bUK£8.3b24.6x19.4x2.7x
Sat, 26 Jul 2025UK£73.5bUK£38.7bUK£2.1b28.5x35.3x1.9x
Mon, 23 Jun 2025UK£75.2bUK£38.4bUK£2.0b28.6x37.1x2x
Wed, 21 May 2025UK£69.7bUK£38.4bUK£2.3b27.5x29.8x1.8x
Fri, 18 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Sun, 16 Mar 2025UK£66.2bUK£38.5bUK£2.3b26.3x28.3x1.7x
Tue, 11 Feb 2025UK£50.8bUK£36.7bUK£2.2b19.3x22.7x1.4x
Thu, 09 Jan 2025UK£50.1bUK£36.7bUK£2.2b20.1x22.4x1.4x
Sat, 07 Dec 2024UK£51.8bUK£36.7bUK£2.2b20.3x23.3x1.4x
Mon, 04 Nov 2024UK£51.7bUK£36.3bUK£2.2b18.7x23.7x1.4x
Wed, 02 Oct 2024UK£51.6bUK£36.3bUK£2.2b20.2x23.7x1.4x
Fri, 30 Aug 2024UK£55.5bUK£36.3bUK£2.2b22.4x25.5x1.5x
Sun, 28 Jul 2024UK£53.7bUK£34.7bUK£2.2b21x24x1.5x
Tue, 25 Jun 2024UK£56.3bUK£34.8bUK£2.1b23.4x26.9x1.6x
Thu, 23 May 2024UK£56.9bUK£34.7bUK£2.1b23.5x27.5x1.6x
Sat, 20 Apr 2024UK£53.9bUK£34.7bUK£2.1b22.2x26x1.6x
Mon, 18 Mar 2024UK£54.2bUK£34.6bUK£2.1b22.1x26.2x1.6x
Wed, 14 Feb 2024UK£51.2bUK£38.5bUK£2.1b20x24.1x1.3x
Fri, 12 Jan 2024UK£57.9bUK£41.0bUK£2.2b25.2x26.4x1.4x
Sun, 10 Dec 2023UK£53.8bUK£40.9bUK£2.2b32.1x24.6x1.3x
Tue, 07 Nov 2023UK£54.1bUK£40.7bUK£2.2b29.7x24.8x1.3x
Thu, 05 Oct 2023UK£51.5bUK£40.7bUK£2.2b29.1x23.6x1.3x
Sat, 02 Sep 2023UK£52.3bUK£40.4bUK£2.0b27.9x26.5x1.3x
Mon, 31 Jul 2023UK£49.9bUK£39.1bUK£1.6b23.4x30.7x1.3x
Wed, 28 Jun 2023UK£48.8bUK£38.7bUK£1.8b22.5x27.1x1.3x
Fri, 26 May 2023UK£49.8bUK£38.6bUK£1.8b18.3x27.1x1.3x
Sun, 23 Apr 2023UK£51.0bUK£38.6bUK£1.8b17.6x27.8x1.3x
Tue, 21 Mar 2023UK£42.5bUK£31.0bUK£2.1b16.9x20.6x1.4x
Thu, 16 Feb 2023UK£40.7bUK£29.6bUK£1.8b17.8x22.1x1.4x
Sat, 14 Jan 2023UK£39.8bUK£29.6bUK£1.8b18.6x21.6x1.3x
Mon, 12 Dec 2022UK£39.6bUK£29.5bUK£1.8b18.5x21.5x1.3x
Wed, 09 Nov 2022UK£38.5bUK£29.4bUK£1.7b18.6x22.2x1.3x
Fri, 07 Oct 2022UK£39.5bUK£29.4bUK£1.7b20.6x22.7x1.3x
Sun, 04 Sep 2022UK£38.0bUK£29.4bUK£1.7b21.4x21.9x1.3x
Price to Earnings Ratio

21.9x


Total Market Cap: UK£38.0bTotal Earnings: UK£1.7bTotal Revenue: UK£29.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 25.6x202320242025
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 19.4x which is lower than its 3-year average PE of 25.6x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 68% per year over the last three years.
  • Revenues for these companies have grown 26% 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 Market3.34%
Industrials0.49%
Aerospace & Defense2.57%
Aerospace and Defense2.57%
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£10.573.0%
+UK£2.5b		111.2%PE15.3x
BA. BAE SystemsUK£17.672.3%
+UK£1.2b		31.0%PE26.7x
BAB Babcock International GroupUK£10.123.3%
+UK£161.2m		91.1%PE20.6x
QQ. QinetiQ GroupUK£4.802.4%
+UK£60.1m		1.5%PS1.3x
CHG Chemring GroupUK£5.421.7%
+UK£24.5m		33.0%PE28.8x

Latest News

BA.
UK£17.67
BAE Systems
7D
2.3%
1Y
31.0%

BAE Systems (LON:BA.) Seems To Use Debt Quite Sensibly

Aug 26
BAE Systems (LON:BA.) Seems To Use Debt Quite Sensibly
BAB
UK£10.12
Babcock International Group
7D
3.3%
1Y
91.1%

Calculating The Fair Value Of Babcock International Group PLC (LON:BAB)

Aug 26
Calculating The Fair Value Of Babcock International Group PLC (LON:BAB)
AVON
UK£19.36
Avon Technologies
7D
-0.2%
1Y
57.9%
CHRT
UK£12.44
Cohort
7D
1.8%
1Y
46.4%
MSI
UK£12.25
MS INTERNATIONAL
7D
2.1%
1Y
15.6%
RCFX
UK£0.11
RC Fornax
7D
-6.3%
1Y
n/a
SNR
UK£1.97
Senior
7D
0.5%
1Y
15.9%

Airbus And Boeing Production Will Fuel Expanding Aerospace Opportunities

Despite a slight deterioration in revenue growth expectations, Senior's higher future P/E multiple signals increased market confidence, resulting in an uplift of the consensus price target from £2.07 to £2.24. What's in the News Senior plc approved an interim dividend of 0.85 pence per share, a 13% increase from the previous year.
CHG
UK£5.42
Chemring Group
7D
1.7%
1Y
33.0%
RR.
UK£10.57
Rolls-Royce Holdings
7D
3.0%
1Y
111.2%

Rising Supply Chain Risks And Slowing Demand Will Undercut Margins

Analysts have raised their price target for Rolls-Royce Holdings to £9.97, citing stronger cash flow forecasts, sustained operational improvements, and a more optimistic long-term aerospace outlook. Analyst Commentary Valuation concerns leading to a more cautious outlook after strong share price appreciation.
QQ.
UK£4.80
QinetiQ Group
7D
2.4%
1Y
1.5%

QinetiQ Group (LON:QQ.) Will Pay A Larger Dividend Than Last Year At £0.0605

Jul 17
QinetiQ Group (LON:QQ.) Will Pay A Larger Dividend Than Last Year At £0.0605
VEL
UK£0.23
Velocity Composites
7D
-2.1%
1Y
-43.9%