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

UpdatedJul 13, 2026
DataAggregated Company Financials
Companies13
  • 7D-5.6%
  • 3M-1.4%
  • 1Y21.5%
  • YTD12.1%

Over the last 7 days, the Aerospace & Defense industry has dropped 5.6%, driven by a pullback from Rolls-Royce Holdings of 5.9%. This takes the industry's 12 month performance to a gain of 22%. As for the next few years, earnings are expected to grow by 3.4% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 14 Jul 2026UK£188.2bUK£62.2bUK£8.7b24.5x21.6x3x
Thu, 11 Jun 2026UK£173.9bUK£61.9bUK£8.8b25x19.8x2.8x
Sat, 09 May 2026UK£176.1bUK£61.9bUK£8.5b24.5x20.8x2.8x
Mon, 06 Apr 2026UK£186.4bUK£61.9bUK£8.5b28.3x22x3x
Wed, 04 Mar 2026UK£195.2bUK£61.9bUK£8.5b27.3x23.1x3.2x
Fri, 30 Jan 2026UK£180.6bUK£59.4bUK£8.3b25.4x21.8x3x
Sun, 28 Dec 2025UK£166.4bUK£59.4bUK£8.3b22.9x20.1x2.8x
Tue, 25 Nov 2025UK£153.8bUK£59.4bUK£8.3b22.4x18.6x2.6x
Thu, 23 Oct 2025UK£168.8bUK£59.3bUK£8.3b24.9x20.4x2.8x
Sat, 20 Sep 2025UK£174.8bUK£59.3bUK£8.3b24.9x21.2x2.9x
Mon, 18 Aug 2025UK£161.7bUK£59.3bUK£8.3b24.9x19.6x2.7x
Wed, 16 Jul 2025UK£75.0bUK£38.7bUK£2.1b28.9x36x1.9x
Fri, 13 Jun 2025UK£74.1bUK£38.4bUK£2.0b29.5x36.6x1.9x
Sun, 11 May 2025UK£66.3bUK£38.4bUK£2.3b25.9x28.4x1.7x
Tue, 08 Apr 2025UK£57.7bUK£38.5bUK£2.3b22.6x24.7x1.5x
Thu, 06 Mar 2025UK£66.8bUK£38.4bUK£2.3b25.9x28.4x1.7x
Sat, 01 Feb 2025UK£51.9bUK£36.7bUK£2.2b20.1x23.2x1.4x
Mon, 30 Dec 2024UK£49.1bUK£36.7bUK£2.2b19.9x22x1.3x
Wed, 27 Nov 2024UK£53.7bUK£36.7bUK£2.2b20.1x24.2x1.5x
Fri, 25 Oct 2024UK£52.9bUK£36.3bUK£2.2b18.6x24.3x1.5x
Sun, 22 Sep 2024UK£51.7bUK£36.3bUK£2.2b20.7x23.7x1.4x
Tue, 20 Aug 2024UK£55.0bUK£36.3bUK£2.2b21.8x25.2x1.5x
Thu, 18 Jul 2024UK£53.4bUK£34.8bUK£2.1b23.5x25.4x1.5x
Sat, 15 Jun 2024UK£55.8bUK£34.8bUK£2.1b23.1x26.6x1.6x
Mon, 13 May 2024UK£57.2bUK£34.6bUK£2.1b23.8x27.6x1.7x
Wed, 10 Apr 2024UK£54.0bUK£34.6bUK£2.1b22x26.1x1.6x
Fri, 08 Mar 2024UK£53.6bUK£34.6bUK£2.1b21.3x25.9x1.5x
Sun, 04 Feb 2024UK£58.5bUK£41.0bUK£2.2b25.5x26.7x1.4x
Tue, 02 Jan 2024UK£56.0bUK£41.0bUK£2.2b25.7x25.6x1.4x
Thu, 30 Nov 2023UK£53.1bUK£40.9bUK£2.2b29.6x24.2x1.3x
Sat, 28 Oct 2023UK£53.7bUK£40.7bUK£2.2b28.8x24.6x1.3x
Mon, 25 Sep 2023UK£51.6bUK£40.7bUK£2.2b27.9x23.6x1.3x
Wed, 23 Aug 2023UK£50.5bUK£40.4bUK£2.0b24.2x25.6x1.2x
Fri, 21 Jul 2023UK£50.2bUK£39.1bUK£1.6b22.3x30.9x1.3x
Price to Earnings Ratio

30.9x


Total Market Cap: UK£50.2bTotal Earnings: UK£1.6bTotal Revenue: UK£39.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.8x202420252026
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 21.6x which is lower than its 3-year average PE of 24.8x.
  • The 3-year average PS ratio of 2.0x 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-1.38%
Industrials-3.06%
Aerospace & Defense-5.60%
Aerospace and Defense-5.60%
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
SNR SeniorUK£2.890.2%
+UK£2.0m		55.4%PE43.2x
RCFX RC FornaxUK£0.0711.1%
+UK£671.6k		-74.5%PS2.8x
VEL Velocity CompositesUK£0.147.7%
+UK£546.7k		-47.2%PS0.4x
PEN Pennant International GroupUK£0.281.8%
+UK£238.2k		-5.0%PS1.4x

Latest News

PEN
UK£0.28
Pennant International Group
7D
1.8%
1Y
-5.0%
BA.
UK£18.48
BAE Systems
7D
-8.7%
1Y
-3.3%
Narrative Update • Jul 09

BA.: Growing NATO And U.S. Exposure Should Support Future Earnings Repricing

Analysts have trimmed the blended fair value estimate for BAE Systems from £26.62 to £26.00, reflecting slightly lower future P/E expectations alongside mixed research views that weigh strong NATO demand and U.S. and Middle East exposure against comparatively softer profit and EPS growth relative to some defense peers. Analyst Commentary Recent research on BAE Systems highlights a split in opinion, but bullish analysts continue to see upside potential tied to defense spending, a valuation reset after the recent de rating, and the company’s exposure to key end markets such as NATO, the U.S., and the Middle East.
RR.
UK£14.15
Rolls-Royce Holdings
7D
-5.9%
1Y
41.8%
Narrative Update • Jul 09

RR.: Defence Upside And Buybacks Will Shape Balanced Future Re Rating Potential

The updated analyst price target for Rolls-Royce Holdings has increased by about £0.54 per share. Analysts cite refreshed fair value assumptions, along with expectations for revenue growth and future P/E, as key drivers of this change.
QQ.
UK£4.48
QinetiQ Group
7D
-7.2%
1Y
-11.9%
CHG
UK£5.38
Chemring Group
7D
-4.9%
1Y
-5.1%
CHRT
UK£12.70
Cohort
7D
-10.7%
1Y
-18.6%
VEL
UK£0.14
Velocity Composites
7D
7.7%
1Y
-47.2%
MRO
UK£4.70
Melrose Industries
7D
-6.0%
1Y
-10.7%
Narrative Update • Jul 01

MRO: Incident Uncertainty And Cash Returns Will Shape Future P/E Assumptions

The consensus analyst price target for Melrose Industries has decreased from about £5.70 to roughly £4.70, with analysts citing increased uncertainty following the recent factory incident as a key reason for the reassessment. Analyst Commentary Recent commentary on Melrose Industries reflects a more cautious tone, with bearish analysts highlighting the factory incident as a central source of uncertainty for both valuation and future execution.
BAB
UK£10.05
Babcock International Group
7D
-4.1%
1Y
-8.3%
Narrative Update • Jun 29

BAB: Share Buybacks And Long-Term Contracts Will Test Execution Upside

The updated analyst price target for Babcock International Group narrows slightly to an implied fair value of £11.40 from £12.80. This reflects a blend of recent Street revisions that temper revenue growth assumptions and apply a higher discount rate, while still leaning on firmer margin expectations and a lower future P/E multiple.
RCFX
UK£0.07
RC Fornax
7D
11.1%
1Y
-74.5%
SNR
UK£2.89
Senior
7D
0.2%
1Y
55.4%
Narrative Update • Jun 25

SNR: Fair Takeover Terms And Downgrade Will Shape Risk Balanced Outlook

Analysts have trimmed their price expectations for Senior, reflecting a more cautious stance following a downgrade in research coverage. The updated analysis emphasizes slightly higher discount rate assumptions and a modestly adjusted future P/E outlook, resulting in a revised target around £2.88.
AVON
UK£16.54
Avon Technologies
7D
-7.6%
1Y
-20.9%
Narrative Update • Jun 08

AVON: Interim Dividend And Stable Assumptions Will Support Future Upside Potential

Analysts have adjusted their price target on Avon Technologies to £21.68, reflecting updated assumptions around the discount rate, long-term revenue growth, and future P/E multiples influenced by recent Street research commentary. What's in the News Avon Technologies proposed an interim dividend of 8.1 cents per share, compared with 7.6 cents per share in HY25.