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

UpdatedApr 13, 2026
DataAggregated Company Financials
Companies13
  • 7D1.9%
  • 3M-1.1%
  • 1Y54.3%
  • YTD10.9%

Over the last 7 days, the Aerospace & Defense industry has risen 1.9%, driven by gains from Rolls-Royce Holdings of 6.6%. This takes the industry's 12 month performance to a gain of 54%. Looking forward, earnings are forecast to grow by 4.8% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 13 Apr 2026UK£189.9bUK£61.9bUK£8.5b27.9x22.4x3.1x
Wed, 11 Mar 2026UK£196.4bUK£61.9bUK£8.5b27.6x23.2x3.2x
Fri, 06 Feb 2026UK£177.0bUK£59.4bUK£8.3b25x21.4x3x
Sun, 04 Jan 2026UK£172.1bUK£59.4bUK£8.3b23.3x20.8x2.9x
Tue, 02 Dec 2025UK£152.9bUK£59.4bUK£8.3b23.1x18.5x2.6x
Thu, 30 Oct 2025UK£173.8bUK£59.3bUK£8.3b24.9x21x2.9x
Sat, 27 Sep 2025UK£179.8bUK£59.3bUK£8.3b25.6x21.8x3x
Mon, 25 Aug 2025UK£159.1bUK£59.3bUK£8.3b24.9x19.3x2.7x
Wed, 23 Jul 2025UK£74.2bUK£38.7bUK£2.1b29x35.6x1.9x
Fri, 20 Jun 2025UK£75.6bUK£38.4bUK£2.0b28.6x37.3x2x
Sun, 18 May 2025UK£68.5bUK£38.4bUK£2.3b27x29.3x1.8x
Tue, 15 Apr 2025UK£64.6bUK£38.5bUK£2.3b24.7x27.6x1.7x
Thu, 13 Mar 2025UK£63.4bUK£38.5bUK£2.3b24.3x27.1x1.6x
Sat, 08 Feb 2025UK£51.3bUK£36.7bUK£2.2b19.2x22.9x1.4x
Mon, 06 Jan 2025UK£49.0bUK£36.7bUK£2.2b20x21.9x1.3x
Wed, 04 Dec 2024UK£53.0bUK£36.7bUK£2.2b20.2x23.9x1.4x
Fri, 01 Nov 2024UK£51.6bUK£36.3bUK£2.2b18.8x23.7x1.4x
Sun, 29 Sep 2024UK£50.8bUK£36.3bUK£2.2b20.2x23.3x1.4x
Tue, 27 Aug 2024UK£53.6bUK£36.3bUK£2.2b21.4x24.6x1.5x
Thu, 25 Jul 2024UK£53.0bUK£34.8bUK£2.1b21.5x25.2x1.5x
Sat, 22 Jun 2024UK£55.8bUK£34.8bUK£2.1b23.3x26.6x1.6x
Mon, 20 May 2024UK£56.4bUK£34.6bUK£2.1b23.7x27.2x1.6x
Wed, 17 Apr 2024UK£55.9bUK£34.7bUK£2.1b22.2x27x1.6x
Fri, 15 Mar 2024UK£54.2bUK£34.6bUK£2.1b22.1x26.2x1.6x
Sun, 11 Feb 2024UK£51.3bUK£38.5bUK£2.1b19.6x24.1x1.3x
Tue, 09 Jan 2024UK£57.5bUK£41.0bUK£2.2b25.4x26.2x1.4x
Thu, 07 Dec 2023UK£53.2bUK£40.9bUK£2.2b30.7x24.3x1.3x
Sat, 04 Nov 2023UK£54.2bUK£40.7bUK£2.2b30.2x24.9x1.3x
Mon, 02 Oct 2023UK£51.3bUK£40.7bUK£2.2b28.5x23.5x1.3x
Wed, 30 Aug 2023UK£52.1bUK£40.4bUK£2.0b24.2x26.4x1.3x
Fri, 28 Jul 2023UK£49.8bUK£39.1bUK£1.6b23.2x30.7x1.3x
Sun, 25 Jun 2023UK£49.6bUK£38.7bUK£1.8b22.9x27.5x1.3x
Tue, 23 May 2023UK£51.2bUK£38.6bUK£1.8b18.4x27.9x1.3x
Thu, 20 Apr 2023UK£45.4bUK£31.0bUK£2.1b17.4x22x1.5x
Price to Earnings Ratio

22x


Total Market Cap: UK£45.4bTotal Earnings: UK£2.1bTotal Revenue: UK£31.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 25.3x202420252026
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 22.4x which is lower than its 3-year average PE of 25.3x.
  • The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 60% 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 Market1.87%
Industrials2.40%
Aerospace & Defense1.87%
Aerospace and Defense1.87%
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£12.696.8%
+UK£6.7b		78.9%PE18x
MSI MS INTERNATIONALUK£13.708.7%
+UK£18.1m		53.1%PE15.7x
AVON Avon TechnologiesUK£17.842.8%
+UK£14.5m		33.1%PE70.4x
RCFX RC FornaxUK£0.114.8%
+UK£479.7k		-69.7%PS2.6x
PEN Pennant International GroupUK£0.195.6%
+UK£476.3k		-30.9%PS0.9x

Latest News

BA.
UK£22.46
BAE Systems
7D
-1.9%
1Y
32.6%
QQ.
UK£4.78
QinetiQ Group
7D
-0.7%
1Y
22.1%
AVON
UK£17.84
Avon Technologies
7D
2.8%
1Y
33.1%

AVON: Recent Order Support Will Drive Higher Future P E Multiple Potential

Analysts have nudged their price target on Avon Technologies to £21.53, citing a slightly lower required discount rate, modestly adjusted revenue and margin assumptions, and a P/E outlook informed by recent supportive Street research. Analyst Commentary Bullish Takeaways Bullish analysts point to recent sector transactions, such as Mission Produce's moves in fresh produce, as a reference for how disciplined deal making can support earnings quality and justify higher P/E multiples when integration is executed cleanly.
MRO
UK£5.27
Melrose Industries
7D
-0.6%
1Y
23.2%

MRO: Future Cash Returns Will Reflect Rising Earnings Visibility From Buybacks And Dividend Policy

Analysts have adjusted their blended price target for Melrose Industries to account for Deutsche Bank's lower target of £5.70 and Citi's higher target of £7.63, citing updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E expectations. Analyst Commentary Recent research shows a split in how analysts frame the risk and reward around Melrose Industries, with some lifting fair value assumptions while others take a more cautious stance when updating discount rates, revenue growth and margin inputs.
SNR
UK£2.87
Senior
7D
-0.9%
1Y
128.5%
BAB
UK£12.67
Babcock International Group
7D
-0.7%
1Y
76.8%

Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching

Apr 03
Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching
CHG
UK£5.52
Chemring Group
7D
-0.4%
1Y
42.6%

CHG: Measured Outlook On Earnings Quality And Multiples Will Shape Future Upside

Analysts have trimmed their fair value estimate for Chemring Group, with the headline price target moving from £6.30 to £5.90. This reflects updated assumptions around discount rates, revenue growth, profit margins and future P/E expectations.
PEN
UK£0.19
Pennant International Group
7D
5.6%
1Y
-30.9%
RR.
UK£12.69
Rolls-Royce Holdings
7D
6.8%
1Y
78.9%

RR.: FY25 Beat And New Buyback Plan Will Support Stronger Outlook

Narrative Update The updated analyst price target for Rolls-Royce Holdings reflects a shift in valuation inputs, with a slightly lower fair value estimate and P/E assumption, alongside higher projected revenue growth and profit margins. Analysts are responding to recent price target increases to £12.50 and £16.00 following the company's FY25 performance and 2026 guidance.
VEL
UK£0.13
Velocity Composites
7D
-7.4%
1Y
-48.8%
RCFX
UK£0.11
RC Fornax
7D
4.8%
1Y
-69.7%
MSI
UK£13.70
MS INTERNATIONAL
7D
8.7%
1Y
53.1%
CHRT
UK£13.02
Cohort
7D
-0.3%
1Y
11.3%