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

UpdatedAug 28, 2026
DataAggregated Company Financials
Companies14
  • 7D0.5%
  • 3M9.9%
  • 1Y30.9%
  • YTD21.4%

Over the last 7 days, the Aerospace & Defense industry has remained flat. The past year has been better, since the industry has gained 31% in that time. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 28 Aug 2026UK£204.6bUK£65.3bUK£5.7b28x35.9x3.1x
Sun, 26 Jul 2026UK£190.3bUK£62.2bUK£8.7b25.4x21.9x3.1x
Tue, 23 Jun 2026UK£184.7bUK£61.9bUK£8.8b22.8x21x3x
Thu, 21 May 2026UK£176.2bUK£61.9bUK£8.5b24.9x20.8x2.8x
Sat, 18 Apr 2026UK£196.0bUK£61.9bUK£8.5b28.6x23.1x3.2x
Mon, 16 Mar 2026UK£189.4bUK£61.9bUK£8.5b27.7x22.4x3.1x
Wed, 11 Feb 2026UK£182.3bUK£59.4bUK£8.3b25.8x22x3.1x
Fri, 09 Jan 2026UK£188.0bUK£59.4bUK£8.3b25.6x22.7x3.2x
Sun, 07 Dec 2025UK£159.3bUK£59.4bUK£8.3b24x19.2x2.7x
Tue, 04 Nov 2025UK£174.0bUK£59.3bUK£8.3b25.6x21.1x2.9x
Thu, 02 Oct 2025UK£180.7bUK£59.3bUK£8.3b26x21.9x3x
Sat, 30 Aug 2025UK£161.1bUK£59.3bUK£8.3b24.9x19.5x2.7x
Mon, 28 Jul 2025UK£73.5bUK£38.7bUK£2.1b28.5x35.3x1.9x
Wed, 25 Jun 2025UK£71.9bUK£38.4bUK£2.0b28.2x35.5x1.9x
Fri, 23 May 2025UK£71.3bUK£38.5bUK£2.3b28.1x30.5x1.9x
Sun, 20 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Tue, 18 Mar 2025UK£64.8bUK£38.5bUK£2.3b25.4x27.7x1.7x
Thu, 13 Feb 2025UK£51.8bUK£36.7bUK£2.2b19.6x23.1x1.4x
Sat, 11 Jan 2025UK£50.2bUK£36.7bUK£2.2b20.1x22.5x1.4x
Mon, 09 Dec 2024UK£51.8bUK£36.6bUK£2.2b20.3x23.3x1.4x
Wed, 06 Nov 2024UK£52.1bUK£36.3bUK£2.2b18.8x23.9x1.4x
Fri, 04 Oct 2024UK£52.4bUK£36.3bUK£2.2b19.7x24x1.4x
Sun, 01 Sep 2024UK£55.2bUK£36.3bUK£2.2b22.1x25.4x1.5x
Tue, 30 Jul 2024UK£53.8bUK£34.7bUK£2.2b20.9x24.1x1.5x
Thu, 27 Jun 2024UK£55.2bUK£34.8bUK£2.1b23.8x26.3x1.6x
Sat, 25 May 2024UK£57.7bUK£34.7bUK£2.1b23.9x27.9x1.7x
Mon, 22 Apr 2024UK£54.1bUK£34.7bUK£2.1b21.8x26.1x1.6x
Wed, 20 Mar 2024UK£55.4bUK£34.6bUK£2.1b22.3x26.7x1.6x
Fri, 16 Feb 2024UK£51.9bUK£38.5bUK£2.1b20x24.4x1.3x
Sun, 14 Jan 2024UK£58.9bUK£41.0bUK£2.2b25.5x26.9x1.4x
Tue, 12 Dec 2023UK£53.9bUK£40.9bUK£2.2b32.3x24.6x1.3x
Thu, 09 Nov 2023UK£54.4bUK£40.7bUK£2.2b30x25x1.3x
Sat, 07 Oct 2023UK£50.4bUK£40.7bUK£2.2b28.5x23.1x1.2x
Mon, 04 Sep 2023UK£52.3bUK£40.4bUK£2.0b27.9x26.5x1.3x
Price to Earnings Ratio

26.5x


Total Market Cap: UK£52.3bTotal Earnings: UK£2.0bTotal Revenue: UK£40.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.9x202420252026
Current Industry PE
  • Investors are optimistic on the British Aerospace & Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 35.9x which is higher than its 3-year average PE of 24.9x.
  • The 3-year average PS ratio of 2.0x 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 42% 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 Market0.65%
Industrials1.48%
Aerospace & Defense0.52%
Aerospace and Defense0.52%
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£15.302.0%
+UK£2.5b		44.5%PE41.8x
MRO Melrose IndustriesUK£5.096.9%
+UK£407.5m		-13.1%PE39.6x
MSI MS INTERNATIONALUK£16.906.0%
+UK£15.4m		38.0%PE24.8x
AVON Avon TechnologiesUK£18.522.5%
+UK£13.5m		-4.3%PE40.7x
VEL Velocity CompositesUK£0.188.8%
+UK£820.0k		-19.6%PS0.5x

Latest News

CHRT
UK£12.36
Cohort
7D
-2.7%
1Y
-3.9%
QQ.
UK£5.12
QinetiQ Group
7D
-4.5%
1Y
7.2%
RR.
UK£15.30
Rolls-Royce Holdings
7D
2.0%
1Y
44.5%
Narrative Update • Aug 21

RR.: Widebody Reliance And Execution Concerns Will Likely Cap Future Upside

Analysts have lifted the fair value estimate for Rolls-Royce Holdings from £11.12 to £13.61 as they factor in higher price targets across the Street, modestly higher profit margin assumptions and a richer future P/E profile, while applying a slightly higher discount rate and more measured revenue growth expectations. Analyst Commentary Recent Street research on Rolls-Royce Holdings shows a cluster of higher price targets and generally positive ratings, including several Buy, Overweight and Outperform stances from large global banks.
BAB
UK£10.82
Babcock International Group
7D
-3.2%
1Y
7.1%
Narrative Update • Aug 18

BAB: Protected UK Defense Contracts Will Support Future Earnings Re Rating

The updated analyst price target for Babcock International Group has been trimmed from £16.75 to £16.05. This reflects a slightly lower fair value alongside recent Street research that combines modest target cuts with generally supportive views on the company’s position in core UK defence contracts and its ongoing execution.
AVON
UK£18.52
Avon Technologies
7D
2.5%
1Y
-4.3%
Narrative Update • Aug 17

AVON: Defense Contract Wins And Interim Dividend Will Support Future Upside

Analysts have lifted their price target for Avon Technologies from about £21.68 to roughly £23.91, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E expectations. What’s in the News for Avon Technologies Avon Technologies plans to pay an interim dividend of 8.1 US cents per share, with the dividend scheduled for 4 September 2026 and an ex dividend date of 6 August 2026.
BA.
UK£20.92
BAE Systems
7D
-2.5%
1Y
18.4%
MRO
UK£5.09
Melrose Industries
7D
6.9%
1Y
-13.1%
CHG
UK£5.61
Chemring Group
7D
-5.1%
1Y
3.9%
MSI
UK£16.90
MS INTERNATIONAL
7D
6.0%
1Y
38.0%
ALRT
UK£0.008
Defence Holdings
7D
-7.5%
1Y
45.5%
VEL
UK£0.18
Velocity Composites
7D
8.8%
1Y
-19.6%
PEN
UK£0.29
Pennant International Group
7D
1.7%
1Y
25.5%
RCFX
UK£0.058
RC Fornax
7D
-4.9%
1Y
-50.6%
SNR
UK£2.94
Senior
7D
-0.2%
1Y
46.6%
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.