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

UpdatedSep 13, 2025
DataAggregated Company Financials
Companies13
  • 7D6.8%
  • 3M17.0%
  • 1Y82.0%
  • YTD76.8%

The Aerospace & Defense industry is up 6.8% in the last week, with BAE Systems up 11%. In the last 12 months, the industry was up 82%. Looking forward, earnings are forecast to decline by 2.6% per year.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 13 Sep 2025UK£173.9bUK£59.3bUK£8.3b24.4x21x2.9x
Mon, 11 Aug 2025UK£160.7bUK£59.3bUK£8.3b24.7x19.5x2.7x
Wed, 09 Jul 2025UK£74.8bUK£38.6bUK£2.1b29x35.9x1.9x
Fri, 06 Jun 2025UK£77.8bUK£38.4bUK£2.0b30.4x38.4x2x
Sun, 04 May 2025UK£68.6bUK£38.4bUK£2.3b26.2x29.3x1.8x
Tue, 01 Apr 2025UK£61.6bUK£38.5bUK£2.3b23.6x26.3x1.6x
Thu, 27 Feb 2025UK£56.4bUK£38.5bUK£2.4b21.8x24x1.5x
Sat, 25 Jan 2025UK£51.9bUK£36.7bUK£2.2b20.4x23.2x1.4x
Mon, 23 Dec 2024UK£49.0bUK£36.7bUK£2.2b19.7x21.9x1.3x
Wed, 20 Nov 2024UK£53.4bUK£36.6bUK£2.2b19.2x24.3x1.5x
Fri, 18 Oct 2024UK£53.2bUK£36.3bUK£2.2b19x24.4x1.5x
Sun, 15 Sep 2024UK£53.9bUK£36.3bUK£2.2b21.8x24.7x1.5x
Tue, 13 Aug 2024UK£53.5bUK£36.4bUK£2.2b21.3x24.6x1.5x
Thu, 11 Jul 2024UK£54.1bUK£34.8bUK£2.1b22.8x25.8x1.6x
Sat, 08 Jun 2024UK£58.2bUK£34.8bUK£2.1b24.4x27.8x1.7x
Mon, 06 May 2024UK£56.1bUK£34.6bUK£2.1b23.5x27.1x1.6x
Wed, 03 Apr 2024UK£56.0bUK£34.6bUK£2.1b22.3x27x1.6x
Fri, 01 Mar 2024UK£52.8bUK£39.1bUK£2.0b20.2x25.9x1.4x
Sun, 28 Jan 2024UK£58.5bUK£41.0bUK£2.2b25.6x26.7x1.4x
Tue, 26 Dec 2023UK£55.4bUK£41.0bUK£2.2b25.8x25.3x1.4x
Thu, 23 Nov 2023UK£53.8bUK£40.9bUK£2.2b30.2x24.6x1.3x
Sat, 21 Oct 2023UK£53.0bUK£40.7bUK£2.2b29x24.3x1.3x
Mon, 18 Sep 2023UK£53.4bUK£40.7bUK£2.2b27.9x24.5x1.3x
Wed, 16 Aug 2023UK£52.5bUK£40.4bUK£2.0b24.2x26.6x1.3x
Fri, 14 Jul 2023UK£48.7bUK£38.7bUK£1.8b20.9x27x1.3x
Sun, 11 Jun 2023UK£50.3bUK£38.7bUK£1.8b19.4x27.8x1.3x
Tue, 09 May 2023UK£50.3bUK£38.6bUK£1.8b17x27.4x1.3x
Thu, 06 Apr 2023UK£44.5bUK£31.0bUK£2.1b17x21.6x1.4x
Sat, 04 Mar 2023UK£33.1bUK£31.0bUK£2.1b17.2x16x1.1x
Mon, 30 Jan 2023UK£40.3bUK£29.6bUK£1.8b18.8x21.9x1.4x
Wed, 28 Dec 2022UK£40.6bUK£29.6bUK£1.8b18.5x22.1x1.4x
Fri, 25 Nov 2022UK£38.9bUK£29.5bUK£1.8b18.8x21.2x1.3x
Sun, 23 Oct 2022UK£39.2bUK£29.4bUK£1.7b21.3x22.6x1.3x
Tue, 20 Sep 2022UK£37.9bUK£29.4bUK£1.7b20.8x21.8x1.3x
Price to Earnings Ratio

21.8x


Total Market Cap: UK£37.9bTotal 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 21.0x 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 2.9x.
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 Market0.64%
Industrials1.97%
Aerospace & Defense6.80%
Aerospace and Defense6.80%
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
BA. BAE SystemsUK£19.8111.5%
+UK£6.1b		48.2%PE29.9x
RR. Rolls-Royce HoldingsUK£11.305.1%
+UK£4.6b		125.5%PE16.4x
BAB Babcock International GroupUK£11.576.0%
+UK£327.5m		145.0%PE23.5x
QQ. QinetiQ GroupUK£5.055.6%
+UK£143.0m		10.1%PS1.4x
CHG Chemring GroupUK£5.675.0%
+UK£73.5m		46.5%PE30.1x

Latest News

CHG
UK£5.67
Chemring Group
7D
5.0%
1Y
46.5%

Chemring Group PLC (LON:CHG) Shares Could Be 39% Below Their Intrinsic Value Estimate

Sep 13
Chemring Group PLC (LON:CHG) Shares Could Be 39% Below Their Intrinsic Value Estimate
RR.
UK£11.30
Rolls-Royce Holdings
7D
5.1%
1Y
125.5%
MRO
UK£5.94
Melrose Industries
7D
-3.5%
1Y
24.0%

Advanced Manufacturing And Lightweight Materials Will Fuel Future Aerospace Success

Melrose Industries’ fair value saw a marginal increase, as reflected by a slightly higher consensus analyst price target, primarily driven by a modest uptick in its Future P/E multiple. What's in the News Interim dividend increased by 20% to 2.4 pence per share.
AVON
UK£21.05
Avon Technologies
7D
9.7%
1Y
74.0%
BA.
UK£19.81
BAE Systems
7D
11.5%
1Y
48.2%

BAE Systems' (LON:BA.) Dividend Will Be £0.135

Sep 05
BAE Systems' (LON:BA.) Dividend Will Be £0.135
PEN
UK£0.23
Pennant International Group
7D
-7.0%
1Y
-16.7%
BAB
UK£11.57
Babcock International Group
7D
6.0%
1Y
145.0%

Skynet Success And Global Partnerships Ignite Growth In Aerospace And Defense

Upward revisions in Babcock International Group’s price target reflect strong results, upgraded guidance, and improved operational confidence, with the consensus fair value rising from £11.58 to £11.87. Analyst Commentary Bullish analysts cited strong company results and upgraded future guidance as a key driver for raising price targets.
SNR
UK£1.91
Senior
7D
-1.5%
1Y
18.0%

Senior (LON:SNR) Has Announced A Dividend Of £0.0085

Aug 29
Senior (LON:SNR) Has Announced A Dividend Of £0.0085
CHRT
UK£13.90
Cohort
7D
11.9%
1Y
66.3%
MSI
UK£13.75
MS INTERNATIONAL
7D
11.3%
1Y
30.3%
QQ.
UK£5.05
QinetiQ Group
7D
5.6%
1Y
10.1%

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