Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

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

UpdatedDec 10, 2025
DataAggregated Company Financials
Companies13
  • 7D6.0%
  • 3M-1.5%
  • 1Y68.6%
  • YTD66.5%

The Aerospace & Defense industry is up 5.8% in the last week, with Rolls-Royce Holdings up 6.8%. During this same period, the MS INTERNATIONAL underperformed, falling 8.0%. This takes the industry's 12 month performance to a gain of 64%. Looking forward, earnings are forecast to decline by 2.1% per year.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 10 Dec 2025UK£163.3bUK£59.4bUK£8.3b23.7x19.7x2.7x
Fri, 07 Nov 2025UK£168.6bUK£59.3bUK£8.3b24.7x20.4x2.8x
Sun, 05 Oct 2025UK£180.8bUK£59.3bUK£8.3b26.3x21.9x3x
Tue, 02 Sep 2025UK£164.8bUK£59.3bUK£8.3b24.7x20x2.8x
Thu, 31 Jul 2025UK£71.4bUK£38.7bUK£2.1b28x34.3x1.8x
Sat, 28 Jun 2025UK£74.8bUK£38.6bUK£2.1b29.3x36x1.9x
Mon, 26 May 2025UK£71.4bUK£38.4bUK£2.0b28.3x35.4x1.9x
Wed, 23 Apr 2025UK£64.9bUK£38.5bUK£2.3b24.3x27.7x1.7x
Fri, 21 Mar 2025UK£64.8bUK£38.5bUK£2.3b25.2x27.7x1.7x
Sun, 16 Feb 2025UK£52.5bUK£36.7bUK£2.2b20.1x23.4x1.4x
Tue, 14 Jan 2025UK£49.8bUK£36.7bUK£2.2b19.8x22.3x1.4x
Thu, 12 Dec 2024UK£50.6bUK£36.6bUK£2.2b20.3x22.8x1.4x
Sat, 09 Nov 2024UK£55.3bUK£36.3bUK£2.2b19.2x25.4x1.5x
Mon, 07 Oct 2024UK£52.4bUK£36.3bUK£2.2b20.1x24.1x1.4x
Wed, 04 Sep 2024UK£53.2bUK£36.3bUK£2.2b21.4x24.4x1.5x
Fri, 02 Aug 2024UK£53.4bUK£34.7bUK£2.2b21x23.9x1.5x
Sun, 30 Jun 2024UK£54.7bUK£34.8bUK£2.1b22.1x26.1x1.6x
Tue, 28 May 2024UK£57.7bUK£34.8bUK£2.1b23.9x27.5x1.7x
Thu, 25 Apr 2024UK£56.4bUK£34.7bUK£2.1b22.8x27.2x1.6x
Sat, 23 Mar 2024UK£57.1bUK£34.6bUK£2.1b22.7x27.5x1.6x
Mon, 19 Feb 2024UK£52.4bUK£38.5bUK£2.1b20x24.7x1.4x
Wed, 17 Jan 2024UK£58.7bUK£41.0bUK£2.2b25.2x26.8x1.4x
Fri, 15 Dec 2023UK£54.0bUK£41.0bUK£2.2b24.5x24.6x1.3x
Sun, 12 Nov 2023UK£55.3bUK£40.7bUK£2.2b30.6x25.3x1.4x
Tue, 10 Oct 2023UK£51.8bUK£40.7bUK£2.2b28.5x23.8x1.3x
Thu, 07 Sep 2023UK£52.4bUK£40.4bUK£2.0b27x26.5x1.3x
Sat, 05 Aug 2023UK£52.6bUK£40.4bUK£2.0b26.4x26.6x1.3x
Mon, 03 Jul 2023UK£51.9bUK£38.7bUK£1.8b21.8x28.8x1.3x
Wed, 31 May 2023UK£49.5bUK£38.7bUK£1.8b18x27.3x1.3x
Fri, 28 Apr 2023UK£50.9bUK£38.6bUK£1.8b17.1x27.7x1.3x
Sun, 26 Mar 2023UK£43.8bUK£31.0bUK£2.1b17.2x21.2x1.4x
Tue, 21 Feb 2023UK£41.6bUK£29.6bUK£1.8b18.7x22.6x1.4x
Thu, 19 Jan 2023UK£40.0bUK£29.6bUK£1.8b18.7x21.7x1.4x
Sat, 17 Dec 2022UK£40.1bUK£29.6bUK£1.8b18x21.8x1.4x
Price to Earnings Ratio

21.8x


Total Market Cap: UK£40.1bTotal Earnings: UK£1.8bTotal Revenue: UK£29.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 25.2x202320242025
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 19.6x which is lower than its 3-year average PE of 25.2x.
  • The 3-year average PS ratio of 1.6x 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 65% 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 Market-0.72%
Industrials2.04%
Aerospace & Defense5.95%
Aerospace and Defense5.95%
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£11.116.2%
+UK£5.4b		96.4%PE16.1x
BA. BAE SystemsUK£17.276.3%
+UK£3.1b		46.4%PE26x
BAB Babcock International GroupUK£11.967.3%
+UK£403.4m		142.4%PE20.7x
QQ. QinetiQ GroupUK£4.377.1%
+UK£151.4m		8.1%PS1.2x
MRO Melrose IndustriesUK£5.751.4%
+UK£103.4m		2.1%PE22.9x

Latest News

CHG
UK£4.78
Chemring Group
7D
1.5%
1Y
33.4%
BAB
UK£11.96
Babcock International Group
7D
7.3%
1Y
142.4%

Should You Investigate Babcock International Group PLC (LON:BAB) At UK£11.76?

Dec 09
Should You Investigate Babcock International Group PLC (LON:BAB) At UK£11.76?
AVON
UK£18.04
Avon Technologies
7D
-0.8%
1Y
32.1%
BA.
UK£17.27
BAE Systems
7D
6.3%
1Y
46.4%
RCFX
UK£0.07
RC Fornax
7D
-7.0%
1Y
n/a

Estimating The Fair Value Of RC Fornax Plc (LON:RCFX)

Dec 03
Estimating The Fair Value Of RC Fornax Plc (LON:RCFX)
RR.
UK£11.11
Rolls-Royce Holdings
7D
6.2%
1Y
96.4%

RR.: Shares Will Gain Momentum From Aerospace Demand And Potential New Engine Deal

The analyst price target for Rolls-Royce Holdings has been revised upward from £11.93 to approximately £11.98. This change reflects analysts' increased confidence in the company's turnaround progress and opportunities for growth in the aerospace sector.
MRO
UK£5.75
Melrose Industries
7D
1.4%
1Y
2.1%
SNR
UK£1.87
Senior
7D
2.5%
1Y
21.2%
QQ.
UK£4.37
QinetiQ Group
7D
7.1%
1Y
8.1%

QQ.: Dividend Momentum And Entry Point Will Support Share Upside

Analysts have slightly reduced their price targets for QinetiQ Group. Recent research cites valuation adjustments and moderate expectations for near-term upside as the main factors behind the downward revision of a few pence per share.
CHRT
UK£11.04
Cohort
7D
3.0%
1Y
8.2%
MSI
UK£13.85
MS INTERNATIONAL
7D
-10.6%
1Y
39.9%
VEL
UK£0.15
Velocity Composites
7D
-6.3%
1Y
-30.6%
PEN
UK£0.20
Pennant International Group
7D
-5.6%
1Y
-28.8%