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

UpdatedJun 17, 2026
DataAggregated Company Financials
Companies13
  • 7D6.9%
  • 3M-2.5%
  • 1Y26.9%
  • YTD10.0%

Over the last 7 days, the Aerospace & Defense industry has risen 6.9%, driven by gains from Rolls-Royce Holdings of 14%. This means that the industry has gained 27% over the past year. Earnings are forecast to grow by 2.9% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 17 Jun 2026UK£184.9bUK£61.9bUK£8.8b23.6x21x3x
Fri, 15 May 2026UK£173.2bUK£61.9bUK£8.5b24.1x20.4x2.8x
Sun, 12 Apr 2026UK£189.9bUK£61.9bUK£8.5b27.9x22.4x3.1x
Tue, 10 Mar 2026UK£190.4bUK£61.9bUK£8.5b27.2x22.5x3.1x
Thu, 05 Feb 2026UK£178.5bUK£59.4bUK£8.3b25x21.6x3x
Sat, 03 Jan 2026UK£172.1bUK£59.4bUK£8.3b23.3x20.8x2.9x
Mon, 01 Dec 2025UK£157.4bUK£59.4bUK£8.3b23.8x19x2.6x
Wed, 29 Oct 2025UK£173.2bUK£59.3bUK£8.3b25.2x21x2.9x
Fri, 26 Sep 2025UK£178.1bUK£59.3bUK£8.3b25.2x21.6x3x
Sun, 24 Aug 2025UK£159.1bUK£59.3bUK£8.3b24.9x19.3x2.7x
Tue, 22 Jul 2025UK£76.9bUK£38.7bUK£2.1b29.5x36.9x2x
Thu, 19 Jun 2025UK£75.9bUK£38.4bUK£2.0b28.7x37.5x2x
Sat, 17 May 2025UK£68.5bUK£38.4bUK£2.3b27x29.3x1.8x
Mon, 14 Apr 2025UK£63.0bUK£38.5bUK£2.3b23.9x26.9x1.6x
Wed, 12 Mar 2025UK£62.8bUK£38.5bUK£2.3b25.1x26.8x1.6x
Fri, 07 Feb 2025UK£50.9bUK£36.7bUK£2.2b19.2x22.7x1.4x
Sun, 05 Jan 2025UK£49.0bUK£36.7bUK£2.2b20x21.9x1.3x
Tue, 03 Dec 2024UK£52.6bUK£36.7bUK£2.2b20x23.7x1.4x
Thu, 31 Oct 2024UK£51.6bUK£36.3bUK£2.2b18.8x23.7x1.4x
Sat, 28 Sep 2024UK£50.8bUK£36.3bUK£2.2b20.2x23.3x1.4x
Mon, 26 Aug 2024UK£53.6bUK£36.3bUK£2.2b21.4x24.6x1.5x
Wed, 24 Jul 2024UK£53.6bUK£34.8bUK£2.1b21.8x25.5x1.5x
Fri, 21 Jun 2024UK£56.1bUK£34.8bUK£2.1b23.4x26.8x1.6x
Sun, 19 May 2024UK£56.4bUK£34.6bUK£2.1b23.7x27.2x1.6x
Tue, 16 Apr 2024UK£55.9bUK£34.7bUK£2.1b22.2x27x1.6x
Thu, 14 Mar 2024UK£54.0bUK£34.6bUK£2.1b21.9x26.1x1.6x
Sat, 10 Feb 2024UK£51.3bUK£38.5bUK£2.1b19.6x24.1x1.3x
Mon, 08 Jan 2024UK£57.4bUK£41.0bUK£2.2b25.2x26.2x1.4x
Wed, 06 Dec 2023UK£53.5bUK£40.9bUK£2.2b30.9x24.4x1.3x
Fri, 03 Nov 2023UK£54.9bUK£40.7bUK£2.2b29.4x25.2x1.3x
Sun, 01 Oct 2023UK£51.3bUK£40.7bUK£2.2b28.5x23.5x1.3x
Tue, 29 Aug 2023UK£51.6bUK£40.4bUK£2.0b24.2x26.1x1.3x
Thu, 27 Jul 2023UK£49.8bUK£39.1bUK£1.6b23.2x30.7x1.3x
Sat, 24 Jun 2023UK£49.6bUK£38.7bUK£1.8b22.8x27.5x1.3x
Price to Earnings Ratio

27.5x


Total Market Cap: UK£49.6bTotal Earnings: UK£1.8bTotal Revenue: UK£38.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.9x202420252026
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 24.9x.
  • The 3-year average PS ratio of 1.9x 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 Market2.65%
Industrials3.37%
Aerospace & Defense6.94%
Aerospace and Defense6.94%
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£13.9012.7%
+UK£12.9b		56.0%PE19.6x
MRO Melrose IndustriesUK£4.745.6%
+UK£311.8m		-2.6%PE16x
BAB Babcock International GroupUK£10.432.8%
+UK£139.2m		-1.7%PE17.7x
AVON Avon TechnologiesUK£17.343.1%
+UK£15.3m		-3.3%PE37.3x
MSI MS INTERNATIONALUK£14.501.0%
+UK£2.5m		12.2%PE16.6x

Latest News

BAB
UK£10.43
Babcock International Group
7D
2.8%
1Y
-1.7%
Narrative Update • Jun 15

BAB: Defence Contracts And Buybacks Will Support Future Upside

The analyst price target for Babcock International Group has shifted modestly to £14.68, with analysts broadly revising assumptions such as discount rate and future P/E, while highlighting recent upgrades to Buy ratings and price targets in the £1,315 to £1,500 range. Analyst Commentary Recent research highlights a cluster of positive rating actions and price targets for Babcock International Group, with bullish analysts focusing on valuation support and execution progress, while a more cautious stance centers on how much upside is already reflected in current targets.
CHRT
UK£12.56
Cohort
7D
-2.5%
1Y
-19.9%
RR.
UK£13.90
Rolls-Royce Holdings
7D
12.7%
1Y
56.0%
QQ.
UK£4.41
QinetiQ Group
7D
-8.2%
1Y
-12.8%
AVON
UK£17.34
Avon Technologies
7D
3.1%
1Y
-3.3%
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.
SNR
UK£2.88
Senior
7D
0.2%
1Y
70.5%
Narrative Update • Jun 04

SNR: Fair Offer Terms And Hold Downgrades Will Shape Returns

Analysts have trimmed their price target for Senior plc to £2.85. This reflects a more cautious stance following recent downgrades that indicate the shares are now trading close to what they view as fair value.
PEN
UK£0.24
Pennant International Group
7D
4.3%
1Y
-18.3%
CHG
UK£4.97
Chemring Group
7D
-5.8%
1Y
-13.2%
BA.
UK£18.65
BAE Systems
7D
-3.9%
1Y
-3.5%
Narrative Update • Jun 03

BA.: Expanding Space And Missile Defense Exposure Should Support Earnings Repricing

Analysts have lifted their fair value estimate for BAE Systems from £26.00 to £26.62, citing updated assumptions around revenue growth, profit margins, discount rates and future P/E expectations following recent Street research, including a £0.50 price target increase from UBS. What's in the News MDA Space has been selected by BAE Systems to provide antennas and control electronics for the U.S. Space Development Agency's Medium Earth Orbit EPOCH 2 Constellation, supporting national security satellite architecture and missile defense capabilities.
MRO
UK£4.74
Melrose Industries
7D
5.6%
1Y
-2.6%
Narrative Update • Jun 02

MRO: Future Cash Returns Will Reflect Resilient Buybacks And Dividend Policy

Narrative Update The analyst price target for Melrose Industries has been reduced from £5.70 to £4.70. Analysts point to uncertainty following a recent factory incident and a reset of assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E.
RCFX
UK£0.07
RC Fornax
7D
-10.2%
1Y
-72.4%
VEL
UK£0.14
Velocity Composites
7D
-6.5%
1Y
-55.4%
MSI
UK£14.50
MS INTERNATIONAL
7D
1.0%
1Y
12.2%