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

UpdatedJan 13, 2026
DataAggregated Company Financials
Companies13
  • 7D7.4%
  • 3M11.2%
  • 1Y97.9%
  • YTD11.5%

In the last week, the Aerospace & Defense industry is up 6.9%, with all of the companies up. This takes the industry's 12 month performance to a gain of 97%. Looking forward, earnings are expected to remain mostly flat in the next few years.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 13 Jan 2026UK£191.7bUK£59.4bUK£8.3b26.9x23.2x3.2x
Thu, 11 Dec 2025UK£162.1bUK£59.4bUK£8.3b23.4x19.6x2.7x
Sat, 08 Nov 2025UK£169.3bUK£59.3bUK£8.3b24.4x20.5x2.9x
Mon, 06 Oct 2025UK£180.8bUK£59.3bUK£8.3b26.3x21.9x3x
Wed, 03 Sep 2025UK£161.3bUK£59.3bUK£8.3b24.1x19.5x2.7x
Fri, 01 Aug 2025UK£72.2bUK£39.8bUK£2.1b28.2x34.3x1.8x
Sun, 29 Jun 2025UK£74.8bUK£38.6bUK£2.1b29.3x36x1.9x
Tue, 27 May 2025UK£71.4bUK£38.4bUK£2.0b28.3x35.4x1.9x
Thu, 24 Apr 2025UK£64.1bUK£38.5bUK£2.3b24.2x27.4x1.7x
Sat, 22 Mar 2025UK£63.1bUK£38.5bUK£2.3b24.5x27x1.6x
Mon, 17 Feb 2025UK£52.5bUK£36.7bUK£2.2b20.1x23.4x1.4x
Wed, 15 Jan 2025UK£50.0bUK£36.7bUK£2.2b20x22.4x1.4x
Fri, 13 Dec 2024UK£51.0bUK£36.7bUK£2.2b20.2x22.9x1.4x
Sun, 10 Nov 2024UK£55.3bUK£36.3bUK£2.2b19.2x25.4x1.5x
Tue, 08 Oct 2024UK£52.3bUK£36.3bUK£2.2b19.7x24x1.4x
Thu, 05 Sep 2024UK£53.3bUK£36.3bUK£2.2b21.4x24.5x1.5x
Sat, 03 Aug 2024UK£52.7bUK£36.3bUK£2.2b20.7x24.2x1.5x
Mon, 01 Jul 2024UK£54.7bUK£34.8bUK£2.1b22.1x26.1x1.6x
Wed, 29 May 2024UK£57.2bUK£34.8bUK£2.1b24.2x27.2x1.6x
Fri, 26 Apr 2024UK£55.0bUK£34.6bUK£2.1b22.5x26.6x1.6x
Sun, 24 Mar 2024UK£57.1bUK£34.6bUK£2.1b22.7x27.5x1.6x
Tue, 20 Feb 2024UK£52.8bUK£38.5bUK£2.1b20x24.9x1.4x
Thu, 18 Jan 2024UK£58.8bUK£41.0bUK£2.2b25.1x26.8x1.4x
Sat, 16 Dec 2023UK£54.1bUK£41.0bUK£2.2b24.6x24.7x1.3x
Mon, 13 Nov 2023UK£55.3bUK£40.7bUK£2.2b30.6x25.3x1.4x
Wed, 11 Oct 2023UK£52.6bUK£40.7bUK£2.2b28.7x24.1x1.3x
Fri, 08 Sep 2023UK£53.3bUK£40.4bUK£2.0b26.6x27x1.3x
Sun, 06 Aug 2023UK£52.6bUK£40.4bUK£2.0b26.4x26.6x1.3x
Tue, 04 Jul 2023UK£51.5bUK£38.7bUK£1.8b21.9x28.5x1.3x
Thu, 01 Jun 2023UK£49.0bUK£38.7bUK£1.8b17.8x27x1.3x
Sat, 29 Apr 2023UK£50.9bUK£38.6bUK£1.8b17x27.7x1.3x
Mon, 27 Mar 2023UK£43.8bUK£31.0bUK£2.1b17.2x21.2x1.4x
Wed, 22 Feb 2023UK£42.1bUK£29.6bUK£1.8b19.6x22.9x1.4x
Fri, 20 Jan 2023UK£40.1bUK£29.6bUK£1.8b18.7x21.8x1.4x
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 25.2x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Aerospace & Defense industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 25.2x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 3.2x.
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 Market1.48%
Industrials3.82%
Aerospace & Defense7.43%
Aerospace and Defense7.43%
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£20.9313.1%
+UK£7.2b		77.1%PE31.5x
RR. Rolls-Royce HoldingsUK£12.874.5%
+UK£4.1b		126.8%PE18.6x
BAB Babcock International GroupUK£14.9010.6%
+UK£711.6m		206.5%PE25.8x
QQ. QinetiQ GroupUK£5.0410.2%
+UK£246.1m		24.7%PS1.4x
CHG Chemring GroupUK£5.4811.3%
+UK£150.7m		71.3%PE27.9x

Latest News

MRO
UK£6.31
Melrose Industries
7D
1.8%
1Y
13.2%

MRO: Raised Fair Value And Margin Outlook Will Support Stronger Share Repricing

Analysts have lifted their fair value estimate for Melrose Industries to £8.40 from £8.25, aligning it with a higher £7.50 price target cited in recent research and supported by updated views on growth, margins and a lower future P/E assumption. Analyst Commentary Bullish analysts are flagging recent changes in expectations around Melrose Industries as a positive signal for sentiment on the shares, especially given the alignment between higher fair value estimates and updated price targets.
SNR
UK£2.19
Senior
7D
4.5%
1Y
36.9%

SNR: Aerostructures Disposal And Airbus Contract Will Reshape Margins And Earnings Quality

Analysts have lifted their price target for Senior to £2.30 from £1.85, citing a recent trading update that they viewed as better than expected and highlighting the planned Aerostructures disposal as a key event for the company. Analyst Commentary While the uplift in the price target to £2.30 reflects optimism around the recent trading update and the Aerostructures disposal, some caution still runs through the analyst commentary.
BA.
UK£20.93
BAE Systems
7D
13.1%
1Y
77.1%

BA.: Sector Caution And U.S. Shutdown Risk Will Restrain Overheated Expectations

Narrative Update The updated analyst price targets for BAE Systems now center around £19.50 to £18.60 per share. This reflects a modestly lower fair value estimate and slightly adjusted growth, discount rate and P/E assumptions, as analysts balance sector wide caution with valuation driven support.
CHRT
UK£11.40
Cohort
7D
20.1%
1Y
2.7%
BAB
UK£14.90
Babcock International Group
7D
10.6%
1Y
206.5%

Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)

Jan 08
Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)
CHG
UK£5.48
Chemring Group
7D
11.3%
1Y
71.3%

CHG: Higher Dividends And Earnings Multiple Will Support Stronger Future Upside

Analysts have nudged their price target on Chemring Group higher, pointing to slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E as the basis for the updated valuation, although the core fair value estimate remains at £6.00. What's in the News The Board is recommending a final dividend for the year ended 31 October 2025 of 5.3p per ordinary share, compared with 5.2p for 2024 (Key Developments).
QQ.
UK£5.04
QinetiQ Group
7D
10.2%
1Y
24.7%

QQ.: Dividend Policy And Delivery Risks Will Constrain Share Upside

Analysts have lowered their average price targets on QinetiQ Group to a range of about £4.90 to £5.50 per share. This reflects recent target reductions alongside an upgrade to Buy that points to valuation support following the latest share price pullback.
RR.
UK£12.87
Rolls-Royce Holdings
7D
4.5%
1Y
126.8%