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

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies13
  • 7D8.5%
  • 3M1.7%
  • 1Y86.6%
  • YTDn/a

Over the last 7 days, the Aerospace and Defense industry has risen 8.5%, driven by gains from every company within the industry. This takes the industry's 12 month performance to a gain of 87%. In the next few years earnings are forecast to be pretty stable.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 07 Jan 2026UK£180.9bUK£59.4bUK£8.3b24.4x21.9x3x
Fri, 05 Dec 2025UK£160.2bUK£59.4bUK£8.3b24x19.4x2.7x
Sun, 02 Nov 2025UK£174.3bUK£59.3bUK£8.3b24.9x21.1x2.9x
Tue, 30 Sep 2025UK£179.5bUK£59.3bUK£8.3b26x21.7x3x
Thu, 28 Aug 2025UK£160.2bUK£59.3bUK£8.3b24.6x19.4x2.7x
Sat, 26 Jul 2025UK£73.5bUK£38.7bUK£2.1b28.5x35.3x1.9x
Mon, 23 Jun 2025UK£75.2bUK£38.4bUK£2.0b28.6x37.1x2x
Wed, 21 May 2025UK£69.7bUK£38.4bUK£2.3b27.5x29.8x1.8x
Fri, 18 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Sun, 16 Mar 2025UK£66.2bUK£38.5bUK£2.3b26.3x28.3x1.7x
Tue, 11 Feb 2025UK£50.8bUK£36.7bUK£2.2b19.3x22.7x1.4x
Thu, 09 Jan 2025UK£50.1bUK£36.7bUK£2.2b20.1x22.4x1.4x
Sat, 07 Dec 2024UK£51.8bUK£36.7bUK£2.2b20.3x23.3x1.4x
Mon, 04 Nov 2024UK£51.7bUK£36.3bUK£2.2b18.7x23.7x1.4x
Wed, 02 Oct 2024UK£51.6bUK£36.3bUK£2.2b20.2x23.7x1.4x
Fri, 30 Aug 2024UK£55.5bUK£36.3bUK£2.2b22.4x25.5x1.5x
Sun, 28 Jul 2024UK£53.7bUK£34.7bUK£2.2b21x24x1.5x
Tue, 25 Jun 2024UK£56.3bUK£34.8bUK£2.1b23.4x26.9x1.6x
Thu, 23 May 2024UK£56.9bUK£34.7bUK£2.1b23.5x27.5x1.6x
Sat, 20 Apr 2024UK£53.9bUK£34.7bUK£2.1b22.2x26x1.6x
Mon, 18 Mar 2024UK£54.2bUK£34.6bUK£2.1b22.1x26.2x1.6x
Wed, 14 Feb 2024UK£51.2bUK£38.5bUK£2.1b20x24.1x1.3x
Fri, 12 Jan 2024UK£57.9bUK£41.0bUK£2.2b25.2x26.4x1.4x
Sun, 10 Dec 2023UK£53.8bUK£40.9bUK£2.2b32.1x24.6x1.3x
Tue, 07 Nov 2023UK£54.1bUK£40.7bUK£2.2b29.7x24.8x1.3x
Thu, 05 Oct 2023UK£51.5bUK£40.7bUK£2.2b29.1x23.6x1.3x
Sat, 02 Sep 2023UK£52.3bUK£40.4bUK£2.0b27.9x26.5x1.3x
Mon, 31 Jul 2023UK£49.9bUK£39.1bUK£1.6b23.4x30.7x1.3x
Wed, 28 Jun 2023UK£48.8bUK£38.7bUK£1.8b22.5x27.1x1.3x
Fri, 26 May 2023UK£49.8bUK£38.6bUK£1.8b18.3x27.1x1.3x
Sun, 23 Apr 2023UK£51.0bUK£38.6bUK£1.8b17.6x27.8x1.3x
Tue, 21 Mar 2023UK£42.5bUK£31.0bUK£2.1b16.9x20.6x1.4x
Thu, 16 Feb 2023UK£40.7bUK£29.6bUK£1.8b17.8x22.1x1.4x
Sat, 14 Jan 2023UK£39.8bUK£29.6bUK£1.8b18.6x21.6x1.3x
Price to Earnings Ratio

21.6x


Total Market Cap: UK£39.8bTotal Earnings: UK£1.8bTotal Revenue: UK£29.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace and Defense Industry Price to Earnings3Y Average 25.2x202420252026
Current Industry PE
  • Investors are pessimistic on the British Aerospace and 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 21.9x which is lower than its 3-year average PE of 25.2x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Aerospace and 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 Comparison

How does U.K. Aerospace and Defense compare with similar industries?

GB Market1.90%
Industrials4.37%
Aerospace & Defense8.48%
Aerospace and Defense8.48%
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£12.457.9%
+UK£7.7b		115.8%PE18x
BA. BAE SystemsUK£18.829.8%
+UK£5.0b		63.0%PE28.3x
BAB Babcock International GroupUK£13.8811.8%
+UK£726.1m		179.2%PE24.1x
MRO Melrose IndustriesUK£6.205.7%
+UK£420.2m		11.9%PE24.7x
QQ. QinetiQ GroupUK£4.797.8%
+UK£184.5m		16.8%PS1.3x

Latest News

RR.
UK£12.45
Rolls-Royce Holdings
7D
7.9%
1Y
115.8%
CHG
UK£4.98
Chemring Group
7D
5.3%
1Y
49.4%

Slowing Rates Of Return At Chemring Group (LON:CHG) Leave Little Room For Excitement

Jan 06
Slowing Rates Of Return At Chemring Group (LON:CHG) Leave Little Room For Excitement
SNR
UK£2.12
Senior
7D
9.4%
1Y
34.5%
CHRT
UK£9.48
Cohort
7D
4.2%
1Y
-16.1%
QQ.
UK£4.79
QinetiQ Group
7D
7.8%
1Y
16.8%
MRO
UK£6.20
Melrose Industries
7D
5.7%
1Y
11.9%

MRO: Future Cash Returns Will Rise As Earnings Outlook Strengthens

Analysts have raised their price target on Melrose Industries from £6.00 to £7.50 per share, citing a slightly higher expected future earnings multiple and continued confidence in the company’s long term growth and profitability profile. Analyst Commentary Following the latest target price increase to 750 GBp, bullish analysts point to both an improving earnings outlook and a higher justified valuation multiple, while more cautious voices focus on execution risks and the durability of end market demand.
BA.
UK£18.82
BAE Systems
7D
9.8%
1Y
63.0%

BA.: NATO-Fueled Demand Will Face Execution And Budget Uncertainty

Analysts have raised their price target on BAE Systems by approximately 12 percent to reflect stronger expected revenue growth, slightly higher margins, and robust, geographically diversified demand from NATO countries. This demand is anticipated to support a higher future valuation multiple.
BAB
UK£13.88
Babcock International Group
7D
11.8%
1Y
179.2%

BAB: Elevated Earnings Multiple Will Likely Expose Execution Risks Ahead

The analyst price target for Babcock International Group has been raised by GBP 50 to GBP 1,500, as analysts factor in a higher fair value and stronger long term earnings multiples, despite only modest tweaks to growth and margin assumptions. Analyst Commentary While the uplift in the price target to GBP 1,500 underlines growing confidence in Babcock International Group's medium term trajectory, research commentary continues to highlight several areas of caution.