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

UpdatedMay 22, 2026
DataAggregated Company Financials
Companies13
  • 7D1.6%
  • 3M-10.7%
  • 1Y25.5%
  • YTDn/a

In the last week, the Aerospace and Defense industry is up 1.2%, with Rolls-Royce Holdings leading the way, up 0.9%. This takes the industry's 12 month performance to a gain of 28%. Looking forward, earnings are forecast to grow by 4.3% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 May 2026UK£175.9bUK£61.9bUK£8.5b26.1x20.8x2.8x
Sun, 19 Apr 2026UK£196.0bUK£61.9bUK£8.5b28.6x23.1x3.2x
Tue, 17 Mar 2026UK£189.4bUK£61.9bUK£8.5b27.7x22.4x3.1x
Thu, 12 Feb 2026UK£182.2bUK£59.4bUK£8.3b25.5x22x3.1x
Sat, 10 Jan 2026UK£191.3bUK£59.4bUK£8.3b26.5x23.1x3.2x
Mon, 08 Dec 2025UK£159.3bUK£59.4bUK£8.3b24x19.2x2.7x
Wed, 05 Nov 2025UK£171.9bUK£59.3bUK£8.3b25x20.8x2.9x
Fri, 03 Oct 2025UK£180.7bUK£59.3bUK£8.3b26.1x21.9x3x
Sun, 31 Aug 2025UK£161.1bUK£59.3bUK£8.3b24.9x19.5x2.7x
Tue, 29 Jul 2025UK£71.9bUK£38.7bUK£2.1b27.8x34.6x1.9x
Thu, 26 Jun 2025UK£73.1bUK£38.6bUK£2.1b28.6x35.2x1.9x
Sat, 24 May 2025UK£71.4bUK£38.4bUK£2.0b28.3x35.4x1.9x
Mon, 21 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Wed, 19 Mar 2025UK£65.3bUK£38.5bUK£2.3b25.4x27.9x1.7x
Fri, 14 Feb 2025UK£53.0bUK£36.7bUK£2.2b20.2x23.7x1.4x
Sun, 12 Jan 2025UK£50.2bUK£36.7bUK£2.2b20.1x22.5x1.4x
Tue, 10 Dec 2024UK£50.6bUK£36.6bUK£2.2b20.1x22.8x1.4x
Thu, 07 Nov 2024UK£54.1bUK£36.3bUK£2.2b18.9x24.9x1.5x
Sat, 05 Oct 2024UK£52.4bUK£36.3bUK£2.2b20.1x24.1x1.4x
Mon, 02 Sep 2024UK£55.2bUK£36.3bUK£2.2b22.1x25.4x1.5x
Wed, 31 Jul 2024UK£54.2bUK£34.7bUK£2.2b21.1x24.3x1.6x
Fri, 28 Jun 2024UK£55.0bUK£34.8bUK£2.1b22.5x26.2x1.6x
Sun, 26 May 2024UK£57.7bUK£34.8bUK£2.1b23.9x27.5x1.7x
Tue, 23 Apr 2024UK£54.1bUK£34.7bUK£2.1b21.8x26.1x1.6x
Thu, 21 Mar 2024UK£55.9bUK£34.6bUK£2.1b22.3x27x1.6x
Sat, 17 Feb 2024UK£52.4bUK£38.5bUK£2.1b20x24.7x1.4x
Mon, 15 Jan 2024UK£58.9bUK£41.0bUK£2.2b25.5x26.9x1.4x
Wed, 13 Dec 2023UK£54.2bUK£40.9bUK£2.2b32.6x24.8x1.3x
Fri, 10 Nov 2023UK£54.8bUK£40.7bUK£2.2b30.4x25.1x1.3x
Sun, 08 Oct 2023UK£50.4bUK£40.7bUK£2.2b28.5x23.1x1.2x
Tue, 05 Sep 2023UK£52.2bUK£40.4bUK£2.0b28.3x26.5x1.3x
Thu, 03 Aug 2023UK£51.8bUK£39.2bUK£1.6b26.6x31.9x1.3x
Sat, 01 Jul 2023UK£51.9bUK£38.7bUK£1.8b21.8x28.8x1.3x
Mon, 29 May 2023UK£49.7bUK£38.7bUK£1.8b18.1x27.4x1.3x
Price to Earnings Ratio

27.4x


Total Market Cap: UK£49.7bTotal Earnings: UK£1.8bTotal Revenue: UK£38.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace and Defense Industry Price to Earnings3Y Average 25.1x202420252026
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 20.8x which is lower than its 3-year average PE of 25.1x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Aerospace and Defense industry have grown 67% 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 Comparison

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

GB Market0.25%
Industrials1.21%
Aerospace & Defense1.59%
Aerospace and Defense1.59%
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£12.080.9%
+UK£909.3m		44.0%PE17.1x
BA. BAE SystemsUK£19.531.6%
+UK£884.2m		6.0%PE28.3x
BAB Babcock International GroupUK£10.679.3%
+UK£445.1m		19.2%PE18.1x
QQ. QinetiQ GroupUK£4.6611.7%
+UK£252.9m		-0.9%PS1.3x
MRO Melrose IndustriesUK£4.971.9%
+UK£117.2m		9.6%PE16.7x

Latest News

RR.
UK£12.08
Rolls-Royce Holdings
7D
0.9%
1Y
44.0%
BAB
UK£10.67
Babcock International Group
7D
9.3%
1Y
19.2%
SNR
UK£2.87
Senior
7D
0.2%
1Y
76.3%
Narrative Update • May 19

SNR: Fair Takeover Offer And Dividends Will Shape Risk Balanced Outlook

Analysts have trimmed their fair value estimate for Senior to about £2.88 from £3.02, citing recent downgrades that frame the stock as fairly valued at around £2.85 and reflect slightly higher discount rate assumptions along with a more conservative P/E outlook. Analyst Commentary Recent research points to a more muted stance on Senior, with the stock now framed as fairly valued around £2.85 to £2.88 and rating cuts that highlight both execution upside and risk.
BA.
UK£19.53
BAE Systems
7D
1.6%
1Y
6.0%
Narrative Update • May 19

BA.: Firmer Defence Backdrop Will Offset Softer 2026 Guidance Risks

Analysts have lifted BAE Systems' blended price target to £2,438, reflecting slightly firmer revenue growth and margin assumptions, along with recent target increases from several research houses. Analyst Commentary Recent research activity around BAE Systems has clustered around incremental price target moves, with some analysts highlighting execution and growth questions even as headline targets sit above current levels.
CHG
UK£5.12
Chemring Group
7D
8.4%
1Y
16.1%
Narrative Update • May 18

CHG: Stable Outlook And Slightly Higher Assumptions Will Support Future Upside Potential

Narrative Update on Chemring Group Analysts have kept their Chemring Group price target steady at £5.90, citing updated assumptions for discount rate, revenue growth, profit margins and future P/E that, taken together, support the existing valuation view. Valuation Changes Fair Value: The £5.90 fair value estimate is unchanged, indicating no adjustment to the central valuation level.
AVON
UK£16.60
Avon Technologies
7D
7.5%
1Y
0.6%
MRO
UK£4.97
Melrose Industries
7D
1.9%
1Y
9.6%
Narrative Update • May 14

MRO: Execution On Cash Returns And P/E Assumptions Will Shape Balanced Prospects

Narrative Update The analyst price target for Melrose Industries has been trimmed to around £4.70 from about £4.72, with analysts citing refreshed coverage, mixed target revisions, and updated assumptions on discount rate, revenue growth, profit margins, and future P/E to support the change. Analyst Commentary Recent Street research on Melrose Industries presents a split view, with some bullish voices alongside more cautious updates.
CHRT
UK£11.36
Cohort
7D
-1.9%
1Y
-25.8%
New Narrative • May 13

Defence Order Delays And Cash Strain Will Eventually Support Long Term Earnings Momentum

Catalysts About Cohort Cohort is a defence technology group made up of seven businesses that supply technology based products and services to the UK and allied militaries worldwide. What are the underlying business or industry changes driving this perspective?
RCFX
UK£0.076
RC Fornax
7D
-3.2%
1Y
-79.3%
QQ.
UK£4.66
QinetiQ Group
7D
11.7%
1Y
-0.9%
Narrative Update • May 02

QQ.: Higher Margin Outlook Will Support Repriced Shares

Analysts have maintained their fair value estimate for QinetiQ Group at £6.35. The updated price target reflects a slightly higher discount rate, a lower assumed revenue growth rate, a higher projected profit margin and a lower future P/E multiple.
VEL
UK£0.12
Velocity Composites
7D
-2.0%
1Y
-48.3%
MSI
UK£16.65
MS INTERNATIONAL
7D
-1.2%
1Y
48.0%