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

UpdatedJul 06, 2026
DataAggregated Company Financials
Companies13
  • 7D7.7%
  • 3M11.7%
  • 1Y30.9%
  • YTDn/a

In the last week, the Aerospace and Defense industry is up 7.7%, with Rolls-Royce Holdings up 6.3%. During this same period, the RC Fornax underperformed, falling 5.2%. This means that the industry has gained 31% over the past year. As for the next few years, earnings are expected to grow by 3.0% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 06 Jul 2026UK£198.4bUK£62.2bUK£8.7b25.6x22.8x3.2x
Wed, 03 Jun 2026UK£177.2bUK£61.9bUK£8.8b24.8x20.2x2.9x
Fri, 01 May 2026UK£176.7bUK£61.9bUK£8.5b26.7x20.9x2.9x
Sun, 29 Mar 2026UK£171.6bUK£61.9bUK£8.5b24.8x20.3x2.8x
Tue, 24 Feb 2026UK£196.7bUK£60.3bUK£8.4b26.3x23.5x3.3x
Thu, 22 Jan 2026UK£188.2bUK£59.4bUK£8.3b26.2x22.7x3.2x
Sat, 20 Dec 2025UK£168.4bUK£59.4bUK£8.3b23x20.3x2.8x
Mon, 17 Nov 2025UK£166.1bUK£59.3bUK£8.2b24.6x20.2x2.8x
Wed, 15 Oct 2025UK£173.2bUK£59.3bUK£8.3b25.1x21x2.9x
Fri, 12 Sep 2025UK£172.2bUK£59.3bUK£8.3b24.7x20.8x2.9x
Sun, 10 Aug 2025UK£160.7bUK£59.3bUK£8.3b24.7x19.5x2.7x
Tue, 08 Jul 2025UK£74.8bUK£38.6bUK£2.1b29.1x35.9x1.9x
Thu, 05 Jun 2025UK£76.9bUK£38.4bUK£2.0b29.7x38x2x
Sat, 03 May 2025UK£68.6bUK£38.4bUK£2.3b26.3x29.3x1.8x
Mon, 31 Mar 2025UK£61.9bUK£38.5bUK£2.3b24x26.5x1.6x
Wed, 26 Feb 2025UK£56.9bUK£38.5bUK£2.4b21.8x24.2x1.5x
Fri, 24 Jan 2025UK£52.6bUK£36.7bUK£2.2b20.5x23.5x1.4x
Sun, 22 Dec 2024UK£49.0bUK£36.7bUK£2.2b19.7x21.9x1.3x
Tue, 19 Nov 2024UK£53.1bUK£36.6bUK£2.2b19.8x24.1x1.4x
Thu, 17 Oct 2024UK£52.3bUK£36.3bUK£2.2b18.6x24x1.4x
Sat, 14 Sep 2024UK£53.9bUK£36.3bUK£2.2b21.8x24.8x1.5x
Mon, 12 Aug 2024UK£52.6bUK£36.4bUK£2.2b20.8x24.2x1.4x
Wed, 10 Jul 2024UK£53.4bUK£34.8bUK£2.1b22.6x25.4x1.5x
Fri, 07 Jun 2024UK£58.3bUK£34.8bUK£2.1b24.1x27.8x1.7x
Sun, 05 May 2024UK£56.1bUK£34.6bUK£2.1b23.5x27.1x1.6x
Tue, 02 Apr 2024UK£56.7bUK£34.6bUK£2.1b22.6x27.4x1.6x
Thu, 29 Feb 2024UK£52.2bUK£39.1bUK£2.0b20x25.6x1.3x
Sat, 27 Jan 2024UK£58.5bUK£41.0bUK£2.2b25.6x26.7x1.4x
Mon, 25 Dec 2023UK£55.4bUK£41.0bUK£2.2b25.8x25.3x1.4x
Wed, 22 Nov 2023UK£53.9bUK£40.9bUK£2.2b30.9x24.5x1.3x
Fri, 20 Oct 2023UK£52.4bUK£40.7bUK£2.2b27.4x24x1.3x
Sun, 17 Sep 2023UK£53.4bUK£40.7bUK£2.2b27.9x24.5x1.3x
Tue, 15 Aug 2023UK£52.7bUK£40.4bUK£2.0b24.2x26.7x1.3x
Thu, 13 Jul 2023UK£48.7bUK£38.7bUK£1.8b21.2x27x1.3x
Price to Earnings Ratio

27x


Total Market Cap: UK£48.7bTotal 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 24.8x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Aerospace and 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 24.8x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 3.2x.
Past Earnings Growth
  • The earnings for companies in the Aerospace and 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 Comparison

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

GB Market1.90%
Industrials4.36%
Aerospace & Defense7.65%
Aerospace and Defense7.65%
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£15.046.3%
+UK£7.3b		55.1%PE21.3x
BA. BAE SystemsUK£20.2512.0%
+UK£6.2b		8.0%PE27.9x
BAB Babcock International GroupUK£10.4813.8%
+UK£620.5m		-4.8%PE24.2x
MRO Melrose IndustriesUK£5.008.2%
+UK£473.6m		-4.9%PE16.8x
QQ. QinetiQ GroupUK£4.8317.1%
+UK£363.7m		-4.0%PE23.2x

Latest News

RR.
UK£15.04
Rolls-Royce Holdings
7D
6.3%
1Y
55.1%
QQ.
UK£4.83
QinetiQ Group
7D
17.1%
1Y
-4.0%
CHG
UK£5.66
Chemring Group
7D
16.1%
1Y
1.2%
CHRT
UK£14.22
Cohort
7D
18.9%
1Y
-6.8%
MRO
UK£5.00
Melrose Industries
7D
8.2%
1Y
-4.9%
Narrative Update • Jul 01

MRO: Incident Uncertainty And Cash Returns Will Shape Future P/E Assumptions

The consensus analyst price target for Melrose Industries has decreased from about £5.70 to roughly £4.70, with analysts citing increased uncertainty following the recent factory incident as a key reason for the reassessment. Analyst Commentary Recent commentary on Melrose Industries reflects a more cautious tone, with bearish analysts highlighting the factory incident as a central source of uncertainty for both valuation and future execution.
BAB
UK£10.48
Babcock International Group
7D
13.8%
1Y
-4.8%
Narrative Update • Jun 29

BAB: Share Buybacks And Long-Term Contracts Will Test Execution Upside

The updated analyst price target for Babcock International Group narrows slightly to an implied fair value of £11.40 from £12.80. This reflects a blend of recent Street revisions that temper revenue growth assumptions and apply a higher discount rate, while still leaning on firmer margin expectations and a lower future P/E multiple.
BA.
UK£20.25
BAE Systems
7D
12.0%
1Y
8.0%
RCFX
UK£0.063
RC Fornax
7D
-6.0%
1Y
-77.5%
MSI
UK£14.80
MS INTERNATIONAL
7D
7.6%
1Y
29.3%