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

UpdatedJan 20, 2026
DataAggregated Company Financials
Companies13
  • 7D-1.1%
  • 3M11.2%
  • 1Y87.9%
  • YTDn/a

Over the last 7 days, the Aerospace and Defense industry has remained flat, although notably QinetiQ Group gained 3.6%. The past year has been better, since the industry has gained 90% in that time. Earnings are forecast to be flat in the coming years.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 20 Jan 2026UK£189.7bUK£59.4bUK£8.3b26.6x22.9x3.2x
Thu, 18 Dec 2025UK£160.9bUK£59.4bUK£8.3b22.5x19.4x2.7x
Sat, 15 Nov 2025UK£166.5bUK£59.3bUK£8.2b24.6x20.2x2.8x
Mon, 13 Oct 2025UK£175.5bUK£59.3bUK£8.3b25.1x21.3x3x
Wed, 10 Sep 2025UK£164.1bUK£59.3bUK£8.3b24.6x19.9x2.8x
Fri, 08 Aug 2025UK£161.7bUK£59.3bUK£8.3b23.9x19.6x2.7x
Sun, 06 Jul 2025UK£74.8bUK£38.6bUK£2.1b29x35.9x1.9x
Tue, 03 Jun 2025UK£74.8bUK£38.4bUK£2.0b30.2x37.1x1.9x
Thu, 01 May 2025UK£66.6bUK£38.4bUK£2.3b25.5x28.5x1.7x
Sat, 29 Mar 2025UK£61.9bUK£38.5bUK£2.3b24x26.5x1.6x
Mon, 24 Feb 2025UK£53.4bUK£38.5bUK£2.4b21.6x22.7x1.4x
Wed, 22 Jan 2025UK£52.1bUK£36.7bUK£2.2b20.5x23.3x1.4x
Fri, 20 Dec 2024UK£49.4bUK£36.7bUK£2.2b19.7x22.1x1.3x
Sun, 17 Nov 2024UK£52.3bUK£36.6bUK£2.2b20.1x23.7x1.4x
Tue, 15 Oct 2024UK£50.9bUK£36.3bUK£2.2b18.2x23.4x1.4x
Thu, 12 Sep 2024UK£52.6bUK£36.3bUK£2.2b21.2x24.2x1.4x
Sat, 10 Aug 2024UK£52.6bUK£36.4bUK£2.2b20.8x24.2x1.4x
Mon, 08 Jul 2024UK£53.4bUK£34.8bUK£2.1b22.5x25.4x1.5x
Wed, 05 Jun 2024UK£58.0bUK£34.8bUK£2.1b23.6x27.6x1.7x
Fri, 03 May 2024UK£55.1bUK£34.6bUK£2.1b23.6x26.6x1.6x
Sun, 31 Mar 2024UK£56.7bUK£34.6bUK£2.1b22.6x27.4x1.6x
Tue, 27 Feb 2024UK£53.0bUK£39.1bUK£2.0b20.4x26x1.4x
Thu, 25 Jan 2024UK£58.8bUK£41.0bUK£2.2b25.5x26.8x1.4x
Sat, 23 Dec 2023UK£55.4bUK£41.0bUK£2.2b25.8x25.3x1.4x
Mon, 20 Nov 2023UK£53.8bUK£40.9bUK£2.2b31x24.4x1.3x
Wed, 18 Oct 2023UK£53.8bUK£40.7bUK£2.2b28.1x24.7x1.3x
Fri, 15 Sep 2023UK£53.5bUK£40.7bUK£2.2b27.7x24.5x1.3x
Sun, 13 Aug 2023UK£52.6bUK£40.4bUK£2.0b24.2x26.7x1.3x
Tue, 11 Jul 2023UK£50.0bUK£38.7bUK£1.8b21.3x27.7x1.3x
Thu, 08 Jun 2023UK£49.9bUK£38.7bUK£1.8b19.6x27.6x1.3x
Sat, 06 May 2023UK£50.3bUK£38.6bUK£1.8b17x27.4x1.3x
Mon, 03 Apr 2023UK£44.2bUK£31.0bUK£2.1b17.4x21.4x1.4x
Wed, 01 Mar 2023UK£41.9bUK£31.0bUK£2.1b17.6x20.3x1.4x
Fri, 27 Jan 2023UK£40.6bUK£29.6bUK£1.8b19.1x22x1.4x
Price to Earnings Ratio

22x


Total Market Cap: UK£40.6bTotal 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 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 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 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 Market0.77%
Industrials-1.77%
Aerospace & Defense-1.05%
Aerospace and Defense-1.05%
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
QQ. QinetiQ GroupUK£5.223.6%
+UK£92.6m		24.0%PS1.5x
CHRT CohortUK£11.702.6%
+UK£13.7m		-0.4%PE29.3x
SNR SeniorUK£2.221.1%
+UK£10.2m		37.4%PE28.9x
AVON Avon TechnologiesUK£19.761.3%
+UK£7.6m		31.2%PE75.5x
VEL Velocity CompositesUK£0.173.0%
+UK£273.3k		-46.0%PS0.4x

Latest News

MSI
UK£12.50
MS INTERNATIONAL
7D
-16.7%
1Y
29.1%
CHG
UK£5.39
Chemring Group
7D
-1.6%
1Y
65.3%

Chemring Group (LON:CHG) Is Paying Out A Larger Dividend Than Last Year

Jan 14
Chemring Group (LON:CHG) Is Paying Out A Larger Dividend Than Last Year
AVON
UK£19.76
Avon Technologies
7D
1.3%
1Y
31.2%

Return Trends At Avon Technologies (LON:AVON) Aren't Appealing

Jan 14
Return Trends At Avon Technologies (LON:AVON) Aren't Appealing
MRO
UK£6.17
Melrose Industries
7D
-2.3%
1Y
6.3%

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.
VEL
UK£0.17
Velocity Composites
7D
3.0%
1Y
-46.0%
SNR
UK£2.22
Senior
7D
1.1%
1Y
37.4%

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£20.86
BAE Systems
7D
-0.3%
1Y
70.4%

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£11.70
Cohort
7D
2.6%
1Y
-0.4%
BAB
UK£14.86
Babcock International Group
7D
-0.3%
1Y
198.3%

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

Jan 08
Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)
QQ.
UK£5.22
QinetiQ Group
7D
3.6%
1Y
24.0%

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£12.67
Rolls-Royce Holdings
7D
-1.6%
1Y
112.8%
RCFX
UK£0.12
RC Fornax
7D
2.1%
1Y
n/a