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

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies13
  • 7D10.5%
  • 3M3.6%
  • 1Y87.5%
  • YTDn/a

In the last week, the Aerospace and Defense industry is up 10%, with all of the companies up. This takes the industry's 12 month performance to a gain of 88%. Looking forward, earnings are expected to remain mostly flat in the next few years.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 08 Jan 2026UK£184.0bUK£59.4bUK£8.3b25.4x22.2x3.1x
Sat, 06 Dec 2025UK£159.3bUK£59.4bUK£8.3b24x19.2x2.7x
Mon, 03 Nov 2025UK£174.3bUK£59.3bUK£8.3b24.9x21.1x2.9x
Wed, 01 Oct 2025UK£182.5bUK£59.3bUK£8.3b26.5x22.1x3.1x
Fri, 29 Aug 2025UK£160.3bUK£59.3bUK£8.3b24.8x19.4x2.7x
Sun, 27 Jul 2025UK£73.5bUK£38.7bUK£2.1b28.5x35.3x1.9x
Tue, 24 Jun 2025UK£74.4bUK£38.4bUK£2.0b29.1x36.8x1.9x
Thu, 22 May 2025UK£70.5bUK£38.4bUK£2.3b27.9x30.2x1.8x
Sat, 19 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Mon, 17 Mar 2025UK£66.2bUK£38.5bUK£2.3b26.3x28.3x1.7x
Wed, 12 Feb 2025UK£51.6bUK£36.7bUK£2.2b19.5x23.1x1.4x
Fri, 10 Jan 2025UK£50.1bUK£36.7bUK£2.2b20.3x22.4x1.4x
Sun, 08 Dec 2024UK£51.8bUK£36.6bUK£2.2b20.3x23.3x1.4x
Tue, 05 Nov 2024UK£50.7bUK£36.3bUK£2.2b18.2x23.3x1.4x
Thu, 03 Oct 2024UK£51.6bUK£36.3bUK£2.2b20.2x23.7x1.4x
Sat, 31 Aug 2024UK£55.2bUK£36.3bUK£2.2b22.1x25.4x1.5x
Mon, 29 Jul 2024UK£53.7bUK£34.7bUK£2.2b21x24x1.5x
Wed, 26 Jun 2024UK£55.5bUK£34.8bUK£2.1b23.5x26.5x1.6x
Fri, 24 May 2024UK£58.1bUK£34.7bUK£2.1b24.1x28.1x1.7x
Sun, 21 Apr 2024UK£54.1bUK£34.7bUK£2.1b21.8x26.1x1.6x
Tue, 19 Mar 2024UK£54.6bUK£34.6bUK£2.1b22.1x26.4x1.6x
Thu, 15 Feb 2024UK£51.9bUK£38.5bUK£2.1b19.9x24.5x1.3x
Sat, 13 Jan 2024UK£58.9bUK£41.0bUK£2.2b25.5x26.9x1.4x
Mon, 11 Dec 2023UK£53.8bUK£40.9bUK£2.2b32.1x24.6x1.3x
Wed, 08 Nov 2023UK£54.2bUK£40.7bUK£2.2b29.8x24.9x1.3x
Fri, 06 Oct 2023UK£50.1bUK£40.7bUK£2.2b28.1x23x1.2x
Sun, 03 Sep 2023UK£52.3bUK£40.4bUK£2.0b27.9x26.5x1.3x
Tue, 01 Aug 2023UK£50.0bUK£39.2bUK£1.6b23.6x30.8x1.3x
Thu, 29 Jun 2023UK£48.9bUK£38.7bUK£1.8b22.3x27.1x1.3x
Sat, 27 May 2023UK£49.7bUK£38.7bUK£1.8b18.1x27.4x1.3x
Mon, 24 Apr 2023UK£51.0bUK£38.6bUK£1.8b17.6x27.8x1.3x
Wed, 22 Mar 2023UK£43.0bUK£31.0bUK£2.1b17.2x20.8x1.4x
Fri, 17 Feb 2023UK£41.5bUK£29.6bUK£1.8b18.1x22.5x1.4x
Sun, 15 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 22.2x 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 3.1x.
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 Market1.39%
Industrials6.17%
Aerospace & Defense10.49%
Aerospace and Defense10.49%
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£12.7310.7%
+UK£10.3b		118.9%PE18.4x
BA. BAE SystemsUK£20.2318.0%
+UK£9.2b		70.5%PE30.5x
BAB Babcock International GroupUK£14.5016.7%
+UK£1.0b		191.2%PE25.1x
MRO Melrose IndustriesUK£6.246.1%
+UK£446.3m		11.0%PE24.8x
QQ. QinetiQ GroupUK£4.859.8%
+UK£230.1m		18.0%PS1.4x

Latest News

BA.
UK£20.23
BAE Systems
7D
18.0%
1Y
70.5%
CHRT
UK£10.94
Cohort
7D
20.6%
1Y
-4.0%
BAB
UK£14.50
Babcock International Group
7D
16.7%
1Y
191.2%

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£5.10
Chemring Group
7D
7.9%
1Y
52.5%

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£4.85
QinetiQ Group
7D
9.8%
1Y
18.0%

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£12.73
Rolls-Royce Holdings
7D
10.7%
1Y
118.9%
SNR
UK£2.22
Senior
7D
13.7%
1Y
39.5%
MRO
UK£6.24
Melrose Industries
7D
6.1%
1Y
11.0%

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.