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

UpdatedJun 13, 2026
DataAggregated Company Financials
Companies13
  • 7D2.0%
  • 3M-3.3%
  • 1Y24.4%
  • YTD6.8%

Over the last 7 days, the Aerospace & Defense industry has risen 2.0%, driven by gains from Rolls-Royce Holdings of 3.8%. This means that the industry has gained 24% over the past year. Looking forward, earnings are forecast to grow by 3.2% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 14 Jun 2026UK£179.4bUK£61.9bUK£8.8b24.6x20.4x2.9x
Tue, 12 May 2026UK£176.2bUK£61.9bUK£8.5b24.3x20.8x2.8x
Thu, 09 Apr 2026UK£194.1bUK£61.9bUK£8.5b28.2x22.9x3.1x
Sat, 07 Mar 2026UK£191.8bUK£61.9bUK£8.5b27.1x22.7x3.1x
Mon, 02 Feb 2026UK£181.3bUK£59.4bUK£8.3b25.1x21.9x3.1x
Wed, 31 Dec 2025UK£166.8bUK£59.4bUK£8.3b23.1x20.1x2.8x
Fri, 28 Nov 2025UK£156.8bUK£59.4bUK£8.3b23.6x18.9x2.6x
Sun, 26 Oct 2025UK£170.5bUK£59.3bUK£8.3b25.2x20.6x2.9x
Tue, 23 Sep 2025UK£175.4bUK£59.3bUK£8.3b24.9x21.2x3x
Thu, 21 Aug 2025UK£156.3bUK£59.3bUK£8.3b24.5x18.9x2.6x
Sat, 19 Jul 2025UK£76.9bUK£38.7bUK£2.1b29.7x36.9x2x
Mon, 16 Jun 2025UK£75.9bUK£38.4bUK£2.0b30.2x37.5x2x
Wed, 14 May 2025UK£65.8bUK£38.4bUK£2.3b25.6x28.1x1.7x
Fri, 11 Apr 2025UK£61.9bUK£38.5bUK£2.3b23.5x26.5x1.6x
Sun, 09 Mar 2025UK£62.7bUK£38.5bUK£2.3b26.2x26.8x1.6x
Tue, 04 Feb 2025UK£51.8bUK£36.7bUK£2.2b20.2x23.2x1.4x
Thu, 02 Jan 2025UK£49.0bUK£36.7bUK£2.2b19.8x21.9x1.3x
Sat, 30 Nov 2024UK£51.6bUK£36.7bUK£2.2b19.7x23.3x1.4x
Mon, 28 Oct 2024UK£51.8bUK£36.3bUK£2.2b18.6x23.8x1.4x
Wed, 25 Sep 2024UK£51.4bUK£36.3bUK£2.2b20.5x23.6x1.4x
Fri, 23 Aug 2024UK£54.2bUK£36.3bUK£2.2b21.5x24.9x1.5x
Sun, 21 Jul 2024UK£53.2bUK£34.8bUK£2.1b21.4x25.3x1.5x
Tue, 18 Jun 2024UK£55.6bUK£34.8bUK£2.1b23.3x26.6x1.6x
Thu, 16 May 2024UK£56.5bUK£34.6bUK£2.1b23.5x27.3x1.6x
Sat, 13 Apr 2024UK£55.2bUK£34.7bUK£2.1b22x26.7x1.6x
Mon, 11 Mar 2024UK£52.9bUK£34.6bUK£2.1b21.2x25.5x1.5x
Wed, 07 Feb 2024UK£51.1bUK£38.5bUK£2.1b20.3x24x1.3x
Fri, 05 Jan 2024UK£57.5bUK£41.0bUK£2.2b25.8x26.2x1.4x
Sun, 03 Dec 2023UK£53.9bUK£40.9bUK£2.2b32.1x24.6x1.3x
Tue, 31 Oct 2023UK£54.4bUK£40.7bUK£2.2b28.3x24.9x1.3x
Thu, 28 Sep 2023UK£51.7bUK£40.7bUK£2.2b27.9x23.7x1.3x
Sat, 26 Aug 2023UK£51.6bUK£40.4bUK£2.0b24.2x26.1x1.3x
Mon, 24 Jul 2023UK£50.1bUK£39.1bUK£1.6b22.8x30.9x1.3x
Wed, 21 Jun 2023UK£50.4bUK£38.7bUK£1.8b19.8x27.9x1.3x
Price to Earnings Ratio

27.9x


Total Market Cap: UK£50.4bTotal Earnings: UK£1.8bTotal Revenue: UK£38.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.9x202420252026
Current Industry PE
  • Investors are pessimistic on the British Aerospace & 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 20.4x which is lower than its 3-year average PE of 24.9x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & 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 Trends

Which industries have driven the changes within the U.K. Industrials industry?

GB Market1.05%
Industrials0.62%
Aerospace & Defense1.95%
Aerospace and Defense1.95%
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£13.083.8%
+UK£4.0b		50.3%PE18.5x
CHG Chemring GroupUK£5.255.0%
+UK£68.0m		-9.2%PE30.2x
AVON Avon TechnologiesUK£17.304.2%
+UK£20.6m		-0.1%PE37.5x
QQ. QinetiQ GroupUK£4.740.6%
+UK£15.6m		-8.6%PE22.9x
PEN Pennant International GroupUK£0.2610.6%
+UK£1.2m		-14.8%PS1.3x

Latest News

QQ.
UK£4.74
QinetiQ Group
7D
0.6%
1Y
-8.6%
BAB
UK£10.34
Babcock International Group
7D
-0.1%
1Y
-1.7%
RR.
UK£13.08
Rolls-Royce Holdings
7D
3.8%
1Y
50.3%
Narrative Update • Jun 09

RR.: Turnaround Execution And Buybacks Will Support Future Re Rating Potential

Rolls-Royce Holdings' analyst price target has been adjusted slightly to around £14.17 from £14.27, as analysts factor in recent target changes across the Street and continued momentum highlighted in new coverage. Analyst Commentary Bullish Takeaways Bullish analysts highlight what they see as continued momentum across Rolls-Royce's divisions, which they factor into higher valuation targets such as the 1,500 GBp level mentioned in recent coverage.
AVON
UK£17.30
Avon Technologies
7D
4.2%
1Y
-0.1%
Narrative Update • Jun 08

AVON: Interim Dividend And Stable Assumptions Will Support Future Upside Potential

Analysts have adjusted their price target on Avon Technologies to £21.68, reflecting updated assumptions around the discount rate, long-term revenue growth, and future P/E multiples influenced by recent Street research commentary. What's in the News Avon Technologies proposed an interim dividend of 8.1 cents per share, compared with 7.6 cents per share in HY25.
PEN
UK£0.26
Pennant International Group
7D
10.6%
1Y
-14.8%
CHG
UK£5.25
Chemring Group
7D
5.0%
1Y
-9.2%
BA.
UK£19.11
BAE Systems
7D
-1.0%
1Y
-1.4%
Narrative Update • Jun 03

BA.: Expanding Space And Missile Defense Exposure Should Support Earnings Repricing

Analysts have lifted their fair value estimate for BAE Systems from £26.00 to £26.62, citing updated assumptions around revenue growth, profit margins, discount rates and future P/E expectations following recent Street research, including a £0.50 price target increase from UBS. What's in the News MDA Space has been selected by BAE Systems to provide antennas and control electronics for the U.S. Space Development Agency's Medium Earth Orbit EPOCH 2 Constellation, supporting national security satellite architecture and missile defense capabilities.
MRO
UK£4.63
Melrose Industries
7D
-1.0%
1Y
-2.1%
Narrative Update • Jun 02

MRO: Future Cash Returns Will Reflect Resilient Buybacks And Dividend Policy

Narrative Update The analyst price target for Melrose Industries has been reduced from £5.70 to £4.70. Analysts point to uncertainty following a recent factory incident and a reset of assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E.
CHRT
UK£12.68
Cohort
7D
-0.5%
1Y
-16.5%
New Narrative • Jun 02

Longer Defence Programmes And Autonomous Systems Will Support Stronger Future Earnings Resilience

Catalysts About Cohort Cohort is a group of seven specialist businesses that provide technology based defence products and services to the U.K. and its allies. What are the underlying business or industry changes driving this perspective?
RCFX
UK£0.078
RC Fornax
7D
-0.6%
1Y
-84.9%
VEL
UK£0.15
Velocity Composites
7D
-1.6%
1Y
-53.1%
MSI
UK£14.50
MS INTERNATIONAL
7D
-4.0%
1Y
22.4%