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

UpdatedJun 25, 2026
DataAggregated Company Financials
Companies13
  • 7D0.5%
  • 3M7.6%
  • 1Y27.6%
  • YTD10.5%

Over the last 7 days, the Aerospace & Defense industry has remained flat. The past year has been better, since the industry has gained 28% in that time. Looking forward, earnings are forecast to grow by 2.9% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Jun 2026UK£185.7bUK£62.2bUK£8.7b23.9x21.3x3x
Sat, 23 May 2026UK£177.8bUK£61.9bUK£8.8b25x20.2x2.9x
Mon, 20 Apr 2026UK£196.0bUK£61.9bUK£8.5b28.6x23.1x3.2x
Wed, 18 Mar 2026UK£192.7bUK£61.9bUK£8.5b27.7x22.8x3.1x
Fri, 13 Feb 2026UK£180.0bUK£59.4bUK£8.3b25x21.7x3x
Sun, 11 Jan 2026UK£191.3bUK£59.4bUK£8.3b26.5x23.1x3.2x
Tue, 09 Dec 2025UK£161.8bUK£59.4bUK£8.3b24.1x19.6x2.7x
Thu, 06 Nov 2025UK£172.5bUK£59.3bUK£8.3b25x20.9x2.9x
Sat, 04 Oct 2025UK£180.8bUK£59.3bUK£8.3b26.3x21.9x3x
Mon, 01 Sep 2025UK£161.1bUK£59.3bUK£8.3b24.9x19.5x2.7x
Wed, 30 Jul 2025UK£72.6bUK£38.7bUK£2.1b28.2x34.9x1.9x
Fri, 27 Jun 2025UK£75.5bUK£38.6bUK£2.1b29.7x36.3x2x
Sun, 25 May 2025UK£71.4bUK£38.4bUK£2.0b28.3x35.4x1.9x
Tue, 22 Apr 2025UK£65.3bUK£38.5bUK£2.3b24.5x27.9x1.7x
Thu, 20 Mar 2025UK£66.4bUK£38.5bUK£2.3b25.6x28.4x1.7x
Sat, 15 Feb 2025UK£52.5bUK£36.7bUK£2.2b20.1x23.4x1.4x
Mon, 13 Jan 2025UK£50.2bUK£36.7bUK£2.2b20.1x22.5x1.4x
Wed, 11 Dec 2024UK£49.9bUK£36.6bUK£2.2b20x22.5x1.4x
Fri, 08 Nov 2024UK£55.5bUK£36.3bUK£2.2b19.3x25.5x1.5x
Sun, 06 Oct 2024UK£52.4bUK£36.3bUK£2.2b20.1x24.1x1.4x
Tue, 03 Sep 2024UK£54.0bUK£36.3bUK£2.2b21.6x24.8x1.5x
Thu, 01 Aug 2024UK£54.9bUK£34.7bUK£2.2b21.2x24.5x1.6x
Sat, 29 Jun 2024UK£54.7bUK£34.8bUK£2.1b22.1x26.1x1.6x
Mon, 27 May 2024UK£57.7bUK£34.8bUK£2.1b23.9x27.5x1.7x
Wed, 24 Apr 2024UK£55.7bUK£34.7bUK£2.1b22.2x26.9x1.6x
Fri, 22 Mar 2024UK£56.6bUK£34.6bUK£2.1b22.7x27.3x1.6x
Sun, 18 Feb 2024UK£52.4bUK£38.5bUK£2.1b20x24.7x1.4x
Tue, 16 Jan 2024UK£58.5bUK£41.0bUK£2.2b25.2x26.7x1.4x
Thu, 14 Dec 2023UK£54.7bUK£41.0bUK£2.2b24.5x25x1.3x
Sat, 11 Nov 2023UK£55.3bUK£40.7bUK£2.2b30.6x25.3x1.4x
Mon, 09 Oct 2023UK£50.4bUK£40.7bUK£2.2b28.5x23.1x1.2x
Wed, 06 Sep 2023UK£52.2bUK£40.4bUK£2.0b27.3x26.4x1.3x
Fri, 04 Aug 2023UK£52.0bUK£40.4bUK£2.0b26.6x26.4x1.3x
Sun, 02 Jul 2023UK£51.9bUK£38.7bUK£1.8b21.8x28.8x1.3x
Price to Earnings Ratio

28.8x


Total Market Cap: UK£51.9bTotal 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 21.3x 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 3.0x.
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 Market-0.91%
Industrials0.13%
Aerospace & Defense0.47%
Aerospace and Defense0.47%
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£14.192.1%
+UK£2.4b		54.8%PE20.1x
MRO Melrose IndustriesUK£4.780.8%
+UK£49.9m		-8.2%PE16.1x
AVON Avon TechnologiesUK£17.400.3%
+UK£1.8m		-5.6%PE37.1x
PEN Pennant International GroupUK£0.278.2%
+UK£952.6k		-7.0%PS1.3x

Latest News

RR.
UK£14.19
Rolls-Royce Holdings
7D
2.1%
1Y
54.8%
BAB
UK£9.84
Babcock International Group
7D
-5.6%
1Y
-14.0%
QQ.
UK£4.25
QinetiQ Group
7D
-3.7%
1Y
-10.5%
Narrative Update • Jun 23

QQ.: Execution Risks And Higher P/E Assumptions Will Limit Upside Potential

QinetiQ Group's analyst price targets have shifted modestly higher to a range of about £6.00 to £6.15 per share, as analysts point to updated assumptions on fair value, discount rate, revenue growth, profit margins and future P/E multiples to support the revised outlook. Analyst Commentary Recent research on QinetiQ Group points to a tighter cluster of price targets around the £6.00 level, with some analysts adjusting their views to reflect updated assumptions on valuation, execution risk and growth expectations.
BA.
UK£18.25
BAE Systems
7D
-2.2%
1Y
0.3%
Narrative Update • Jun 18

BA.: Strong Defence Demand And Buybacks Will Support Shares Into 2026

BAE Systems has seen its consensus analyst price target raised by £0.50 as analysts factor in updated fair value estimates, revised growth assumptions and a slightly higher discount rate in their valuation models. What’s in the News for BAE Systems BAE Systems shares rose in London as investors reacted to continued strong defence demand, a reaffirmed 2026 outlook for sales, underlying EBIT and EPS, and an ongoing share buyback program.
MRO
UK£4.78
Melrose Industries
7D
0.8%
1Y
-8.2%
Narrative Update • Jun 17

MRO: Future Cash Returns Will Reflect Resilient Buybacks Despite Factory Incident Uncertainty

Analysts have trimmed their price target on Melrose Industries shares from £5.70 to £4.70, citing increased uncertainty after the recent factory incident and a shift to more cautious assumptions across revenue growth, profit margins and the future P/E multiple. Analyst Commentary Recent research on Melrose Industries highlights a mix of caution around the factory incident and ongoing questions about how much investors should be willing to pay for the stock on a P/E basis.
CHG
UK£4.85
Chemring Group
7D
-2.3%
1Y
-11.7%
Narrative Update • Jun 17

CHG: Solid Order Book And Buybacks Will Support Future Share Price Upside

Analysts have trimmed their price target on Chemring Group to £5.80 from £6.00, reflecting updated assumptions on discount rates, growth and margins that still support a positive long term view on the stock. What’s in the News for Chemring Group Chemring Group issued earnings guidance for the 2026 financial year, stating that full year expectations are unchanged.
CHRT
UK£11.86
Cohort
7D
-5.6%
1Y
-21.2%
AVON
UK£17.40
Avon Technologies
7D
0.3%
1Y
-5.6%
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£0.27
Pennant International Group
7D
8.2%
1Y
-7.0%
RCFX
UK£0.067
RC Fornax
7D
-5.0%
1Y
-79.7%
VEL
UK£0.13
Velocity Composites
7D
-8.6%
1Y
-57.9%
MSI
UK£14.05
MS INTERNATIONAL
7D
-3.1%
1Y
4.5%