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

UpdatedJul 25, 2026
DataAggregated Company Financials
Companies13
  • 7D4.1%
  • 3M13.2%
  • 1Y26.4%
  • YTD13.6%

The Aerospace & Defense industry is up 4.1% in the last week, with Rolls-Royce Holdings up 3.7%. This takes the industry's 12 month performance to a gain of 26%. As for the next few years, earnings are expected to grow by 3.6% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 25 Jul 2026UK£190.3bUK£62.2bUK£8.7b25.4x21.9x3.1x
Mon, 22 Jun 2026UK£185.8bUK£61.9bUK£8.8b23.3x21.1x3x
Wed, 20 May 2026UK£169.9bUK£61.9bUK£8.5b24.2x20.1x2.7x
Fri, 17 Apr 2026UK£189.3bUK£61.9bUK£8.5b28.6x22.4x3.1x
Sun, 15 Mar 2026UK£189.4bUK£61.9bUK£8.5b27.7x22.4x3.1x
Tue, 10 Feb 2026UK£185.8bUK£59.4bUK£8.3b25.8x22.4x3.1x
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
Price to Earnings Ratio

30.8x


Total Market Cap: UK£50.0bTotal Earnings: UK£1.6bTotal Revenue: UK£39.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.7x202420252026
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 21.9x which is lower than its 3-year average PE of 24.7x.
  • The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 75% 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 Market1.20%
Industrials2.53%
Aerospace & Defense4.08%
Aerospace and Defense4.08%
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£14.163.7%
+UK£4.0b		44.9%PE19.9x
BA. BAE SystemsUK£19.714.8%
+UK£2.6b		6.7%PE27.1x
BAB Babcock International GroupUK£11.218.2%
+UK£416.4m		7.5%PE26x
QQ. QinetiQ GroupUK£4.907.9%
+UK£185.2m		-2.0%PE23.4x
CHG Chemring GroupUK£5.977.1%
+UK£107.5m		9.9%PE34.3x

Latest News

RR.
UK£14.16
Rolls-Royce Holdings
7D
3.7%
1Y
44.9%
Narrative Update • Jul 23

RR.: Widebody Flight-Hour Momentum Will Support Higher Future P/E

Analysts have raised the fair value estimate for Rolls-Royce Holdings by about £1.10 per share, citing higher price targets such as £16.25 and £15.00, and pointing to continued momentum across its divisions and strong widebody engine flight-hour trends as key supports for the new outlook. Analyst Commentary Recent research on Rolls-Royce Holdings points to a cluster of supportive views, with several bullish analysts highlighting the company’s widebody engine exposure, current flight-hour trends, and a series of higher fair value markers, including price targets such as £16.25, £15.00, £15.00 and £14.30 per share.
BA.
UK£19.71
BAE Systems
7D
4.8%
1Y
6.7%
CHRT
UK£12.90
Cohort
7D
-0.8%
1Y
-15.8%
MSI
UK£14.80
MS INTERNATIONAL
7D
-1.3%
1Y
21.3%
QQ.
UK£4.90
QinetiQ Group
7D
7.9%
1Y
-2.0%
MRO
UK£4.70
Melrose Industries
7D
1.0%
1Y
-8.4%
Narrative Update • Jul 15

MRO: Factory Incident And Cash Returns Will Shape Future P/E Multiples

Analysts have reduced their price target for Melrose Industries to £4.70 from £5.70, reflecting increased caution around the company following uncertainty related to a recent factory incident. Analyst Commentary Recent research on Melrose Industries highlights a clear shift toward caution, with bearish analysts flagging the recent factory incident as a key source of uncertainty for both execution and growth expectations.
PEN
UK£0.29
Pennant International Group
7D
5.4%
1Y
-4.8%
CHG
UK£5.97
Chemring Group
7D
7.1%
1Y
9.9%
BAB
UK£11.21
Babcock International Group
7D
8.2%
1Y
7.5%
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.
RCFX
UK£0.061
RC Fornax
7D
-2.4%
1Y
-70.6%
SNR
UK£2.90
Senior
7D
-0.2%
1Y
43.3%
Narrative Update • Jun 25

SNR: Fair Takeover Terms And Downgrade Will Shape Risk Balanced Outlook

Analysts have trimmed their price expectations for Senior, reflecting a more cautious stance following a downgrade in research coverage. The updated analysis emphasizes slightly higher discount rate assumptions and a modestly adjusted future P/E outlook, resulting in a revised target around £2.88.
AVON
UK£17.54
Avon Technologies
7D
2.9%
1Y
-15.9%
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.