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

UpdatedAug 08, 2026
DataAggregated Company Financials
Companies13
  • 7D5.0%
  • 3M20.4%
  • 1Y33.5%
  • YTD24.0%

Over the last 7 days, the Aerospace & Defense industry has risen 5.0%, driven by gains from Rolls-Royce Holdings of 4.2%. This means that the industry has gained 34% over the past year. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 09 Aug 2026UK£208.9bUK£65.4bUK£5.7b29.8x36.6x3.2x
Tue, 07 Jul 2026UK£199.6bUK£62.2bUK£8.7b26.1x22.9x3.2x
Thu, 04 Jun 2026UK£174.9bUK£61.9bUK£8.8b24.5x19.9x2.8x
Sat, 02 May 2026UK£176.7bUK£61.9bUK£8.5b26.6x20.9x2.9x
Mon, 30 Mar 2026UK£171.6bUK£61.9bUK£8.5b24.8x20.3x2.8x
Wed, 25 Feb 2026UK£194.6bUK£60.3bUK£8.4b26.3x23.3x3.2x
Fri, 23 Jan 2026UK£184.8bUK£59.4bUK£8.3b25.8x22.3x3.1x
Sun, 21 Dec 2025UK£168.4bUK£59.4bUK£8.3b23x20.3x2.8x
Tue, 18 Nov 2025UK£165.1bUK£59.3bUK£8.2b24.6x20x2.8x
Thu, 16 Oct 2025UK£170.3bUK£59.3bUK£8.3b25.1x20.6x2.9x
Sat, 13 Sep 2025UK£173.9bUK£59.3bUK£8.3b24.4x21x2.9x
Mon, 11 Aug 2025UK£160.7bUK£59.3bUK£8.3b24.7x19.5x2.7x
Wed, 09 Jul 2025UK£74.8bUK£38.6bUK£2.1b29x35.9x1.9x
Fri, 06 Jun 2025UK£77.8bUK£38.4bUK£2.0b30.4x38.4x2x
Sun, 04 May 2025UK£68.6bUK£38.4bUK£2.3b26.2x29.3x1.8x
Tue, 01 Apr 2025UK£61.6bUK£38.5bUK£2.3b23.6x26.3x1.6x
Thu, 27 Feb 2025UK£56.4bUK£38.5bUK£2.4b21.8x24x1.5x
Sat, 25 Jan 2025UK£51.9bUK£36.7bUK£2.2b20.4x23.2x1.4x
Mon, 23 Dec 2024UK£49.0bUK£36.7bUK£2.2b19.7x21.9x1.3x
Wed, 20 Nov 2024UK£53.4bUK£36.6bUK£2.2b19.2x24.3x1.5x
Fri, 18 Oct 2024UK£53.2bUK£36.3bUK£2.2b19x24.4x1.5x
Sun, 15 Sep 2024UK£53.9bUK£36.3bUK£2.2b21.8x24.7x1.5x
Tue, 13 Aug 2024UK£53.5bUK£36.4bUK£2.2b21.3x24.6x1.5x
Thu, 11 Jul 2024UK£54.1bUK£34.8bUK£2.1b22.8x25.8x1.6x
Sat, 08 Jun 2024UK£58.2bUK£34.8bUK£2.1b24.4x27.8x1.7x
Mon, 06 May 2024UK£56.1bUK£34.6bUK£2.1b23.5x27.1x1.6x
Wed, 03 Apr 2024UK£56.0bUK£34.6bUK£2.1b22.3x27x1.6x
Fri, 01 Mar 2024UK£52.8bUK£39.1bUK£2.0b20.2x25.9x1.4x
Sun, 28 Jan 2024UK£58.5bUK£41.0bUK£2.2b25.6x26.7x1.4x
Tue, 26 Dec 2023UK£55.4bUK£41.0bUK£2.2b25.8x25.3x1.4x
Thu, 23 Nov 2023UK£53.8bUK£40.9bUK£2.2b30.2x24.6x1.3x
Sat, 21 Oct 2023UK£53.0bUK£40.7bUK£2.2b29x24.3x1.3x
Mon, 18 Sep 2023UK£53.4bUK£40.7bUK£2.2b27.9x24.5x1.3x
Wed, 16 Aug 2023UK£52.5bUK£40.4bUK£2.0b24.2x26.6x1.3x
Price to Earnings Ratio

26.6x


Total Market Cap: UK£52.5bTotal Earnings: UK£2.0bTotal Revenue: UK£40.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace & Defense Industry Price to Earnings3Y Average 24.7x202420252026
Current Industry PE
  • Investors are optimistic on the British Aerospace & Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 36.6x which is higher 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 3.2x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 42% 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 Market0.89%
Industrials4.27%
Aerospace & Defense4.98%
Aerospace and Defense4.98%
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£15.304.2%
+UK£5.2b		42.8%PE41.8x
BA. BAE SystemsUK£22.206.0%
+UK£3.6b		27.8%PE29.8x
MRO Melrose IndustriesUK£4.856.8%
+UK£387.5m		-17.9%PE37.8x
BAB Babcock International GroupUK£11.875.8%
+UK£321.1m		23.9%PE27.5x
QQ. QinetiQ GroupUK£5.549.4%
+UK£244.1m		13.3%PE26.5x

Latest News

RR.
UK£15.30
Rolls-Royce Holdings
7D
4.2%
1Y
42.8%
Narrative Update • Aug 06

RR.: Defence Strength And Cash Returns Will Support Measured Re Rating Potential

Analysts have raised their fair value estimate for Rolls-Royce Holdings to £16.27 from £14.72, reflecting higher price targets and expectations for stronger margins, which offset slightly more conservative growth and discount rate assumptions. Analyst Commentary Recent Street research on Rolls-Royce Holdings points to a firmly constructive tone, with several large banks lifting price targets and reassessing the company’s execution and earnings power.
CHG
UK£6.27
Chemring Group
7D
6.2%
1Y
17.2%
BA.
UK£22.20
BAE Systems
7D
6.0%
1Y
27.8%
Analysis Article • Aug 06

Why BAE Systems' (LON:BA.) Earnings Are Better Than They Seem

Investors signalled that they were pleased with BAE Systems plc's ( LON:BA. ) most recent earnings report. According to...
BAB
UK£11.87
Babcock International Group
7D
5.8%
1Y
23.9%
MRO
UK£4.85
Melrose Industries
7D
6.8%
1Y
-17.9%
AVON
UK£18.96
Avon Technologies
7D
11.1%
1Y
-9.9%
CHRT
UK£12.98
Cohort
7D
5.9%
1Y
-3.7%
QQ.
UK£5.54
QinetiQ Group
7D
9.4%
1Y
13.3%
PEN
UK£0.29
Pennant International Group
7D
-1.7%
1Y
16.9%
RCFX
UK£0.06
RC Fornax
7D
-0.8%
1Y
-58.3%