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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 19, 2026
DataAggregated Company Financials
Companies101
  • 7D-3.3%
  • 3M-1.5%
  • 1Y16.9%
  • YTD3.0%

Over the last 7 days, the Aerospace & Defense industry has dropped 3.3%, driven by a pullback from General Electric of 2.9%. In the past year, the industry has gained 17%. Looking forward, earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 20 Jul 2026US$1.7tUS$532.9bUS$37.5b38.1x44.8x3.1x
Wed, 17 Jun 2026US$1.8tUS$530.2bUS$37.1b39.9x48.9x3.4x
Fri, 15 May 2026US$1.7tUS$529.1bUS$37.8b35.4x43.8x3.1x
Sun, 12 Apr 2026US$1.6tUS$511.7bUS$36.3b38.6x45.3x3.2x
Tue, 10 Mar 2026US$1.7tUS$511.1bUS$35.6b44x48.6x3.4x
Thu, 05 Feb 2026US$1.7tUS$509.4bUS$35.5b39.7x47.2x3.3x
Sat, 03 Jan 2026US$1.3tUS$410.0bUS$32.0b39.3x42.1x3.3x
Mon, 01 Dec 2025US$1.3tUS$409.5bUS$32.4b38.3x40x3.2x
Wed, 29 Oct 2025US$1.4tUS$406.8bUS$32.5b40.6x42.1x3.4x
Fri, 26 Sep 2025US$1.3tUS$395.8bUS$31.0b37.6x41x3.2x
Sun, 24 Aug 2025US$1.2tUS$394.0bUS$31.0b34.7x38.6x3x
Tue, 22 Jul 2025US$1.2tUS$389.2bUS$30.6b35.9x38.8x3.1x
Thu, 19 Jun 2025US$1.1tUS$387.0bUS$29.9b34.2x37.1x2.9x
Sat, 17 May 2025US$1.0tUS$386.7bUS$30.0b33.9x34.8x2.7x
Mon, 14 Apr 2025US$922.5bUS$377.4bUS$28.8b29.2x32x2.4x
Wed, 12 Mar 2025US$919.9bUS$376.9bUS$30.1b31.2x30.6x2.4x
Fri, 07 Feb 2025US$947.2bUS$375.6bUS$29.9b33.3x31.7x2.5x
Sun, 05 Jan 2025US$889.1bUS$403.7bUS$28.0b33.4x31.8x2.2x
Tue, 03 Dec 2024US$955.3bUS$403.8bUS$27.8b34.9x34.3x2.4x
Thu, 31 Oct 2024US$916.2bUS$402.9bUS$27.7b34.4x33.1x2.3x
Sat, 28 Sep 2024US$916.1bUS$388.9bUS$23.3b34.6x39.4x2.4x
Mon, 26 Aug 2024US$882.7bUS$388.4bUS$23.2b33.7x38x2.3x
Wed, 24 Jul 2024US$813.4bUS$381.3bUS$24.0b38.2x33.9x2.1x
Fri, 21 Jun 2024US$804.8bUS$381.1bUS$23.9b32.4x33.7x2.1x
Sun, 19 May 2024US$806.8bUS$380.8bUS$23.8b30.8x33.9x2.1x
Tue, 16 Apr 2024US$765.4bUS$371.9bUS$27.6b30x27.7x2.1x
Thu, 14 Mar 2024US$582.1bUS$303.9bUS$18.7b31.4x31.2x1.9x
Sat, 10 Feb 2024US$566.0bUS$302.8bUS$18.4b29.7x30.8x1.9x
Mon, 08 Jan 2024US$575.2bUS$302.1bUS$20.9b27.1x27.5x1.9x
Wed, 06 Dec 2023US$571.7bUS$301.6bUS$20.9b27.9x27.4x1.9x
Fri, 03 Nov 2023US$546.8bUS$301.1bUS$20.5b28.5x26.6x1.8x
Sun, 01 Oct 2023US$518.8bUS$306.0bUS$22.5b26.4x23x1.7x
Tue, 29 Aug 2023US$551.1bUS$305.7bUS$22.8b25.4x24.2x1.8x
Thu, 27 Jul 2023US$562.1bUS$302.3bUS$23.0b26.6x24.5x1.9x
Price to Earnings Ratio

24.5x


Total Market Cap: US$562.1bTotal Earnings: US$23.0bTotal Revenue: US$302.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.6x202420252026
Current Industry PE
  • Investors are optimistic on the American Aerospace & Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 44.8x which is higher than its 3-year average PE of 35.5x.
  • The 3-year average PS ratio of 2.5x 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 18% per year over the last three years.
  • Revenues for these companies have grown 21% 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.S. Industrials industry?

US Market-1.97%
Industrials-1.51%
Aerospace & Defense-3.31%
Aerospace and Defense-3.31%
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
HWM Howmet AerospaceUS$272.430.6%
+US$632.2m		43.0%PE62.5x
HXL HexcelUS$103.814.7%
+US$351.5m		71.6%PE66.5x
TXT TextronUS$91.480.6%
+US$99.1m		7.6%PE17x
DCO DucommunUS$168.472.1%
+US$51.6m		86.1%PS3x
VVX V2XUS$75.610.8%
+US$19.4m		59.9%PE26.7x

Latest News

LMT
US$508.77
Lockheed Martin
7D
-2.8%
1Y
9.7%
TDG
US$1,214.43
TransDigm Group
7D
-6.0%
1Y
-24.0%
HONA
US$211.63
Honeywell Aerospace
7D
-4.1%
1Y
n/a
HXL
US$103.81
Hexcel
7D
4.7%
1Y
71.6%
RKLB
US$67.62
Rocket Lab
7D
-16.6%
1Y
31.6%
Seeking Alpha • Jul 17

The Iridium Deal Does Not Make Rocket Lab Cheaper Despite The Optics

Summary Last December, I sold half of my Rocket Lab position after investing in the company at ~$6/share, booking a handsome 1,200% gain. Although I continued to believe in the company's prospects back then, I was spooked by its high valuation. Since then, RKLB has lost ~13% of its market value. Today, it is important to incorporate what Iridium brings to the table to ensure I am looking at Rocket Lab's valuation objectively. My goal in this valuation exercise is to calculate the pro forma EV/S multiple for Rocket Lab and compare it with the current EV/S multiple of 57. As my findings reveal, Rocket Lab will indeed be cheaper after the Iridium integration, but there's more to the valuation story. Read the full article on Seeking Alpha
GE
US$348.83
General Electric
7D
-2.9%
1Y
32.5%
New Narrative • Jul 17

The Aviation Giant Threatening to Monopolize the Skies: How GE's Ruthless Breakup Birthed an Unstoppable Juggernaut

Forget the high-flying software darlings and speculative AI hype cycles. The most impenetrable, profit-gushing monopoly in the modern market doesn't write code—it builds the beating heart of global commerce, 30,000 feet in the air.
ARXS
US$41.83
Arxis
7D
0.08%
1Y
n/a
AXON
US$510.28
Axon Enterprise
7D
-9.8%
1Y
-32.5%
HWM
US$272.43
Howmet Aerospace
7D
0.6%
1Y
43.0%
Seeking Alpha • Jul 16

Howmet Aerospace: A High-Quality Business Priced For Perfection At Peak Margins

Summary Howmet Aerospace is indispensable in defense and civil aviation, but its current valuation is unjustifiably high. HWM faces structural growth limits due to regulated profit margins, capital intensity, and supply chain risks, especially from Boeing and raw material inflation. Valuation models (DCF, relative, DDM) indicate 40–88% downside, even under optimistic scenarios, with no margin of safety at current prices. I assign HWM a SELL rating due to peak margins, aggressive buybacks at elevated prices, and significant macro, operational, and regulatory risks. Read the full article on Seeking Alpha
RTX
US$193.51
RTX
7D
-1.2%
1Y
27.7%
BETA
US$17.76
BETA Technologies
7D
0.3%
1Y
n/a
VVX
US$75.61
V2X
7D
0.8%
1Y
59.9%
DCO
US$168.47
Ducommun
7D
2.1%
1Y
86.1%
Seeking Alpha • Jul 14

Ducommun Incorporated: Real Defense Tailwinds, Few Good Reasons To Wait

Summary Ducommun Incorporated is shifting revenue toward defense, now comprising 58% of FY25 revenues, driving recent stock rerating. I rate DCO a Hold, citing limited current upside, ongoing litigation overhang, and a need for a more defense-centric revenue mix. Valuation remains below peers like Hexcel, but further upside depends on a stronger defense shift and litigation resolution. Existing holders may continue to hold, but new buyers should wait for a better entry price and clearer catalysts. Read the full article on Seeking Alpha
BA
US$214.03
Boeing
7D
-3.7%
1Y
-6.7%
AIRO
US$6.53
AIRO Group Holdings
7D
4.0%
1Y
-73.8%
Narrative Update • Jul 10

AIRO: Defense And Autonomy Pipeline Will Drive Future Upside Potential

Analysts have revised their price target for AIRO Group Holdings from $21.33 to $18.00, reflecting updated assumptions around revenue growth, profit margins, and the future P/E multiple. What’s in the News for AIRO Group Holdings AIRO Group Holdings, together with wholly owned subsidiary Sky Watch A/S, publicly unveiled the RQ 70 deep reach ISR drone at Eurosatory 2026 in Paris, with plans for full scale production to begin in January 2027 and discussions underway with existing and prospective defense customers.
TXT
US$91.48
Textron
7D
0.6%
1Y
7.6%
Seeking Alpha • Jul 04

Textron - At A Somewhat Lower Valuation, I'd Be In

Summary Textron (TXT) is a diversified aerospace and defense company with strong aviation and defense brands but modest long-term growth and capital efficiency. TXT trades at under 15x P/E, but declining gross margins, sub-8% ROIC, and low dividend yield limit its appeal for market-beating returns. The planned industrial segment separation is expected to increase cyclicality and lower ROIC, not unlock substantial value for TXT shareholders. I maintain a 'HOLD' rating on TXT, with an $84/share price target required for a more attractive risk/reward profile. Read the full article on Seeking Alpha