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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 12, 2026
DataAggregated Company Financials
Companies100
  • 7D-3.9%
  • 3M0.9%
  • 1Y24.6%
  • YTD6.5%

Over the last 7 days, the Aerospace & Defense industry has dropped 3.9%, driven by General Electric declining 4.8%. Over the past 12 months, the industry was up 25%. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Jul 2026US$1.7tUS$530.6bUS$37.1b40.2x46.9x3.3x
Tue, 09 Jun 2026US$1.7tUS$530.2bUS$37.2b39.4x45.1x3.2x
Thu, 07 May 2026US$1.6tUS$527.7bUS$38.0b37.3x41.5x3x
Sat, 04 Apr 2026US$1.6tUS$511.7bUS$36.3b35.9x43.8x3.1x
Mon, 02 Mar 2026US$1.7tUS$511.3bUS$35.6b44x48.9x3.4x
Wed, 28 Jan 2026US$1.6tUS$505.1bUS$34.7b42.2x47.5x3.3x
Fri, 26 Dec 2025US$1.4tUS$410.0bUS$32.0b38x43.3x3.4x
Sun, 23 Nov 2025US$1.3tUS$409.3bUS$32.3b36.1x38.9x3.1x
Tue, 21 Oct 2025US$1.3tUS$398.7bUS$31.3b38.7x42x3.3x
Thu, 18 Sep 2025US$1.3tUS$395.7bUS$31.0b36.1x40.5x3.2x
Sat, 16 Aug 2025US$1.2tUS$394.0bUS$31.0b34.2x38.4x3x
Mon, 14 Jul 2025US$1.2tUS$387.1bUS$29.9b35.3x38.6x3x
Wed, 11 Jun 2025US$1.1tUS$387.0bUS$29.9b34.8x37.2x2.9x
Fri, 09 May 2025US$983.4bUS$385.9bUS$29.4b33.2x33.4x2.5x
Sun, 06 Apr 2025US$839.1bUS$377.4bUS$28.8b26.5x29.1x2.2x
Tue, 04 Mar 2025US$937.5bUS$376.7bUS$30.1b32.8x31.1x2.5x
Thu, 30 Jan 2025US$938.0bUS$375.5bUS$27.9b34x33.6x2.5x
Sat, 28 Dec 2024US$897.9bUS$403.7bUS$28.0b33.4x32.1x2.2x
Mon, 25 Nov 2024US$952.9bUS$403.8bUS$27.8b35.1x34.2x2.4x
Wed, 23 Oct 2024US$972.7bUS$393.1bUS$27.7b33.9x35.1x2.5x
Fri, 20 Sep 2024US$902.6bUS$388.8bUS$23.2b33.4x39x2.3x
Sun, 18 Aug 2024US$878.3bUS$388.4bUS$23.2b33x37.8x2.3x
Tue, 16 Jul 2024US$794.8bUS$381.1bUS$24.0b35.8x33.1x2.1x
Thu, 13 Jun 2024US$800.8bUS$381.1bUS$23.9b32.1x33.6x2.1x
Sat, 11 May 2024US$816.4bUS$380.8bUS$23.8b31.5x34.3x2.1x
Mon, 08 Apr 2024US$607.6bUS$303.9bUS$18.9b32.5x32.2x2x
Wed, 06 Mar 2024US$583.5bUS$303.9bUS$18.7b31.3x31.2x1.9x
Fri, 02 Feb 2024US$581.6bUS$306.9bUS$18.1b31.7x32.1x1.9x
Sun, 31 Dec 2023US$580.5bUS$302.1bUS$20.9b28.4x27.8x1.9x
Tue, 28 Nov 2023US$560.0bUS$301.6bUS$20.9b28x26.8x1.9x
Thu, 26 Oct 2023US$541.8bUS$298.1bUS$20.0b28.1x27.1x1.8x
Sat, 23 Sep 2023US$515.1bUS$305.9bUS$22.6b24.8x22.8x1.7x
Mon, 21 Aug 2023US$552.9bUS$305.7bUS$22.8b25.3x24.3x1.8x
Wed, 19 Jul 2023US$573.0bUS$298.0bUS$21.6b26.5x26.5x1.9x
Price to Earnings Ratio

26.5x


Total Market Cap: US$573.0bTotal Earnings: US$21.6bTotal Revenue: US$298.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.4x202420252026
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 46.9x which is higher than its 3-year average PE of 35.4x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 20% 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 Market0.81%
Industrials-1.42%
Aerospace & Defense-3.86%
Aerospace and Defense-3.86%
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
GD General DynamicsUS$375.060.4%
+US$410.4m		24.1%PE23.3x
HWM Howmet AerospaceUS$270.850.2%
+US$176.0m		50.7%PE62.2x
DRS Leonardo DRSUS$44.151.0%
+US$114.7m		-7.2%PE40.6x
ATRO AstronicsUS$72.502.4%
+US$71.8m		140.9%PE68.7x
VVX V2XUS$74.991.2%
+US$27.9m		54.5%PE26.5x

Latest News

AXON
US$565.80
Axon Enterprise
7D
-5.2%
1Y
-22.5%
BA
US$222.28
Boeing
7D
-1.9%
1Y
-2.0%
RTX
US$195.93
RTX
7D
-1.7%
1Y
33.4%
RKLB
US$81.04
Rocket Lab
7D
-19.3%
1Y
107.6%
GD
US$375.06
General Dynamics
7D
0.4%
1Y
24.1%
HONA
US$220.75
Honeywell Aerospace
7D
-10.7%
1Y
n/a
HWM
US$270.85
Howmet Aerospace
7D
0.2%
1Y
50.7%
Narrative Update • Jul 10

HWM: Raised Guidance And Margin Ambitions Will Test Fair Valuation Sustainability

The analyst price target for Howmet Aerospace has been revised higher from $214.92 to $268.23, with analysts attributing the change to updated assumptions for stronger organic growth, margin expansion, and a slightly higher future P/E multiple reflected in recent research from firms raising targets into the $300+ range. Analyst Commentary Recent research on Howmet Aerospace highlights a generally constructive stance, with several firms lifting price targets into the US$300+ range while keeping positive ratings in place.
LMT
US$523.22
Lockheed Martin
7D
-4.2%
1Y
11.9%
Seeking Alpha • Jul 09

Lockheed Martin: The Proposed 2027 Defense Budget Makes The Bull Case Hard To Ignore

Summary Lockheed Martin (LMT) is trading 24% below its 52-week high despite robust demand signals and $186.4 billion in backlog. The proposed $1.5 trillion 2027 U.S. defense budget, with a 28% base increase, strongly favors LMT’s core programs and munitions ramp. LMT’s 7-year, inflation-indexed munitions contracts de-risk growth, while the company advances toward Dividend Aristocrat status with a 2.57% yield and 23 years of increases. LMT trades at 17.6x 2026 and 15.4x 2028 earnings, below peers, with upside if defense budgets materialize, but faces execution and budget-approval risks. Read the full article on Seeking Alpha
GE
US$359.27
General Electric
7D
-4.8%
1Y
40.7%
VVX
US$74.99
V2X
7D
1.2%
1Y
54.5%
TDG
US$1,291.35
TransDigm Group
7D
-4.2%
1Y
-16.3%
Seeking Alpha • Jul 06

TransDigm: A Good Tax-Efficient Compounder For A Taxable Account

Summary TransDigm Group stands out as a tax-efficient, elite compounder with dominant aerospace component market share and a private equity-style acquisition strategy. TDG's capital allocation favors debt repayment, accretive acquisitions, and aggressive share buybacks over regular dividends, enhancing after-tax returns for taxable accounts. Despite a premium valuation, TDG trades below its five-year average P/E and offers superior margins versus peers, supported by strong pricing power and high free cash flow conversion. Management raised fiscal 2026 guidance, targeting $10.3–$10.42B in revenue and $2.5B in free cash flow, while monitoring geopolitical and inflationary risks to aftermarket demand. Read the full article on Seeking Alpha
ATRO
US$72.50
Astronics
7D
2.4%
1Y
140.9%
Narrative Update • Jul 06

ATRO: Army Radio Contract Acceleration Will Test Rich Execution Expectations

Astronics' updated analyst price target has moved higher to $100 from $85, with analysts pointing to the long-awaited $45 million Army radio test contract order as a key factor in this shift. What’s in the News for Astronics Astronics reports robust demand, record bookings, and an expanding backlog across its aerospace and defense businesses, with management raising organic guidance, according to recent coverage.
DRS
US$44.15
Leonardo DRS
7D
1.0%
1Y
-7.2%
Seeking Alpha • Jul 04

Leonardo DRS: Buy As Radar And Counter-Drone Demand Accelerate

Summary Leonardo DRS remains a buy, driven by robust demand for radar, power management, and defense electronics in a multi-domain defense supercycle. DRS is positioned to benefit from expanding defense budgets, sensor-rich battlefield trends, and program ramp-ups across naval, air, and land domains. Valuation is attractive with 13–20% upside, supported by EBITDA margin expansion, strong free cash flow growth, and a net cash balance. Potential for additional upside exists from share repurchases and possible valuation multiple expansion toward aerospace and defense peers. Read the full article on Seeking Alpha
ISSC
US$18.85
Innovative Aerosystems
7D
2.5%
1Y
39.4%
Narrative Update • Jul 02

ISSC: Index Additions And Acquisition Pipeline Will Drive Rebound

Analysts have raised their price target for Innovative Aerosystems to $25.00 from $17.50, citing recent research that characterizes the recent selloff as unreasonable and points to the latest results as a strong performance that supports a higher view of fair value. What’s in the News for Innovative Aerosystems Innovative Aerosystems added to the Russell 2000 Index, expanding its presence in a widely followed small cap benchmark.
NPK
US$124.69
National Presto Industries
7D
1.2%
1Y
21.0%
Seeking Alpha • Jun 29

Nostalgia Won't Save National Presto Industries From A Downgrade

Summary National Presto Industries has transformed into a predominantly defense-focused business, with its Defense segment now accounting for over 80% of revenue. NPK's recent growth is driven by a major 40mm ammunition contract, fueling a $1.84 billion backlog and significant top-line expansion. Despite strong Defense momentum, Housewares and Safety segments are underperforming, with losses and declining revenues dragging on overall profitability. Given elevated valuation and segment headwinds, I downgrade NPK to "Hold" after its significant outperformance versus the S&P 500. Read the full article on Seeking Alpha
DUKR
US$5.59
DUKE Robotics
7D
16.5%
1Y
-20.2%