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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 17, 2026
DataAggregated Company Financials
Companies101
  • 7D-3.6%
  • 3M-1.7%
  • 1Y17.2%
  • YTD3.0%

Over the last 7 days, the Aerospace & Defense industry has dropped 3.6%, driven by General Electric declining 3.7%. Meanwhile, BETA Technologies actually outperformed within the industry, gaining 5.4% in the last week. This takes the industry's 12 month performance to a gain of 17%. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 Jul 2026US$1.7tUS$530.6bUS$37.1b37.9x46.4x3.2x
Sun, 14 Jun 2026US$1.7tUS$530.2bUS$37.1b39.7x46x3.2x
Tue, 12 May 2026US$1.6tUS$528.8bUS$37.8b35.8x43.2x3.1x
Thu, 09 Apr 2026US$1.6tUS$511.7bUS$36.3b38.8x44.1x3.1x
Sat, 07 Mar 2026US$1.7tUS$511.1bUS$35.6b43.5x48.2x3.4x
Mon, 02 Feb 2026US$1.7tUS$509.1bUS$35.4b40.6x46.7x3.3x
Wed, 31 Dec 2025US$1.4tUS$410.0bUS$32.0b37.4x42.6x3.3x
Fri, 28 Nov 2025US$1.3tUS$409.5bUS$32.4b38.4x39.8x3.1x
Sun, 26 Oct 2025US$1.4tUS$406.7bUS$32.5b39.6x41.7x3.3x
Tue, 23 Sep 2025US$1.3tUS$395.7bUS$31.0b37x40.9x3.2x
Thu, 21 Aug 2025US$1.2tUS$394.0bUS$31.0b33.7x38.1x3x
Sat, 19 Jul 2025US$1.2tUS$389.2bUS$30.6b35.8x38.8x3x
Mon, 16 Jun 2025US$1.1tUS$387.0bUS$29.9b33.9x37.2x2.9x
Wed, 14 May 2025US$1.0tUS$386.6bUS$29.3b33.4x34.6x2.6x
Fri, 11 Apr 2025US$921.6bUS$377.4bUS$28.8b29.2x32x2.4x
Sun, 09 Mar 2025US$924.5bUS$376.7bUS$30.1b31.8x30.7x2.5x
Tue, 04 Feb 2025US$948.3bUS$375.7bUS$30.0b33.8x31.6x2.5x
Thu, 02 Jan 2025US$879.1bUS$403.7bUS$28.0b33.1x31.4x2.2x
Sat, 30 Nov 2024US$955.2bUS$403.8bUS$27.8b35.3x34.3x2.4x
Mon, 28 Oct 2024US$932.7bUS$402.9bUS$27.7b33.7x33.7x2.3x
Wed, 25 Sep 2024US$926.5bUS$388.9bUS$23.3b35x39.8x2.4x
Fri, 23 Aug 2024US$878.7bUS$388.4bUS$23.2b33.5x37.8x2.3x
Sun, 21 Jul 2024US$802.4bUS$381.3bUS$24.0b36.8x33.4x2.1x
Tue, 18 Jun 2024US$787.2bUS$381.1bUS$23.9b32.3x33x2.1x
Thu, 16 May 2024US$805.9bUS$380.8bUS$23.8b30.7x33.8x2.1x
Sat, 13 Apr 2024US$773.4bUS$371.9bUS$27.6b30.2x28x2.1x
Mon, 11 Mar 2024US$584.4bUS$303.9bUS$18.7b31.4x31.3x1.9x
Wed, 07 Feb 2024US$563.3bUS$302.9bUS$18.4b29.5x30.6x1.9x
Fri, 05 Jan 2024US$577.5bUS$302.1bUS$20.9b27.3x27.6x1.9x
Sun, 03 Dec 2023US$567.2bUS$301.6bUS$20.9b28.1x27.2x1.9x
Tue, 31 Oct 2023US$535.5bUS$300.4bUS$20.6b25.5x25.9x1.8x
Thu, 28 Sep 2023US$519.2bUS$306.0bUS$22.5b26.3x23x1.7x
Sat, 26 Aug 2023US$551.1bUS$305.7bUS$22.8b25.4x24.2x1.8x
Mon, 24 Jul 2023US$574.6bUS$299.3bUS$23.0b26.8x25x1.9x
Price to Earnings Ratio

25x


Total Market Cap: US$574.6bTotal Earnings: US$23.0bTotal Revenue: US$299.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.5x202420252026
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 46.4x 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 3.2x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 17% 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-0.88%
Industrials-0.87%
Aerospace & Defense-3.57%
Aerospace and Defense-3.57%
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
BETA BETA TechnologiesUS$17.645.4%
+US$210.0m		n/aPS112.6x
HXL HexcelUS$101.691.9%
+US$146.3m		67.5%PE65.2x
AVAV AeroVironmentUS$149.290.6%
+US$44.9m		-46.4%PS3.8x
TXT TextronUS$90.640.2%
+US$36.5m		6.2%PE16.8x
CDRE Cadre HoldingsUS$30.182.1%
+US$26.5m		-7.3%PE35x

Latest News

AXON
US$541.75
Axon Enterprise
7D
-6.9%
1Y
-27.4%
GE
US$345.73
General Electric
7D
-3.7%
1Y
32.8%
RKLB
US$67.35
Rocket Lab
7D
-18.4%
1Y
31.2%
BETA
US$17.64
BETA Technologies
7D
5.4%
1Y
n/a
AVAV
US$149.29
AeroVironment
7D
0.6%
1Y
-46.4%
Narrative Update • Jul 15

AVAV: Counter UAS Contracts Will Offset SCAR Turbulence And Support Future Opportunity

Analysts have reset expectations for AeroVironment, with the price target in this framework moving from $450.00 to about $370.49. Updated models incorporate slower revenue growth, lower margin assumptions, a higher discount rate, and a higher future P/E multiple, while still highlighting long term growth opportunities discussed at recent investor events.
NOC
US$518.65
Northrop Grumman
7D
-2.6%
1Y
-1.0%
BA
US$214.34
Boeing
7D
-3.9%
1Y
-7.2%
CDRE
US$30.18
Cadre Holdings
7D
2.1%
1Y
-7.3%
HONA
US$208.37
Honeywell Aerospace
7D
-6.6%
1Y
n/a
HXL
US$101.69
Hexcel
7D
1.9%
1Y
67.5%
FTAI
US$203.70
FTAI Aviation
7D
-10.7%
1Y
76.1%
TDG
US$1,231.11
TransDigm Group
7D
-5.0%
1Y
-22.8%
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
TXT
US$90.64
Textron
7D
0.2%
1Y
6.2%
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
SIF
US$22.12
SIFCO Industries
7D
1.0%
1Y
350.5%