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U.S. Aerospace & Defense Industry Analysis

UpdatedOct 16, 2025
DataAggregated Company Financials
Companies88
  • 7D-2.5%
  • 3M7.4%
  • 1Y29.8%
  • YTD40.9%

Over the last 7 days, the Aerospace & Defense industry has dropped 3.4%, driven by pullbacks in RTX and Axon Enterprise of 3.2% and 11%, respectively. On the other hand BWX Technologies is actually up 6.9%. Over the past 12 months, the industry was up 31%. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 Oct 2025US$1.3tUS$398.7bUS$31.3b39.4x42.3x3.3x
Sun, 14 Sep 2025US$1.2tUS$395.7bUS$31.0b34.7x39.8x3.1x
Tue, 12 Aug 2025US$1.2tUS$393.8bUS$31.0b33.7x38.8x3x
Thu, 10 Jul 2025US$1.1tUS$387.1bUS$29.9b35.7x38.1x2.9x
Sat, 07 Jun 2025US$1.1tUS$386.8bUS$30.0b34.3x36.7x2.8x
Mon, 05 May 2025US$987.9bUS$385.7bUS$29.4b32.1x33.6x2.6x
Wed, 02 Apr 2025US$935.3bUS$377.4bUS$28.8b30x32.5x2.5x
Fri, 28 Feb 2025US$915.5bUS$376.6bUS$30.2b32.8x30.3x2.4x
Sun, 26 Jan 2025US$954.4bUS$372.4bUS$29.1b35.4x32.9x2.6x
Tue, 24 Dec 2024US$887.3bUS$403.7bUS$27.9b33.2x31.8x2.2x
Thu, 21 Nov 2024US$932.8bUS$403.8bUS$27.8b34.4x33.5x2.3x
Sat, 19 Oct 2024US$968.9bUS$393.7bUS$23.7b35.5x40.9x2.5x
Mon, 16 Sep 2024US$900.7bUS$388.8bUS$23.3b33.4x38.7x2.3x
Wed, 14 Aug 2024US$863.9bUS$388.4bUS$23.2b32.7x37.2x2.2x
Fri, 12 Jul 2024US$796.5bUS$381.1bUS$24.0b35.1x33.1x2.1x
Sun, 09 Jun 2024US$809.4bUS$381.1bUS$23.9b31.8x33.9x2.1x
Tue, 07 May 2024US$807.8bUS$380.4bUS$23.7b30.2x34.1x2.1x
Thu, 04 Apr 2024US$598.2bUS$303.9bUS$18.8b31.8x31.7x2x
Sat, 02 Mar 2024US$578.6bUS$303.7bUS$18.7b31.8x31x1.9x
Mon, 29 Jan 2024US$576.3bUS$306.4bUS$17.9b32.1x32.1x1.9x
Wed, 27 Dec 2023US$574.8bUS$302.1bUS$20.9b28.7x27.5x1.9x
Fri, 24 Nov 2023US$553.7bUS$301.6bUS$20.9b27.7x26.5x1.8x
Sun, 22 Oct 2023US$532.4bUS$301.5bUS$22.3b25.2x23.9x1.8x
Tue, 19 Sep 2023US$534.1bUS$305.9bUS$22.6b25.9x23.7x1.7x
Thu, 17 Aug 2023US$551.4bUS$305.7bUS$22.8b25.5x24.2x1.8x
Sat, 15 Jul 2023US$574.5bUS$298.0bUS$21.6b26.1x26.6x1.9x
Mon, 12 Jun 2023US$571.8bUS$300.3bUS$21.9b24.7x26.1x1.9x
Wed, 10 May 2023US$560.6bUS$298.4bUS$22.0b23.6x25.5x1.9x
Fri, 07 Apr 2023US$580.9bUS$294.7bUS$21.8b23.9x26.6x2x
Sun, 05 Mar 2023US$590.7bUS$294.5bUS$21.7b23.8x27.2x2x
Tue, 31 Jan 2023US$574.4bUS$291.9bUS$22.2b25.1x25.9x2x
Thu, 29 Dec 2022US$593.5bUS$287.1bUS$22.2b24x26.8x2.1x
Sat, 26 Nov 2022US$597.3bUS$284.2bUS$22.0b32.1x27.1x2.1x
Mon, 24 Oct 2022US$568.3bUS$281.2bUS$22.8b27.5x24.9x2x
Price to Earnings Ratio

24.9x


Total Market Cap: US$568.3bTotal Earnings: US$22.8bTotal Revenue: US$281.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 31x202320242025
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 42.3x which is higher than its 3-year average PE of 31.0x.
  • The 3-year average PS ratio of 2.2x 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 11% per year over the last three years.
  • Revenues for these companies have grown 12% 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-1.49%
Industrials-0.77%
Aerospace & Defense-2.49%
Aerospace and Defense-2.49%
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
BWXT BWX TechnologiesUS$209.016.9%
+US$1.2b		67.1%PE64.9x
HWM Howmet AerospaceUS$191.681.5%
+US$1.1b		80.5%PE55.4x
GE General ElectricUS$299.840.2%
+US$519.6m		55.7%PE41.9x
SARO StandardAeroUS$27.904.1%
+US$371.3m		-14.7%PE70.1x
KRMN Karman HoldingsUS$76.853.1%
+US$309.6m		n/aPE1273.7x

Latest News

LHX
US$284.29
L3Harris Technologies
7D
-4.7%
1Y
14.5%
LMT
US$493.25
Lockheed Martin
7D
-2.9%
1Y
-19.1%
BWXT
US$209.01
BWX Technologies
7D
6.9%
1Y
67.1%
RKLB
US$67.00
Rocket Lab
7D
0.9%
1Y
527.3%
RTX
US$157.05
RTX
7D
-3.2%
1Y
24.9%
KTOS
US$88.62
Kratos Defense & Security Solutions
7D
-10.1%
1Y
251.4%
CDRE
US$40.99
Cadre Holdings
7D
6.5%
1Y
5.9%

Protective Equipment And Nuclear Safety Will Foster Market Resilience

Cadre Holdings’ analyst price target has been raised from $38.50 to $40.60, reflecting analysts’ increased confidence following positive updates on the company’s nuclear safety business and its growth prospects. Analyst Commentary Analysts have issued updated commentary following recent announcements and investor day events at Cadre Holdings, highlighting both the company’s strengths and ongoing areas of scrutiny.
LOAR
US$80.73
Loar Holdings
7D
1.7%
1Y
3.8%
GD
US$330.59
General Dynamics
7D
-3.6%
1Y
7.3%

Defense Spending And IT Modernization Will Define Future Markets

The analyst price target for General Dynamics has been raised from $337.94 to $345.41. This reflects optimism after strong Q2 results and improved order flow.
HWM
US$191.68
Howmet Aerospace
7D
1.5%
1Y
80.5%

Asia Pacific Air Travel And Defense Demand Will Expand Capacity

Howmet Aerospace's fair value target has been raised from $204.31 to $206.38. Analysts cite resilience in the aerospace supply chain along with continued confidence in the company's growth and margin expansion.
GE
US$299.84
General Electric
7D
0.2%
1Y
55.7%

Next Generation Engines And AI Will Transform Aerospace

General Electric's analyst price target has been revised upward from $302.33 to $310.14. This change reflects increased confidence among analysts, driven by positive momentum in GE Aerospace's engine business, strong commercial demand, and an improved long-term profit outlook.
NOC
US$598.98
Northrop Grumman
7D
-5.7%
1Y
13.4%

US And Allied Defense Budgets Will Unlock New Opportunities

Northrop Grumman’s analyst price target has been raised from $603.32 to $615.56, reflecting analysts’ increased confidence in the company’s improving revenue growth, expanding profit margins, and favorable positioning within defense sector budgets. Analyst Commentary Recent analyst research has showcased a largely optimistic outlook on Northrop Grumman, with multiple firms raising their price targets and affirming positive ratings.
BA
US$211.89
Boeing
7D
-1.9%
1Y
36.4%
AXON
US$652.17
Axon Enterprise
7D
-11.2%
1Y
50.1%
SARO
US$27.90
StandardAero
7D
4.1%
1Y
-14.7%
KRMN
US$76.85
Karman Holdings
7D
3.1%
1Y
n/a