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U.S. Aerospace & Defense Industry Analysis

UpdatedDec 11, 2025
DataAggregated Company Financials
Companies87
  • 7D1.4%
  • 3M2.5%
  • 1Y37.2%
  • YTD38.4%

In the last week, the Aerospace & Defense industry is up 1.4%, with RTX up 3.7%. This takes the industry's 12 month performance to a gain of 37%. 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
Thu, 11 Dec 2025US$1.3tUS$409.5bUS$32.0b36.7x40.1x3.1x
Sat, 08 Nov 2025US$1.3tUS$408.9bUS$32.1b38.5x41x3.2x
Mon, 06 Oct 2025US$1.3tUS$398.6bUS$31.3b39.1x42.1x3.3x
Wed, 03 Sep 2025US$1.2tUS$395.4bUS$31.1b34.4x39.1x3.1x
Fri, 01 Aug 2025US$1.2tUS$392.8bUS$31.2b36.5x38.5x3.1x
Sun, 29 Jun 2025US$1.1tUS$387.1bUS$29.9b36.5x38.3x3x
Tue, 27 May 2025US$1.0tUS$386.7bUS$29.9b32.9x34.8x2.7x
Thu, 24 Apr 2025US$894.4bUS$381.0bUS$28.7b30.5x31.1x2.3x
Sat, 22 Mar 2025US$948.0bUS$377.0bUS$29.1b32.2x32.6x2.5x
Mon, 17 Feb 2025US$920.6bUS$376.1bUS$30.0b33.9x30.7x2.4x
Wed, 15 Jan 2025US$903.0bUS$403.8bUS$27.9b34.3x32.3x2.2x
Fri, 13 Dec 2024US$905.7bUS$403.7bUS$27.9b34.5x32.4x2.2x
Sun, 10 Nov 2024US$966.7bUS$403.3bUS$27.9b36x34.6x2.4x
Tue, 08 Oct 2024US$952.7bUS$393.7bUS$23.6b34.7x40.4x2.4x
Thu, 05 Sep 2024US$879.6bUS$388.7bUS$23.3b33.6x37.8x2.3x
Sat, 03 Aug 2024US$863.5bUS$387.8bUS$23.1b32.9x37.4x2.2x
Mon, 01 Jul 2024US$790.1bUS$381.1bUS$24.0b32.1x32.9x2.1x
Wed, 29 May 2024US$819.0bUS$380.8bUS$23.8b31.5x34.4x2.2x
Fri, 26 Apr 2024US$787.2bUS$378.9bUS$23.5b31x33.5x2.1x
Sun, 24 Mar 2024US$597.8bUS$303.9bUS$18.8b31.7x31.7x2x
Tue, 20 Feb 2024US$569.9bUS$303.1bUS$18.5b29.9x30.8x1.9x
Thu, 18 Jan 2024US$573.6bUS$302.1bUS$20.9b28.5x27.4x1.9x
Sat, 16 Dec 2023US$566.6bUS$301.7bUS$20.9b27.7x27.1x1.9x
Mon, 13 Nov 2023US$551.2bUS$301.4bUS$20.7b30x26.6x1.8x
Wed, 11 Oct 2023US$535.2bUS$301.2bUS$22.4b26.7x23.9x1.8x
Fri, 08 Sep 2023US$543.1bUS$305.9bUS$22.9b24.7x23.8x1.8x
Sun, 06 Aug 2023US$554.8bUS$305.2bUS$22.8b26.6x24.3x1.8x
Tue, 04 Jul 2023US$579.8bUS$297.4bUS$21.7b25.3x26.7x1.9x
Thu, 01 Jun 2023US$541.2bUS$300.3bUS$21.9b23x24.8x1.8x
Sat, 29 Apr 2023US$572.9bUS$297.4bUS$22.0b22.1x26x1.9x
Mon, 27 Mar 2023US$567.4bUS$294.7bUS$21.6b23.5x26.2x1.9x
Wed, 22 Feb 2023US$589.9bUS$292.6bUS$22.1b25.2x26.7x2x
Fri, 20 Jan 2023US$557.0bUS$287.0bUS$22.2b24.6x25.1x1.9x
Sun, 18 Dec 2022US$592.2bUS$286.9bUS$22.4b26.1x26.4x2.1x
Price to Earnings Ratio

26.4x


Total Market Cap: US$592.2bTotal Earnings: US$22.4bTotal Revenue: US$286.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 31.7x202320242025
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 40.1x which is higher than its 3-year average PE of 31.7x.
  • The 3-year average PS ratio of 2.3x 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 13% per year over the last three years.
  • Revenues for these companies have grown 13% 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 Market0.42%
Industrials1.13%
Aerospace & Defense1.43%
Aerospace and Defense1.43%
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
RTX RTXUS$174.723.7%
+US$8.4b		49.4%PE35.5x
LMT Lockheed MartinUS$467.944.4%
+US$4.5b		-5.8%PE25.8x
RKLB Rocket LabUS$57.5216.5%
+US$4.4b		154.7%PS55.4x
AXON Axon EnterpriseUS$568.394.6%
+US$2.0b		-11.5%PE174.5x
LHX L3Harris TechnologiesUS$285.941.9%
+US$1.0b		27.5%PE30.4x

Latest News

AXON
US$568.39
Axon Enterprise
7D
4.6%
1Y
-11.5%
RKLB
US$57.52
Rocket Lab
7D
16.5%
1Y
154.7%
AVAV
US$245.25
AeroVironment
7D
-9.8%
1Y
58.9%
BA
US$198.72
Boeing
7D
-1.9%
1Y
19.7%
HEI
US$308.67
HEICO
7D
-0.3%
1Y
19.4%
ATI
US$104.73
ATI
7D
6.5%
1Y
82.8%

ATI: Margin Strength And 2025 Outlook Will Drive Shares Higher

The analyst price target for ATI has been raised to $120.00, up from $100.00, as analysts cite stronger than expected Q3 margin performance and a broadly improved 2025 outlook across key operating segments. Analyst Commentary Bullish analysts highlight that the higher price target reflects increased confidence in ATI's ability to sustain stronger margins beyond Q3, particularly as operational efficiencies begin to scale through 2025.
LHX
US$285.94
L3Harris Technologies
7D
1.9%
1Y
27.5%

LHX: Earnings Momentum Will Accelerate Amid Expanding Defense And Missile Demand

Analysts have lifted their price target on L3Harris Technologies from $320 to a range of about $350 to $353 per share. This reflects updated models after solid Q3 results and a view that the company is well positioned for future defense awards amid supportive aerospace demand trends.
KTOS
US$76.91
Kratos Defense & Security Solutions
7D
5.7%
1Y
181.3%

KTOS: Multi-Decade Defense Programs Will Drive Future Upside

Analysts have nudged their fair value estimate for Kratos Defense & Security Solutions slightly higher to about $100.56 per share from roughly $99.80, citing broadly raised Street price targets and expectations that robust defense fundamentals, expanding contract opportunities, and growth bolstered by acquisitions will sustain elevated revenue growth and margin potential, despite a modestly higher discount rate and richer future earnings multiple. Analyst Commentary Recent Street research on Kratos Defense & Security Solutions underscores a broadly constructive view on the company, with multiple firms lifting price targets into or above the low triple digits and highlighting both near term execution momentum and longer term franchise value creation.
GE
US$283.60
General Electric
7D
-1.7%
1Y
68.2%

GE: Rising Defense Demand Will Drive Stronger Aerospace Profits Ahead

Analysts have modestly raised their price target on General Electric, citing slightly stronger expected revenue growth and profit margins that nudge fair value to approximately 339.69 dollars from 339 dollars previously. What's in the News The Pentagon is pushing missile makers, including GE Aerospace, to double or even quadruple production amid concerns over a potential future conflict with China.
CW
US$555.01
Curtiss-Wright
7D
3.6%
1Y
49.3%

CW: Expanded Buybacks Will Drive Future Returns And Support Bullish Outlook

Analysts have modestly raised their price target on Curtiss-Wright, citing a slightly higher assumed discount rate and updated long term valuation multiples that support a fair value estimate of approximately $608.17 per share. What's in the News Curtiss-Wright increased its share repurchase authorization by $416 million on November 20, 2025, bringing total buyback capacity to $2.066 billion (company announcement).
CRS
US$304.60
Carpenter Technology
7D
-1.9%
1Y
68.3%

CRS: Share Repurchases Will Drive Future Upside Potential

Analysts have modestly raised their price target on Carpenter Technology to approximately $382 per share, reflecting slightly higher assumed discount rates and long term profitability expectations. What's in the News Completed a share repurchase tranche, buying 200,000 shares for $49.12 million in the quarter, and totaling 775,000 shares for $150.99 million under the July 2024 authorization (company filing) Issued new guidance for fiscal 2026, projecting operating income of $660 million to $700 million, implying a 26% to 33% increase over fiscal 2025 with upside potential from higher volume, pricing, and productivity (company guidance) Set a fiscal 2027 operating income target of $765 million to $800 million, citing opportunities to exceed that range as strategic initiatives scale (company guidance) Added to the S&P Aerospace and Defense Select Industry Index, which may broaden the shareholder base via index-linked funds (index announcement) Valuation Changes Fair Value Estimate remains unchanged at approximately $382.37 per share, reflecting stable long term cash flow assumptions.
LMT
US$467.94
Lockheed Martin
7D
4.4%
1Y
-5.8%

LMT: Rising Defense Export Demand Will Drive Returns Despite Execution Risks

Analysts have modestly raised their price targets on Lockheed Martin, with recent increases to $500 and $545 per share reflecting stronger order momentum in key programs and resilient aerospace demand, even as operational challenges and a higher discount rate temper the potential upside. Analyst Commentary Street research heading into the Q3 print reflects a balanced mix of optimism around Lockheed Martin's growth prospects and caution around execution risks and the broader defense spending backdrop.
HWM
US$192.39
Howmet Aerospace
7D
-1.0%
1Y
65.7%

HWM: Future Margin Expansion Will Be Driven By Rising Aero Engine Spares Demand

Analysts have raised their price target on Howmet Aerospace to $250 from $215, citing accelerating high margin growth, sustained double digit revenue expectations through 2026, and strengthening demand across aero and industrial gas turbine end markets. Analyst Commentary Street research remains overwhelmingly constructive on Howmet Aerospace, with multiple firms lifting price targets in response to strong quarterly execution and a clearer long term growth algorithm through 2026.
WWD
US$290.19
Woodward
7D
-3.8%
1Y
64.7%
RTX
US$174.72
RTX
7D
3.7%
1Y
49.4%

RTX: Evolving Defense Priorities And Cybersecurity Will Drive Outlook Amid Cautious Optimism

Analysts have slightly raised their price target for RTX from $192.06 to $193.79, citing modest improvements in projected profit margin and minor adjustments in revenue growth forecasts. What's in the News RTX's Raytheon division is at the center of policy discussions after the U.S. lifted restrictions on Ukraine's use of allied-supplied long-range missiles.
TDG
US$1,302.90
TransDigm Group
7D
-4.2%
1Y
5.0%

TDG: Multi-Year Earnings Expansion Will Rely On Margin Strength And M&A Capacity

TransDigm Group's fair value estimate has been increased by analysts to $1,577.65 from $1,557.89. This change reflects continued conviction in strong organic growth, robust earnings performance, and expectations for future margin resilience despite a mixed outlook for certain market segments.