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U.S. Aerospace & Defense Industry Analysis

UpdatedOct 20, 2025
DataAggregated Company Financials
Companies88
  • 7D-1.3%
  • 3M9.6%
  • 1Y29.1%
  • YTD40.7%

Over the last 7 days, the Aerospace & Defense industry has dropped 1.3%, and Northrop Grumman contributed the most with a 3.9% decline. This takes the industry's 12 month performance to a gain of 29%. 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
Mon, 20 Oct 2025US$1.3tUS$398.7bUS$31.3b37.5x41.3x3.2x
Wed, 17 Sep 2025US$1.2tUS$395.7bUS$31.0b35.9x40.3x3.2x
Fri, 15 Aug 2025US$1.2tUS$394.0bUS$31.0b33.9x38.6x3x
Sun, 13 Jul 2025US$1.2tUS$387.1bUS$29.9b35.3x38.6x3x
Tue, 10 Jun 2025US$1.1tUS$386.8bUS$30.0b35x37x2.9x
Thu, 08 May 2025US$981.1bUS$385.8bUS$29.4b32.5x33.3x2.5x
Sat, 05 Apr 2025US$914.9bUS$377.4bUS$28.8b26.5x31.8x2.4x
Mon, 03 Mar 2025US$938.1bUS$376.7bUS$30.1b33.6x31.2x2.5x
Wed, 29 Jan 2025US$946.9bUS$373.8bUS$27.8b34x34.1x2.5x
Fri, 27 Dec 2024US$894.4bUS$403.7bUS$28.0b33.7x32x2.2x
Sun, 24 Nov 2024US$952.9bUS$403.8bUS$27.8b35.1x34.2x2.4x
Tue, 22 Oct 2024US$969.4bUS$393.7bUS$23.7b35.5x40.9x2.5x
Thu, 19 Sep 2024US$901.3bUS$388.8bUS$23.2b33.3x38.9x2.3x
Sat, 17 Aug 2024US$877.6bUS$388.4bUS$23.2b33x37.8x2.3x
Mon, 15 Jul 2024US$794.6bUS$381.1bUS$24.0b35.5x33.1x2.1x
Wed, 12 Jun 2024US$807.7bUS$381.1bUS$23.9b31.5x33.8x2.1x
Fri, 10 May 2024US$811.6bUS$380.8bUS$23.8b31.4x34.1x2.1x
Sun, 07 Apr 2024US$607.6bUS$303.9bUS$18.9b32.5x32.2x2x
Tue, 05 Mar 2024US$583.5bUS$303.7bUS$18.7b32.1x31.2x1.9x
Thu, 01 Feb 2024US$580.0bUS$306.5bUS$18.0b31.5x32.2x1.9x
Sat, 30 Dec 2023US$579.7bUS$302.1bUS$20.9b28.4x27.7x1.9x
Mon, 27 Nov 2023US$560.0bUS$301.6bUS$20.9b27.7x26.8x1.9x
Wed, 25 Oct 2023US$531.5bUS$301.5bUS$22.3b24.9x23.8x1.8x
Fri, 22 Sep 2023US$521.4bUS$305.9bUS$22.6b25.2x23.1x1.7x
Sun, 20 Aug 2023US$552.9bUS$305.7bUS$22.8b25.3x24.3x1.8x
Tue, 18 Jul 2023US$574.7bUS$298.0bUS$21.6b26.4x26.6x1.9x
Thu, 15 Jun 2023US$566.8bUS$300.3bUS$21.9b25.4x25.9x1.9x
Sat, 13 May 2023US$556.2bUS$300.1bUS$21.8b24.7x25.5x1.9x
Mon, 10 Apr 2023US$580.9bUS$294.7bUS$21.8b23.9x26.6x2x
Wed, 08 Mar 2023US$587.4bUS$294.6bUS$21.7b23.7x27x2x
Fri, 03 Feb 2023US$576.2bUS$292.0bUS$22.2b24.8x26x2x
Sun, 01 Jan 2023US$599.5bUS$287.1bUS$22.2b24.4x27x2.1x
Tue, 29 Nov 2022US$591.3bUS$284.2bUS$22.0b31.6x26.9x2.1x
Thu, 27 Oct 2022US$577.7bUS$282.4bUS$22.9b28.3x25.3x2x
Price to Earnings Ratio

25.3x


Total Market Cap: US$577.7bTotal Earnings: US$22.9bTotal Revenue: US$282.4bTotal 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 41.3x 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 3.2x.
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 Market0.12%
Industrials0.28%
Aerospace & Defense-1.30%
Aerospace and Defense-1.30%
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
GE General ElectricUS$300.140.9%
+US$2.8b		54.5%PE42x
BWXT BWX TechnologiesUS$203.122.9%
+US$525.5m		60.3%PE63.1x
RKLB Rocket LabUS$66.271.3%
+US$411.4m		488.5%PS63.6x
CDRE Cadre HoldingsUS$40.694.4%
+US$69.9m		6.3%PE43.4x
AIR AARUS$83.012.1%
+US$68.4m		32.2%PE113.6x

Latest News

VSEC
US$159.46
VSE
7D
1.1%
1Y
57.3%

Aftermarket Aviation MRO Will Benefit From Next Generation Engine Platforms

Narrative Update on VSE Analyst Price Target Analysts have raised VSE's fair value estimate from $183.12 to $187.45. They cite the company’s completed aerospace transformation, recent accretive acquisitions, and promising outlook for sales and earnings growth as key factors underpinning this upward revision.
AVAV
US$350.59
AeroVironment
7D
-14.5%
1Y
59.0%

Laser Communications And Directed Energy Will Drive Defense Modernization

AeroVironment's analyst price target was recently revised upward from $331.67 to $384.00 per share, as analysts cite expanded total addressable market opportunities, improved revenue growth outlook, and robust product demand, which were highlighted during recent company and industry events. Analyst Commentary Recent analyst activity has reflected growing optimism surrounding AeroVironment's strategic positioning and growth prospects.
TDG
US$1,265.88
TransDigm Group
7D
-2.1%
1Y
-8.7%
LHX
US$283.87
L3Harris Technologies
7D
-3.3%
1Y
14.4%
LMT
US$495.15
Lockheed Martin
7D
-1.7%
1Y
-19.4%
BWXT
US$203.12
BWX Technologies
7D
2.9%
1Y
60.3%
RKLB
US$66.27
Rocket Lab
7D
1.3%
1Y
488.5%
KTOS
US$83.12
Kratos Defense & Security Solutions
7D
-13.7%
1Y
236.9%
CDRE
US$40.69
Cadre Holdings
7D
4.4%
1Y
6.3%

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.
GE
US$300.14
General Electric
7D
0.9%
1Y
54.5%

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$594.50
Northrop Grumman
7D
-3.9%
1Y
12.2%

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.
AIR
US$83.01
AAR
7D
2.1%
1Y
32.2%

OKC And Miami MRO Expansion Will Serve Rising Air Travel

Analysts have raised their price target for AAR from $87 to $91. They cite stronger projected revenue growth and significantly improved profit margin forecasts as key drivers for the upward revision.
BA
US$212.94
Boeing
7D
-1.2%
1Y
33.2%
AXON
US$670.68
Axon Enterprise
7D
-5.5%
1Y
51.1%
VWAV
US$12.77
VisionWave Holdings
7D
25.0%
1Y
14.5%
SPAI
US$8.95
Safe Pro Group
7D
25.5%
1Y
289.1%