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U.S. Aerospace & Defense Industry Analysis

UpdatedSep 15, 2025
DataAggregated Company Financials
Companies85
  • 7D1.9%
  • 3M10.4%
  • 1Y32.1%
  • YTD35.2%

The Aerospace & Defense industry is up 1.9% in the last week, with General Electric up 2.0%. During this same period, the Boeing underperformed, falling 6.5%. This means that the industry has gained 32% over the past year. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 15 Sep 2025US$1.2tUS$395.7bUS$31.0b34.7x39.8x3.1x
Wed, 13 Aug 2025US$1.2tUS$393.8bUS$31.0b32.2x38.7x3x
Fri, 11 Jul 2025US$1.1tUS$387.1bUS$29.9b35.5x38.4x3x
Sun, 08 Jun 2025US$1.1tUS$386.8bUS$30.0b34.3x37x2.9x
Tue, 06 May 2025US$987.8bUS$385.7bUS$29.4b32.3x33.6x2.6x
Thu, 03 Apr 2025US$944.0bUS$377.4bUS$28.8b30.5x32.8x2.5x
Sat, 01 Mar 2025US$922.4bUS$376.7bUS$30.1b33.6x30.6x2.4x
Mon, 27 Jan 2025US$954.4bUS$372.4bUS$29.1b35.4x32.9x2.6x
Wed, 25 Dec 2024US$894.5bUS$403.7bUS$27.9b33.6x32.1x2.2x
Fri, 22 Nov 2024US$935.1bUS$403.8bUS$27.8b34.7x33.6x2.3x
Sun, 20 Oct 2024US$969.4bUS$393.7bUS$23.7b35.5x41x2.5x
Tue, 17 Sep 2024US$900.7bUS$388.8bUS$23.3b33.5x38.7x2.3x
Thu, 15 Aug 2024US$868.6bUS$388.4bUS$23.2b32.7x37.4x2.2x
Sat, 13 Jul 2024US$796.9bUS$381.1bUS$24.0b35.5x33.2x2.1x
Mon, 10 Jun 2024US$809.4bUS$381.1bUS$23.9b31.8x33.9x2.1x
Wed, 08 May 2024US$810.5bUS$380.7bUS$23.8b30.6x34.1x2.1x
Fri, 05 Apr 2024US$597.4bUS$303.9bUS$18.8b32.1x31.7x2x
Sun, 03 Mar 2024US$577.6bUS$303.7bUS$18.7b31.8x30.9x1.9x
Tue, 30 Jan 2024US$576.3bUS$306.4bUS$17.9b32x32.1x1.9x
Thu, 28 Dec 2023US$578.5bUS$302.1bUS$20.9b28.7x27.7x1.9x
Sat, 25 Nov 2023US$560.0bUS$301.6bUS$20.9b27.7x26.8x1.9x
Mon, 23 Oct 2023US$532.4bUS$301.5bUS$22.3b25.2x23.9x1.8x
Wed, 20 Sep 2023US$530.6bUS$305.9bUS$22.6b25.9x23.5x1.7x
Fri, 18 Aug 2023US$551.0bUS$305.7bUS$22.8b25.2x24.2x1.8x
Sun, 16 Jul 2023US$574.7bUS$298.0bUS$21.6b26.1x26.6x1.9x
Tue, 13 Jun 2023US$572.7bUS$300.3bUS$21.9b25.4x26.2x1.9x
Thu, 11 May 2023US$558.8bUS$298.5bUS$21.9b23.8x25.5x1.9x
Sat, 08 Apr 2023US$580.9bUS$294.7bUS$21.8b23.9x26.6x2x
Mon, 06 Mar 2023US$590.6bUS$294.5bUS$21.7b23.8x27.2x2x
Wed, 01 Feb 2023US$582.2bUS$292.0bUS$22.2b25.5x26.3x2x
Fri, 30 Dec 2022US$599.5bUS$287.1bUS$22.2b24.3x27x2.1x
Sun, 27 Nov 2022US$597.3bUS$284.2bUS$22.0b32.1x27.1x2.1x
Tue, 25 Oct 2022US$568.3bUS$281.2bUS$22.8b27.5x24.9x2x
Thu, 22 Sep 2022US$539.0bUS$280.7bUS$21.7b27.3x24.9x1.9x
Price to Earnings Ratio

24.9x


Total Market Cap: US$539.0bTotal Earnings: US$21.7bTotal Revenue: US$280.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 30.5x202320242025
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 39.8x which is higher than its 3-year average PE of 30.5x.
  • The 3-year average PS ratio of 2.2x 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 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 Market1.57%
Industrials0.63%
Aerospace & Defense1.92%
Aerospace and Defense1.92%
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$281.692.0%
+US$6.0b		55.3%PE39.4x
LMT Lockheed MartinUS$471.312.7%
+US$2.8b		-17.7%PE26.2x
RKLB Rocket LabUS$53.3411.8%
+US$2.7b		623.7%PS51x
HWM Howmet AerospaceUS$185.773.5%
+US$2.6b		95.3%PE53.7x
RTX RTXUS$155.851.1%
+US$2.2b		30.7%PE33.9x

Latest News

CW
US$508.99
Curtiss-Wright
7D
5.1%
1Y
62.9%
LHX
US$279.20
L3Harris Technologies
7D
1.9%
1Y
20.5%

US Defense Initiatives Will Advance Missile And Communication Capabilities

The consensus analyst price target for L3Harris Technologies rose to $302.58 on the back of strong Q2 results, higher future guidance, and improved sector sentiment amid rising defense spending, despite some margin and program risks. Analyst Commentary Bullish analysts cite strong Q2 results and continued momentum, leading to higher guidance for 2025 and increased 2026 targets.
RTX
US$155.85
RTX
7D
1.1%
1Y
30.7%

Global Defense Spending And International Contracts Will Shape Aerospace Potential

The slight increase in RTX’s price target reflects improved Q2 results, a more favorable tariff outlook, and strong long-term defense tailwinds, with the consensus analyst fair value rising modestly from $163.84 to $164.58. Analyst Commentary Bullish analysts raised price targets after RTX posted better-than-expected Q2 2025 earnings results, driven by broad-based strength across all major operating segments.
ATI
US$76.14
ATI
7D
-1.8%
1Y
23.6%
BA
US$215.94
Boeing
7D
-6.5%
1Y
38.8%

Robust Air Travel Demand Will Drive Global Expansion

Boeing's modestly higher consensus price target reflects a slight increase in its future P/E ratio, with fair value adjusted upward to $252.57. What's in the News Boeing and the Royal Australian Air Force completed early demonstrations of the MQ-28 Ghost Bat Collaborative Combat Aircraft, validating autonomous multi-ship, teaming, and data fusion capabilities, with results to be incorporated into Block 2 production.
AXON
US$756.13
Axon Enterprise
7D
2.1%
1Y
96.0%
LMT
US$471.31
Lockheed Martin
7D
2.7%
1Y
-17.7%
TXT
US$81.23
Textron
7D
-1.8%
1Y
-8.0%

Investors Will Want Textron's (NYSE:TXT) Growth In ROCE To Persist

Sep 08
Investors Will Want Textron's (NYSE:TXT) Growth In ROCE To Persist
NOC
US$575.96
Northrop Grumman
7D
-1.0%
1Y
10.5%

US And Allied Defense Budgets Will Unlock New Opportunities

Analysts have raised Northrop Grumman’s price target to $603.32, citing accelerating revenue growth tied to Department of Defense priorities, robust international sales momentum, and strong Q2 performance, while valuation concerns and uncertainty around future earnings temper some optimism. Analyst Commentary Bullish analysts highlight accelerating revenue growth projected for the second half of 2025, underpinned by alignment with Department of Defense budget priorities and management’s positive outlook.
TDG
US$1,271.45
TransDigm Group
7D
-1.7%
1Y
-7.4%

Air Travel Demand And OEM Backlogs Will Sustain Future Upside

TransDigm Group’s price target remains steady at $1621 as weaker commercial OEM sales expectations are offset by bullish confidence in ongoing aerospace and defense strength, sector tailwinds, and the company’s resilient fundamentals. Analyst Commentary Recent reduction in price target reflects lowered sales guidance due to weaker Commercial OEM end-market expectations, driven by slower build rates and inventory destocking in the supply chain.
GE
US$281.69
General Electric
7D
2.0%
1Y
55.3%

Next Generation Engines And AI Will Transform Aerospace

Analysts remain bullish on General Electric due to raised EBIT guidance, strong momentum in GE Aerospace’s commercial engines and aftermarket business, and attractive valuation, resulting in an unchanged consensus price target of $297.93. Analyst Commentary Bullish analysts highlight raised EBIT guidance for 2025 and 2028, indicating improved profit expectations and sustained upward momentum following Q2 results.
WWD
US$238.17
Woodward
7D
-1.1%
1Y
46.0%

Woodward (NASDAQ:WWD) Is Doing The Right Things To Multiply Its Share Price

Sep 03
Woodward (NASDAQ:WWD) Is Doing The Right Things To Multiply Its Share Price
HXL
US$61.95
Hexcel
7D
-3.7%
1Y
2.4%

Air Travel Recovery And Defense Spending Will Drive Composite Demand

Hexcel’s price target was modestly raised to $65.33 as stronger Q2 revenue and EPS and maintained 2025 guidance outweighed near-term inventory and cash flow headwinds, reflecting improved near-term performance but ongoing operational challenges. Analyst Commentary Q2 results surpassed consensus on revenue and EPS, but fell short on adjusted EBIT and cash flow.
RKLB
US$53.34
Rocket Lab
7D
11.8%
1Y
623.7%

Integrated Space Capabilities Will Capture National Security Contracts

Rocket Lab’s price target was raised to $46.40 as analysts express increased confidence in Neutron rocket milestones, robust sector momentum, and operational advantages, moderated by ongoing unprofitability and limited visibility into profitability. Analyst Commentary Bullish analysts cite increased confidence in Rocket Lab’s Neutron rocket progress, with launch pad infrastructure fully in place and readiness for initial launches.
HWM
US$185.77
Howmet Aerospace
7D
3.5%
1Y
95.3%
SPR
US$38.70
Spirit AeroSystems Holdings
7D
-5.8%
1Y
17.7%