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U.K. (FTSE) Aerospace and Defense Industry Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies13
  • 7D8.7%
  • 3M4.9%
  • 1Y64.5%
  • YTDn/a

In the last week, the Aerospace and Defense industry is up 8.7%, with BAE Systems leading the way, up 11%. Meanwhile, Pennant International Group actually underperformed within the industry, shrinking 7.7% in the last week. This means that the industry has gained 64% over the past year. Earnings are forecast to grow by 4.7% annually.

Industry Valuation and Performance

Has the U.K. Aerospace and Defense Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Apr 2026UK£186.4bUK£61.9bUK£8.5b28.3x22x3x
Tue, 03 Mar 2026UK£194.7bUK£62.1bUK£8.5b27.3x23x3.1x
Thu, 29 Jan 2026UK£182.2bUK£59.4bUK£8.3b26x22x3.1x
Sat, 27 Dec 2025UK£166.4bUK£59.4bUK£8.3b22.9x20.1x2.8x
Mon, 24 Nov 2025UK£156.5bUK£59.4bUK£8.3b22.1x18.9x2.6x
Wed, 22 Oct 2025UK£170.0bUK£59.3bUK£8.3b25x20.6x2.9x
Fri, 19 Sep 2025UK£173.0bUK£59.3bUK£8.3b25x20.9x2.9x
Sun, 17 Aug 2025UK£161.7bUK£59.3bUK£8.3b24.9x19.6x2.7x
Tue, 15 Jul 2025UK£76.0bUK£38.6bUK£2.1b29.3x36.5x2x
Thu, 12 Jun 2025UK£73.8bUK£38.4bUK£2.0b29.3x36.5x1.9x
Sat, 10 May 2025UK£66.3bUK£38.4bUK£2.3b25.9x28.4x1.7x
Mon, 07 Apr 2025UK£59.1bUK£38.5bUK£2.3b23.3x25.3x1.5x
Wed, 05 Mar 2025UK£64.4bUK£38.5bUK£2.3b25.7x27.4x1.7x
Fri, 31 Jan 2025UK£50.7bUK£36.7bUK£2.2b19.9x22.6x1.4x
Sun, 29 Dec 2024UK£49.1bUK£36.7bUK£2.2b19.9x22x1.3x
Tue, 26 Nov 2024UK£53.2bUK£36.7bUK£2.2b20.2x24x1.5x
Thu, 24 Oct 2024UK£52.9bUK£36.3bUK£2.2b18.7x24.3x1.5x
Sat, 21 Sep 2024UK£51.7bUK£36.3bUK£2.2b20.7x23.7x1.4x
Mon, 19 Aug 2024UK£55.3bUK£36.3bUK£2.2b22x25.4x1.5x
Wed, 17 Jul 2024UK£54.4bUK£34.8bUK£2.1b23.3x25.9x1.6x
Fri, 14 Jun 2024UK£58.1bUK£34.8bUK£2.1b24x27.7x1.7x
Sun, 12 May 2024UK£57.2bUK£34.6bUK£2.1b23.7x27.6x1.7x
Tue, 09 Apr 2024UK£56.3bUK£34.6bUK£2.1b22.3x27.2x1.6x
Thu, 07 Mar 2024UK£54.0bUK£39.1bUK£2.0b20.7x26.3x1.4x
Sat, 03 Feb 2024UK£58.5bUK£41.0bUK£2.2b25.5x26.7x1.4x
Mon, 01 Jan 2024UK£56.0bUK£41.0bUK£2.2b25.7x25.6x1.4x
Wed, 29 Nov 2023UK£53.5bUK£40.9bUK£2.2b29.6x24.5x1.3x
Fri, 27 Oct 2023UK£54.1bUK£40.7bUK£2.2b29.1x24.8x1.3x
Sun, 24 Sep 2023UK£51.6bUK£40.7bUK£2.2b27.9x23.6x1.3x
Tue, 22 Aug 2023UK£50.4bUK£40.4bUK£2.0b24.4x25.5x1.2x
Thu, 20 Jul 2023UK£49.7bUK£38.8bUK£1.8b21.4x27.6x1.3x
Sat, 17 Jun 2023UK£50.9bUK£38.7bUK£1.8b19.8x28.1x1.3x
Mon, 15 May 2023UK£50.8bUK£38.6bUK£1.8b18.5x27.7x1.3x
Wed, 12 Apr 2023UK£45.2bUK£31.0bUK£2.1b17.2x21.9x1.5x
Price to Earnings Ratio

21.9x


Total Market Cap: UK£45.2bTotal Earnings: UK£2.1bTotal Revenue: UK£31.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Aerospace and Defense Industry Price to Earnings3Y Average 25.3x202420252026
Current Industry PE
  • Investors are pessimistic on the British Aerospace and Defense industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 22.0x which is lower than its 3-year average PE of 25.3x.
  • The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Aerospace and Defense industry have grown 60% per year over the last three years.
  • Revenues for these companies have grown 26% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Comparison

How does U.K. Aerospace and Defense compare with similar industries?

GB Market4.54%
Industrials6.08%
Aerospace & Defense8.65%
Aerospace and Defense8.65%
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
BA. BAE SystemsUK£22.8910.7%
+UK£6.6b		50.8%PE33.2x
RR. Rolls-Royce HoldingsUK£11.897.2%
+UK£6.6b		80.3%PE16.9x
BAB Babcock International GroupUK£12.7610.5%
+UK£586.1m		86.1%PE21.9x
MRO Melrose IndustriesUK£5.307.7%
+UK£471.7m		24.7%PE17.9x
CHG Chemring GroupUK£5.5414.0%
+UK£185.0m		48.3%PE28.3x

Latest News

BA.
UK£22.89
BAE Systems
7D
10.7%
1Y
50.8%

BA.: Sector Caution Around Softer 2026 Outlook Will Restrain Overheated Expectations

BAE Systems' analyst fair value has moved from £15.83 to £18.76 per share, with the change supported by higher Street price targets clustered around £19.50 to £24.38 and analyst commentary referencing recent results that were slightly ahead of expectations and updated outlooks. Analyst Commentary Recent research points to a mixed tone around BAE Systems, with several price target increases sitting alongside rating downgrades and more cautious framing of future results.
BAB
UK£12.76
Babcock International Group
7D
10.5%
1Y
86.1%

Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching

Apr 03
Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching
CHG
UK£5.54
Chemring Group
7D
14.0%
1Y
48.3%

CHG: Measured Outlook On Earnings Quality And Multiples Will Shape Future Upside

Analysts have trimmed their fair value estimate for Chemring Group, with the headline price target moving from £6.30 to £5.90. This reflects updated assumptions around discount rates, revenue growth, profit margins and future P/E expectations.
PEN
UK£0.18
Pennant International Group
7D
-7.7%
1Y
-34.5%
QQ.
UK£4.81
QinetiQ Group
7D
7.9%
1Y
27.5%

QQ.: Contract Execution Risk Will Cap Returns Despite Raised 565 GBp Assumptions

QinetiQ Group’s analyst price target has increased to £5.65, with recent upward revisions from banks reflecting analysts’ updated views on its risk profile, revenue trajectory, margins and P/E assumptions. Analyst Commentary Recent research updates point to a more cautious tone around QinetiQ Group, even where headline price targets are higher.
RR.
UK£11.89
Rolls-Royce Holdings
7D
7.2%
1Y
80.3%

RR.: FY25 Beat And New Buyback Plan Will Support Stronger Outlook

Narrative Update The updated analyst price target for Rolls-Royce Holdings reflects a shift in valuation inputs, with a slightly lower fair value estimate and P/E assumption, alongside higher projected revenue growth and profit margins. Analysts are responding to recent price target increases to £12.50 and £16.00 following the company's FY25 performance and 2026 guidance.
AVON
UK£17.36
Avon Technologies
7D
7.3%
1Y
26.3%

AVON: Recent Order Momentum Will Support Future Re Rating Potential

Analysts have trimmed their price target for Avon Technologies slightly to £21.53, citing a marginally lower discount rate and modestly adjusted future P/E assumptions, while keeping revenue growth and profit margin expectations broadly unchanged. Analyst Commentary Analysts are using the refreshed £21.53 target as a reference point to weigh Avon Technologies' execution risks and potential upside, focusing mainly on how realistic the valuation looks against the updated P/E assumptions rather than big swings in growth forecasts.
MRO
UK£5.30
Melrose Industries
7D
7.7%
1Y
24.7%

MRO: Future P/E And Margin Delivery Will Shape Balanced Return Potential

Narrative Update Analysts have adjusted their fair value estimate for Melrose Industries slightly lower to £4.71 from £4.83, reflecting updated views on revenue growth, profit margins and future P/E assumptions in light of recent target moves that include a cut to £5.70 at Deutsche Bank and a lift to £7.63 at Citi. Analyst Commentary Recent research points to a mixed backdrop for Melrose Industries, with some optimism on the upside but also clear caution around how current expectations stack up against execution and growth risks.
CHRT
UK£13.06
Cohort
7D
12.2%
1Y
9.0%