Aerospace and Defense M&A Activity and Earnings Outperform Broader Market
Capstone Partners has released its Aerospace, Defense, Government, & Security (ADGS) Annual Report & M&A Outlook, which features insights into the current environment as well as a review of last year including merger and acquisition (M&A) activity.
Sector public company earnings also increased, rising 14% in 2024 compared with an 11% uplift in EBITDA earnings for the S&P 500. U.S. Aerospace and Defense sector shipments rose 8% in 2024 to levels 8% above (pre-MAX issue) peaks.
The number of U.S. Aerospace and Defense M&A transactions rose 15% in 2024 and were on a par with pre-pandemic levels. The sector outpaced broader industry trends, where North American M&A activity rose 3% across all industries and remains 24% below pre-pandemic levels.
The rebound in Aerospace and Defense M&A activity in 2024 was led by financial buyers, who have substantial capital seeking investment opportunities.
The report, available for download below, provides in-depth analysis and commentary on the overall health and outlook of the ADGS industry and discusses topics including:
A discussion of trade policy and budget impacts on the overall ADGS market and Commercial Aerospace, Defense, Government Services, Security Solutions & Cybersecurity, and Training & Simulation sectors.
An overview of emerging concerns that may affect the continued momentum of Commercial Aerospace’s post-pandemic recovery.
The identification of information technology (IT) opportunities within state and local governments despite federal spending cuts.
A breakdown of market and technological tailwinds positioning the Training & Simulation sector for near- and long-term growth.
Access our full Annual ADGS M&A Report:
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