INDUSTRY FOCUS
AEROSPACE & DEFENSE
OVERVIEW
Aerospace and defense demand in 2026 is supported by commercial fleet utilization, aircraft replacement needs, and investment in defense readiness. Production backlogs also support maintenance, repair, and overhaul activity as operators keep existing aircraft in service longer.
For owners of component manufacturers and specialized suppliers, transaction positioning should explain program exposure, technical differentiation, quality performance, and the capacity to meet customer delivery requirements.
TRENDS & CHALLENGES
Material availability, skilled labor, and constrained supplier capacity continue to affect delivery schedules and margins. Digital tools and AI can improve planning and sustainment, but customers still need reliable production, traceability, and consistent quality.
Buyers will examine program concentration, contract economics, and operational continuity. Owners should organize supporting records and distinguish firm commitments from forecasts when explaining backlog and future earnings.
FUTURE FORECAST
The 2026 outlook favors suppliers that can translate demand into dependable deliveries. Aftermarket services, autonomous systems, and space-related capabilities remain areas of strategic interest, while supply-chain resilience can influence acquisition decisions.
A sale or acquisition should be evaluated around the specific business, its end markets, and its investment needs. Strong demand alone does not establish value: execution, cash conversion, and customer relationships remain central to transaction preparation.
INDUSTRY PERFORMANCE
21.58X
EBITDA MULTIPLE
3.57X
SALES MULTIPLE
Disclosure: January 2026 U.S. public-company benchmarks, using Aerospace/Defense (79 firms) as a proxy. Source: NYU Stern / Aswath Damodaran. Margins and EV/sales reflect this public cohort; EV/EBITDA covers firms with positive EBITDA.
These figures are not private M&A transaction multiples, $10 million company averages, or a valuation of your business. Results vary by subsector, size, risk, and deal structure. Industry commentary updated October 2026 using Deloitte’s 2026 Aerospace and Defense Industry Outlook. Pacifica Advisors is an M&A advisor and business broker.