GCG’s Q2 2021 A&D Industry Update provides an overview of the latest trends in the sector, including recent equity market performance, valuation multiples, and transaction activity.
Key findings include the following:
- The S&P 500 and all A&D indices continued to exhibit positive performance during Q2 2021. By segment, the domestic air travel recovery is exceeding expectations with strong orders placed for narrow-body aircraft, led by United unveiling its largest-ever order for 270 aircraft from Boeing and Airbus. The sentiment is positive for stable defense spending with President Biden’s $715 Billion FY2022 budget request and space activity continues to be robust with high-profile commercial developments leading the news cycle.
- There were 75 transactions within the A&D industry involving United States-based targets or acquirers, decreasing from 97 in Q1 2021, but otherwise the highest level of activity in the last four years. 80% of Q1 2021 transactions involved strategic acquirers with the remaining 20% representing platform acquisitions by financial buyers.
- Categorically, approximately 53.3% of transactions took place in the Aerospace industry, 24% in the Defense IT/Services, 14.7% in Defense, and 8% in Space. Representative transactions are further highlighted in the report.
Click here for the full update.