Q1 2022 Aerospace and Defense Industry Update

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GCG’s Q1 2022 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:

  • A federal judge recently ruled that masks were no longer required on board aircraft and major airlines subsequently removed mandates, adding to the already climbing demand for domestic travel on the heels of the Spring Break travel season. Trends suggest that demand for domestic travel will likely recover to reach pre-COVID levels in 2022.
  • President Biden signed the Consolidated Appropriations Act of 2022 into law on March 15 (approximately six months into the fiscal year), providing $756.6 Billion for the Department of Defense, including $6.5B earmarked for Ukraine. The Department of Defense has submitted a budget request for FY2023 for $773 Billion (an increase of 2.2%).
  • There were 86 transactions within the A&D industry involving United States-based targets or acquirers, decreasing from 102 in Q4 2021. 82% of Q1 2022 transactions involved strategic acquirers with the remaining 18% representing platform acquisitions by financial buyers.
  • Categorically, approximately 55% of transactions took place in the Aerospace industry, 13% in Defense, 23% in Defense IT/Services, and 9% in Space. Representative transactions are further highlighted in the report.

Click here for the full update.


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