Q2 2022 Aerospace and Defense Industry Update

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GCG’s Q2 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:

  • The House of Representatives passed its version of the 2023 National Defense Authorization Act on July 14. The annual policy bill includes a $37 billion increase to the Pentagon’s budget for a total of $839 billion. While NDAAs set policy and authorize funds, they do not appropriate the money the Defense Department spends. With the NDAA through the House, the Senate must now pass its version of the bill before legislators from the two chambers can craft a compromise bill in conference to vote on and send to President Biden.
  • At the Farnborough Airshow, Delta Air Lines announced that it would buy 100 Boeing 737 MAX 10 jets with an option to buy another 30, with deliveries starting in 2025. Delta previously was the only major U.S. airline without a MAX in its fleet or on order.
  • There were 79 transactions within the A&D industry involving United States-based targets or acquirers, decreasing from 86 in Q1. 82% of Q2 2022 transactions involved strategic acquirers with the remaining 18% representing platform acquisitions by financial buyers.
  • Categorically, approximately 59% of transactions took place in the Aerospace industry, 14% in Defense, 24% in the Defense IT/Services, and 3% in Space. Representative transactions are further highlighted in the report.

Click here for the full update.


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