Q2 2025 Aerospace and Defense Industry Update
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GCG’s Q2 2025 A&D Industry Update provides an overview of the latest trends in the sector, including recent equity market performance, valuation multiples, and transaction activity.
Select highlights include the following:
- Key headlines for the industry in Q2 include: The One Big Beautiful Bill and $150B of incremental defense funding, NATO’s historic 5% GDP defense pledge, Embraer’s record $29.7B backlog and tariff risks, and the impact of China’s rare earth restrictions on supply chains.
- The A&D industry continued to show strong public market performance in Q2 2025, with all A&D sectors outperforming broader market indices over the last year-to-date.
- There was a modest uptick in M&A activity in Q2 2025, with 86 transactions closed, compared to 73 in Q1 2025 and 99 in Q4 2024.
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