What Happened
Resilient Market Dynamics Drive Strong Deal Volume
Despite a volatile macroeconomic and geopolitical landscape, the Aerospace, Defense, Government & Security (ADGS) industry saw significant gains in deal count and strong valuation performance in 2025, according to Capstone Partners’ annual ADGS Industry M&A Report and 2026 Outlook. The report highlights a 10.3% year-over-year increase in Aerospace & Defense M&A activity, with total disclosed enterprise value rising 73.1%. The first quarter of 2026 saw a 37% year-over-year increase in Aerospace & Defense M&A volume, totaling $47.1 billion of disclosed enterprise value. This growth was driven by defense spending and government contracting, with industry participants displaying a willingness to achieve growth through M&A. The report was published by Capstone Partners, as reported by PR Newswire.