Aerospace and Defense M&A Trends: Europe Gains Ground in 2025
During the second quarter of 2025, the global mergers and acquisitions (M&A) market in the aerospace and defense sector recorded 50 transactions, down from 64 deals during the same period in 2024. Despite this drop, Europe accounted for 26% of the total, consolidating its strategic role in a geopolitical context marked by the reinforcement of its military capabilities.
Europe drives defense M&A market
Increased defense investment by European countries is creating a favorable environment for new corporate operations. This trend is expected to continue in the coming years, boosting activity in the sector.
One of the most noteworthy transactions globally was Thomabravo's equity investment in Boeing Digital Aviation Solutions, reflecting the growing interest in digital solutions within aerospace.
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Multipliers on the rise: EV/EBITDA reaches 20.7x
Valuation multiples in M&A transactions also show a significant evolution. The EV/EBITDA ratio has risen from 13.6x in 2024 to 20.7x in the first half of 2025, while listed companies in the sector are trading at around 18.5x. This increase reflects the market's confidence in the sector's growth potential.
Spain also takes off: Phoenix Aerospace leads in the Iberian Peninsula
In the Iberian market, Phoenix Aerospace, a Spanish industrial company specialized in the design and manufacture of ground equipment for the aerospace sector, acquired GSE Composystem. This operation reinforces Spain's position as a relevant player in the European aerospace value chain.
Conclusion
The aerospace and defense sector is undergoing a strategic transformation, with Europe at the forefront. Investment and consolidation opportunities will continue to grow, especially in an environment where security and technological innovation are key priorities.
