Data-driven insight into the capital flows and M&A activity shaping the emerging-growth defense sector.
Smaller private and public companies are growing as the defense and security markets surge, investors seek greater exposure to the industries, and prime contractors are pressured to increase their production and innovation, leading them to seek growth through partnerships with and acquisitions of smaller companies. SSG provides data-driven market intelligence to highlight these companies and the rapidly growing investment and M&A activity targeting them.
A proprietary data service that monitors and analyzes capital raise and M&A transactions in the emerging-growth defense and security industries, enabling companies, investors, lenders, and acquirers to make data-driven, informed capital allocation decisions.
Tracks the performance of public defense companies with less than a $1 billion market cap across SSG’s seven defense sectors — benchmarking small- to mid-cap defense stock performance against the large prime defense contractors. An equal-weighted, price-return monitor; not an investable product.
Request Future Reports →The aerospace companies in the SSG Aerospace Subsector Report showed an average stock gain of +43.1%, significantly outperforming the +9.3% gain for the largest defense prime contractors.
This is the second report in the SSG Defense Subsector series, a recurring deep dive into individual segments of the SSG Small-Cap Defense Stock Index and Deal Tracker. Aerospace Components is the largest segment in the Index and, through July, its best performing — 24 public companies with combined market capitalization of $5.8 billion, 28% of the Index by value. Constituents returned +43.1% year to date on an equal-weighted basis, against +9.6% for the full 77-company Index and +9.3% for the five prime contractors.
Capital markets activity was concentrated almost entirely in M&A: 28 closed transactions year to date, roughly a third of all closed defense M&A the Tracker captured in 2026 and more than any other subsector, alongside four closed equity raises totaling approximately $213 million and no closed debt financings. On valuation, the subsector is the cheapest in the Index at a median 1.9x EV / 2025 revenue — and the only cohort where EBITDA multiples are broadly meaningful, at a median 16.9x EV / LTM EBITDA.
Defense Subsector Report: Aerospace Components. Data through July 31, 2026. Index returns are price-based, exclude dividends, and are not comparable to a total-return investable benchmark. Not an investable product. For informational purposes only — not investment advice. See full report for methodology and disclaimers.
| Market Layer | Names | 2025 Revenue | Avg YTD |
|---|---|---|---|
| Structures, Forgings & Machining | 8 | $1.4B | +72.5% |
| Propulsion, Space & Interconnect | 7 | $2.0B | +54.7% |
| Specialty Materials & Aftermarket | 9 | $1.0B | +7.9% |
| Full Subsector | 24 | $4.4B | +43.1% |
Source: SSG Defense Subsector Report: Aerospace Components, market map. As of July 31, 2026.
43 / 40 / 6 · ~$5.6B · +25.0% · ~$9.7B
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