Aerospace, Defense & Space
Q3 2025
Aerospace, Defense & Space M&A Market Update, Q3 2025
M&A activity across aerospace, defense, and space remained resilient through Q3 2025, supported by converging tailwinds including commercial aircraft production recovery, sustained defense spending, and accelerating space and satellite investment. Buyers continue to favor engineered components, proprietary products, MRO services, and mission-critical defense technologies, resulting in competitive processes for high-quality assets. Supply chain normalization and improved backlog visibility are expected to drive increased transaction activity over the next 12–24 months, particularly among founder-owned and sponsor-backed businesses seeking liquidity or strategic scale.

Trends Driving M&A for Aerospace, Defense & Space
Report Summary
M&A activity across aerospace, defense, and space remained resilient through Q3 2025, supported by converging tailwinds including commercial aircraft production recovery, sustained defense spending, and accelerating space and satellite investment. Buyers continue to favor engineered components, proprietary products, MRO services, and mission-critical defense technologies, resulting in competitive processes for high-quality assets. Supply chain normalization and improved backlog visibility are expected to drive increased transaction activity over the next 12–24 months, particularly among founder-owned and sponsor-backed businesses seeking liquidity or strategic scale.
Aerospace, Defense & Space M&A TRENDS
Key Highlights
- Meridian’s Aerospace, Defense & Space Practice
- M&A Update
- Valuation Trends