Aerospace and defense year in review and 2018 forecast

Summary

In 2017, the aerospace and defense sector reported record profits of $77 billion, an 18% increase over the prior year, and surpassed the previous record set in 2014. The top 100 A&D companies reported $728 billion in revenue, an increase of 4% over 2016, and $77 billion in operating profit in 2017. Operating margin was 10.6%, also a record, having reached double digits only once before in 2014.

We expect the A&D industry to outperform again and potentially reach new records in 2018 with the help of increases in aircraft deliveries, aircraft aftermarket and substantial increases in defense spending.

The performance of the top 100 A&D companies is a barometer for the health of the industry. It reflects disciplined management over the past decade as well as strong demand for the industry’s products and services. This report provides a review and analysis of how these A&D companies performed in the past year, and a look at the challenges and opportunities they will face in the years to come.

How PwC can help

We welcome the opportunity to discuss the insights from our report — as well as the goals and objectives your company has planned for the year ahead. With a full-spectrum of scenarios changing the possibilities for A&D companies, such as digital operations, growth strategies, deals, and talent, we provide the insight, perspective and solutions needed to make the path forward very clear.