Aerospace and defense PE exit value already beat last year's total

The total exit value of PE-backed companies in the aerospace and defense sector has already surpassed last year's total, jumping from $17.7 billion at year-end 2025 to $26.8 billion in the first half of 2026, according to PitchBook's Q2 2026 Aerospace and Defense Report .

The market was carried by five major public listings in the sector, compared with zero in Q2 2025.

The largest was the June listing of DPC Holdings , a UK-headquartered specialist manufacturer of metal parts for jet engines, which valued the business at $4.9 billion. The IPO provided an exit for J.F. Lehman & Company , a New York PE firm focused on the sector.

Other top IPOs for the quarter include the $3.4 billion listing of medical transport company Global Medical Response , the $3.4 billion debut of aerospace and defense manufacturing company Applied Aerospace & Defense , and a $2.2 billion exit for autonomous weapons maker Aevex .

"There's a heavy spotlight on the industry in the wake of SpaceX's IPO and the war in Iran," said Jim Corridore, lead industrials research analyst at PitchBook.

The strategic priorities of Boeing , Lockheed Martin and Airbus provided the demand backdrop for exits and dealmaking. Right now, demand for new planes to update an aging commercial fleet is driving the bulk of exit activity, as Boeing and Airbus look to balance expanding production with maintaining older planes, Corridore said.

Exits of PE-backed commercial aerospace companies made up the largest share of exit value for the quarter, at 40%.

"It's perfectly safe to fly an older plane, but it needs more and more maintenance as time goes on, and that fuels the aftermarket supply chain: replacement parts and repair services," Corridore said. "Those are areas where PE plays."

The sector's success in exiting provides some welcome relief to an asset class with a logjam of aging portfolio companies. Private equity managers are sitting on over $860 billion in buyout NAV concentrated in funds that are seven years or older, well past PE's traditional exit timeline, PitchBook data shows.

In aerospace and defense, the quarter saw an exit count of 27, up 17.4% quarter-over-quarter and 22.7% year-over-year. While public listings accounted for the majority of exit value, leveraged buyouts accounted for the largest share of exit count.

Total deal count in the sector rose 10.9% quarter-over-quarter, while deal value fell to $6.5 billion from $11.1 billion, as the market shifted toward small to medium-sized transactions.