Capstone Partners Reports: Aerospace & Defense M&A Activity Shines in Muted Market

Capstone Partners, the middle-market investment banking subsidiary of Huntington Bancshares (NASDAQ: HBAN), published its annual Aerospace, Defense, Government & Security (ADGS) Industry M&A Report and 2026 outlook. The report found A&D dealmaking kept expanding through 2025 despite a muted market, with deal count up 10.3% year over year and total disclosed enterprise value up 73.1%, at average valuations of 3.0x EV/Revenue and 11.4x EV/EBITDA. Momentum carried into Q1 2026: A&D M&A volume rose 37% YoY on $47.1 billion of disclosed EV, with EBITDA multiples contracting to 9.5x while revenue multiples expanded to 4.8x on demand for subscription-based and early-stage technology-enabled assets.

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