Aerospace, Defense & Government Technology Solutions
2nd Half 2025 Update
Aerospace, Defense & Government Technology Solutions
Download PDF2nd Half ADGS Notes:
Steady M&A Activity: Budget and geopolitical factors kept ADG demand resilient. Sustained conflicts in Ukraine, continued unease in the Middle East, along with new developments in Venezuela provided a challenging and changing environment where the pace and sophistication of threat vectors continues to expand, which requires continued development and enhancement of the defense force structure and solutions.
VC-Based Disruptors: across multiple defense subsegments (autonomy, space, AI, electronic warfare) continue to move at an accelerated pace, providing intense competitive pressure for existing incumbent systems integrators.
Evolving Marketplace: A myriad of factors impacted the ADG market in 2025, including DOGE, agency closures, contract consolidation, shifts in procurement strategies and a government shutdown, all of which made 2025 a challenging year.
Stock Performance: Government Technology Solutions stock performance and valuations were affected by the changing Defense landscape with stocks down 5.8% for the year and EV/EBITDA multiples down 2.0x from 13.2x to 11.2x during the year.
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Aerospace, Defense & Government Technology Solutions
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