Aerospace, Defense & Government Services - Q2 2025

As we progress into the second quarter of 2025, the Aerospace, Defense & Government Services ("ADGS") sector is adapting to a dynamic landscape of emerging challenges and opportunities. While global tensions and sustained defense spending continue to support sector resilience, a noticeable shift toward innovation and modernization is taking center stage. Companies are making significant investments in next-generation technologies, including AI, cyber capabilities, and advanced manufacturing processes. The sustained demand for defense readiness, coupled with a growing emphasis on efficiency through AI-driven, tech-enabled solutions, positions the sector for steady growth—even amid potential DOGE-related challenges and international trade headwinds.

In our Q2 report, we’ll dive deeper into key trends, major deals, and what’s ahead for the remainder of the year.