Defense Electronics and Systems Sector Outlook — September 2026

Read the report

SlidesScroll

1 of 21

←→Full screen

INDUSTRIALS › CAPITAL GOODS › DEFENSE ELECTRONICS AND SYSTEMS

Defense Electronics: The Premium Sits with Installed Content

How the market prices platform and mission electronics content against C4ISR systems integration and mission IT, and what separates the two ends of the range.

September 2026 · Prepared by NeuraCap AI · Confidential

Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E)

Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice

Sources & methodology

1

← Previous

1 / 21 · INDUSTRIALS › CAPITAL GOODS › DEFENSE ELECTRONICS AND SYSTEMS

Next →

What each page shows

The analyst’s walkthrough of the deck, page by page.

1. 01

   INDUSTRIALS › CAPITAL GOODS › DEFENSE ELECTRONICS AND SYSTEMS

   This is the cover page for the September 2026 Defense Electronics and Systems sector outlook.

   This report looks at how the market prices Defense Electronics and Systems companies as of September 2026, using EV/EBITDA on CY2027E consensus as the primary lens. We'll show where hardware content sits versus C4ISR services integration, and what that gap means for owners and acquirers.

   Everything on this page

   INDUSTRIALS › CAPITAL GOODS › DEFENSE ELECTRONICS AND SYSTEMS Defense Electronics: The Premium Sits with Installed Content How the market prices platform and mission electronics content against C4ISR systems integration and mission IT, and what separates the two ends of the range. September 2026 · Prepared by NeuraCap AI · Confidential Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E) Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 1

2. 02
   CONTENTS

   What This Report Covers

   This page lists the report's five sections and appendix.

   We've structured this report so the bottom line comes first — read section one and you have the whole story, even if you stop there. The following sections build the evidence: the market landscape, valuation and situations, precedent transactions and strategic implications. So what: you can go as deep as you need, but you're never missing the conclusion.

   Everything on this page

   CONTENTS What This Report Covers 01 The Bottom Line Defense Electronics and Systems Prices Hardware Content and Cleared Labour on Different Terms 02 The Landscape Platform and Mission Electronics Carries Most of the Field 03 Valuation & Situations The Top of the Range Holds Growth and Margin Together; The Bottom Holds Services Revenue 04 Precedent Transactions Buyers Paid Mid-Teens EBITDA Multiples for Fielded Electronics Content in 2022 05 Strategic Implications Mix, Margin Durability and Backlog Conversion Are the Controllables Here 06 Appendix Comparables Detail, Methodology, Sources and Assumptions Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 2

3. 03
   01 · THE BOTTOM LINE

   In Defense Electronics and Systems, Hardware Content Is Priced Above C4ISR Services Integration

   This page states the report's core finding: hardware content prices above C4ISR services integration on EV/EBITDA (CY2027E).

   On a CY2027E EV/EBITDA basis, platform and mission electronics content is priced well above C4ISR systems integration and mission IT in this set. Seven of the eleven companies carry a forward estimate eligible for this measure, and the multiples shown are only those that clear our screening. This is the core finding the rest of the deck supports with the underlying data. So what: if you're pricing a business in this space, where its revenue comes from matters as much as its size.

   Everything on this page

   01 · THE BOTTOM LINE In Defense Electronics and Systems, Hardware Content Is Priced Above C4ISR Services Integration The full story on one page · figures on EV / EBITDA (CY2027E), market data as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 11 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Qualitative characterisations are NeuraCap views. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 3 1 Valuation Tracks with Where Your Revenue Comes From The 7 prime platform and mission electronics integrators are 64% of the set and sit at 16.6x on CY2027E EV / EBITDA. The two C4ISR systems integration and mission IT names sit at 7.4x on the same lens. 2 The Faster-Growing Names Hold the Higher Multiple Split the 7 names with a forward estimate at 7% revenue growth and the 4 above sit at 19.3x, the 3 below at 8.8x. A forward multiple already credits forecast growth, so a premium that survives it points to durability rather than one good year. 3 Profitable Growth Is Uncommon Here, and It Sits at the Top of the Range 3 of the 7 names with a forward estimate sit above the middle of the set on both multiple and EBITDA margin, and 2 sit below on both; the covered margin middle is 17%. The other 2 clear on one measure and not the other. 4 Whole-Company Deals Were Agreed at Mid-Teens EBITDA on Fielded-Content Businesses Four of the 2022 transactions in the record sit between 14.0x and 17.3x on EBITDA, for sensing, data-link and rugged electronics assets. The three entries dated January 2025 sit in the low single digits on the same measure. 16.6x Sector median EV/EBITDA CY2027E consensus · 7 rated of 11 companies 25.2x Premium end EV/EBITDA vs 7.4x at the discount end top quartile (n=2) against bottom quartile (n=2) on EV/EBITDA — the spread the report explains 23 Transactions with disclosed terms 59 recorded in this tier · 0 told as case studies, the full list in the appendix

4. 04
   SECTION 02

   02

   This is a divider introducing the market-map section on business segments.

   Next, we map the sector by what each group sells and how many names in each carry a forward estimate. So what: knowing the shape of the field before we value it keeps the multiples in context.

   Everything on this page

   SECTION 02 02 THE LANDSCAPE Platform and Mission Electronics Carries Most of the Field What each group sells, and how many names in it carry a forward estimate. 02 of 06 Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 4

5. 05
   02 · MARKET MAP

   Platform and Mission Electronics Holds the Field; C4ISR Services and the Component Names Sit Apart

   This page groups the 11 approved companies by segment and shows the median EV/EBITDA (CY2027E) per group.

   Platform and mission electronics is the largest group in this set, while C4ISR services and the component names sit apart, each with its own median multiple. We only compute a group median where a name carries a rated multiple, so smaller groups reflect fewer, not weaker, businesses. So what: the segment a company sits in already tells you roughly where its multiple should land.

   Everything on this page

   02 · MARKET MAP Platform and Mission Electronics Holds the Field; C4ISR Services and the Component Names Sit Apart 11 approved companies grouped by business segment · median EV / EBITDA (CY2027E) per group · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Segment grouping follows the platform's classification; group medians on rated names only. "Why it matters" lines are NeuraCap views. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 5 PRIME PLATFORM AND MISSION ELECTRONICS INTEGRATORS 7 cos median 16.6x RTX L3Harris (LHX) Axon Enterprise (AXON) Curtiss-Wright (CW) Leonardo DRS (DRS) VisionWave (VWAV) Optex Systems (OPXS) 7 of the 11 names, and where sole-source content on a program of record is priced. C4ISR SYSTEMS INTEGRATION AND MISSION IT 2 cos median 7.4x Leidos Holdings (LDOS) Parsons (PSN) Cleared labour, contract vehicles and the recompete calendar, valued on a different basis from hardware. ADJACENT MODELS 2 cos no rated names Frequency (FEIM) Kopin (KOPN) Two component-level names with no forward EBITDA estimate in this set, so their standing is untested here.

6. 06
   02 · LANDSCAPE

   The Sector Splits into Content Owners, Contract-Vehicle Businesses and a Component Tail

   This page describes the three sub-groups in the sector and what each does.

   We split the sector into content owners, contract-vehicle businesses and a component tail because they earn revenue differently and the market prices them differently. This grouping is our view, built on the rated names in the set. So what: before comparing two companies' multiples, first check whether they're even competing for the same kind of dollar.

   Everything on this page

   02 · LANDSCAPE The Sector Splits into Content Owners, Contract-Vehicle Businesses and a Component Tail Segment view of the approved universe · EV / EBITDA (CY2027E) medians on rated names · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. "What they do / why it matters" is a NeuraCap view. Full company-level detail in the appendix and companion tables. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 6 Segment n Share of universe Median EV/EBITDA Names to know What they do — and why it matters Prime platform and mission electronics integrators 7 64% 16.6x RTX Corporation (RTX) · L3Harris Technologies, Inc. (LHX) · +5 more Content on the platform. These 7 names are 64% of the set and the group sits at 16.6x on CY2027E EV / EBITDA. This is where sole-source incumbency, data rights and the sustainment tail behind fielded hardware show up in price; 5 of these 7 integrators carry a forward estimate. C4ISR systems integration and mission IT 2 18% 7.4x Leidos Holdings, Inc. (LDOS) · Parsons Corporation (PSN) Cleared labour and contract vehicles. Leidos Holdings, Inc. (LDOS) and Parsons Corporation (PSN) sell integration and mission IT, where award pipeline, IDIQ and task order flow and recompete outcomes set visibility. Both carry a forward estimate, and together they are 18% of the names on the page. Adjacent models 2 18% — Frequency Electronics, Inc. (FEIM) · Kopin Corp. (KOPN) Components without a forward estimate. Frequency Electronics, Inc. (FEIM) and Kopin Corp. (KOPN) sit at the component level, selling content that pulls through on other companies' platforms. Neither carries a forward EBITDA estimate in this set, so neither is ranked on the valuation page.

7. 07
   SECTION 03

   03

   This is a divider introducing the public market valuation section.

   We turn now to valuation itself — where the range sits, what separates the top from the bottom, and which situations combine growth and margin. So what: this is where the pricing gap becomes measurable.

   Everything on this page

   SECTION 03 03 VALUATION & SITUATIONS The Top of the Range Holds Growth and Margin Together; The Bottom Holds Services Revenue CY2027E EV / EBITDA across the 11 approved companies, 7 of them with a forward estimate. 03 of 06 Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 7

8. 08
   03 · PUBLIC MARKET VALUATION

   At the Premium End, Growth and Margin Show up Together

   This page ranks the seven rated companies by EV/EBITDA (CY2027E) against the sector median.

   Across the seven rated companies, the sector median sits at 16.6x on CY2027E EV/EBITDA, and the names above that line tend to show both growth and margin together. Tier boundaries here are our own cut at the rated set's quartiles, not a market convention. So what: the premium end of this range isn't random — it clusters around a specific combination of traits.

   Everything on this page

   03 · PUBLIC MARKET VALUATION At the Premium End, Growth and Margin Show up Together EV / EBITDA (CY2027E) · all 7 rated companies, sorted descending · sector median 16.6x · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 11 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Tier zones are NeuraCap groupings cut at the rated set's quartiles; every multiple quoted on this page is a median on the same EV / EBITDA (CY2027E) basis. Panel commentary is a NeuraCap view. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 8 PREMIUM · median 25.2x CORE · median 16.6x DISCOUNT · median 7.4x Sector median 16.6x WHAT SEPARATES THE TWO ENDS The top of the range. The 2 names in the premium tier sit at 25.2x on CY2027E EV / EBITDA, against 7.4x for the 2 in the discount tier. The page shows the 11 approved companies, 7 of them with a forward estimate. Growth and margin travel together. Axon Enterprise, Inc. (AXON) carries 30% forward revenue growth on a 26% EBITDA margin, and Curtiss-Wright Corporation (CW) carries a 23% margin. The two names at the discount end run 13% and 10% EBITDA margins. A forward multiple already credits growth. The lens is CY2027E EV / EBITDA, so forecast growth is already inside the denominator. A premium that survives that test is associated with durable content and margin rather than a single strong year of program timing.

9. 09
   03 · VALUATION DRIVERS

   The Faster-Growing Names Carry the Higher Multiples in This Set

   This page splits the rated companies into growth and margin cohorts and compares their median multiples.

   Split at the covered median, the faster-growing names in this set carry the higher multiple, and the same pattern shows up on margin. These are cohort medians on a small rated set, so we read this as an association in the data, not a proof of cause. So what: growth alone doesn't explain the premium — durability of margin matters too.

   Everything on this page

   03 · VALUATION DRIVERS The Faster-Growing Names Carry the Higher Multiples in This Set Median EV / EBITDA (CY2027E) by revenue-growth cohort and by EBITDA-margin cohort (each split at its covered median) · rated names with estimates · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Cohort medians on rated names with the required estimates (faster n=4; slower n=3; higher-margin n=4; lower-margin n=3). Driver readings are NeuraCap views on the supplied data — association, not causation. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 9 EV/EBITDA, median per cohort · growth split at 7% · EBITDA-margin split at 17% Growth Above the Field's Middle Is Where the Higher Multiples Sit Split the 7 names with a forward estimate at 7% revenue growth: the 4 above sit at 19.3x on CY2027E EV / EBITDA and the 3 below at 8.8x. The bar is set by the field's own middle, so clearing it is a relative standing against this peer set. Sole-Source Content Sits Behind the Top of the Range The names at the top of the range sell qualified hardware with content across platforms and a spares and sustainment tail; the names at the bottom sell integration and mission IT, where revenue is re-competed. Nothing here measures data rights directly, so read it as association with mix, not proof. Backlog Quality Is What a Forward Multiple Is Underwriting On a CY2027E basis the market is pricing conversion two years out. Book-to-bill, funded versus unfunded backlog and the recompete calendar are the operating evidence behind that number, and they are where a mid-tier name can close part of the gap. Margin Appears Alongside Growth at the Top, Not Instead of It In this set the higher multiples sit with names showing growth and margin both above the field's middle; the covered margin middle is 17%. Program phase matters: earnings inflect as work moves from development through LRIP into full-rate production.

10. 10
    03 · SITUATION MAP

    Three Names Hold the Higher Multiple and the Higher Margin Together

    This page maps the rated companies on multiple versus margin against their respective medians.

    Three names in this set sit above both the sector median multiple and the covered median margin — the combination that marks the top of the range. This is a cut on the data, not a recommendation to act on any single name. So what: it narrows the question from 'who's expensive' to 'who earns the combination that justifies it.'

    Everything on this page

    03 · SITUATION MAP Three Names Hold the Higher Multiple and the Higher Margin Together Cut on EV / EBITDA vs the sector median (16.6x) (rows) and EBITDA margin vs the covered median (17%) (columns) · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Situation boundaries are the cohort's own medians (Directional, NeuraCap view). This page characterises situations; it does not recommend buying or selling any security. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 10 Priced up, Margin to Match Above-median multiple · above-median EBITDA margin 3 names RTX Corporation (RTX) · Axon Enterprise, Inc. (AXON) · Curtiss-Wright Corporation (CW) RTX Corporation (RTX), Axon Enterprise, Inc. (AXON) and Curtiss-Wright Corporation (CW) sit above the middle of the set on both the CY2027E multiple and EBITDA margin. For an owner, this is the combination the market is paying for: content that carries margin and a forward earnings base a buyer can underwrite. Priced up, Margin Still Building Above-median multiple · below-median EBITDA margin 1 names Leonardo DRS, Inc. (DRS) Leonardo DRS, Inc. (DRS) holds an above-middle multiple on a 14% EBITDA margin. The market is pricing ahead of current profitability, which puts the weight on program mix and conversion of funded backlog as production rates move up. Margin in Hand, Multiple Behind Below-median multiple · above-median EBITDA margin 1 names L3Harris Technologies, Inc. (LHX) L3Harris Technologies, Inc. (LHX) carries margin above the middle of the covered names at 10.2x on CY2027E EV / EBITDA. Where profitability is in hand and the multiple is not, the question is the durability of the revenue behind it: sole-source content against re-competed work. Below the Middle on Both Below-median multiple · below-median EBITDA margin 2 names Leidos Holdings, Inc. (LDOS) · Parsons Corporation (PSN) Leidos Holdings, Inc. (LDOS) and Parsons Corporation (PSN) sit below the middle on both measures, on 13% and 10% EBITDA margins. Cleared-labour mission services carry a different cost structure, and their standing here rests on recompete win rate and on-contract growth rather than hardware content.

11. 11
    03 · THE AGENDA

    The Decision Is Where the Next Dollar of Content and Capital Goes

    This page lays out the strategic questions the valuation and situation evidence raises.

    We frame this page as the open questions this data puts in front of an owner or acquirer, not as calls on any specific company. It follows directly from the cohort evidence in the prior pages. So what: the decision is where the next dollar of content and capital should go, and this page names the trade-offs.

    Everything on this page

    03 · THE AGENDA The Decision Is Where the Next Dollar of Content and Capital Goes NeuraCap view · framed as the questions an owner or acquirer should resolve · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All content on this page is Directional — NeuraCap advisory judgment grounded in the cohort data shown earlier. It does not constitute investment advice. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 11 Push the Mix Toward Sole-Source Content The top of this range is held by names selling qualified hardware with content across several platforms. Raising the share of revenue that is sole-source, and holding the data rights and sustainment tail behind it, is the operating lever that moves a franchise toward that end. What changes the answer: A recompete calendar that puts a rising share of revenue into lowest-price competition. Close the Margin Gap Before Adding Top Line Two of the 7 names with a forward estimate sit below the middle of the set on both multiple and margin. Where margin is the gap, indirect rate structure, direct labour utilisation and estimate-at-completion discipline are the near-term levers. What changes the answer: A second consecutive year of EAC adjustments on fixed-price development work. Decide Whether Content and Mission IT Belong Together In this set, hardware content and C4ISR systems integration and mission IT are valued on different bases. Owners running both should be clear which side each dollar of investment serves, because mix shift shows up in how the whole company is priced. What changes the answer: Cleared-labour services growing faster than content revenue for several quarters. Set the Build-Versus-Buy Price for the Next Adjacency The record shows primes, a diversified major and sponsors with government teams paying mid-teens EBITDA multiples in 2022 for qualified sensing, data-link and rugged electronics content. That is the reference point for buying adjacent sensing, RF or timing capability instead of qualifying it in-house. What changes the answer: Qualification cost and timeline on an adjacent capability exceeding the price of acquiring it.

12. 12
    SECTION 04

    04

    This is a divider introducing the precedent-transactions section.

    We move next to the deal record, shown as case studies with the full list in the appendix. So what: the deal market gives us a second, independent read on how this content is valued.

    Everything on this page

    SECTION 04 04 PRECEDENT TRANSACTIONS Buyers Paid Mid-Teens EBITDA Multiples for Fielded Electronics Content in 2022 Nine transactions in the record, with multiples shown as recorded in the filings. 04 of 06 Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 12

13. 13
    04 · DEAL CASE STUDIES

    Agreed Deal Multiples Cluster in the Mid-Teens on EBITDA for Fielded Electronics Businesses

    This page presents case studies of agreed deal multiples on EBITDA for fielded electronics businesses.

    The case studies here show agreed multiples between 14.0x and 17.3x on EBITDA for businesses selling fielded, qualified electronics content, drawn from transactions with disclosed terms. Multiples are shown on LTM financials at announcement, as recorded in the filings, and we don't treat them as directly comparable to the CY2027E public basis. So what: the deal market and the public market agree on where the premium sits, even though they're measured differently.

    Everything on this page

    04 · DEAL CASE STUDIES Agreed Deal Multiples Cluster in the Mid-Teens on EBITDA for Fielded Electronics Businesses 3 of 23 transactions with disclosed terms, told as case studies · multiples on LTM financials at announcement where disclosed · the complete list is in the appendix · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 91 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 36 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. "Why the deal happened" is a NeuraCap read of the recorded evidence. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 13 Sep-2022 n/a Parker Hannifin Corp. acquires Meggitt plc EV / LTM revenue n/a EV / LTM EBITDA 16.3x WHY THE DEAL HAPPENED Parker Hannifin Corp. moved for Meggitt plc in Sep-2022; the record shows it as announced. HOW THE TARGET WAS VALUED Terms were not fully disclosed; the transaction anchors the reference set rather than the price. Mar-2022 n/a SES S.A. acquires Leonardo DRS (GES) EV / LTM revenue 1.2x EV / LTM EBITDA 1.1x WHY THE DEAL HAPPENED SES S.A. moved for Leonardo DRS (GES) in Mar-2022; the record shows it as announced. HOW THE TARGET WAS VALUED Terms were not fully disclosed; the transaction anchors the reference set rather than the price. May-2021 n/a Elliott Investment Management L.P. and Veritas Capital Fund Management L.L.C. acquires Cubic Corporation EV / LTM revenue n/a EV / LTM EBITDA 15.8x WHY THE DEAL HAPPENED Elliott Investment Management L.P. and Veritas Capital Fund Management L.L.C. moved for Cubic Corporation in May-2021; the record shows it as announced. HOW THE TARGET WAS VALUED Terms were not fully disclosed; the transaction anchors the reference set rather than the price.

14. 14
    SECTION 05

    05

    This is a divider introducing the strategic-implications section.

    We close the analysis by turning the evidence into practical questions for owners, management teams and acquirers. So what: this section turns the pattern in the data into a workable agenda.

    Everything on this page

    SECTION 05 05 STRATEGIC IMPLICATIONS Mix, Margin Durability and Backlog Conversion Are the Controllables Here What the peer evidence implies for owners, management teams and acquirers. 05 of 06 Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 14

15. 15
    05 · STRATEGIC IMPLICATIONS

    Content Mix and Margin Durability Are Where the Valuation Gap Shows Up

    This page sets out the strategic implications of the report's findings for owners, management teams and acquirers.

    Content mix and margin durability are where the valuation gap in this sector shows up, and we frame this page as questions this data puts on the table rather than as directives. It follows from the segment and situation evidence earlier in the report. So what: whichever seat you sit in, the same underlying pattern points to where the work needs to go next.

    Everything on this page

    05 · STRATEGIC IMPLICATIONS Content Mix and Margin Durability Are Where the Valuation Gap Shows Up NeuraCap view · the questions this data puts on the table for the next twelve months Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. This page is Directional — NeuraCap views drawn from the analysis in this report. Observations, not recommendations. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 15 FOR OWNERS Your Mix Decides Which Half of the Range You Sit In Hardware content sits in the upper part of this range and integration services in the lower part. The practical work is shifting revenue toward sole-source content and the spares tail behind fielded hardware, and improving actual conversion of funded backlog. FOR MANAGEMENT TEAMS Margin Durability Is the Case a Forward Multiple Tests On a CY2027E lens, forecast growth is already in the price; what separates the names is whether margin holds as programs move from development into rate production. Contract mix, indirect rates and program performance are the controllables. FOR ACQUIRERS Precedent Transactions Favour Buyers with Conviction on Installed Content In this record, primes, a diversified major and sponsors with government teams paid mid-teens EBITDA multiples in 2022 for fielded electronics franchises. The more recent entries sit lower, so the underwriting question is which assets carry qualified content and a sustainment tail.

16. 16
    SECTION 06

    06

    This is a divider introducing the appendix on the full universe, methodology and sources.

    The appendix carries the full comparable set behind every figure in the body, the valuation basis used, and where each underlying disclosure sits. So what: every number in this report can be traced back to its source.

    Everything on this page

    SECTION 06 06 APPENDIX The Full Universe, Methodology and Sources Comparables detail behind every figure in the body, the valuation basis, and where each underlying disclosure lives. 06 of 06 Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 16

17. 17
    06 · PUBLIC COMPARABLES (1 OF 1)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    This page lists the full public comparables set on EV/EBITDA (CY2027E), grouped by valuation tier.

    This page lists every rated company behind the valuation pages, shaded against the sector median, alongside the names that don't carry an eligible multiple. Tickers link back to the underlying source. So what: you can check any multiple used earlier in this report against the company it came from.

    Everything on this page

    06 · PUBLIC COMPARABLES (1 OF 1) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (16.6x); amber marks below · 7 rated companies; 4 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 7 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 17 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 PREMIUM — ≥19.3x · median 25.2x · 2 companies Axon Enterprise, Inc. AXON Prime platform and mission electronics integrators $35.7B 28.4x 30% 26% 56 Curtiss-Wright Corporation CW Prime platform and mission electronics integrators $20.7B 22.0x 8% 23% 31 CORE — 9.5x–19.3x · median 16.6x · 3 companies Leonardo DRS, Inc. DRS Prime platform and mission electronics integrators $9.7B 16.6x 7% 14% 21 RTX Corporation RTX Prime platform and mission electronics integrators $288B 16.6x 7% 17% 24 L3Harris Technologies, Inc. LHX Prime platform and mission electronics integrators $44.5B 10.2x 7% 17% 24 DISCOUNT — <9.5x · median 7.4x · 2 companies Leidos Holdings, Inc. LDOS C4ISR systems integration and mission IT $22.1B 8.8x 5% 13% 18 Parsons Corporation PSN C4ISR systems integration and mission IT $4.0B 5.9x 6% 10% 16

18. 18
    06 · PRECEDENT TRANSACTIONS (1 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This page lists the precedent transactions with disclosed terms, newest first.

    This page lists the precedent transactions with disclosed terms behind the deal case studies, with deal values linked to the underlying filing. Multiples are LTM at announcement, as recorded, and are not directly comparable to the CY2027E public basis used elsewhere in this report. So what: this is the complete record behind the mid-teens pattern shown earlier.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (1 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 23 transactions with disclosed terms in this tier (59 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 91 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 36 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 23 transactions shown; the rest are in the companion workbook. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 18 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Jan-2025 n/a → Redwire Corporation n/a 4.2x 3.6x Redwire Corporation is recorded at 4.2x revenue and 3.6x EBITDA, announced in January 2025. That EBITDA level sits well below the mid-teens range of the 2022 entries in the same record. Jan-2025 n/a → Mercury Systems, Inc. n/a 3.8x 3.6x Mercury Systems, Inc. is recorded at 3.8x revenue and 3.6x EBITDA, announced in January 2025. Mercury sells rugged mission computing and RF subsystems, the content-per-platform model that sits toward the top of the public range here. Jan-2025 n/a → Kratos Defense & Security Solutions Inc. n/a 4.5x 4.1x Kratos Defense & Security Solutions Inc. is recorded at 4.5x revenue and 4.1x EBITDA, announced in January 2025. It is the highest revenue multiple among the three January 2025 entries and still a single-digit EBITDA level. Sep-2022 Parker Hannifin Corp. → Meggitt plc n/a n/a 16.3x Parker Hannifin Corp. and Meggitt plc is recorded at 16.3x EBITDA, announced in September 2022. An industrial major buying qualified aerospace and defence components paid in the same mid-teens band as the primes in this record. Aug-2022 Cobham Limited → Ultra Electronics n/a 3.1x 17.3x Cobham Limited and Ultra Electronics is recorded at 3.1x revenue and 17.3x EBITDA, announced in August 2022, at the top of the EBITDA range in this record. It suggests a buyer underwriting installed sensing and electronics content rather than near-term earnings. Jul-2022 L3Harris Technologies, Inc. → Link-16 Tactical Data Links business (unit of Link 16 Tactical Data Links business) n/a n/a 14.0x L3Harris Technologies, Inc. is recorded acquiring the Link-16 Tactical Data Links business (unit of Link 16 Tactical Data Links business) at 14.0x EBITDA in July 2022. It is an example of a prime paying for a fielded, qualified franchise with a long sustainment tail… Apr-2022 TTM Technologies → Telephonics Corporation n/a 1.1x 15.0x TTM Technologies and Telephonics Corporation is recorded at 1.1x revenue and 15.0x EBITDA in April 2022. The gap between the two measures points to a thin margin base at the time, with the buyer paying a mid-teens earnings multiple for radar and surveillance content. Mar-2022 SES S.A. → Leonardo DRS (GES) n/a 1.2x 1.1x SES S.A. and Leonardo DRS (GES) is recorded at 1.2x revenue and 1.1x EBITDA in March 2022. It sits at the bottom of the EBITDA range in this record, a reminder that carve-outs of service-weighted units price differently from hardware franchises. May-2021 Elliott Investment Management L.P. and Veritas Capital Fund Management L.L.C. → Cubic Corporation n/a n/a 15.8x Elliott Investment Management L.P. and Veritas Capital Fund Management L.L.C. and Cubic Corporation is recorded at 15.8x EBITDA in May 2021. Financial buyers with government teams paid in the same band as strategics, which suggests backlog conversion was the shared…

19. 19
    06 · PRECEDENT TRANSACTIONS (2 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This page continues the list of precedent transactions with disclosed terms, newest first.

    This page continues the list of precedent transactions with disclosed terms, newest first, carried over from the previous page. The same basis applies: multiples are LTM at announcement, as recorded in the filings. So what: together, these two pages give you the full disclosed-terms record behind the deal evidence in this report.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (2 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 23 transactions with disclosed terms in this tier (59 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 91 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 36 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 23 transactions shown; the rest are in the companion workbook. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 19 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Mar-2021 Veritas Capital & Evergreen Coast Capital Corporation → Cubic Corporation n/a n/a 17.5x Jan-2021 TransDigm Group Inc. → Cobham Aero Connectivity n/a n/a 12.0x Jan-2020 Advent International → Cobham plc n/a n/a 13.2x Value shown as recorded in the filing; deal value unit unresolved. Mar-2019 Cerberus Capital Management, L.P. → Sparton Corporation n/a 0.6x 7.2x Value shown as recorded in the filing; deal value unit unresolved. Dec-2018 Harris Corporation → L3 Technologies, Inc. n/a n/a 14.6x Value shown as recorded in the filing; deal value unit unresolved. Jun-2018 n/a → Cubic Corporation n/a n/a 19.0x Value shown as recorded in the filing; deal value unit unresolved. Jun-2018 n/a → Cubic Corporation n/a n/a 19.0x Value shown as recorded in the filing; status defaulted announced. Sep-2017 Northrop Grumman Corporation → Orbital ATK, Inc. n/a 2.0x 12.1x Value shown as recorded in the filing; deal value unit unresolved. Jul-2016 Smith & Wesson Brands, Inc. → Crimson Trace Corporation n/a n/a 5.9x Value shown as recorded in the filing; deal value unit unresolved.

20. 20
    06 · METHODOLOGY

    Sources, Assumptions and Data Quality

    This page explains the report's sources, valuation basis and data-quality exclusions.

    This page sets out how we built the analysis: the valuation basis used, what was excluded and why, and where each underlying disclosure can be found. Data-quality flags and exclusions are noted here rather than folded silently into the figures shown earlier. So what: it gives you a clear basis to trace any figure in this deck back to its source.

    Everything on this page

    06 · METHODOLOGY Sources, Assumptions and Data Quality How this report was built, what was excluded, and where every underlying disclosure lives · as of 2026-09-28 Every figure in this report links to the record it was taken from. Where a figure has no link, the appendix names its source and the basis on which it was read. Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice 20 VALUATION BASIS Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 11 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). EV / EBITDA on CY2027E is the lead convention: it is the sector-appropriate prior for Defense Electronics and Systems and it clears the coverage gate with 7 of 11 companies (64%). EV / Revenue, P / E are carried as a cross-check. The set earns: 7 of the 7 companies with a reported forward EBITDA carry a meaningful one, so the profit multiple leads and a revenue multiple would understate what the market is pricing. DATA QUALITY & EXCLUSIONS 4 records were excluded or quarantined by the platform's validation gates (unit errors, implausible ratios, ineligible securities and classification failures); the full ledger ships in the companion tables and never feeds a statistic in this report. DEFINITIVE VS DIRECTIONAL Definitive content is disclosed or consensus data passed through stated arithmetic. Directional content — tier boundaries, situation cuts, "why it matters" commentary, the agenda pages — is NeuraCap analyst judgment and is labeled as such where it appears. WHAT THIS REPORT IS NOT This report characterises a sector. It does not recommend buying, selling or holding any security, and no statement in it should be read as investment advice or a price target. WHERE THE DATA LIVES 436 registered source documents stand behind the figures in this report. Metric hyperlinks throughout the deck open the specific filing or data record; by publisher: sec.gov (435) · home.treasury.gov (1). The companion workbook beside this deck carries the complete source index.

21. 21

    Across These 11 Names, Content Mix and Margin Durability Sit with the Higher Multiples.

    This is the closing page restating that content mix and margin durability sit with the higher multiples.

    Across these eleven names, content mix and margin durability sit with the higher multiples — a pattern worth testing against your own business mix. The companion tables carry the full universe and source index for any figure you want to trace further.

    Everything on this page

    Across These 11 Names, Content Mix and Margin Durability Sit with the Higher Multiples. NeuraCap AI — Defense Electronics and Systems Coverage September 2026 · Prepared by NeuraCap AI · Confidential Defense Electronics and Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 21

More coverage in Industrials

• Bi-Weekly Update · Sep 28, 2026Defense Electronics and Systems Bi-Weekly Industry Events & M&A Update — September 14–28, 2026
• Sector Report · Sep 28, 2026Infrastructure Construction Sector Outlook — September 2026
• Bi-Weekly Update · Sep 28, 2026Launch Vehicles and Services Bi-Weekly Industry Events & M&A Update — September 14–28, 2026
• Bi-Weekly Update · Sep 28, 2026Aerospace and Defense Bi-Weekly Industry Events & M&A Update — September 14–28, 2026