Defense, Government & Intelligence: The Pentagon is conducting a six-month review of U.S. military force posture in Europe, examining deployments, defense spending, and allied burden-sharing ahead of a December completion deadline. A federal judge permanently blocked the Pentagon's national-security "supply-chain risk" designation of Anthropic, establishing an important precedent for government AI procurement. Defense Primes softened in August on slower missile-production ramp, while RTX led the group at +31% over the trailing twelve months. Defense Primes traded at 15.8x LTM EBITDA and Government Contractors at 11.4x, with notable transactions including AE Industrial Partners' $845M acquisition of L3Harris' Space Propulsion & Power Systems business and Motorola Solutions' announced $1,500M acquisition of D-Fend Solutions.
Physical & Cyber Security: More than 100 global technology companies warned that organizations may have only months to prepare for AI-enabled cyberattacks targeting critical infrastructure. The ATF confirmed a ransomware breach of a system holding sensitive investigative data. Cyber and technology security multiples remained elevated at 30.5x LTM EBITDA, anchored by high-growth platforms, while security services traded at 8.4x. Notable deals included NetApp's acquisition of JetStream Software and Fortinet's acquisition of Virtue AI.
Critical Infrastructure: President Trump signed an executive order restricting foreign-produced equipment in the U.S. electricity grid on national-security grounds, and hackers targeted water systems across 12 states, prompting federal guidance to disconnect operating systems from the internet. Water utilities traded at 14.9x LTM EBITDA. Transactions in the sector included Pennsylvania American Water's acquisition of a regional water system and Bernhard Capital Partners' acquisition of New Mexico Gas Company.
Maritime Transport & Facilities: Iran escalated pressure on the Strait of Hormuz, striking oil tankers carrying Saudi crude, while the White House extended its Jones Act waiver another 90 days to ease transportation bottlenecks. Diversified maritime companies traded at 9.7x LTM EBITDA and shipyard and port operators at 12.4x. Antin Infrastructure Partners acquired Vigor Industrial LLC during the month.
The full report includes sector commentary, EBITDA valuation multiples, public company benchmarks, notable contract awards, and representative transaction data for each sector.
