The value of mergers and acquisitions (M&A) in the global aerospace and defense sector was down in the second quarter of 2015 versus a year ago and sequentially, although with the announcement in July that Lockheed Martin [LMT] has agreed to buy Sikorsky Aircraft from United Technologies Corp. [UTX], deal value for the year is already equal with 2014, according to a new analysis by consulting firm PwC.

In the second quarter, announced deals were valued at $3.9 billion versus $13.2 billion a year ago and $8.5 billion in the first quarter, PwC says in its quarterly Mission Control report that analyzes global M&A activity in the A&D sector. PwC only includes deals valued at $50 million or more, of which there were 11 in the second quarter versus 18 a year ago and eight in the first quarter.

“The A&D industry is continuing to reshape their portfolios to simplify operating models, align with core capabilities or faster growing markets,” Scott Thompson, PwC’s United States aerospace and defense assurance leader, said in a statement. “We are seeing a lot of activity in the government services segment, which has been most impacted by budget constraints. While diversified companies have been exiting government services, we expect to continue to see government services-focused companies looking to consolidate or expand their leading positions in segments to get scale and be more competitive within the industry.”

Of the second quarter deals, nine are being led by strategic investors, with growing interest in the commercial aerospace sector.

Chuck Marx, PwC’s U.S. aerospace and defense leader, said in a statement  “with heavy emphasis in spinning off government IT services, we expect investors to become more active as they look for reconsolidation opportunities in the supply base in order to improve operations. We also expect investors to continue showing interest in the high-growth markets, including cyber security, electronic warfare and UAVs, which are all attracting A&D deal activity.”

The report says that prime contractors are “consolidating or broadening leading positions in segments, allowing for focus on platforms.”

Most of the second quarter deal activity in terms of value and numbers was in the U.S., with six deals valued at $2.8 billion, PwC says.

Going forward, PwC expects “healthy” deal activity to continue, given interest in commercial aerospace and “aggressive” action by defense contractors to reshape their portfolios.

Key trends in the sector being followed by PwC that could affect values and locations of M&A include activist investors looking for companies that are cash-rich but poor portfolios, use of surplus funds for cyber security, fuel efficiency initiatives, and 3D printing, investors interested in space exploration companies, and transactions in the fragmented commercial maintenance, repair and overhaul market for aircraft.