Defense & Aerospace Stocks

Q: Are defense stocks a good investment?

Defense stocks offer stability and predictability because government contracts provide multi-year revenue visibility. They typically pay growing dividends and exhibit lower volatility than the broader market. Defense spending tends to be resilient even during recessions since national security is a priority. Risks include budget sequestration, program cancellations, and political shifts that could reduce military spending.

Q: How do defense stocks perform during wars?

Defense stocks often rise during periods of geopolitical conflict as investors anticipate increased military spending. However, the relationship is not straightforward — much depends on whether conflicts lead to actual budget increases and new contracts. The Russia-Ukraine conflict triggered significant defense stock gains as NATO countries committed to spending targets. Long-term performance depends more on sustained budget growth than short-term conflict headlines.

Q: Do defense stocks pay dividends?

Yes, most major defense companies pay consistent and growing dividends. Lockheed Martin, RTX, Northrop Grumman, and General Dynamics all have long track records of annual dividend increases. Yields typically range from 1.5% to 3%. Defense companies also conduct significant share buyback programs, adding to total shareholder returns. The combination of reliable dividends and contract-driven earnings makes them popular with income investors.

Q: What drives defense stock prices?

Key drivers include government defense budget levels, major contract awards, geopolitical tensions, and earnings results. The U.S. defense budget exceeds $800 billion annually and has grown consistently. International defense spending is accelerating as allies meet NATO's 2% GDP target. Company-specific factors include program execution, backlog growth, margin improvement, and success in winning competitive procurements.

Q: What is the defense backlog?

The defense backlog represents the total value of contracts awarded but not yet completed. It provides visibility into future revenue — a large, growing backlog suggests years of assured work. Major contractors like Lockheed Martin carry backlogs exceeding $150 billion. Investors monitor backlog trends as a leading indicator of revenue growth. A book-to-bill ratio above 1.0 means new orders exceed current revenue, signaling sustainable growth.

Q: Are defense stocks recession-proof?

Defense stocks are considered relatively recession-resistant because military spending is driven by national security needs rather than economic cycles. During the 2008-2009 recession, defense stocks outperformed the broader market significantly. However, they are not completely immune — budget sequestration in 2013 reduced defense spending and hurt stock prices. The sector's stable contract revenue and government-funded demand provide a buffer against economic downturns.

Defense contractors and aerospace manufacturers. Government-backed revenue streams, long-term contracts, and geopolitical tailwinds.

68 stocks Updated Mar 26, 2026

$1.89T Total Market Cap

114.8 Avg P/E Ratio

0.81% Avg Dividend Yield

+1.01% Avg Daily Change

Defense stocks represent companies that provide military equipment, technology, and services to government agencies worldwide. The sector benefits from long-term government contracts, predictable revenue streams, and growing global defense budgets driven by geopolitical tensions and modernization programs.

Major defense contractors include Lockheed Martin, RTX (Raytheon), Northrop Grumman, and General Dynamics. These companies build fighter jets, missile systems, naval vessels, satellites, and cybersecurity platforms. The sector also includes IT and services contractors like Leidos and Booz Allen Hamilton that support defense intelligence and logistics.

Defense spending has accelerated globally as NATO allies increase budgets and emerging threats drive modernization. This list tracks major defense and aerospace companies with prices, P/E ratios, dividend yields, and market caps updated daily.

#	Symbol	Name	Price	Change %	P/E	Market Cap
1	GE	GE Aerospace	$296.56	+2.04%	40.3	350.80B
2	RTX	Rtx Corp	$195.00	+0.52%	41.0	275.72B
3	BA	Boeing Co.	$199.61	+1.62%	68.9	154.00B
4	LMT	Lockheed Martin Corp	$624.20	+2.30%	28.6	143.67B
5	ESLT	Elbit Systems Ltd	$911.90	+1.91%	87.9	125.78B
6	HWM	Howmet Aerospace Inc	$241.62	+0.88%	67.1	101.19B
7	NOC	Northrop Grumman Corp	$691.21	+1.33%	24.1	100.60B
8	GD	General Dynamics Corp	$352.50	+1.81%	23.1	97.29B
9	TDG	Transdigm Group Inc	$1,156.49	-0.54%	36.1	73.13B
10	LHX	L3Harris Technologies Inc	$352.02	+0.17%	41.9	67.26B
11	HEI	Heico Corp	$279.09	-0.57%	59.4	41.00B
12	AXON	Axon Enterprise Inc	$460.15	+0.78%	323.9	40.37B
13	RKLB	Rocket Lab Corp	$72.88	+10.31%	—	38.80B
14	CW	Curtiss-Wright Corp	$702.25	+0.21%	51.9	25.13B
15	WWD	Woodward Inc	$372.08	+0.84%	49.4	24.14B
16	ATI	Ati Inc	$149.00	-0.39%	51.4	20.77B
17	CRS	Carpenter Technology	$406.64	+1.79%	44.0	19.13B
18	BWXT	Bwx Technologies Inc	$222.13	+8.48%	62.3	19.11B
19	KTOS	Kratos Defense & Security	$79.98	+3.21%	891.6	17.83B
20	TXT	Textron Inc	$90.71	+0.14%	18.7	17.24B
21	HII	Huntington Ingalls Industrie	$402.56	+0.12%	27.0	16.31B
22	KRMN	Karman Holdings Inc	$99.60	-2.20%	1,199.7	13.60B
23	CAE	Cae Inc	$26.78	+1.90%	31.8	11.74B
24	DRS	Leonardo Drs Inc	$46.32	+5.13%	41.2	10.93B
25	AVAV	Aerovironment Inc	$199.02	+1.45%	—	10.90B
26	SARO	Standardaero Inc	$26.64	+2.03%	56.9	10.52B
27	HXL	Hexcel Corp	$82.24	+1.63%	61.4	6.72B
28	LOAR	Loar Holdings Inc	$59.51	+1.36%	99.5	6.30B
29	VSEC	Vse Corp	$178.32	+1.80%	529.0	5.92B
30	MRCY	Mercury Systems Inc	$78.71	+5.67%	—	4.59B
31	BETA	Beta Technologies Inc -Cl A	$15.36	+4.49%	—	4.48B
32	ACHR	Archer Aviation Inc-A	$5.56	+0.91%	—	4.47B
33	AIR	Aar Corp	$118.52	+9.93%	46.6	4.38B
34	LUNR	Intuitive Machines Inc	$20.55	+14.68%	—	3.84B
35	FLY	Firefly Aerospace Inc	$27.53	+16.01%	—	3.43B
36	ATRO	Astronics Corp	$68.38	+0.77%	—	2.67B
37	VVX	V2X Inc	$68.05	+0.06%	27.1	2.11B
38	DCO	Ducommun Inc	$122.02	-0.58%	—	1.91B
39	RCAT	Red Cat Holdings Inc	$15.87	-1.31%	—	1.81B
40	CDRE	Cadre Holdings Inc	$31.88	+0.85%	38.9	1.76B
41	VOYG	Voyager Technologies Inc-A	$25.62	+2.15%	—	1.63B
42	RDW	Redwire Corp	$9.05	-3.52%	—	1.42B
43	EVEX	Eve Holding Inc	$2.76	+10.84%	—	1.06B
44	NPK	National Presto Inds Inc	$133.04	-0.54%	23.9	928.86M
45	TATT	Tat Technologies Ltd	$43.01	-9.11%	43.5	682.24M
46	PKE	Park Aerospace Corp	$28.25	+3.56%	62.7	544.37M
47	ISSC	Innovative Solutions & Supp	$27.67	-7.64%	25.1	474.77M
48	SATL	Satellogic Inc-A	$6.47	+20.26%	—	457.17M
49	EVTL	Vertical Aerospace Ltd	$3.27	-7.10%	—	453.23M
50	ASLE	Aersale Corp	$6.16	-1.91%	58.7	345.39M
51	AIRO	Airo Group Holdings Inc	$9.42	-0.84%	19.2	301.77M
52	BYRN	Byrna Technologies Inc	$9.11	-0.55%	29.3	283.39M
53	AZ	A2Z Cust2Mate Solutions Corp	$5.75	+3.05%	—	238.98M
54	DPRO	Draganfly Inc	$5.11	-19.27%	—	208.19M
55	SPCE	Virgin Galactic Holdings Inc	$2.53	+6.30%	—	182.82M
56	VWAV	Visionwave Holdings Inc	$7.04	+2.62%	—	154.13M
57	SIDU	Sidus Space Inc-Cl A	$2.31	+0.87%	—	152.33M
58	SPAI	Safe Pro Group Inc	$4.29	-12.63%	—	102.98M
59	SIF	Sifco Industries	$13.31	+2.70%	26.6	89.81M
60	OPXS	Optex Systems Holdings Inc	$12.96	+2.45%	19.5	88.73M
61	HOVR	New Horizon Aircraft Ltd	$1.72	+0.00%	—	78.77M
62	CVU	Cpi Aerostructures Inc	$4.06	-4.25%	—	53.66M
63	VTSI	Virtra Inc	$4.48	-3.45%	—	50.47M
64	AIRI	Air Industries Group	$3.24	+1.57%	—	15.49M
65	SYNX	Silynxcom Ltd	$1.05	-2.78%	—	7.63M
66	DFSC	Defsec Technologies Inc	$2.23	-16.17%	—	7.08M
67	MNTS	Momentus Inc	$4.28	+3.13%	—	5.80M
68	FJET	Starfighters Space Inc	$6.73	-2.75%	—	—

Related ETFs

Exchange-traded funds that provide diversified exposure to the defense & aerospace stocks sector.

ITA iShares

0.40% ER

iShares U.S. Aerospace & Defense ETF

Tracks U.S. aerospace and defense companies. Includes both military contractors and commercial aerospace.

PPA Invesco

0.58% ER

Invesco Aerospace & Defense ETF

Broader A&D exposure including defense subcontractors and smaller defense technology companies.

XAR SPDR

0.35% ER

SPDR S&P Aerospace & Defense ETF

Equal-weighted aerospace and defense ETF. Gives smaller defense firms more representation than cap-weighted funds.

Frequently Asked Questions

What are defense stocks?

Defense stocks are shares in companies that provide military products and services. Leading names include Lockheed Martin (LMT), RTX Corporation (RTX), Northrop Grumman (NOC), General Dynamics (GD), and L3Harris Technologies (LHX). The sector also encompasses defense IT providers like Leidos (LDOS) and Booz Allen Hamilton (BAH). These companies derive most revenue from government defense contracts.

Are defense stocks a good investment?

Defense stocks offer stability and predictability because government contracts provide multi-year revenue visibility. They typically pay growing dividends and exhibit lower volatility than the broader market. Defense spending tends to be resilient even during recessions since national security is a priority. Risks include budget sequestration, program cancellations, and political shifts that could reduce military spending.

How do defense stocks perform during wars?

Defense stocks often rise during periods of geopolitical conflict as investors anticipate increased military spending. However, the relationship is not straightforward — much depends on whether conflicts lead to actual budget increases and new contracts. The Russia-Ukraine conflict triggered significant defense stock gains as NATO countries committed to spending targets. Long-term performance depends more on sustained budget growth than short-term conflict headlines.

Do defense stocks pay dividends?

Yes, most major defense companies pay consistent and growing dividends. Lockheed Martin, RTX, Northrop Grumman, and General Dynamics all have long track records of annual dividend increases. Yields typically range from 1.5% to 3%. Defense companies also conduct significant share buyback programs, adding to total shareholder returns. The combination of reliable dividends and contract-driven earnings makes them popular with income investors.

What drives defense stock prices?

Key drivers include government defense budget levels, major contract awards, geopolitical tensions, and earnings results. The U.S. defense budget exceeds $800 billion annually and has grown consistently. International defense spending is accelerating as allies meet NATO's 2% GDP target. Company-specific factors include program execution, backlog growth, margin improvement, and success in winning competitive procurements.

What is the defense backlog?

The defense backlog represents the total value of contracts awarded but not yet completed. It provides visibility into future revenue — a large, growing backlog suggests years of assured work. Major contractors like Lockheed Martin carry backlogs exceeding $150 billion. Investors monitor backlog trends as a leading indicator of revenue growth. A book-to-bill ratio above 1.0 means new orders exceed current revenue, signaling sustainable growth.

Are defense stocks recession-proof?

Defense stocks are considered relatively recession-resistant because military spending is driven by national security needs rather than economic cycles. During the 2008-2009 recession, defense stocks outperformed the broader market significantly. However, they are not completely immune — budget sequestration in 2013 reduced defense spending and hurt stock prices. The sector's stable contract revenue and government-funded demand provide a buffer against economic downturns.