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 May 11, 2026

$1.73T Total Market Cap

79.3 Avg P/E Ratio

0.91% Avg Dividend Yield

+3.03% 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	$297.15	-1.81%	35.0	302.11B
2	RTX	Rtx Corp	$176.09	-0.39%	32.7	237.11B
3	BA	Boeing Co.	$237.36	+2.74%	80.2	181.99B
4	ESLT	Elbit Systems Ltd	$782.21	-1.60%	74.8	119.49B
5	LMT	Lockheed Martin Corp	$506.51	-1.15%	23.4	117.54B
6	HWM	Howmet Aerospace Inc	$270.56	-0.73%	65.8	99.27B
7	GD	General Dynamics Corp	$346.53	-0.35%	20.1	84.74B
8	NOC	Northrop Grumman Corp	$549.52	-0.50%	17.8	81.53B
9	TDG	Transdigm Group Inc	$1,215.08	-2.17%	33.9	68.65B
10	LHX	L3Harris Technologies Inc	$299.64	-0.51%	32.4	56.11B
11	RKLB	Rocket Lab Corp	$105.47	+34.22%	—	47.51B
12	HEI	Heico Corp	$292.52	+1.01%	45.7	32.54B
13	AXON	Axon Enterprise Inc	$403.54	-5.47%	253.2	31.57B
14	CW	Curtiss-Wright Corp	$729.20	+0.66%	55.3	26.77B
15	WWD	Woodward Inc	$369.93	-0.23%	45.0	22.00B
16	ATI	Ati Inc	$158.39	-2.63%	50.4	21.43B
17	CRS	Carpenter Technology	$427.85	-3.88%	48.9	21.27B
18	BWXT	Bwx Technologies Inc	$205.33	-2.17%	56.9	18.71B
19	TXT	Textron Inc	$91.01	-0.63%	17.2	15.79B
20	HII	Huntington Ingalls Industrie	$316.28	+0.50%	20.5	12.40B
21	CAE	Cae Inc	$26.94	-0.26%	32.1	11.86B
22	DRS	Leonardo Drs Inc	$41.36	-0.19%	39.8	11.05B
23	KTOS	Kratos Defense & Security	$57.89	+1.56%	479.5	10.55B
24	SARO	Standardaero Inc	$25.14	-3.42%	31.2	8.66B
25	AVAV	Aerovironment Inc	$168.29	+0.07%	—	8.28B
26	KRMN	Karman Holdings Inc	$60.84	+0.65%	461.3	8.01B
27	HXL	Hexcel Corp	$95.32	-0.47%	61.8	7.27B
28	LOAR	Loar Holdings Inc	$59.80	-0.50%	78.0	5.63B
29	MRCY	Mercury Systems Inc	$90.34	+2.59%	—	5.42B
30	LUNR	Intuitive Machines Inc	$28.97	+20.16%	—	5.23B
31	FLY	Firefly Aerospace Inc	$39.68	+22.62%	—	5.19B
32	VSEC	Vse Corp	$193.05	-3.21%	428.6	5.02B
33	AIR	Aar Corp	$117.78	-0.03%	28.1	4.81B
34	ACHR	Archer Aviation Inc-A	$6.48	+3.18%	—	4.76B
35	BETA	Beta Technologies Inc -Cl A	$18.68	+3.84%	—	4.13B
36	ATRO	Astronics Corp	$75.08	-3.68%	94.4	2.77B
37	VVX	V2X Inc	$70.08	-7.06%	30.3	2.36B
38	DCO	Ducommun Inc	$137.23	-0.37%	—	2.07B
39	RDW	Redwire Corp	$11.07	+20.33%	—	1.83B
40	VOYG	Voyager Technologies Inc-A	$29.74	+16.08%	—	1.55B
41	CDRE	Cadre Holdings Inc	$29.85	-0.20%	29.0	1.28B
42	RCAT	Red Cat Holdings Inc	$10.37	+0.10%	—	1.25B
43	EVEX	Eve Holding Inc	$3.23	+0.62%	—	1.12B
44	NPK	National Presto Inds Inc	$142.48	+3.66%	30.5	1.01B
45	SATL	Satellogic Inc-A	$7.57	+14.35%	—	947.05M
46	PKE	Park Aerospace Corp	$33.58	+0.51%	76.7	665.72M
47	TATT	Tat Technologies Ltd	$36.42	+2.25%	28.0	470.64M
48	ISSC	Innovative Solutions & Supp	$21.36	+2.15%	19.9	376.37M
49	ASLE	Aersale Corp	$6.55	-10.64%	40.4	346.36M
50	EVTL	Vertical Aerospace Ltd	$2.81	+4.85%	1.1	341.24M
51	AZ	A2Z Cust2Mate Solutions Corp	$7.14	+3.03%	—	308.70M
52	DPRO	Draganfly Inc	$5.48	+4.98%	—	266.42M
53	FJET	Starfighters Space Inc	$5.68	+6.77%	—	235.01M
54	SIDU	Sidus Space Inc-Cl A	$3.41	+15.59%	—	231.96M
55	AIRO	Airo Group Holdings Inc	$7.34	+1.66%	—	226.99M
56	SPCE	Virgin Galactic Holdings Inc	$2.94	+17.13%	—	193.75M
57	VWAV	Visionwave Holdings Inc	$6.02	+3.08%	—	134.74M
58	BYRN	Byrna Technologies Inc	$5.33	-3.62%	14.2	125.45M
59	SIF	Sifco Industries	$19.86	+27.72%	36.7	123.87M
60	HOVR	New Horizon Aircraft Ltd	$2.39	+8.64%	—	99.58M
61	SPAI	Safe Pro Group Inc	$4.14	-3.72%	—	89.80M
62	OPXS	Optex Systems Holdings Inc	$10.20	-4.76%	16.4	74.30M
63	CVU	Cpi Aerostructures Inc	$3.97	+5.59%	—	49.01M
64	VTSI	Virtra Inc	$4.20	-4.11%	183.7	47.48M
65	MNTS	Momentus Inc	$5.46	+23.81%	—	25.27M
66	AIRI	Air Industries Group	$3.04	-1.30%	—	14.82M
67	DFSC	Defsec Technologies Inc	$4.02	+1.77%	—	10.93M
68	SYNX	Silynxcom Ltd	$1.19	-0.83%	—	7.96M

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.