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 Jun 25, 2026

$1.86T Total Market Cap

58.5 Avg P/E Ratio

0.93% Avg Dividend Yield

-1.60% 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	$365.88	+2.64%	43.2	373.14B
2	RTX	Rtx Corp	$185.06	-0.71%	34.5	249.94B
3	BA	Boeing Co.	$220.25	+1.63%	77.4	175.57B
4	LMT	Lockheed Martin Corp	$491.64	-2.39%	24.6	117.81B
5	HWM	Howmet Aerospace Inc	$276.06	+0.34%	63.7	111.09B
6	ESLT	Elbit Systems Ltd	$750.90	-2.79%	62.5	108.80B
7	GD	General Dynamics Corp	$344.32	-1.72%	21.8	94.65B
8	TDG	Transdigm Group Inc	$1,322.67	+1.93%	35.7	74.30B
9	NOC	Northrop Grumman Corp	$503.01	-1.99%	16.2	74.07B
10	RKLB	Rocket Lab Corp	$85.41	-10.21%	—	62.08B
11	LHX	L3Harris Technologies Inc	$287.27	-2.21%	31.7	54.92B
12	HEI	Heico Corp	$335.30	+0.34%	50.0	39.52B
13	AXON	Axon Enterprise Inc	$456.73	+5.47%	165.7	34.13B
14	CRS	Carpenter Technology	$580.95	+0.49%	60.8	29.14B
15	CW	Curtiss-Wright Corp	$762.92	-0.29%	55.8	28.52B
16	ATI	Ati Inc	$197.59	-1.01%	64.6	27.48B
17	WWD	Woodward Inc	$432.80	+1.06%	49.9	25.63B
18	BWXT	Bwx Technologies Inc	$205.65	-2.02%	54.6	18.82B
19	TXT	Textron Inc	$86.54	+0.16%	16.7	15.56B
20	DRS	Leonardo Drs Inc	$44.69	-2.30%	42.4	12.29B
21	CAE	Cae Inc	$24.95	+0.40%	36.4	11.39B
22	HII	Huntington Ingalls Industrie	$279.62	-1.36%	18.6	11.25B
23	KTOS	Kratos Defense & Security	$47.95	-5.61%	345.8	10.17B
24	SARO	Standardaero Inc	$27.12	+1.01%	31.3	9.23B
25	AVAV	Aerovironment Inc	$142.18	-4.63%	—	8.47B
26	HXL	Hexcel Corp	$95.48	-0.67%	62.6	7.36B
27	MRCY	Mercury Systems Inc	$105.00	-5.29%	—	6.84B
28	LOAR	Loar Holdings Inc	$73.80	+3.07%	98.7	6.71B
29	KRMN	Karman Holdings Inc	$44.84	-3.32%	222.8	6.68B
30	VSEC	Vse Corp	$217.68	+1.87%	123.7	6.15B
31	AIR	Aar Corp	$132.94	+0.51%	31.4	5.36B
32	FLY	Firefly Aerospace Inc	$24.98	-8.20%	—	5.08B
33	LUNR	Intuitive Machines Inc	$19.13	-8.69%	—	4.96B
34	ACHR	Archer Aviation Inc-A	$5.05	-3.81%	—	4.23B
35	BETA	Beta Technologies Inc -Cl A	$15.68	-1.20%	—	3.72B
36	RDW	Redwire Corp	$11.76	-3.76%	—	3.43B
37	ATRO	Astronics Corp	$84.86	+2.61%	65.0	2.95B
38	VVX	V2X Inc	$85.55	-3.46%	30.2	2.68B
39	DCO	Ducommun Inc	$164.12	+0.39%	—	2.48B
40	VOYG	Voyager Technologies Inc-A	$32.41	-3.54%	—	2.23B
41	RCAT	Red Cat Holdings Inc	$9.90	-2.75%	—	1.74B
42	CDRE	Cadre Holdings Inc	$28.25	+0.28%	32.8	1.21B
43	EVEX	Eve Holding Inc	$2.63	-1.87%	—	985.70M
44	NPK	National Presto Inds Inc	$131.84	+1.83%	29.4	944.77M
45	SATL	Satellogic Inc-A	$5.23	-5.94%	—	893.91M
46	PKE	Park Aerospace Corp	$32.54	+2.04%	60.3	679.37M
47	TATT	Tat Technologies Ltd	$43.65	-6.66%	37.0	607.09M
48	SPCE	Virgin Galactic Holdings Inc	$2.89	-3.67%	—	358.43M
49	SIDU	Sidus Space Inc-Cl A	$3.23	-0.92%	—	324.78M
50	ISSC	Innovative Solutions & Supp	$16.81	+2.56%	18.1	307.93M
51	DPRO	Draganfly Inc	$5.24	-2.78%	—	301.82M
52	ASLE	Aersale Corp	$6.35	-2.31%	28.9	300.06M
53	EVTL	Vertical Aerospace Ltd	$2.02	-2.88%	—	273.76M
54	FJET	Starfighters Space Inc	$5.22	-1.69%	—	259.05M
55	AZ	A2Z Cust2Mate Solutions Corp	$5.72	+1.24%	—	257.83M
56	AIRO	Airo Group Holdings Inc	$7.24	-2.56%	—	251.25M
57	MNTS	Momentus Inc	$7.80	-5.22%	—	194.95M
58	SIF	Sifco Industries	$20.76	+2.37%	19.1	141.66M
59	HOVR	New Horizon Aircraft Ltd	$2.17	-2.25%	—	137.11M
60	BYRN	Byrna Technologies Inc	$5.90	+1.37%	15.2	133.85M
61	VWAV	Visionwave Holdings Inc	$4.51	-2.91%	—	125.16M
62	SPAI	Safe Pro Group Inc	$4.08	-7.90%	—	99.59M
63	OPXS	Optex Systems Holdings Inc	$13.01	+4.58%	22.0	90.55M
64	CVU	Cpi Aerostructures Inc	$5.03	-0.98%	38.2	65.65M
65	VTSI	Virtra Inc	$3.23	-0.62%	—	37.88M
66	AIRI	Air Industries Group	$3.03	+0.33%	—	14.60M
67	DFSC	Defsec Technologies Inc	$3.01	-7.67%	—	9.51M
68	SYNX	Silynxcom Ltd	$1.07	-6.78%	—	7.56M

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.