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 Nov 7, 2026

$1.64T Total Market Cap

41.4 Avg P/E Ratio

1.49% Avg Dividend Yield

+5.82% 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	$323.24	+2.70%	35.7	325.23B
2	RTX	Rtx Corp	$189.53	-1.22%	31.0	260.15B
3	BA	Boeing Co.	$173.40	+0.52%	17.9	136.70B
4	LMT	Lockheed Martin Corp	$567.08	-1.58%	20.1	130.87B
5	ESLT	Elbit Systems Ltd	$682.59	+4.80%	53.3	108.34B
6	GD	General Dynamics Corp	$354.06	-0.64%	20.7	96.29B
7	HWM	Howmet Aerospace Inc	$205.81	+2.44%	40.0	82.15B
8	NOC	Northrop Grumman Corp	$525.01	-0.05%	16.5	74.62B
9	TDG	Transdigm Group Inc	$1,197.01	+0.66%	30.9	65.80B
10	LHX	L3Harris Technologies Inc	$259.89	+0.69%	26.0	48.76B
11	HEI	Heico Corp	$332.65	+1.63%	45.6	38.69B
12	RKLB	Rocket Lab Corp	$53.07	+15.39%	—	31.76B
13	AXON	Axon Enterprise Inc	$313.00	-18.18%	127.6	25.43B
14	ATI	Ati Inc	$175.79	+4.43%	41.8	23.24B
15	WWD	Woodward Inc	$317.31	+3.41%	33.1	18.26B
16	CW	Curtiss-Wright Corp	$463.47	+6.82%	30.8	16.64B
17	TXT	Textron Inc	$83.54	-1.98%	15.8	14.84B
18	CRS	Carpenter Technology	$278.31	-0.20%	23.9	13.59B
19	CAE	Cae Inc	$26.85	+0.22%	42.5	12.18B
20	HII	Huntington Ingalls Industrie	$288.74	-0.23%	15.6	11.40B
21	BWXT	Bwx Technologies Inc	$119.52	+3.97%	29.0	10.89B
22	DRS	Leonardo Drs Inc	$34.04	+3.15%	28.2	9.08B
23	SARO	Standardaero Inc	$27.63	+9.21%	25.8	8.37B
24	LOAR	Loar Holdings Inc	$74.59	+2.19%	100.6	6.84B
25	KTOS	Kratos Defense & Security	$35.10	+5.12%	202.9	6.27B
26	HXL	Hexcel Corp	$81.52	+1.12%	35.4	6.08B
27	BETA	Beta Technologies Inc -Cl A	$27.12	+12.77%	—	5.65B
28	AVAV	Aerovironment Inc	$112.76	+10.46%	—	5.19B
29	VSEC	Vse Corp	$172.81	+4.92%	60.4	4.54B
30	AIR	Aar Corp	$109.21	+4.53%	22.0	4.26B
31	KRMN	Karman Holdings Inc	$45.61	+42.13%	114.4	4.25B
32	MRCY	Mercury Systems Inc	$73.55	+12.20%	—	3.99B
33	ACHR	Archer Aviation Inc-A	$4.33	+11.89%	—	3.42B
34	FLY	Firefly Aerospace Inc	$20.76	+36.80%	—	2.54B
35	LUNR	Intuitive Machines Inc	$10.47	+21.46%	—	2.40B
36	VVX	V2X Inc	$76.14	+2.88%	23.2	2.30B
37	ATRO	Astronics Corp	$55.22	+4.43%	28.8	2.28B
38	DCO	Ducommun Inc	$135.25	+2.08%	—	2.00B
39	RDW	Redwire Corp	$7.21	+16.48%	—	1.80B
40	CDRE	Cadre Holdings Inc	$32.60	+1.02%	38.7	1.40B
41	VOYG	Voyager Technologies Inc-A	$23.98	+17.95%	—	1.31B
42	NPK	National Presto Inds Inc	$142.55	+1.37%	23.8	1.02B
43	EVEX	Eve Holding Inc	$1.85	+17.83%	—	644.70M
44	RCAT	Red Cat Holdings Inc	$4.04	+18.65%	—	600.85M
45	SATL	Satellogic Inc-A	$3.48	+20.42%	—	535.01M
46	PKE	Park Aerospace Corp	$23.38	+3.36%	34.9	518.95M
47	SPCE	Virgin Galactic Holdings Inc	$2.77	+16.39%	—	426.74M
48	TATT	Tat Technologies Ltd	$37.00	+3.04%	20.2	425.30M
49	ISSC	Innovative Solutions & Supp	$18.13	-1.41%	22.8	387.88M
50	AZ	A2Z Cust2Mate Solutions Corp	$6.14	+5.86%	—	271.64M
51	ASLE	Aersale Corp	$4.59	-4.77%	—	219.07M
52	DPRO	Draganfly Inc	$3.20	+13.70%	—	169.10M
53	AIRO	Airo Group Holdings Inc	$5.21	+9.00%	—	150.84M
54	SIF	Sifco Industries	$16.87	-10.93%	26.2	104.04M
55	SIDU	Sidus Space Inc-Cl A	$0.99	+6.48%	—	100.24M
56	BYRN	Byrna Technologies Inc	$3.83	+2.41%	—	87.42M
57	HOVR	New Horizon Aircraft Ltd	$1.27	+12.39%	—	85.25M
58	EVTL	Vertical Aerospace Ltd	$0.40	+2.35%	78.3	68.23M
59	CVU	Cpi Aerostructures Inc	$4.62	+3.59%	15.9	59.09M
60	OPXS	Optex Systems Holdings Inc	$8.20	+1.49%	14.7	57.07M
61	SPAI	Safe Pro Group Inc	$3.09	+11.96%	—	56.20M
62	MNTS	Momentus Inc	$2.05	+20.59%	—	41.07M
63	FJET	Starfighters Space Inc	$0.82	+9.75%	—	40.99M
64	VTSI	Virtra Inc	$2.67	-1.11%	—	30.17M
65	AIRI	Air Industries Group	$2.80	+5.26%	—	12.90M
66	SYNX	Silynxcom Ltd	$0.90	-5.02%	—	5.99M
67	VWAV	Visionwave Holdings Inc	$1.34	-16.77%	—	5.58M
68	DFSC	Defsec Technologies Inc	$0.55	+3.83%	—	3.63M

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.