The Aerospace & Defense sector is undergoing a technological transformation, driven by innovation in space launch systems, national security priorities, autonomous aerial platforms, and satellite infrastructure. From rocket manufacturers to next-gen drone technology and AI-enhanced defense systems, companies in this sector serve commercial, government, and military customers around the world.
Recent IPOs and SPAC transactions have opened the door for public investment in high-growth aerospace and space infrastructure companies that were once the domain of governments and large defense contractors. These companies operate in long-cycle markets but often benefit from steady contracts and geopolitical tailwinds.
Below is a list of several notable public aerospace and defense companies. We look beyond some of the largest and most well-known defense companies, such as L3Harris Technologies, Northrop Grumman, General Dynamics, Lockheed Martin, Boeing, and RTX (fka Raytheon), all of which have traded for over 30 years. Not listed below, but Palantir sits at the intersection of defense, software, and AI.
Notable Public Aerospace & Defense Companies
| Ticker | Company | Ticker | Exchange | Description |
|---|---|---|---|---|
| RKLB | Rocket Lab | RKLB | NASDAQ | A launch and space systems company offering satellite deployment, spacecraft components, and mission services with a focus on small-to-medium payloads. |
| AVAV | AeroVironment | AVAV | NASDAQ | Develops and manufactures unmanned aircraft systems (UAS), including drones used for surveillance, reconnaissance, and precision strikes. |
| KTOS | Kratos Defense & Security Solutions | KTOS | NASDAQ | Specializes in unmanned systems, satellite communications, and directed energy weapons. Known for low-cost, high-performance defense technologies. |
| VOYG | Voyager Technologies | VOYG | NYSE | A space infrastructure and services company building the Starlab commercial space station. It aims to consolidate key space assets for defense, science, and exploration. |
| PSN | Parsons | PSN | NYSE | US defense contractor and engineering services company that provides solutions for cybersecurity, missile defense, space, geospatial intelligence, and critical infrastructure protection. |
| RDW | Redwire Corporation | RDW | NYSE | Designs space infrastructure systems such as solar arrays, deployable structures, and in-space manufacturing for civil, defense, and commercial missions. |
| ASTS | AST SpaceMobile | ASTS | NASDAQ | Developing a network of low-Earth-orbit satellites to deliver 4G/5G broadband directly to standard, unmodified smartphones anywhere on Earth. |
| KRMN | Karman Holdings | KRMN | NYSE | Makes mission-critical systems for space and defense programs. |
Aerospace & Defense IPO Pipeline
As national defense budgets rise and interest in commercial space expands, the sector is poised for further IPO activity. From satellite communications and in-orbit services to hypersonics and AI-powered systems, the next generation of aerospace and defense companies is preparing to enter public markets.
Stay up to date with our IPO Calendar and the IPO Pro Pipeline to track upcoming listings in aerospace, defense, and space technology.
HOW TO INVEST IN Aerospace & Defense STOCKS
Investing in Aerospace & Defense Stocks
Investing in aerospace and defense stocks offers exposure to long-term government contracts, rising global defense spending, and emerging markets like low-earth orbit (LEO) infrastructure and autonomous weapons. These companies often benefit from high barriers to entry and multi-year customer relationships. Legacy defense companies can offer stable revenue growth and dividends, while higher-risk investors may favor early-stage space ventures. Investors should be mindful of their exposure to government budget cuts or shifting priorities, large projects causing lumpy revenue trends, and potentially significant upfront capex and R&D spend.
Sign up for a free trial of IPO Pro to track new aerospace and defense IPOs.
Aerospace & Defense Stock Metrics
Beyond the basics like growth rate and profit margin, key metrics for aerospace and defense include backlog size, the government contract pipeline, R&D spending, payload success rates (for space firms), defense budgets by region, and recurring revenue from service and maintenance. Look for the revenue concentration by geography, customer, and program. Be aware of upfront and ongoing capital expenditures, and whether the company is taking on debt to fund its initiatives.
Best Aerospace & Defense Stocks to Buy
Screen for aerospace and defense companies that fit your criteria for market cap, revenue, growth, and profitability. Emerging space companies offer innovation-driven upside, while mature defense contractors can provide stable dividends and income. Look for a technological moat; companies with cutting-edge technology should have significant R&D spend, but higher gross margins can also imply a more proprietary solution. A company’s status as a sole-source supplier can also indicate a differentiated solution. Customer concentration comes with the territory, but at least seek out companies with diversified program revenue. Look for companies with a high ratio of backlog-to-revenue, since government customers often agree to multi-year contracts.
How Aerospace & Defense Stocks Differ from Traditional Industrials
While still part of the broader industrial sector, aerospace and defense firms operate in highly specialized, mission-critical areas. Their fortunes are often tied to government policy, foreign relations, and technological edge, rather than macroeconomic cycles.
A diversified portfolio might include major defense integrators, next-gen aerospace manufacturers, and commercial space infrastructure providers.
Discover Aerospace & Defense Investment Ideas by Exploring the Sector Value Chain
The Aerospace & Defense Value Chain includes everything from hardware manufacturing and propulsion systems to satellite deployment and mission logistics. Understanding this structure helps investors identify opportunities across both traditional and emerging defense markets.
Six core segments of the Aerospace & Defense Value Chain:
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Launch Vehicles & Space Systems
Companies like Rocket Lab (RKLB), SpaceX (private), and Blue Origin (private) are building rockets to deploy satellites and deliver cargo to orbit. Several of these firms often combine launch services with in-house satellite development and mission planning.
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Unmanned & Autonomous Platforms
Demand is rising for unmanned solutions in both defense and commercial applications. Firms like AeroVironment (AVAV), AIRO Group (AIRO), and Kratos Defense (KTOS) are developing drones, target systems, and autonomous aircraft used in surveillance, logistics, and tactical applications. On the commercial side, Joby Aviation (JOBY) and Archer Aviation (ACHR) develop electric vertical take-off and landing (eVTOL) aircraft as “electric air taxis” with the goal of eventually going fully autonomous.
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Satellite Communications & Data Infrastructure
This segment includes manufacturers of satellites, communications payloads, and data relay systems. Companies like Redwire (RDW), Planet Labs PBC (PL), and Viasat (VSAT) provide services such as Earth observation, GPS, and military data networks.
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Defense Contractors & Systems Integrators
Legacy players such as RTX (RTX), L3Harris (LHX) and Northrop Grumman (NOC) integrate large-scale defense systems including radar, electronic warfare, and cybersecurity tools. These firms often partner with governments on long-term programs.
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Space Infrastructure & Orbital Services
Firms like Voyager Technologies (VOYG) and others are developing in-orbit services including space stations, satellite servicing, space tug platforms, and space junk cleanup. This emerging segment could be critical as commercial space stations replace the ISS, and more satellites need maintenance from orbit.
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Propulsion, Components & Manufacturing Tech
Propulsion system developers, thermal shielding experts, and advanced materials companies plan an important role in aerospace systems. Look for firms innovating in 3D printing, reusability, and hypersonic technologies.
A Framework for Investing Across the Aerospace & Defense Ecosystem
From national security to space exploration, each part of the aerospace and defense ecosystem has unique dynamics. Launch providers and in-orbit services offer high-growth potential but carry technical and regulatory risk. Defense contractors benefit from budget stability, while unmanned systems are gaining rapid adoption due to automation.
Investors can diversify exposure by combining mature players with early-stage disruptors. As global security priorities evolve and space becomes increasingly commercialized, this sector will play an integral role in powering tomorrow’s infrastructure, on Earth and beyond.
