In this article we will take a look at 10 best aerospace and defense stocks according to Wall Street analysts.
The aerospace and defense sector is soaring to new heights in 2025, fueled by unprecedented aircraft demand, rising geopolitical tensions, and a surge in global defense spending. From the bustling Paris Air Show to record level commitments from the European Union, the industry is drawing major investor attention, and Wall Street analysts are taking note.
At the 2025 Paris Air Show, Europe’s biggest aviation event, Airbus emerged as the clear winner, commanding headlines with nearly $21 billion in new aircraft orders by midweek, according to CNBC. The French aerospace giant sealed deals with high profile clients including VietJet Air, ANA, and LOT, showcasing strong demand for its A321neos and A350 wide bodies. While Boeing maintained a subdued presence due to the ongoing investigation into the recent Air India crash, overall demand for new aircraft remains robust. In fact, Airbus and Boeing each maintain massive backlogs, over 8,000 and 5,000 jets respectively, that stretch into the early 2030s, per data shared by Reuters.
Despite the cloud hanging over Boeing, industry leaders such as Air Lease Corp CEO John Plueger told CNBC that demand remains “very strong” across the board. Airlines are scrambling to modernize aging fleets amid ongoing supply chain delays. Even Tony Fernandes, the outspoken AirAsia chief, hinted at expanding Airbus XLR orders during the show.
While commercial aviation generated buzz, defense was the real star of the 55th Paris Air Show. Nearly half of the show’s content centered on military applications, reflecting global security concerns including the Middle East unrest, Russia Ukraine conflict, and rising NATO commitments. One notable defense deal was signed by Thales to deliver 48 next gen artillery systems to the French government, according to Reuters.
On a broader scale, the European Union has ramped up support for the defense industry. As Reuters reported on June 20, EU governments unanimously agreed to raise the annual lending cap of the European Investment Bank (EIB) to €100 billion, an all time high. Of this, €3.5 billion is earmarked for defense and security related funding. This move comes just ahead of a key NATO summit, signaling Europe's urgent shift toward enhanced military preparedness. Notably, EIB funding is focused on "dual use" assets like drones, helicopters, and infrastructure rather than direct weapons, aligning with EU policy constraints.
Meanwhile, in Asia, Financial Times revealed that the UK is lobbying South Korea to partner with Rolls Royce instead of GE Aerospace for its fighter jet engine program, yet another sign of intensifying global competition in aerospace innovation.
With surging commercial orders, strategic government contracts, and accelerating defense budgets worldwide, the aerospace and defense sector is primed for long term growth. This article spotlights 10 top aerospace and defense stocks that Wall Street analysts are bullish on, including companies that are capitalizing on both civilian aviation momentum and expanding military demands.
Whether you are a growth investor, a dividend seeker, or a long term defense industry bull, these stocks offer exposure to some of the strongest tailwinds in today’s global market. Let’s dive in.
Our approach to determining the best Aerospace and Defense Stocks
To prepare the list of 10 best aerospace and defense stocks according to Wall Street analysts, we ranked the twenty most valuable aerospace and defense stocks that trade on stock exchanges in the U.S. by their average analyst share price target percentage upside as of June 23 and picked out the top ten firms. The stocks have a buy or better ratings from analysts. The list is arranged in ascending order of the upside potential each firm holds.
10 Best Aerospace and Defense Stocks According to Wall Street Analysts
10. Lockheed Martin Corporation (NYSE:LMT)
Upside Potential as of June 23: 12%
Lockheed Martin Corporation (NYSE:LMT), one of the world’s top aerospace and defense contractors, has solidified its spot on our list of the 10 Best Aerospace and Defense Stocks According to Wall Street Analysts. With a target price of $525.05, the stock presents a potential upside of 12% from its closing price of $470.56 on June 22. Backed by robust earnings, a dominant position in the defense sector, and growing relevance in next gen warfare, Lockheed is making a compelling case for long term investors.
In Q1 2025, Lockheed Martin Corporation (NYSE:LMT) beat expectations across the board, reporting earnings per share of $7.28, handily exceeding estimates of $6.34. Sales grew 4% year over year, and the company maintained strong segment margins of 11.6%, driven by strong performances across all four business segments, Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Notably, GAAP EPS increased 14%, reflecting a mix of higher volumes, favorable contract completions, and effective share repurchases.
Lockheed Martin Corporation (NYSE:LMT) backlog remains enormous at $173 billion, offering over two years of revenue visibility. The company booked key awards in the first quarter, including $2 billion in missile system orders like the JASSM and LRASM. It’s also competitively placed for future growth with a surge in classified contracts, continued support for the F 35 program (now over 1,100 aircraft strong globally), and expansion in advanced defense technologies such as infrared upgrades for the F 22 and next gen drone countermeasures.
Even amid global uncertainty and budget headwinds, Lockheed’s focus on its Twenty First Century Security Strategy stands out. This initiative integrates AI, 5G, and cloud technologies across platforms, allowing the company to enhance legacy systems like the F 16 and F 22 while leading innovation in areas like autonomous teaming and missile defense.
Cash generation remains strong, with double digit growth in free cash flow per share and $1.5 billion returned to shareholders through dividends and buybacks in Q1 alone. And with a committed leadership team and a new CFO well versed in financial discipline, Lockheed Martin Corporation (NYSE:LMT) is executing operationally while staying ahead of technological demands.
With deep rooted defense contracts, cutting edge R&D, and solid financials, LMT is not just a defense stock, it’s a future proofed investment worth watching.
09. Textron Inc. (NYSE:TXT)
Upside Potential as of June 23: 13%
Textron Inc. (NYSE:TXT) earns its place among the 10 Best Aerospace and Defense Stocks According to Wall Street Analysts for good reason. With a target price of $86.80, compared to the current share price of $76.98 as of June 22, the stock offers an attractive 13% upside. And with strong momentum coming out of its first quarter 2025 earnings report, Textron is proving its value as a multi segment industrial and defense powerhouse.
The company beat earnings expectations, posting EPS of $1.28 versus estimates of $1.17, showing solid operational execution despite some headwinds in its industrial segment. Revenue grew 5% year over year to $3.3 billion, led by impressive gains at its Bell segment, which saw revenue jump 35%, fueled by strong military and commercial demand. Bell delivered 29 helicopters in the quarter, up significantly from 18 in Q1 2024, and secured key contracts including five new CMV 22 aircraft and a 15 unit deal with Air Methods, extending production visibility through 2027.
Textron Aviation also contributed with strong aftermarket performance and steady aircraft deliveries, helping maintain a robust backlog of $7.9 billion. Though aviation profits dipped slightly due to aircraft mix, the unit continues to gain ground post strike and remains integral to Textron’s long term value.
At the systems level, despite a revenue dip due to the prior cancellation of the Shadow program, Textron saw improved segment profitability (13.5%), thanks to cost discipline and the successful delivery of the 13th ship to shore connector for the U.S. Navy. A new $100 million software support contract for unmanned mine sweeping operations further showcases Textron’s evolving role in high tech military solutions.
Financially, Textron Inc. (NYSE:TXT) remains sound. The company expects full year EPS between $6.00 and $6.20, and manufacturing cash flow before pension contributions between $800-$900 million. It returned $215 million to shareholders through share repurchases in Q1 alone, signaling management’s confidence in continued performance.
From helicopters and jets to unmanned systems and cutting edge defense contracts, Textron Inc. (NYSE:TXT) diversified platform and solid execution position it well for growth. With innovation driving performance and contracts flowing steadily, TXT offers both stability and upside in today’s volatile defense market.
08. Hexcel Corporation (NYSE:HXL)
Upside Potential as of June 23: 15%
With a 15% upside potential from its current share price of $54.39 to Wall Street’s target of $62.29, Hexcel Corporation (NYSE:HXL) is one aerospace name that stands out for investors looking beyond near term turbulence. While 2025 is shaping up to be a transition year for commercial aerospace, Hexcel’s long term fundamentals and strategic positioning make a compelling case.
At its core, Hexcel Corporation (NYSE:HXL) specializes in lightweight composite materials used in both commercial and military aircraft, an increasingly critical component as OEMs prioritize fuel efficiency and performance. The company is the sole source supplier on multiple long life aircraft programs, giving it strong visibility into future revenues. For instance, Hexcel supplies carbon composites to the Airbus A350, its largest program, which is expected to ramp to 132 aircraft per year by 2028. That ramp alone could translate to nearly $500 million in incremental annual sales.
In Q1 2025, Hexcel reported $457 million in revenue and adjusted EPS of $0.37. While commercial aerospace sales declined 6.3% year over year due to slower production from Boeing and Airbus, sequential growth in platforms like the A320 and A220 suggests underlying demand is building. Notably, defense and space sales grew 3.3%, led by programs such as the CH 53K and Blackhawk, showing Hexcel’s strength in both U.S. and European defense markets.
Despite macro and supply chain headwinds, Hexcel Corporation (NYSE:HXL) remains financially sound. The company repurchased $50 million in stock, reflecting management’s confidence in future cash generation. It also refinanced $300 million in debt ahead of schedule, pushing the next maturity to 2027. While gross margin slipped to 22.4% from 25% last year due to a temporary production disruption, the company is proactively managing costs, trimming headcount, and optimizing working capital.
Hexcel Corporation (NYSE:HXL) vertically integrated operations, conservative financial strategy, and exposure to both commercial recovery and defense tailwinds make it a durable growth story. As Airbus and Boeing return to higher build rates, Hexcel Corporation (NYSE:HXL) revenue, and profitability, should follow. For investors with a longer time horizon, this could be a smart entry point.
07. AAR Corp. (NYSE:AIR)
Upside Potential as of June 23: 18%
AAR Corp. (NYSE:AIR) is quietly becoming one of the standout names in the aerospace and defense sector, backed by strong financial execution and a robust demand environment. With a potential upside of 18% based on Wall Street’s target price of $79.60 compared to the June 22 closing price of $67.52, AAR looks like a smart bet for investors seeking both growth and stability in this space.
In its third quarter of fiscal 2025, AAR Corp. (NYSE:AIR) reported $678 million in revenue, marking a 20% year over year increase, a new record for the company. Adjusted EPS came in at $0.99, beating estimates and rising 16% from the prior year, while adjusted EBITDA surged 39% to $81.2 million, with margins expanding to 12%. The key driver? Balanced growth across both commercial and government sectors, with commercial revenue up 22% and government up 15%.
AAR Corp. (NYSE:AIR) strength lies in its diversified model, with contributions from Parts Supply, Repair & Engineering, and Integrated Solutions. Parts Supply remains its largest segment, accounting for roughly 40% of sales. Distribution activities in this division delivered 20% organic growth, benefiting from exclusive agreements such as new deals with Unison and Chromalloy, further solidifying AAR’s status as a preferred independent distributor. This part of the business alone generated $36.8 million in EBITDA in the quarter, with stable margins at 13.6%.
Meanwhile, the Repair & Engineering segment delivered exceptional performance with sales rising 53% and adjusted EBITDA doubling year, over, year. The integration of its Product Support acquisition and ongoing operational improvements are helping boost throughput and margins. Even Integrated Solutions, while flat on the topline, posted 11% EBITDA growth, aided by the Trax software platform gaining traction, most notably with Cathay Pacific.
From a balance sheet standpoint, AAR Corp. (NYSE:AIR) is also on solid footing. Net leverage dropped to 3.06x, down from 3.58x post, acquisition a year ago. With strong free cash flow expected and further deleveraging on the horizon, especially following the sale of its Landing Gear unit, the company has plenty of room for reinvestment or further strategic acquisitions.
In short, AAR Corp. (NYSE:AIR) is executing on all fronts, balancing growth, margin expansion, and capital discipline, an appealing mix for any long, term investor.
06. Moog Inc. (NYSE:MOG-A)
Upside Potential as of June 23: 23%
Moog Inc. (NYSE:MOG-A) continues to impress with its strong fundamentals and strategic positioning in the aerospace and defense sectors. With a 23% upside potential based on Wall Street’s price target of $213.75, versus the current price of $174.39 as of June 22, the company is showing all the right signs of long term momentum.
In the second quarter of fiscal 2025, Moog Inc. (NYSE:MOG-A) delivered another record breaking quarter, with sales reaching $935 million, modestly up from last year but notable for the quality of growth across segments. Adjusted EPS landed at $1.92, which, after adjusting for last year’s employee retention credit, represents a 3% year over year increase. Even more importantly, free cash flow turned positive, setting the stage for stronger cash generation in the second half of the year.
Across Moog Inc. (NYSE:MOG-A) three core segments, Aircraft Controls, Space and Defense Controls, and Industrial Systems, performance has been driven by smart operational simplification, margin resilience, and end market strength. Operating margin stood at 12.5%, expanding 40 basis points when adjusted for one off benefits last year. This reflects a solid improvement in the company’s core operations, particularly in the Industrial segment, where simplification efforts have begun to pay off.
Defense continues to be a strong pillar. Sales in Military Aircraft were up 6% year over year, supported by growing momentum in programs like FLRAA. Commercial Aircraft also saw a 4% uptick, with aftermarket services showing particular strength, a sign of rising fleet utilization. Even in Space and Defense, where margins dipped due to the absence of one time credits from the prior year, top line demand remains solid.
Moog Inc. (NYSE:MOG-A) innovation pipeline is another key growth driver. From space avionics to advanced IV pumps and electric actuation systems, the company continues to invest across a diverse range of markets, balancing defense and industrial exposure. Moreover, its Voice of Customer initiatives have improved client engagement and expanded business with key strategic partners.
With a healthy balance sheet (leverage at 2.6x), stable cash flows, and strong customer demand, particularly in defense and aerospace aftermarket, Moog Inc. (NYSE:MOG-A) is executing well on its long term vision. The stock presents an attractive opportunity in a resilient sector with both defensive and growth characteristics.