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.
05. Loar Holdings Inc. (NYSE:LOAR)
Upside Potential as of June 23: 25%
Loar Holdings Inc. (NYSE:LOAR) might be flying under the radar, but Wall Street is paying attention, and with good reason. Based on a target price of $101.56, shares offer a compelling 25% upside from their current level of $81.20 (as of June 22). The company’s strong first quarter results for 2025 confirm that Loar is executing exceptionally well in a sector poised for growth.
Loar Holdings Inc. (NYSE:LOAR) specializes in designing and manufacturing high value, niche aerospace and defense components. With a portfolio of over 20,000 proprietary products, no single item makes up more than 3% of annual revenue, giving Loar a well diversified and resilient foundation. This diversity extends across commercial OEM, aftermarket, and defense markets, each of which is showing strong momentum.
For Q1 2025, Loar Holdings Inc. (NYSE:LOAR) posted record sales of $150 million, representing a 12% year over year increase, with organic growth of 11.1%. Defense sales surged 30%, commercial aftermarket sales jumped 13%, and commercial OEM revenue rose 8%, highlighting broad based strength. More impressive, adjusted EBITDA came in at $56.4 million, a $10 million increase from the prior year, with margins expanding by 160 basis points to a robust 37.6%, well above industry averages.
This margin expansion is no fluke. Loar continues to execute on its strategic value drivers, including new product launches, pricing discipline, and manufacturing efficiencies. The company also expects 1% to 3% annual top line growth purely from innovation. A standout example is its secondary cockpit barrier for Airbus aircraft, developed in under a year and already shipping, a strong testament to Loar’s agility and customer centric R&D.
Looking ahead, management has raised its full year 2025 guidance, now expecting net sales of $482–$490 million, EBITDA of $182–$185 million, and EPS between $0.71 - $0.76. The outlook is further boosted by record bookings and a balanced mix of end market exposure.
In short, Loar Holdings Inc. (NYSE:LOAR) may call itself “boring,” but the numbers are anything but. With healthy financials, strong end market tailwinds, and a culture of consistent execution, LOAR stands out as a top aerospace and defense stock with serious upside potential.
04. HEICO Corporation (NYSE:HEI-A)
Upside Potential as of June 23: 26%
HEICO Corporation (NYSE:HEI-A) continues to prove why it's a favorite among aerospace and defense investors, and Wall Street sees room for more gains. With a target price of $314.33, the stock offers a 26% upside from its June 22 closing price of $248.80. This potential is backed by record earnings, robust organic growth, and a strong strategic position across defense, aviation and space markets.
HEICO Corporation (NYSE:HEI-A) operates through two primary segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). FSG focuses on manufacturing and overhauling jet engine and aircraft parts, while ETG delivers high tech electronic, electro optical, and microwave products. Both divisions are benefiting from strong end market demand and well executed acquisitions.
For Q2 FY2025, HEICO Corporation (NYSE:HEI-A) reported impressive 15% year over year revenue growth and a 19% jump in operating income, driven by strong performance across both core segments. The FSG in particular posted record net sales of $767.1 million, a 19% increase, with 14% organic growth, led by surging demand for aftermarket parts and aerospace repair services. FSG operating income climbed 24% to $185 million, pushing the segment’s operating margin up to 24.1%, with an even higher cash margin (EBITA) of 27% when excluding amortization.
The ETG also contributed solid results, with sales rising 7% year over year to $342.2 million, buoyed by growing demand for its aerospace and space products.
Bottom line results were equally strong: net income rose 27% to $156.8 million, or $1.12 per diluted share, and EBITDA jumped 18% to $297.7 million. HEICO Corporation (NYSE:HEI-A) also improved its net debt to EBITDA ratio to 1.86x, signaling strong financial health and room for further acquisitions.
Speaking of which, HEICO Corporation (NYSE:HEI-A) has already completed four acquisitions in FY2025, including Rosen Aviation, a maker of in flight entertainment systems. This move aligns perfectly with HEICO’s strategy of acquiring niche, high margin businesses that enhance long term earnings.
With its diversified revenue base, expanding margins, and a proven M&A playbook, HEICO Corporation (NYSE:HEI-A) is ideally located for continued success. The company’s consistent execution and strategic focus make it a top aerospace and defense stock to watch in 2025.
03. Cadre Holdings, Inc. (NYSE:CDRE)
Upside Potential as of June 23: 30%
Cadre Holdings, Inc. (NYSE:CDRE) is steadily building a reputation as a resilient, high margin player in the safety and defense space, and Wall Street is taking notice. With a target price of $42.67, analysts are signaling a 30% upside from its current share price of $32.87 as of June 22, making Cadre one of the more attractive stocks in the aerospace and defense sector right now.
Cadre Holdings, Inc. (NYSE:CDRE) specializes in mission critical safety and survivability products for law enforcement, first responders, and the military. It operates through two segments: a Product segment that manufactures these life saving tools, and a Distribution segment that serves as a one stop shop for agencies across the country. The company’s value proposition lies in its ability to offer highly engineered, dependable products through deep rooted customer relationships and an increasingly diversified portfolio.
In Q1 2025, Cadre Holdings, Inc. (NYSE:CDRE) delivered stronger than expected results, underscoring the stability and demand for its premium offerings. Net sales came in at $130.1 million, while adjusted EBITDA hit $20.5 million, representing 11.5% year over year growth. Notably, gross margin expanded 130 basis points, driven by favorable pricing and improved cost efficiency, further proof of Cadre’s ability to navigate uncertain environments while maintaining profitability.
Backing this growth is a disciplined M&A strategy. The recent acquisition of the engineering division from Cars Group deepens Cadre’s presence in the nuclear safety vertical and introduces high tech capabilities in robotics and remote handling. With operations now spanning the U.S., U.K., and Germany, Cadre is poised to expand globally, especially in areas like nuclear defense, automation, and nuclear medicine.
Financially, the company remains rock solid. Even after the acquisition, Cadre Holdings, Inc. (NYSE:CDRE) net leverage ratio is under 1.75x, giving it ample flexibility to pursue both organic growth and further acquisitions. For FY2025, the company projects net sales between $618M - $648M and adjusted EBITDA between $112M - $122M, implying an impressive 18.5% EBITDA margin.
What truly sets Cadre apart is its recession resistant business model. Demand for law enforcement and nuclear safety equipment remains stable regardless of macro volatility. With a robust backlog, recurring revenue, and a commitment to innovation, like its new holsters with integrated Axon camera technology, Cadre Holdings, Inc. (NYSE:CDRE) is a top pick for long term investors looking for growth and stability in the defense sector.
02. TAT Technologies Ltd. (NASDAQ:TATT)
Upside Potential as of June 23: 39%
TAT Technologies Ltd. (NASDAQ:TATT) is quietly gaining attention as a high potential aerospace and defense stock, with Wall Street assigning a target price of $35.50, suggesting an impressive 39% upside from its current level of $25.60 (as of June 22). With a strong operational footprint in the U.S., Israel, and globally, TAT is a strategic player offering engineering driven solutions across commercial and military aviation, particularly in heat transfer systems, MRO (Maintenance, Repair & Overhaul) services, and APUs (Auxiliary Power Units).
TAT Technologies Ltd. (NASDAQ:TATT) kicked off 2025 with another solid quarter, continuing its streak of double digit growth. Q1 revenue surged 23.6% year over year to $42.1 million, driven by robust demand across core product lines. Even more impressively, gross profit climbed 41% to $10 million, lifting gross margins by 290 basis points to 23.6%. This improvement reflects effective cost control, a better product mix, and sustained operational efficiencies.
The momentum didn’t stop at the top line. Adjusted EBITDA grew 56% to $5.7 million, pushing the EBITDA margin up to 13.6% from 10.8% a year ago. Operating income nearly doubled, rising from $2.2 million to $4.2 million. These results highlight TAT’s ability to expand margins even amid global supply chain disruptions, a testament to the company’s disciplined execution and strategic inventory planning.
TAT Technologies Ltd. (NASDAQ:TATT) backlog now stands at $439 million, offering long term visibility and stability. The company secured $52 million in new orders and long term agreements in Q1 alone. Its heat exchanger business grew 30% year over year to $18.4 million, and APU revenue jumped 34%, underpinned by growing customer adoption across major aircraft platforms like Boeing 737, 777, and Airbus A320.
While management acknowledges near term headwinds from tariffs and macro volatility, the long term picture is undeniably strong. TAT is strategically expanding its MRO capabilities, securing new customers, and solidifying its OEM position. The company’s flexibility across OEM, MRO, and trading makes it uniquely positioned to weather turbulence and continue outpacing the industry.
For investors looking at small cap aerospace stocks with consistent growth, improving margins, and global expansion, TAT Technologies Ltd. (NASDAQ:TATT) looks like a clear winner with significant upside ahead.
01. V2X, Inc. (NYSE:VVX)
Upside Potential as of June 23: 40%
At the top of our list of 10 best aerospace and defense stocks according to Wall Street analysts stands V2X, Inc. (NYSE:VVX). The company is proving to be a rising star in the aerospace and defense sector, delivering strong fundamentals, steady contract wins, and a clear growth strategy. With a Wall Street target price of $62.73, V2X, Inc. (NYSE:VVX) stock offers a compelling 40% upside from its June 22 closing price of $44.75, making it a worthy contender in any defense focused investment portfolio.
V2X started the year with a beat on expectations, reporting Q1 EPS of $0.98, surpassing estimates of $0.92. The company posted $1.02 billion in revenue, supported by a 10% year over year increase in the Indo Pacific region and robust contributions from its newly ramped Warfighter Training and Readiness Solutions (WTRS) program. Adjusted EBITDA came in at $67 million, with a margin of 6.6%, aligning with expectations and pointing to a stronger second half of the year.
With a backlog nearly 3x its annual revenue and multi year extensions on core programs like LOGCAP running through 2030, V2X enjoys exceptional revenue visibility. This strategic stability gives management the freedom to pursue bold growth initiatives. The company plans to increase bid volume by 50% in 2025 and is actively pursuing five opportunities worth $1 billion or more over the next 12 months, an ambitious move backed by past performance and customer trust.
Recent wins underscore V2X’s global capabilities and mission critical relevance. These include a $103 million contract with the U.S. Navy for aircraft modernization, a $140 million award from the Space Force for infrastructure support on Ascension Island, and a $100 million deal with the FBI for aircraft readiness. These high profile wins illustrate V2X’s strength across domains, from space to fleet support to cyber readiness.
With $650 million in liquidity, disciplined capital management, and demand tailwinds in defense and training, V2X, Inc. (NYSE:VVX) is in a strong position to scale. The company is leveraging its full life cycle solutions and strategic partnerships to expand its global footprint, particularly in foreign military sales and allied defense markets. For investors seeking long term growth in defense, V2X, Inc. (NYSE:VVX) stands out with its proven execution, deep government ties, and significant upside potential.
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