With services activity holding up in regions from China and Japan to Spain and Vietnam, and Middle East tensions keeping defense and security needs in focus, many investors are looking closely at Aerospace And Defense stocks. This screener filters for companies tied directly to aircraft, space systems, and defense services. These companies can be influenced by global trade, tourism, and government spending patterns. To help narrow a crowded field, this article highlights 3 stocks from the Aerospace And Defense screener that stand out on business exposure and theme fit, giving you a focused starting point for further research.

ATI (ATI)

Overview: ATI Inc. produces high performance specialty metals like titanium, nickel and cobalt alloys, then turns them into advanced parts, forgings and rolled products used in aircraft engines, defense systems, medical equipment and energy infrastructure.

Operations: ATI generates most of its revenue from High Performance Materials & Components at about US$2.7b, with Advanced Alloys & Solutions contributing around US$2.4b and sizeable intersegment sales between the divisions.

Market Cap: US$26.2b

ATI provides exposure to aerospace and defense through long term supply deals with Boeing and Airbus, as well as next generation jet engine components and advanced alloys used in energy transition projects. Profitability metrics such as a 23.3% ROE and improving net margins sit alongside expanding capacity in Mexico and rising analyst attention. Together, these factors indicate a business that is working to convert specialty materials expertise into stronger cash generation. The trade off is meaningful debt, reliance on a small group of large aerospace customers and sensitivity to tariffs and material substitutes. Investors may wish to consider whether ATI’s margin trajectory and contract visibility are sufficient to compensate for those pressures.

ATI’s 23.3% ROE and specialty alloys story looks strong, but the real question is how that quality translates into future cash generation given its significant customer concentration and debt. Get the DCF valuation analysis for ATI

AeroVironment (AVAV)

Overview: AeroVironment develops and supplies uncrewed aircraft, loitering munitions, counter-drone systems and space, cyber and directed energy technologies that give military and government customers aerial intelligence, precision strike capability and secure communications.

Operations: AeroVironment generates most of its revenue from Autonomous Systems at about US$1.4b, with Space, Cyber and Directed Energy contributing around US$619m across the United States and international markets.

Market Cap: US$8.7b

AeroVironment sits at the intersection of uncrewed systems, counter-drone defense and space communications, with a growing backlog and recent multi year contract wins such as the US$500m Titan RF counter UAS award that support revenue visibility. Analysts have highlighted expectations for strong earnings growth and improving profitability, supported by modular, AI enabled platforms and the BlueHalo acquisition. However, the company still reports losses today and carries funding risk through external borrowing. Heavy reliance on US defense budgets, thinner margins after BlueHalo and fast moving drone and AI competition mean execution has to be tight. For investors who want exposure to defense modernization and are comfortable weighing these trade offs, AeroVironment presents a complex story that may warrant a closer look.

AeroVironment’s mix of uncrewed systems, AI enabled platforms and the BlueHalo acquisition hints at a bigger earnings story that the market may not fully appreciate yet, so it is worth reading the analyst forecasts for AeroVironment

Huntington Ingalls Industries (HII)

Overview: Huntington Ingalls Industries builds and services the backbone of the U.S. fleet, from nuclear aircraft carriers and submarines to amphibious assault ships and national security cutters. Its Mission Technologies arm supplies C5ISR, cyber, AI and autonomous systems that support modern naval operations.

Operations: Huntington Ingalls Industries generates about US$3.2b from Ingalls, US$6.8b from Newport News and US$3.1b from Mission Technologies, with minor intersegment eliminations, almost entirely from customers in the United States at around US$12.8b.

Market Cap: US$11.0b

Huntington Ingalls Industries offers investors a mix of long-life shipbuilding programs and faster growing autonomy and mission systems, backed by a US$56.9b backlog and recent multi year Navy contracts for carrier overhauls, sustainment and unmanned underwater vehicles. The stock trades on a lower P/E than many aerospace and defense peers and pays a 1.89% dividend. The trade off is heavy reliance on large, sometimes delayed U.S. Navy contracts, high fixed costs and meaningful debt, alongside recent insider selling. For investors looking at the Aerospace And Defense screener, an important consideration is whether Huntington Ingalls’ shipyard throughput plans and autonomy wins can outweigh those funding and execution risks over time.

Huntington Ingalls’ lower P/E, US$56.9b backlog and growing autonomy work suggest the stock’s story may be decoupling from headline worries. The full picture in the 5 key rewards and 2 important warning signs might reveal a twist investors are missing.

The three Aerospace And Defense stocks in this article are only a starting point, as the full screener uncovered 66 more companies with equally compelling narratives across aircraft, space systems and defense services in the Aerospace And Defense screener. Use Simply Wall St to identify, filter and analyze the specific catalysts, contract profiles and balance sheet traits that matter most so you can focus on the highest conviction opportunities in this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.