Global inflation trends, shifting central bank policies, and energy driven price pressures are keeping investors focused on resilience and reliability. In this setting, the Aerospace And Defense screener offers a focused way to look at companies that manufacture or provide services to these critical industries, where demand often links to long term government and commercial contracts. This article highlights 3 stocks from the Aerospace And Defense screener, explaining what each business does, how it fits within current macro themes such as inflation, interest rates, and energy costs, and why some investors are watching them closely right now.

AeroVironment (AVAV)

Overview: AeroVironment is a US-based defense technology company that builds uncrewed aircraft systems, loitering munitions, and robotic platforms for air, land, sea, and space, along with software, autonomy, and cyber tools that help government and commercial customers gather intelligence and counter aerial threats.

Operations: AeroVironment generates about US$2.0b in revenue, with roughly US$1.4b from Autonomous Systems and US$0.6b from Space, Cyber and Directed Energy. Most sales come from the United States at about US$1.4b versus about US$0.6b internationally.

Market Cap: US$7.5b

Investors are watching AeroVironment because it sits at the intersection of drones, counter drone defenses, and space based communications at a time when governments are funding more long range surveillance and missile defense programs. A US$2.7b backlog, a pipeline above US$35b and recent multi year contracts like Domestic Shield and Titan point to multi year revenue visibility, while management is targeting adjusted EBITDA margins of 18% to 20% by 2030. At the same time, the company is still working through losses, margin pressure after the BlueHalo acquisition, and heavy reliance on US defense budgets. This means execution, cost control, and international growth will matter as much as the headline contract wins.

AeroVironment’s growing backlog and long term contracts hint at scale, but the real story sits in how its margins, cash generation, and contract risks line up in practice. The analysis report for AeroVironment begins to unpack this before raising one crucial question investors should not overlook

Moog (MOG.A)

Overview: Moog is a US-based engineering company that supplies precision motion control systems for aircraft, defense platforms, space hardware, and industrial automation, providing components that help steer missiles, control aircraft surfaces, move spacecraft, and power factory and medical equipment.

Operations: Moog generates about US$4.2b in revenue, with around US$1.2b from Space and Defense, US$1.0b from Industrial, US$0.9b from Military Aircraft, and US$1.0b from Commercial Aircraft.

Market Cap: US$12.9b

Investors are paying attention to Moog because it blends long term defense and aerospace contracts with exposure to industrial automation and medical technology, supported by record revenues, improving profit margins, and an earnings profile that has outpaced the broader US market in the past year. At the same time, a relatively high P/E multiple, elevated debt levels, tariff and working capital pressures, program delays, and insider selling mean the stock is priced for continued execution. The key issue is how resilient Moog’s cash generation and margins will be if defense budgets, aerospace demand, or cost inflation begin to weigh more heavily on results.

Moog’s mix of record revenues, richer margins, and a full defense and aerospace order book suggests a story investors may be only half seeing; the analyst forecasts for Moog highlights what could be hiding behind those expectations

Thales (ENXTPA:HO)

Overview: Thales is a French aerospace and defense group that provides air and missile defense systems, avionics, naval and land combat solutions, satellites, secure communications, and digital identity and cybersecurity products for governments and enterprises worldwide.

Operations: Thales generates most of its revenue from Defence at about €12.6b, followed by Aerospace at about €6.1b and Cyber & Digital at about €4.0b, with sales spread across France, the rest of Europe, North America, Asia, and other regions.

Market Cap: €45.9b

Thales attracts attention because it links rising defense spending and cybersecurity needs with profitability metrics such as a ROE of 20.5%, a 7.6% net margin, and earnings growth that has been stronger than the wider Aerospace & Defense sector over the past year. At the same time, reliance on government budgets, funding entirely through external borrowing, and governance questions around limited board independence mean investors need to think carefully about risk. Recent contract wins such as U.S. Army communications gear and AI enabled defense systems, plus work in satellite and cloud security, show how Thales is positioning for long term demand. The full picture becomes clearer when its valuation signals, earnings quality, and execution risks are considered side by side.

Thales is connecting its 20.5% ROE, 7.6% net margin, and recent AI enabled defense wins in a way that many investors may be underestimating. However, the analysis report for Thales hints at one tension that could change the story.

The three Aerospace And Defense stocks in this article are only a starting point. The full Aerospace And Defense screener surfaces 297 more companies that carry similarly compelling stories around long term contracts, cash flows, and exposure to defense and critical infrastructure themes. Use Simply Wall St to identify, analyze, and filter for the specific catalysts and narratives that matter to you so you can focus on the highest conviction opportunities in this space.

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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.