Global manufacturing is sending a mixed message right now, with pockets of strength in places like Germany and Greece and softer readings in Switzerland and parts of Asia. That keeps attention on sectors that sit at the heart of long supply chains and long-term government spending, such as aerospace and defense. The Aerospace And Defense screener focuses on companies that manufacture or provide services to this space, where multi year contracts and cross border demand can matter as much as short term data. In this article, you will see 3 stocks from this screener that stand out for closer research.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies provides mission critical space, communications and missile systems for government and commercial customers, including satellite payloads, hypersonic and other missile technologies, tactical radios, secure battlefield networks and advanced night-vision and sighting equipment. The company primarily serves the U.S. Department of Defense, allied governments and public safety agencies from its headquarters in Melbourne, Florida.

Operations: L3Harris reports a segment adjustment of US$22.9b in revenue, with about US$17.7b generated in the United States and US$5.2b from international customers.

Market Cap: US$51.7b

L3Harris Technologies operates within some of the most sensitive spending priorities in defense and space, with a growing backlog in missile propulsion and satellite programs, new multi year frameworks for systems like PAC 3 and THAAD, and recent guidance that points to higher 2026 revenue and earnings. The stock trades on a lower P/E than many Aerospace & Defense peers, and recent analysis suggests it is below estimated fair value, while still offering a 1.8% dividend and high quality earnings. On the other hand, the company has a balance sheet that leans heavily on debt, exposure to fixed price development contracts and dependence on other contractors and government budgets. If you want to see how all of these pieces fit together for L3Harris over the coming years, you are only getting part of the picture so far.

L3Harris looks like a classic valuation story, with a lower P/E, a stated dividend and high quality earnings that sit next to a debt heavy balance sheet. See how the 6 key rewards and 1 important warning sign could change how you weigh that trade off

Redwire (RDW)

Overview: Redwire Corporation supplies space infrastructure and critical mission hardware, from satellite sensors and avionics to in space manufacturing facilities and uncrewed airborne systems, for government and commercial customers worldwide. Its technology underpins navigation, surveillance, communications and research across space and defense programs.

Operations: Redwire generates about US$210.4m from its Space segment and US$160.6m from Defense Tech, with around US$210.0m in revenue from the U.S., US$136.2m from Europe and US$24.7m from other regions.

Market Cap: US$2.29b

Redwire operates at the intersection of fast growing space infrastructure and defense demand. Revenue is forecast at around 21% a year, and its pipeline includes large U.S. Space Force and Space Systems Command contracts such as the Andromeda IDIQ. At the same time, the company is still loss making, relies heavily on government programs, has no customer deposits, and funds operations through higher risk external capital, which has already led to meaningful shareholder dilution and share price volatility. If you want to understand whether Redwire’s new facilities, UAS orders and in orbit biotech projects can offset funding and profitability risks, you are only seeing part of the picture so far.

Redwire’s fast growing space and defense pipeline is often reduced to a simple growth story. Yet the real tension sits in how funding, dilution and contract risk interact in the 1 key reward and 3 important warning signs (2 are major!)

Kratos Defense & Security Solutions (KTOS)

Overview: Kratos Defense & Security Solutions is a defense technology company that supplies unmanned aerial drone systems, hypersonic and rocket propulsion, satellite ground software, and electronic warfare and training systems to U.S. and allied government agencies as well as commercial customers worldwide.

Operations: Kratos generates about US$1.10b from its Kratos Government Solutions segment and US$311.5m from Unmanned Systems, with most of its US$1.13b in revenue coming from the United States.

Market Cap: US$9.22b

Kratos Defense & Security Solutions is drawing attention because it sits at the center of fast growing areas such as tactical drones, hypersonic systems and counter drone platforms. This positioning is backed by recent contracts worth hundreds of millions of dollars for space domain awareness, hypersonic work and mobile C UAS systems. Earnings growth has been strong and forecasts indicate further expansion. However, profit margins and return on equity are still low, free cash flow has been under pressure and the stock trades on a rich revenue multiple, which leaves little room for disappointment. When factoring in insider selling, heavy reliance on government budgets and ongoing spending on new facilities, there is more to consider than the headlines around contract wins and growth forecasts suggest.

Kratos Defense & Security Solutions sits at the crossroads of drones, hypersonics and space contracts, yet its rich revenue multiple and low returns raise big questions. Get the full story in the 2 key rewards and 1 important warning sign

The 3 aerospace and defense stocks covered here are just a starting point. The full screener surfaces 67 more companies with equally compelling stories across the Aerospace And Defense screener. Use Simply Wall St to identify and analyze the specific catalysts, contracts and balance sheet narratives that matter most so you can focus on your highest conviction ideas.

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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.