Defense spending is back in focus as the US shifts toward mass producing cheaper, simpler missiles and plans US$12b in missile procurement over the next five years, along with higher drone and tech budgets. That kind of policy shift can reshape expectations for selected aerospace and defense stocks, especially those tied to missile systems, electronics, or military technology. This article walks through 3 stocks from our Aerospace & Defense Sector Stocks screener that are directly exposed to these news catalysts and is intended to help you decide whether they deserve a closer look or a place on your watchlist.

Miller Industries (MLR)

Overview: Miller Industries manufactures towing and recovery equipment such as heavy wreckers, car carriers and transport trailers used by towing operators, auto auctions, dealerships, leasing companies and government and military customers, with products sold under brands like Century, Vulcan, Chevron and Holmes across North America and abroad.

Operations: Miller Industries generated US$745.5 million from auto manufacturers, with around US$586.8 million coming from North America and US$158.7 million from foreign markets.

Market Cap: US$603.2 million

Investors focusing on defense spending tailwinds may find Miller Industries interesting because it already supplies heavy-duty and military-grade recovery vehicles and has more than US$150 million of military commitments in its pipeline. This is supported by a planned US$100 million capacity expansion in Ooltewah to serve global demand. At the same time, recent results show pressure, with Q1 2026 net income of US$0.6 million on sales of US$180.9 million and margins down from last year, while the stock trades on a relatively high P/E and carries balance sheet risk from external borrowing. The combination of defense exposure, buybacks and dividends, alongside earnings volatility and reliance on future military contracts, makes Miller Industries a stock where the details really matter for long term investors.

Miller Industries sits at the crossroads of growing military commitments and tighter margins, and the real story may be how its balance sheet handles that push and pull, so it is worth scanning the Miller Industries financial health report

Fluence Energy (FLNC)

Overview: Fluence Energy provides large scale battery storage systems and software that help utilities, grid operators and commercial customers store electricity and manage renewable power more reliably, using modular products like Gridstack and Smartstack across the Americas, Asia Pacific, Europe, the Middle East and Africa.

Operations: Fluence Energy generates about US$2.6b in revenue primarily from batteries and battery systems, supported by regional activity across APAC and EMEA and internal segment adjustments.

Market Cap: US$3.6b

Fluence Energy sits where two powerful themes meet: grid scale batteries for AI data centers and renewables, and energy storage that can support more resilient power for military and aerospace uses. The company is still loss making and relies entirely on external borrowing. At the same time, it has a large backlog, new Smartstack 10 MWh products, and independent DNV validation of fleet availability above 98%, which matters for mission critical applications. Forecasts in the market commentary referenced for this article point to revenue and earnings growth with a possible return to profitability, but trade policy, tariffs on Chinese batteries and share price volatility remain real risks. For investors tracking defense tech and AI infrastructure in the Aerospace & Defense Sector Stocks screener, Fluence is a complex story that may merit a closer look at the details.

Fluence Energy’s accelerating grid and AI storage story is only half the picture; the other half sits in the analyst forecasts for Fluence Energy that could reveal whether today’s losses are masking something far more important.

Flux Power Holdings (FLUX)

Overview: Flux Power Holdings designs and manufactures lithium ion battery packs and charging systems for forklifts, airport ground support equipment and other commercial vehicles, using its own battery management software to control charging, safety and communication with the equipment. The company sells these energy storage solutions to equipment makers, dealers, distributors and end users across North America.

Operations: Flux Power generates about US$50.6 million in revenue from designing, developing, manufacturing and selling its portfolio of advanced lithium ion energy storage solutions, all from customers in the United States.

Market Cap: US$16.6 million

Flux Power Holdings sits at the intersection of equipment electrification and defense focused power needs, supplying lithium ion systems that can support ground handling fleets at airports and potentially more demanding aerospace or military operations as the US ramps up tech heavy defense spending. The stock screens as lowly valued on sales while analysts expect revenue growth. However, recent figures show lower quarterly sales and a widening quarterly loss, alongside a breach of a loan covenant that could restrict credit if not resolved. With efforts to build a more domestic, diversified supply chain and expand its SkyBMS and SkyEMS software for smarter fleet monitoring, the question for investors is whether Flux Power can turn that positioning and new technology into durable profits before its funding flexibility tightens further.

Flux Power Holdings has an electrification story that looks early, yet the real question is buried inside the analysis report for Flux Power Holdings where the credit covenant breach and path to scale collide

The three aerospace and defense stocks in this article are just a starting point, as the full Aerospace & Defense Sector Stocks screener surfaces 38 more companies with equally compelling narratives around defense spend, grid resilience and mission critical technology. Use Simply Wall St to identify, filter and analyze the specific catalysts and storylines that matter to you so you can focus on your highest conviction ideas in this sector.

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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.