The recent news around Vertical Aerospace and the UK government’s interest in its electric vertical take off and landing aircraft has pushed next generation military and civil aviation firmly into the spotlight. For investors watching the Aerospace & Defense sector, this kind of policy support, fresh grant funding and visible flight testing can reshape expectations for established contractors and emerging aircraft developers. This article looks at 3 stocks from our Aerospace & Defense screener that appear closely exposed to this news, setting out how each might benefit or face new questions as the story around eVTOL and hybrid aircraft develops.

NPK International (NPKI)

Overview: NPK International is a US based provider of temporary worksite access solutions that manufactures, sells, and rents recyclable composite matting systems, alongside access road construction, site preparation, environmental protection, and restoration services for energy, utilities, pipeline, and broader infrastructure projects.

Operations: NPK International generates all of its reported US$287.3 million in revenue from Industrial Solutions, with around US$263.9 million from the United States and US$23.4 million from the United Kingdom.

Market Cap: US$1.2b

Investors watching the Vertical Aerospace news may find NPK International interesting as a picks and shovels style play on long term infrastructure and defense spending. Its composite mat rentals and services support utility, pipeline, and potentially military projects that need reliable ground access. The company is already signaling confidence through higher 2026 revenue guidance and ongoing buybacks, even though margins have recently compressed and earnings declined 14.3% year on year. Forecast double digit earnings growth, a Simply Wall St DCF that sits above the current share price, and new index inclusions all point to growing market attention. However, the reliance on debt funding and exposure to large project cycles mean this is not a straightforward story for investors to ignore.

NPK International’s higher 2026 revenue guidance, buybacks, and infrastructure exposure could be masking a more complex story around margins, debt and valuation. See how the 3 key rewards and 1 important warning sign might change your view just when the eVTOL theme heats up.

Hammond Power Solutions (TSX:HPS.A)

Overview: Hammond Power Solutions designs and manufactures transformers and related power quality equipment that help manage, convert, and distribute electricity for sectors such as renewable energy, EV charging, industrial facilities, and large commercial infrastructure across Canada, the United States, Mexico, and India.

Operations: Hammond Power Solutions generates approximately CA$961.7 million in revenue from the manufacture and sale of transformers, with around CA$690.8 million from the United States and Mexico, CA$235.6 million from Canada, and CA$35.3 million from India.

Market Cap: CA$3.3b

Hammond Power Solutions operates in the center of the broader electrification theme. The latest Vertical Aerospace news highlights why its transformers and power conversion systems are relevant for applications ranging from electric aircraft plants to data centers and grid upgrades. The company is expanding capacity, integrating the AEG Power Solutions acquisition, and reporting strong order flow from data center and infrastructure projects. At the same time, margins have recently come under pressure and insider selling raises questions about near term sentiment. Analysts are forecasting earnings and revenue growth, and the acquisition extends Hammond’s reach beyond traditional transformers into broader system level power solutions. Investors who focus on the connections among electrification, aerospace manufacturing, and grid modernization may want to consider how these factors are reflected in current market expectations and where there may be gaps in the prevailing narrative.

Hammond Power Solutions’ expanding order book and capacity moves look like they could be only part of the story, and the full analyst forecasts for Hammond Power Solutions might reveal where margins, sentiment and future projects really intersect.

RADA Electronic Industries (RADA)

Overview: RADA Electronic Industries is a defense technology company that supplies radar systems and avionics, including recorders, head up display cameras, and mission computers for fighter jets, trainer aircraft, UAVs, and land based tactical defense systems used in areas like border surveillance and counter drone defenses.

Market Cap: US$490.9m

RADA Electronic Industries sits in the slipstream of the Vertical Aerospace story because its radar and avionics are tightly tied to how modern aircraft and defense systems detect, record, and process data across the air and ground domains. Simply Wall St’s DCF suggests the shares trade below estimated fair value, yet the stock carries a very high P/E of 85x alongside thin 5.3% margins, low 3.8% ROE, and a recent decline in earnings growth. Add in external funding risk and you have a radar specialist winning new defense work and certifications, but with profitability and valuation questions that deserve closer scrutiny.

RADA Electronic Industries appears to be a radar specialist, with valuation and thin margins pulling in different directions, and the full 2 key rewards and 1 important warning sign could reveal what is really driving that tension next.

The three stocks covered here are only a starting point, and the full Aerospace & Defense Industry screen on Simply Wall St surfaces 46 more companies with equally compelling narratives that do not fit into a single article. Unlock a wider view of the sector and identify the catalysts that matter most to you by using Simply Wall St to filter companies in the Aerospace & Defense Industry screener for factors like financial health, exposure to electric or hybrid aircraft, and defense contract profiles so you can focus on the ideas that best match your own convictions.

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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.