With inflation, interest rates and growth data moving in different directions across regions, many investors are looking for businesses with clear roles in long-term government and commercial spending plans. Aerospace and defense companies sit at the center of that discussion, supplying equipment and services that governments and corporates tend to prioritise even when consumer trends soften. The Aerospace And Defense screener helps you filter this space down to companies directly linked to these activities, cutting through noise and focus lists. Below, the article highlights 3 of the most interesting stocks from this screener and explains what stands out about each one.

ATI (ATI)

Overview: ATI Inc. produces high performance titanium, nickel and specialty metal alloys, turning them into complex parts like jet engine components, medical and energy equipment, and precision-rolled products for aerospace, defense and industrial customers worldwide.

Operations: ATI generates most of its US$5.0b in revenue from High Performance Materials & Components (US$2.7b) and Advanced Alloys & Solutions (US$2.4b), with smaller intersegment adjustments and a large share of sales reported in the United States.

Market Cap: US$26.9b

ATI attracts attention because it sits at the heart of long-term aerospace and energy spending. It supplies specialized alloys and complex components under expanded contracts with customers like Boeing and Airbus, while also serving defense and energy transition projects. The company reports high profitability metrics such as a 23.3% ROE and 9.3% net margin, and recent news points to capacity expansions and margin-focused investments that support this profile. At the same time, ATI carries high debt and depends heavily on a concentrated group of large aerospace customers, so funding and customer concentration risks matter. With analysts highlighting both growth opportunities and valuation questions, there is more to unpack about whether ATI’s premium price tag is justified by its contracts, cash flow prospects and capital allocation choices.

ATI’s premium pricing and high profitability metrics suggest that the market may be overlooking how its contracts, cash flows and capital allocation fit together. Reviewing the 2 key rewards and 1 important warning sign could change how you view the balance between risk and reward.

AeroVironment (AVAV)

Overview: AeroVironment develops uncrewed aircraft, ground robots and space, cyber and directed energy systems that give military and government customers intelligence, surveillance, precision strike and communications capabilities, supported by AI driven software platforms like its AV Halo ecosystem and OSINT tools.

Operations: AeroVironment reports a segment adjustment of about US$1.6b, with revenue primarily generated in the United States (US$1.1b) and the balance from international customers (US$543.7m).

Market Cap: US$7.0b

AeroVironment is drawing interest because it sits at the crossroads of uncrewed systems, AI enabled autonomy and next generation defense technologies, backed by a US$1.1b funded backlog and contracts that span UAS, counter drone tools and space based communications. At the same time, investors are weighing risks such as heavy exposure to US defense budgets, pressure on margins after recent acquisitions and legal and accounting questions around its space unit. With the stock recently weak despite forecasts for strong revenue growth and expanding capacity in areas like counter UAS and international programs such as Taiwan, the gap between AeroVironment’s contract pipeline and its current profitability profile is a central point of debate for this stock.

AeroVironment’s contract pipeline and US$1.1b funded backlog suggest a story that is still unfolding, but the real tension sits in how future revenue stacks up against the analyst forecasts for AeroVironment hiding one crucial twist.

Redwire (RDW)

Overview: Redwire builds space infrastructure and mission critical systems such as sensors, avionics, in space manufacturing platforms and uncrewed systems that support government, defense and commercial customers in orbit and across multiple domains.

Operations: Redwire generates about US$210.4m of revenue from Space and US$160.6m from Defense Tech, with roughly US$210.0m coming from the United States, US$136.2m from Europe and US$24.7m from other regions.

Market Cap: US$2.2b

Redwire attracts interest because it ties together high profile themes like defense UAS, in space manufacturing and microgravity biotech with a growing backlog and exposure to US and allied government space spending. At the same time, it is still working through losses, heavy reliance on external funding and equity dilution risk. Recent news highlights both contract wins and concern about cash burn, internal controls and a large at the market equity program. As a result, the stock sits at the intersection of strong revenue growth expectations, elevated P/S multiples and ongoing questions about whether management can turn complex projects into durable profits without overly diluting shareholders.

Redwire’s mix of space infrastructure ambition and funding pressure has investors split, yet the core thesis is not just about growth. It is about execution risk hiding inside the 1 key reward and 3 important warning signs (2 are major!)

The three aerospace and defense stocks covered here are only a starting point, as the full Aerospace And Defense screener surfaces 67 more companies with equally compelling narratives tied to long term government and commercial spending. Use Simply Wall St to unlock filters around contracts, backlogs, balance sheet strength and project execution so you can identify and analyze the highest conviction ideas that fit your own view on this theme.

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If AeroVironment or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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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.