With central banks weighing inflation data, trade flows shifting and governments reassessing security priorities, many investors are looking for clear, real-economy themes backed by large and recurring budgets. The Aerospace And Defense screener focuses on companies that manufacture or provide services to these sectors, which sit at the crossroads of technology, global trade and fiscal spending. As policy support for advanced industries grows in markets such as China and defense planning remains a core priority in the US, Europe and beyond, this article highlights 3 stocks from the screener that stand out for further research.

Redwire (RDW)

Overview: Redwire provides space infrastructure and defense technology, from star trackers, sensors and spacecraft platforms to microgravity labs and uncrewed airborne systems, serving US, European and other government and commercial customers. It also supplies software for digital engineering and in-space manufacturing, plus biotech and space-based pharmaceutical facilities that aim to open up new commercial uses of orbit.

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

Market Cap: US$2.16b

Redwire sits at the intersection of fast-growing space activity and rising defense demand, with US$371m of revenue split across space infrastructure and defense technology and a record backlog that links it to US, NATO and commercial projects. The company is pushing into higher-margin areas such as in-space manufacturing, drug research platforms like SpaceMD and PIL-BOX, and uncrewed systems used in active conflict zones. This helps diversify away from lumpy fixed price development work. The catch is that Redwire is still loss-making, faces contract timing risk, carries higher-risk borrowing and has used equity issuance, all of which can weigh on shareholder outcomes. For investors who can accept those trade offs, the mix of growth potential and execution risk makes Redwire a space stock that some market participants may choose to watch closely.

Redwire’s push into in-space manufacturing and biotech platforms could be masking a much bigger story behind its contracts and capital structure. Get the full picture, including key risks and potential upside twists, in the analysis report for Redwire

Rocket Lab (RKLB)

Overview: Rocket Lab is a space company that launches small satellites to orbit and also sells the spacecraft, components and software that run on them, aiming to be a one stop shop for governments and commercial customers that need reliable access to space. Alongside its Electron small rocket, Rocket Lab is developing the larger Neutron vehicle to serve big satellite constellations, deep space missions and potentially human spaceflight.

Operations: Rocket Lab generates about US$452.5m from its Space Systems segment and US$227.1m from Launch Services, with roughly two thirds of revenue tied to space hardware and services that sit on top of its rockets.

Market Cap: US$48.9b

Rocket Lab gives you exposure to both sides of the commercial space equation: frequent Electron launches, and a growing Space Systems business that sells satellites and components into defense and government programs, reinforced by recent NASA contracts and inclusion in the Nasdaq 100. Forecast revenue and earnings growth are described as strong, and its rapid response capability for missions like VICTUS HAZE helps it stand out in the Aerospace And Defense screener. The catch is that Rocket Lab is still loss making, has a history of shareholder dilution, carries higher risk borrowing and trades on a rich valuation while depending heavily on the success of its Neutron rocket. The full story lies in how those growth ambitions stack up against funding, execution risk and competition from SpaceX.

Rocket Lab’s push to pair frequent Electron launches with a larger Neutron future is powerful, but the real tension lies in balancing momentum, dilution and funding. Get the story behind its analysis report for Rocket Lab

Kratos Defense & Security Solutions (KTOS)

Overview: Kratos Defense & Security Solutions builds and supplies defense and security technologies, including jet powered unmanned drones, hypersonic and rocket systems, satellite ground software, propulsion systems, and electronic warfare and training tools for U.S. and allied government agencies as well as some commercial customers worldwide.

Operations: Kratos Defense & Security Solutions generates about US$311.5m from Unmanned Systems and US$1.1b from Kratos Government Solutions, with roughly US$1.1b reported from the United States.

Market Cap: US$8.84b

Kratos Defense & Security Solutions offers direct exposure to some areas in defense technology, including tactical drones, hypersonics, and satellite communications, supported by programs such as Valkyrie and MACH-TB, as well as production agreements such as its US$200m Abu Dhabi joint venture. Earnings growth has recently outpaced the wider Aerospace & Defense sector, and analysts see faster earnings than revenue growth. However, this is paired with a rich valuation and modest 2.1% net margins, plus reliance on higher risk borrowing and U.S. government budgets. For investors interested in defense modernization and autonomous systems, Kratos presents a mix of higher growth expectations, expanding capacity, and execution and funding risks that may merit further research.

Kratos Defense & Security Solutions sits at the crossroads of higher growth expectations and tight margins, and the real story only comes into focus when you line up its programs, funding and execution history through the 2 key rewards and 1 important warning sign

The three Aerospace And Defense stocks in this article are only a starting point, with the full screener surfacing 67 more companies that carry equally compelling narratives across satellites, launch services, defense systems and space infrastructure in the Aerospace And Defense screener. Use Simply Wall St to identify and analyze the specific catalysts, contract profiles, balance sheet traits and growth narratives that matter most to you so you can focus on the highest conviction ideas in this theme.

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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.