Global inflation, energy prices and geopolitics are keeping markets on edge, yet they also keep attention on sectors tied to long-term government spending such as aerospace and defense. With central banks juggling growth and inflation, and consumer confidence improving in some regions but not others, many investors are looking for companies whose demand is shaped more by policy priorities than by short term swings in sentiment. The Aerospace And Defense screener helps you filter this space into a focused list of stocks exposed to these trends. This article highlights 3 of the strongest candidates from that screener for further research.

Intuitive Machines (LUNR)

Overview: Intuitive Machines is a Houston based space infrastructure company that designs and operates lunar landers, payload delivery services and a lunar data network for customers such as NASA, the U.S. Department of Defense and commercial clients, helping move satellites, instruments and cargo to and around the Moon.

Operations: Intuitive Machines currently generates about US$334.3 million in revenue from Aerospace & Defense activities, all from customers in the United States.

Market Cap: US$2.68b

Intuitive Machines sits at the intersection of lunar exploration and national security, with a contract backlog tied to NASA’s CLPS program and a focus on landers like Nova C and Nova D that could anchor a future lunar economy. The company is still loss making and highly reliant on U.S. government funding, with recent Zacks Rank and earnings revisions flagging near term pressure. Analysts also note potential for revenue and earnings growth and some highlight a large contract pipeline. Recent contracts, including CLPS awards and work on lunar data relay satellites, add visibility, but execution risk on complex missions remains high. For investors who can tolerate sharp share price swings, the key consideration is whether mission outcomes over time will be sufficient to offset the current volatility.

Intuitive Machines sits between lunar ambition and government reliance, yet the real story may be how future contracts and mission outcomes reshape expectations around growth and risk. The 2 key rewards and 3 important warning signs (1 is major!) could reveal what the headline narrative is missing

Thales (ENXTPA:HO)

Overview: Thales is a French aerospace, defense and digital security company that supplies everything from air defense systems, radars and naval combat solutions to avionics, air traffic control, cybersecurity and digital identity tools for governments, airlines and critical infrastructure operators worldwide.

Operations: Thales generates about €13.3b in revenue from Defence excluding Digital Identity and Security, €6.1b from Aerospace, €3.9b from Cyber & Digital and reports a small adjustment in Other activities.

Market Cap: €50.4b

Thales brings together defence hardware, aerospace systems and cyber expertise at a time when governments are prioritising airspace protection, secure communications and digital identity. The company reports a net profit margin of 6.6%, solid order intake in H1 2026 and sizeable contracts such as Romanian GM200 radars and Singapore’s NexGen air traffic project, which support visibility across defence and civil markets. At the same time, investors need to watch execution in Cyber & Digital after a recent organic revenue decline, ongoing restructuring in Space and the reliance on government defence budgets. The balance between potential opportunities, valuation signals and these operational fault lines means that understanding the full risk reward picture matters far more than focusing only on headline numbers.

Thales sits at the crossroads of defence hardware and cyber, yet the real story may be how resilient cash flows and project risks interact. The 3 key rewards and 1 important warning sign could change how you see that balance

RTX (RTX)

Overview: RTX is a large aerospace and defense company that supplies aircraft engines, avionics, missile systems and digital defense technologies to commercial airlines, aircraft manufacturers, and military and government customers worldwide through its Collins Aerospace, Pratt & Whitney and Raytheon segments.

Operations: RTX generates most of its revenue from Raytheon at US$29.9b, Pratt & Whitney at US$35.0b and Collins Aerospace at US$31.2b, with a small negative adjustment of US$2.6b from eliminations and other items, and sells heavily into the United States with additional exposure to Europe, Asia Pacific and other regions.

Market Cap: US$294.6b

RTX stands out in the aerospace and defense group because it combines a record backlog of about US$289b and solid earnings momentum with exposure to both commercial air travel and long term defense programs. Revenue and earnings growth are described as moderate rather than explosive, yet the stock is priced slightly below some fair value estimates, which may appeal to investors who prefer paying a measured price for already profitable operations. The trade off is meaningful, with high debt, an uneven dividend record and recent insider selling raising questions about how much risk is already in the share price. How those strengths and pressure points fit together over the next few years is where the real opportunity or caution flag may sit for RTX investors.

RTX’s mix of a record US$289b backlog and questions around debt and dividends can be hard to square. The 4 key rewards and 3 important warning signs could show whether those concerns are masking a bigger story

The three aerospace and defense stocks in this article are only a starting point, with the full Aerospace And Defense screener surfacing another 300 companies that each carry their own compelling story around government demand, mission critical technology and long term contracts. Use Simply Wall St to identify, analyze and filter for the exact catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this space.

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If Intuitive Machines 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.