Global growth signals, mixed inflation trends and higher energy costs are keeping investors focused on areas where government and corporate spending tends to be more resilient, including Aerospace And Defense stocks. Our Aerospace And Defense screener filters for companies that manufacture or provide services across this ecosystem, helping you cut through market noise and focus on a clear theme tied to long-term security, infrastructure and services demand. In this article, you will see 3 stocks from this screener, with a plain English breakdown of what each company does, why the theme is relevant in the current environment and what to watch as conditions evolve.

Saab (OM:SAAB B)

Overview: Saab is a Sweden based defense and security company that supplies fighter aircraft, missiles, submarines, radar, electronic warfare systems and technology consulting to military and civil customers worldwide.

Operations: Saab generates most of its revenue from Surveillance (SEK 28.97b), Dynamics (SEK 21.16b) and Aeronautics (SEK 19.81b), with Sweden its largest geographic market at SEK 34.08b and significant sales across the rest of Europe at SEK 22.31b.

Market Cap: SEK 277.9b

Saab operates at the intersection of rising defense budgets, a deep order book and a growing focus on high tech systems. The stock’s premium P/E multiple and reliance on government contracts mean it is not a simple story. Revenue and earnings growth forecasts are supported by large multiyear orders such as German frigate combat systems, Polish A26 submarines and additional Gripen and air surveillance programs. High quality earnings and improving margins point to a more service and technology heavy mix over time. At the same time, heavy upfront investment, export controls, a fully debt funded liability base and recent insider selling introduce risks that investors need to weigh carefully against the growth case.

Saab’s premium P/E, significant orders and fully debt funded liabilities suggest a story investors may not have fully pieced together yet, and the real kicker sits in the 2 key rewards and 1 important warning sign

General Dynamics (GD)

Overview: General Dynamics is a US based aerospace and defense company that builds Gulfstream business jets, nuclear submarines, surface ships, armored vehicles and tanks, and provides high end IT, cyber and mission systems for government and military customers worldwide.

Operations: General Dynamics generates its revenue across Aerospace (US$13.4b), Technologies (US$13.6b), Combat Systems (US$9.4b) and Marine Systems (US$17.5b), with the United States its core market at about US$44.6b in sales.

Market Cap: US$98.7b

General Dynamics stands out for investors because its US$130.8b backlog, strong submarine programs and demand for Gulfstream jets provide multi year revenue visibility. Recent earnings growth of around 9% and a long record of reliable dividends support its quality profile. At the same time, 100% of liabilities funded by external borrowings and net debt of US$7.2b mean interest costs and refinancing conditions matter, and operational hiccups in shipyards or complex IT contracts could quickly affect margins. With the stock trading below some fair value estimates and analysts watching Marine Systems and Technologies as key earnings drivers, the real question is how these strengths and risks balance out over the next few years.

General Dynamics’ submarine and Gulfstream engines are running hard, but are they masking something in the numbers? Pull up the analyst forecasts for General Dynamics and see what expectations might be missing.

Firefly Aerospace (FLY)

Overview: Firefly Aerospace is a US space and defense technology company that provides launch, spacecraft and mission solutions for national security, government and commercial customers, including small to medium rocket launches, lunar delivery services and in orbit maneuvering and imaging.

Operations: Firefly Aerospace generates all of its US$184.9m in revenue from Aerospace & Defense activities in the United States.

Market Cap: US$3.4b

Firefly Aerospace provides direct exposure to launch and lunar services, supported by US government demand, and has the risk profile of a young, unprofitable contractor. Revenue grew 70.7% year over year and is forecast to grow 35.11% annually, supported by NASA lunar missions, Space Force interceptor and OPIR contracts, and guided 2026 revenue of US$420 to US$450m. The company reported a Q1 2026 net loss of US$96.68m and has a 16.5x P/S multiple. In addition, funding from a recent US$576m equity raise, share price volatility and a newer board with very high CEO pay contribute to Firefly’s profile as a high potential, high risk space stock where the contract pipeline is only part of the picture.

Firefly Aerospace’s surging contracts and 70.7% revenue growth hint at a story that goes beyond its 16.5x P/S and recent loss, and the real twist sits inside the analyst forecasts for Firefly Aerospace

The three Aerospace And Defense stocks in this article are only a starting point. The full Aerospace And Defense screener surfaces 298 more companies that each carry their own potentially compelling narrative around security, infrastructure and mission critical services. Use Simply Wall St to identify and analyze the specific catalysts, contract profiles, balance sheet traits and earnings drivers that matter most to you so you can focus on the highest conviction Aerospace And Defense ideas.

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If Saab 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.

Seeking Fresh Alternatives Beyond Aerospace?

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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.