3 Defense Stocks With Revenue Growth Up To 10%

Record shipping costs and rising security risks around key sea lanes have pushed governments to rethink how they protect trade routes and critical infrastructure. That renewed focus has drawn a bright circle around companies tied to aircraft, satellites and defense technology. If you care about where long term government budgets may concentrate, this matters. This article walks through three stocks from our Aerospace And Defense screener that sit in that slipstream.

The three stocks below are just a starting sample. The full Aerospace And Defense screen surfaced 73 more companies with equally detailed stories that are not covered here.

If you want to identify, compare, and analyze those additional opportunities in one place, head straight into the Aerospace And Defense screener.

General Electric (GE)

General Electric leans directly into the Aerospace And Defense theme through GE Aerospace, where the focus is on designing and servicing jet engines that power commercial fleets and military platforms worldwide.

GE Aerospace generates about US$37.7b from Commercial Engines & Services and US$11.5b from Defense & Propulsion Technologies, with the remainder from corporate and other activity, and the group carries a market value of roughly US$339.4b.

"Acceleration of next generation engine programs such as adaptive cycle engines and CCA propulsion, supported by rising defense book to bill of 1.7x and a Defense & Propulsion Technologies backlog above US$30b, points to multi year visibility on future defense revenue and contribution to segment profit."

The real swing factor is how one less visible pressure shapes the balance between that long defense runway and the profitability investors are counting on.

That pressure point is exactly where the story gets interesting, and the full narrative for General Electric shows how GE could balance defense visibility with engine profitability and cash.

Lockheed Martin (LMT)

Lockheed Martin is one of the clearest pure plays in this Aerospace And Defense screen. The F-35 fighter program anchors a broad portfolio of aircraft, missiles, and space systems that feed directly into long term government security and deterrence priorities.

Lockheed Martin generates about US$31.2b from Aeronautics, US$19.8b from Rotary and Mission Systems, US$16.4b from Missiles and Fire Control, and US$13.8b from Space, and the group carries a market value of roughly US$119.9b.

For this theme, the interest is less about headline contracts and more about how Lockheed Martin converts a deep catalogue of platforms and munitions into durable cash flow. This is where the current round of long duration supply agreements comes into focus.

"Lockheed Martin is moving munitions like PAC-3, THAAD, PrSM and JATM onto seven year framework agreements that aim to triple or quadruple production and allow the company to retain a larger share of cost savings from capacity investments such as robotics in Camden, which can support higher future revenue and structurally stronger net margins."

What really matters for investors is how one less visible constraint could tilt that margin opportunity either toward a powerful tailwind or a frustrating ceiling.

That ceiling is exactly what the full narrative for Lockheed Martin unpacks, showing how Lockheed Martin could turn capacity, pricing and backlog into accelerating cash and resilience.

Boeing (BA)

Boeing is one of the clearest gateways into the Aerospace and Defense theme, with its Commercial Airplanes division building the jetliners that airlines rely on and its defense and space operations tying that hardware into global security spending.

Boeing generates about US$43.4b from Commercial Airplanes, US$29.4b from Defense, Space & Security, and US$21.3b from Global Services, and the group carries a market value of roughly US$156.5b.

Boeing offers exposure to both sides of this theme. Passenger jets link directly to long haul trade and travel, while defense and space projects connect that same manufacturing base to national security budgets and long term service contracts.

"Boeing's vast $522 billion commercial backlog, with 5,900 aircraft sold firm into the next decade, positions the company to disproportionately benefit from the expected doubling of global air travel demand by 2040, ensuring long-term revenue expansion that could materially outpace GDP growth and industry peers."

A key factor to watch is how one less visible constraint shapes the balance between that backlog and the margins investors are monitoring.

That margin tension sits at the heart of the full narrative for Boeing, which tracks where Boeing’s backlog could be quietly accelerating or masking future profitability shifts.

Seeking Fresh Alternatives Before They Fly

Fresh ideas move first. Watch early momentum before the crowd catches on and ideal entry ranges start dropping out of reach. These curated shortlists stay under the radar for now, so get in early.

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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.

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