3 Aerospace Stocks With Strong Backlogs Retail Investors Are Watching

Energy risk tied to the Strait of Hormuz keeps oil prices sensitive and reminds investors how quickly global supply chains can be disrupted. That spotlight falls directly on Aerospace And Defense stocks that help keep trade routes open and assets protected. For investors, this can be a timely theme. This article highlights 3 Aerospace And Defense screener stocks that stand out on business quality and financial characteristics.

The stocks covered below are just a starting sample, and the full Aerospace And Defense screen surfaced 68 more companies with equally compelling business stories that are not included in this article. To go deeper into this theme, identify patterns, and analyze individual opportunities, head straight into the Aerospace And Defense screener.

ATI (ATI)

Overview: ATI is a Dallas based specialty materials company that supplies titanium, nickel and cobalt alloys, powder metals and complex forged components used in jet engines, defense systems, medical devices and energy infrastructure. Its two segments, High Performance Materials & Components and Advanced Alloys & Solutions, focus on high value products that support demanding aerospace and defense applications as well as industrial and energy customers worldwide.

Operations: ATI generates about $2.7b in revenue from High Performance Materials & Components and about $2.5b from Advanced Alloys & Solutions, with the United States contributing roughly $2.8b of reported sales.

Market Cap: $31.0b

ATI is drawing attention because it sits at the intersection of booming jet engine demand, rising defense spending and growing interest in advanced alloys for energy transition projects. The company reports a record $4.4b backlog, double digit Q2 2026 revenue growth and 37% adjusted EBITDA growth, supported by long term contracts with major aerospace customers and strong AA&S margins. High ROE of 24.47% and management’s focus on efficiency and share buybacks add to the appeal. At the same time, ATI carries a high P/E, relies heavily on debt funding and depends on a concentrated group of aerospace clients. How those strengths and vulnerabilities balance from here is what makes ATI worth a closer look for Aerospace And Defense focused investors.

ATI’s record backlog and high ROE can look like pure momentum, yet its premium P/E and debt load raise sharper questions. Put those pieces together with the 2 key rewards and 1 important warning sign

Build your own high backlog and quality shortlist

ATI and the other two Aerospace And Defense stocks in this article all came from a single screener, but the real edge is in shaping filters around the backlog, returns and balance sheet profile that matter to you. Use our flexible Screener to combine metrics like valuation, future growth, risks and dividends, or jump straight into any of our curated Investing Ideas.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies is a US based defense contractor that builds mission critical space systems, missile solutions and secure communications gear for military, intelligence, civil government and public safety customers around the world. Its three segments, Space & Mission Systems, Missile Solutions and Communications & Spectrum Dominance, span everything from missile warning satellites and hypersonic propulsion to tactical radios and night vision equipment.

Operations: L3Harris reports about $22.9b of segment level revenue adjustments, with roughly $17.7b generated in the United States and $5.2b from international customers.

Market Cap: $53.4b

L3Harris Technologies sits in the thick of current defense priorities, with a growing backlog in missile warning, hypersonic systems and secure communications that ties directly to recent US Space Force and missile defense contracts. Recent results show higher revenue, earnings and free cash flow, while the LHX NeXt efficiency program and a portfolio refocus around core defense and space franchises aim to support margins. At the same time, high debt, reliance on fixed price development contracts and exposure to budget decisions in Washington and allied capitals mean the path is not risk free. For investors who want exposure to space and missile programs and are comfortable weighing those trade offs, L3Harris is worth a closer look.

L3Harris appears to be a focused defense powerhouse, yet the real story lies in how its space, missile and communications franchises fit together. Start with the 5 key rewards and 1 important warning sign

Redwire (RDW)

Overview: Redwire is a Jacksonville based space infrastructure company that supplies sensors, avionics, camera systems, microgravity payloads, in space manufacturing facilities and software tools that help design and operate satellites and full constellations for government and commercial customers in the US, Europe and internationally.

Operations: Redwire generates about $208 million of revenue from its Space segment and about $217 million from Defense Tech, with roughly $246 million from the United States and $149 million from Europe.

Market Cap: $3.4b

Redwire catches the eye because it sits at the crossroads of rising space and defense spending, with a $542.1 million contracted backlog, record Q2 2026 revenue and reaffirmed full year guidance pointing to strong demand for its space infrastructure and uncrewed systems. Analysts see room for faster revenue growth and have set a consensus price target above the current share price. Yet Redwire is still loss making, carries higher funding risk due to reliance on external borrowing and has diluted shareholders to shore up liquidity. Add in a relatively new management team and board, plus ambitious bets like space based pharmaceuticals, and the company presents upside potential as well as execution and profitability questions that investors must weigh carefully.

Redwire’s accelerating space backlog and bold uncrewed systems bets could be masking a very different risk reward profile than the headline losses suggest. Get the full picture in the 2 key rewards and 3 important warning signs (2 are major!)

Seeking Fresh Alternatives Beyond Defense?

Some of the most interesting breakout stories start flying before headlines catch up. Scan these fresh stock ideas while it matters and before the crowd reacts. Act now.

• Spot companies aiming for strong profits in AI while others chase hype, then size up a hand picked group through the 71 profitable AI stocks that aren't just burning cash.
• Target potential income anchors before yields get compressed by demand by scanning a curated shortlist of 8 dividend fortresses.
• Track early movers tied to data centers and next gen chips, using a focused selection of infrastructure plays inside the 56 AI infrastructure stocks.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com