Rising geopolitical risks around critical energy routes, including fresh concerns over shipping through the Strait of Hormuz, are forcing governments worldwide to reassess defense budgets.
When security priorities shift, companies tied to aircraft engines, satellites, and military technology tend to attract significantly more investor attention and capital.
The three stocks examined here come from the US Aerospace and Defense universe and represent a range of market capitalizations, from under $3 billion to well over $300 billion.
Redwire (RDW) sits at the intersection of space infrastructure and defense technology, generating approximately $208.9 million from Space operations and $217.4 million from Defense Tech.
The company’s market cap currently stands at $2.9 billion, with roughly $245.5 million of its revenue coming directly from US government customers.
“The combination with Edge Autonomy and the shift to a scalable space and defense platform is already reflected in year-over-year revenue of US$103.4 million in Q3 2025 and adjusted gross margin of 27.1%.”
General Electric (GE), operating as GE Aerospace, carries a market cap of $339.4 billion and generates approximately $37.7 billion from Commercial Engines and Services alone.
The company’s Defense and Propulsion Technologies segment contributes an additional $11.5 billion in revenue, with a backlog above $30 billion providing meaningful multi-year visibility.
“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 and Propulsion Technologies backlog above US$30b, provides multi year visibility on future defense revenue and contribution to segment profit.”
RTX Corporation (RTX), with a market cap of $255.3 billion, operates across three major business segments including Pratt and Whitney, Collins Aerospace, and Raytheon, generating $35 billion, $31.2 billion, and $29.9 billion respectively.
The company has built a record backlog of $289 billion, underpinned by a Raytheon rolling 12-month book-to-bill ratio of 1.77 and $19.9 billion in quarterly awards.
“RTX’s record backlog of US$289b, supported by a Raytheon rolling 12 month book to bill of 1.77 and US$19.9b of quarterly awards for systems such as Patriot, AMRAAM, AIM 9X and LTAMDS, points to multi year conversion of contracted demand into revenue and segment operating profit that some investors may not yet fully reflect in valuations.”
The three companies collectively represent distinct entry points into defense and aerospace exposure, ranging from small-cap space infrastructure plays to large-cap engine and weapons system providers.
Investors screening the broader Aerospace and Defense universe will find that these three represent only a fraction of the 73 additional companies surfaced through a full sector screen.
Understanding how backlog conversion, aftermarket mix shifts, and defense contract timing interact will ultimately determine which of these names delivers the most durable shareholder returns over the coming years.
