Get ahead of rising global defense budgets with 2025’s top defense stocks for long-term stability and gains.
Sectors & Industries
April 24, 2025
Table of Contents
The defense sector is increasingly relevant in today's geopolitical climate, with escalating tensions and heightened global defense spending driving the need for advanced military capabilities. This article explores the top defense stocks for 2025, outlining why these companies are prime for investment and their strategic importance in the industry.
Selection Criteria: To identify the leading defense stocks for 2025, we focused on:
Headquartered in Chantilly, Virginia, Amentum delivers engineering, cybersecurity, and nuclear operations services. A lesser-known fact is that Amentum manages critical infrastructure for the U.S. government, including the maintenance of nuclear warheads under the Department of Energy, showcasing its role in national security beyond traditional contracting.
Amentum is a key player in specialized services—ranging from logistics automation and secure facility management to advanced nuclear and cybersecurity solutions. The company’s strong foothold in managing highly classified government operations makes it a unique asset in the defense ecosystem.
Key Customers: U.S. Department of Defense, Department of Energy, federal agencies.
Recent Development: Amentum’s Joint Enterprise Modeling and Analytics platform, deployed in 2024 for the U.S. Army, supports logistics and supply chain optimization at bases like Fort Bragg, North Carolina. It uses data analytics to streamline equipment readiness, enhancing mission efficiency.
Market Performance:
.png)
Based in Arlington, Virginia, AeroVironment is a global leader in unmanned aircraft systems (UAS), loitering munitions, and robotic solutions. Specializing in small and medium UAS, tactical missile systems, and unmanned ground vehicles, AeroVironment serves defense and government clients with cutting-edge technologies for surveillance, security, and precision strikes.
AeroVironment is at the forefront of autonomous military systems, with products like the Switchblade loitering munition and JUMP 20-X for maritime operations. Its 2024 acquisition of BlueHalo enhances its defense technology portfolio, projecting combined annual revenue of $1.7 billion.
Secured a $46.6M contract with the Italian Ministry of Defence and the U.S. Army Lethal Unmanned Systems IDIQ contract in 2024, with a record backlog of $487M in Q2 FY 2024. The U.S. Army lifted a stop-work order on key contracts in March 2025, boosting confidence.
Key Customers: Supplies the U.S. Department of Defense, international allies (e.g., Italy, Lithuania, Romania, Sweden), and commercial clients. Growing international demand for loitering munitions diversifies its revenue streams.
Includes small UAS (e.g., Puma, Raven), loitering munitions (Switchblade), medium UAS, and unmanned ground vehicles, addressing modern warfare’s need for autonomous, precise solutions.
Recent Development: AeroVironment reported record Q1 FY 2025 revenue of $188.5M, up 24% Y/Y, driven by a 68% surge in loitering munitions sales. The company expanded U.S. manufacturing with a new Salt Lake City facility (FreedomWerx) to scale production.
Market Performance:
.png)
Based in McLean, Virginia, Booz Allen Hamilton excels in consulting, AI, and cybersecurity solutions. An intriguing detail is that it pioneered the use of “hackathons” for government clients, fostering rapid innovation in classified environments, which sets it apart in defense consulting.
With a deep bench of data scientists and AI experts, Booz Allen provides defense intelligence solutions across multiple federal agencies. Its consulting-led approach ensures flexibility and tech-forward responses to emerging national security challenges.
Key Customers: U.S. Department of Defense, Homeland Security, intelligence agencies.
Recent Development: The Advana platform, enhanced in 2024, is a data analytics tool used by the DoD’s Joint Special Operations Command in Tampa, Florida. It integrates AI to analyze mission data, improving decision-making for special forces operations.
Market Performance:
.png)
Located in Reston, Virginia, Leidos specializes in IT, engineering, and cybersecurity. A notable fact is that Leidos operates the largest IT services contract in defense history, managing the Pentagon’s networks, which underscores its critical role in military infrastructure.
Leidos serves as a digital backbone of U.S. defense, integrating AI, big data, and mission software into military workflows. With capabilities spanning aviation, surveillance, and biometrics, Leidos is vital to modern battlefield connectivity.
Key Customers: Department of Defense, NASA, NSA.
Recent Development: The Advanced Battle Management System (ABMS), contracted in 2024, is a cloud-based command platform for the U.S. Air Force, tested at Nellis Air Force Base, Nevada. It enables real-time data sharing for multi-domain operations, enhancing situational awareness.
Market Performance:
.png)
Operating from Newport News, Virginia, HII is the sole builder of U.S. Navy aircraft carriers. A fascinating detail is that its shipyards employ advanced digital twin technology, simulating ship designs in real-time to reduce construction errors, a cutting-edge approach in naval engineering.
HII dominates the naval domain with capabilities in nuclear-powered submarines, unmanned maritime systems, and advanced propulsion technologies. Its production power is indispensable to America's global naval presence.
Key Customers: U.S. Navy, U.S. Coast Guard.
Recent Development: The REMUS 300 unmanned underwater vehicle, delivered in 2024, is used by the U.S. Navy in Norfolk, Virginia, for mine detection and ocean mapping, ensuring safer maritime operations.
Market Performance:
.png)
Headquartered in Melbourne, Florida, L3Harris is renowned for communication systems and sensors. An interesting fact is that its merger in 2019 created the fastest-growing defense contractor, doubling its portfolio overnight and enabling rapid innovation in electronic warfare.
L3Harris plays a pivotal role in satellite payloads, tactical radios, and counter-UAV tech. Its focus on electronic warfare and missile tracking systems is critical in countering modern threats, including hypersonic missiles.
Key Customers: U.S. military, NATO allies.
Recent Development: The Glide Phase Interceptor, contracted in 2024, is a missile defense system under development for the U.S. Missile Defense Agency, tested at Pacific Missile Range Facility, Hawaii. It intercepts hypersonic threats, bolstering national defense.
Market Performance:
.png)
Based in Chicago, Illinois, Boeing balances commercial and defense aerospace. A surprising insight is that Boeing’s defense division pioneered autonomous refueling drones, like the MQ-25 Stingray, reshaping naval aviation logistics.
Boeing Defense manufactures strategic bombers, satellites, and rotorcraft for allied nations. Despite commercial turbulence, its defense portfolio remains critical to long-term revenue stability.
Key Customers: U.S. Department of Defense, international militaries.
Recent Development: The F-15EX Eagle II, delivered in 2024, is operational with the U.S. Air Force at Eglin Air Force Base, Florida. It provides advanced air superiority with upgraded radar, used for combat missions and deterrence.
Market Performance:
.png)
Headquartered in Reston, Virginia, General Dynamics leads in combat vehicles and shipbuilding. A lesser-known strength is its Gulfstream jets, used by heads of state for secure transport, blending defense with executive mobility.
Its land systems include the Abrams tank and Stryker vehicles. General Dynamics also supplies encrypted communications, cybersecurity, and submarine tech—making it a multi-domain player.
Key Customers: U.S. military, allied nations.
Recent Development: The Columbia-class submarine, with its lead ship under construction in 2024, is being built at Groton, Connecticut, for the U.S. Navy. It ensures nuclear deterrence with stealth and missile capabilities.
Market Performance:
.png)
Located in Falls Church, Virginia, Northrop Grumman is a leader in stealth and space systems. A compelling fact is that it developed the first reusable spacecraft, the X-37B, operating secretly for the U.S. Space Force, highlighting its space dominance.
Northrop’s strengths lie in autonomous systems, missile defense, and advanced radar. Its B-21 bomber and deep-space systems position it as a top-tier innovator in future warfare.
Key Customers: U.S. military, NASA, allies.
Recent Development: The B-21 Raider stealth bomber, tested in 2024, is at Edwards Air Force Base, California, for the U.S. Air Force. It’s designed for long-range strikes, maintaining air superiority against advanced defenses.
Market Performance:
.png)
Based in Waltham, Massachusetts, RTX (formerly Raytheon) specializes in missiles and sensors. An intriguing detail is that RTX’s radar systems guide NASA’s Mars rovers, showcasing precision that crosses defense and exploration.
RTX is the go-to name in missile defense, counter-drone tech, and radar. Its cutting-edge hypersonic programs and space solutions make it indispensable in modern warfare planning.
Key Customers: U.S. military, international defense ministries.
Recent Development: The Hypersonic Attack Cruise Missile (HACM), advanced in 2024, is under development for the U.S. Air Force, tested at Edwards Air Force Base, California. It delivers rapid strikes against fortified targets, countering modern air defenses.
Market Performance:
.png)
Headquartered in Bethesda, Maryland, Lockheed Martin dominates aerospace and security. A standout fact is that its Skunk Works division, known for secrecy, has developed every U.S. stealth aircraft since the 1970s, cementing its innovation legacy.
LMT’s portfolio spans F-35 jets, missile systems, and space vehicles. Its unmatched scale in defense manufacturing and top-tier contracts make it the industry’s anchor stock.
Key Customers: U.S. Department of Defense, NASA, allies.
Recent Development: The F-35 Lightning II Block 4, upgraded in 2024, is deployed at Nellis Air Force Base, Nevada, for the U.S. Air Force and allies. It enhances stealth and networking for multi-domain combat missions.
Market Performance:
With rising global tensions, record defense budgets, and increasing demand for next-gen military systems, 2025 could be a breakout year for defense stocks. Companies like Lockheed Martin and Raytheon are well-positioned for growth thanks to cutting-edge technology and long-term contracts. Whether you're seeking long-term stability or tactical opportunities during periods of geopolitical instability, defense equities offer a resilient portfolio anchor.
Lockheed Martin (LMT) remains the most prominent defense stock in 2025 due to its leadership in stealth aircraft, missile systems, and space defense. The company’s ongoing F-35 program, hypersonic weapons contracts, and classified tech from its Skunk Works division make it a cornerstone in national security—and a reliable stock for long-term investors. With consistent Pentagon funding and a dominant market share in high-cost defense systems, Lockheed continues to generate stable revenue and long-term value despite market volatility.
Raytheon (RTX) is among the top contenders for breakout growth in 2025. Its rapid gains in 2024 (+29.64%) were driven by increased missile orders, international demand, and its leadership in hypersonic weaponry and air defense radar systems. RTX’s Hypersonic Attack Cruise Missile (HACM) is in advanced testing stages with the U.S. Air Force and could significantly drive revenue if adopted widely across NATO forces.
Northrop Grumman (NOC) is one of the best long-term defense stocks thanks to its involvement in autonomous weapons, space technology, and stealth aircraft. Its role in the B-21 Raider stealth bomber and reusable spacecraft (X-37B) underlines its dominance in the future of warfare and space command systems. Northrop also has some of the highest earnings growth (103.02% YoY) among major contractors.
L3Harris Technologies (LHX) and Raytheon (RTX) are typically the fastest to respond to wartime spikes due to their focus on tactical communication, missile defense, and radar systems. LHX’s Glide Phase Interceptor and RTX’s Patriot and hypersonic missile systems are mission-critical tools in modern warfare. These companies often see increased orders within weeks of major escalations or conflicts.
During military conflicts, investors often turn to tangible assets like gold—but defense stocks offer something more: growth potential with real-world demand. Companies like Lockheed Martin (LMT) and Northrop Grumman (NOC) supply the hardware and systems nations need during prolonged conflicts, from fighter jets to surveillance satellites.
Beyond traditional safe havens like gold, defense stocks such as Lockheed Martin (LMT) and Northrop Grumman (NOC) have proven resilient and profitable in times of conflict.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.
AI scans for events proven to impact stock prices, so you don't have to.
LEARN MORE
