From rockets to radar, the aerospace and defense industry soars in 2025
Dec. 24, 2025 8:59 AM ET
By: Jason Capul, SA News Editor
The aerospace and defense industry, a cornerstone of the industrials sector, delivered an exceptional showing in 2025, handily outperforming both its parent sector and the broader equity market.
Supported by sustained defense spending, rising commercial aerospace demand, and expanding space-related investment, the group benefited from powerful tailwinds throughout the year.
As the calendar turns toward year-end, aerospace and defense stands out as one of the market’s strongest performers, with the industry being +48.5% year to date. That gain far exceeds the industrials sector’s +18.5% advance and comfortably surpasses the S&P 500’s ( SP500) +17% rise, underscoring the group’s relative strength.
Within this favorable environment, several companies delivered outsized returns. The list below highlights the 10 best-performing U.S.-listed aerospace and defense stocks of 2025, focusing exclusively on companies with market capitalizations of at least $1 billion.
No. 1: Astronics ( ATRO), +246.8% YTD.
No. 2: Kratos Defense & Security Solutions ( KTOS), +212.0% YTD.
No. 3: Rocket Lab ( RKLB), +203.0% YTD.
No. 4: ATI ( ATI), +111.1% YTD.
No. 5: Carpenter Technology ( CRS), +96.5% YTD.
No. 6: Howmet Aerospace ( HWM), +91.6% YTD.
No. 7: Woodward ( WWD), +90.0% YTD.
No. 8: General Electric ( GE), +89.2% YTD.
No. 9: VSE Corporation ( VSEC), +88.1% YTD.
No. 10: Huntington Ingalls Industries ( HII), +87.6% YTD.
Aerospace & Defense: ( ITA), ( PPA), ( XAR), ( SHLD), ( FITE), and ( DFEN). |
