Rising geopolitical competition, allied rearmament, and the emergence of commercial space infrastructure are driving multi-year spending cycles in aerospace and defense. This theme tracks the companies building the next-generation sensors, communications, missiles, launch vehicles, and satellite constellations that governments and commercial operators need.
Why it matters
- Defense budgets are structurally higher. NATO members are increasing spending toward 2%+ of GDP. U.S. defense procurement is tilting toward advanced munitions, electronic warfare, and space-based systems.
- Long-cycle backlogs provide visibility. Prime contractors and launch providers have multi-year backlogs that smooth revenue even through political budget cycles.
- Space is becoming operational infrastructure. Earth observation, communications, and positioning satellites are no longer R&D science projects — they are commercially funded, recurring-revenue infrastructure.
Roster
- RTX — RTX (Raytheon) — missiles, sensors, radar systems, and next-generation defense electronics. Leading position in air defense and precision strike.
- LHX — L3Harris Technologies — communications, electronic warfare, intelligence, and space systems for the U.S. DoD and allied militaries.
- RKLB — Rocket Lab USA — small and medium launch vehicles (Electron, Neutron) plus spacecraft components and satellite solutions.
- PL — Planet Labs — Earth observation satellite constellation providing daily global imagery and analytics for defense, agriculture, and commercial customers.
What to watch
- U.S. defense budget trajectory — authorizations vs. continuing resolutions determine how fast procurement dollars flow.
- Allied rearmament orders — European and Pacific-allied defense spending creates export opportunity for RTX and LHX.
- Rocket Lab Neutron progress — successful Neutron flights open a medium-lift market currently served only by SpaceX.
- Planet government contract wins — defense and intelligence contracts drive higher-value, recurring revenue vs. commercial analytics.
- Space-based asset proliferation — DoD investment in resilient LEO constellations benefits all four names.