Aerospace Stocks Are Flying High as Investors Chase New Entrants
Aerospace has become one of Wall Street’s hottest trades. The S&P Aerospace & Defense Select Industry Index is up 44% this year, fueling a rush of IPOs, spin-offs, and investor interest as companies race to capitalize on surging demand across aviation, defense, and space.
Cleared for takeoff: Applied Aerospace & Defense made its NYSE debut this week, raising $650M after pricing shares at $20 each. The Huntsville-based supplier builds components for space, defense, and missile programs, with customers including Boeing and GE Aerospace. Its listing follows recent defense IPOs as investor appetite for the sector continues to grow. "Becoming a public company is a natural step in our evolution," Senior VP David Myers told Satellite Today.
- Applied Aerospace & Defense generated $498.8M in 2025 revenue, up ~25% year-over-year, with a backlog of nearly $1.1B, including US government contracts.
- The debut follows Hawkeye 360’s $478.4M IPO in May and Aevex Aerospace’s listing in April, extending the recent wave of defense-sector offerings.
Wall Street Looks Skyward
Wall Street is rewarding aerospace companies that fly solo. Honeywell is betting it can be next, spinning off its aerospace division later this month with plans to accelerate growth. CEO Jim Currier told investors the standalone company will be built around “one strategy, one mission,” while targeting 2026 adjusted EBIT of $4.65B-$4.75B. Investors have already seen how powerful that playbook can be — GE Aerospace has surged roughly 125% since separating in Apr. 2024, setting a high bar for Honeywell’s next chapter.
- Honeywell Aerospace is targeting 6%-8% annual organic sales growth and roughly 9% annual earnings growth through 2030.
- Rocket Lab grew Q1 revenue 63.5%, topping estimates and helping the stock rally 56.1% after earnings.
Heading for orbit: Among the 15 aerospace stocks tracked in Q1, shares gained 13.8% on average after earnings. Redwire stood out with the largest full-year guidance raise and has surged 111% since reporting. With demand spanning aviation, defense, and space, investors have no shortage of ways to play the trend. The tailwinds are building, and aerospace is already airborne.
