Investing in defence stocks (or “defense stocks” if you’re from the other side of the Atlantic and happen to love sports and hot dogs) offers a unique opportunity to own a piece of the global military sector, which has historically provided stability and long-term growth.
With governments worldwide consistently allocating substantial budgets to national security, the sector remains resilient even during economic downturns. This guide will help you identify the best defence stocks and key global players, get a better understanding of the risks, and hopefully place you in a better position to make informed investment decisions about holding defence shares in your portfolio.
Unfortunately it’s impossible to predict what will be the best defence stocks in any given year. But, to give you some starting inspiration, here are the top holdings in the MarketVector™ Global Defense Industry Index along with some additonal options that are popular across UK trading apps.
| Defence stock | Icon | 1-year performance (to Jan. '26) | 5-year performance (to Jan. '26) | Link |
|---|---|---|---|---|
| Rheinmetall AG (RHM) |  |
152.66% | 2,018.16% | More info |
| Rolls-Royce Holdings PLC (RR) |  |
112.77% | 1,252.24% | More info |
| Babcock International Group PLC (BAB) |  |
184.57% | 541.20% | More info |
| BAE Systems plc (BA) |  |
60.83% | 335.40% | More info |
| Booz Allen Hamilton Holding (BAH) |  |
-30.53% | 5.15% | More info |
| BWX Technologies (BWXT) |  |
89.54% | 293.92% | More info |
| Curtiss-Wright Corporation (CW) |  |
95.31% | 536.07% | More info |
| Leidos Holdings (LDOS) |  |
32.27% | 76.46% | More info |
| Leonardo SpA (0ONG) |  |
93.37% | 890.89% | More info |
| Palantir Technologies (PLTR) |  |
106.53% | 364.67% | More info |
| Qinetiq Group PLC (QQ) |  |
35.59% | 72.14% | More info |
| Thales S.A. (HO) |  |
69.20% | 251.71% | More info |
| Northrop Grumman Corporation (NOC) |  |
39.47% | 136.82% | More info |
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
If you're interested in investing in this industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.
Rheinmetall AG provides mobility and security technologies in Germany, Rest of Europe, North, Middle, and South America, Asia and the Near East, and internationally. It operates through the Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Power Systems, and Others segments. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles.
Rheinmetall is listed on the XETRA, has a trailing 12-month revenue of around 11 billion and employs 31,537 staff.
Capital at risk
Rolls-Royce Holdings plc develops and delivers mission-critical power systems in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services.
Rolls-Royce is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around €19.5 billion and employs 42,400 staff.
Capital at risk
Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. It operates through four segments: Marine, Nuclear, Land, and Aviation. The company offers type 31 frigates, project lurcher, jackal contract, ground deployed advanced mortar system, general logistics vehicle, Babcock's LGE, and armored land cruiser 300.
Babcock International Group is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around £5 billion and employs 27,000 staff.
Capital at risk
BAE Systems plc provides defense, aerospace, and security solutions in the United States, the United Kingdom, the Middle East, Australia, Japan, Europe, and internationally. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, generation military communications systems and data links, persistent surveillance capabilities, and electric drive propulsion systems, as well as space electronics, spacecraft, and ground and tactical systems.
BAE Systems is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around £27.4 billion and employs 109,700 staff.
Capital at risk
Booz Allen Hamilton Holding Corporation, a technology company, provides technology solutions using artificial intelligence, cyber, and other technologies for government's cabinet-level departments and commercial customers in the United States and internationally. The company offers artificial intelligence (AI) which creates purpose-built AI solutions that adapt commercial and internally-developed technology to the needs of the federal government; cyber solutions; and legacy systems with cloud-enabled infrastructure, platforms, and applications.
Booz Allen Hamilton Holding is listed on the NYSE, has a trailing 12-month revenue of around £11.7 billion and employs 32,500 staff.
Capital at risk
BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The company manufactures precision naval nuclear components, reactors, and nuclear fuel; close-tolerance and high-quality equipment for nuclear applications; critical nuclear components, fuels and assemblies for government and limited other uses; down blend government stockpiles of uranium; and fabricate fuel-bearing precision components.
BWX Technologies is listed on the NYSE, has a trailing 12-month revenue of around $3.1 billion and employs 8,700 staff.
Capital at risk
Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings.
Curtiss-Wright Corporation is listed on the NYSE, has a trailing 12-month revenue of around $3.4 billion and employs 9,000 staff.
Capital at risk
Leidos Holdings, Inc. , together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally. The National Security & Digital segment provides national security software; services by using artificial intelligence and machine learning to coordinate sea, ground, air, and space to help warfighters; offensive, defensive, and physical cyber operation solutions; intelligence analysis, operational support, logistics operations, security, linguistics, force production, biometrics, chemical, biological, radiological, nuclear, and explosives, energetics, training, and IT services and solutions; and Digital Modernization and transformation services.
Leidos is listed on the NYSE, has a trailing 12-month revenue of around $17.3 billion and employs 47,000 staff.
Capital at risk
Leonardo S. p. , an industrial and technological company, engages in the helicopters, defense electronics and security, cyber security and solutions, aircraft, aerostructures, and space sectors in Italy, the United Kingdom, rest of Europe, the United States of America, and internationally. The company offers a range of helicopters for battlefield/personnel recovery, combat, maritime, training, VIP/executive transport, medical and rescue, energy, security, and utility services, as well as provides support and training services.
Leonardo is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around $19.1 billion and employs 62,012 staff.
Capital at risk
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. It provides Palantir Gotham, a software platform, which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the hand-off between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.
Palantir Technologies is listed on the NASDAQ, has a trailing 12-month revenue of around €3.9 billion and employs 4,414 staff.
Capital at risk
QinetiQ Group plc provides science and technology solution in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, and internationally. The company operates through EMEA Services and Global Solutions segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; platform, and system design and assessment products; power sources, and emerging technologies; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems.
Qinetiq Group is listed on the London Stock Exchange (LSE), has a trailing 12-month revenue of around $1.9 billion and employs 8,000 staff.
Capital at risk
Thales S. A. provides various solutions in the defence and security, aerospace and space, and digital identity and security markets worldwide. The company offers advance air defence systems, combat systems, defence onboard electronics c4isr solutions, command and control solutions, mission and surveillance systems, airborne optronics, and airspace protection solutions; collaborative combat, intelligence, connectivity and cloud, country and force protection, military vehicle, collaborative artillery, and augmented soldier solutions; robotics and drones; above-water combat, unmanned maritime, and underwater warfare systems; naval support and services; and joint systems.
Thales S-A is listed on the Euronext Paris (PA), has a trailing 12-month revenue of around £21.3 billion and employs 78,189 staff.
Capital at risk
Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, the Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, sustains, and modernizes aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic, and surveillance and reconnaissance systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.
Northrop Grumman Corporation is listed on the NYSE, has a trailing 12-month revenue of around €40.9 billion and employs 97,000 staff.
Capital at risk
Investing in defence stocks from the UK can paradoxically offer potential long-term stability and steady, given the worldwide appetite for strong defence sector spending and global defence partnerships. With major firms like BAE Systems and Rolls-Royce, the UK remains a key contributor to international defence and security.
However, investors should also consider international options for more diversification. You might also want to check out the best defence ETFs for a broader approach. But, it’s important to remember that the share price performance of defence stocks can depend on factors such as government budgets, geopolitical risks, and global conflict. Diversifying within the sector and staying informed on policy changes can help you stay ahead of the curve if you’re looking to buy defence stocks.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
We explore some of the top defence ETFs, what drives their performance, the key risks to consider, and how to buy defence ETFs as part of a well-balanced investment portfolio.
See 5 stocks that could withstand trade tensions in 2025, offering stability amid tariffs and global supply shifts.
Find out how to invest in aluminium stocks, plus some popular stock options.
What to know before investing in this fossil fuel that’s critical to energy production.
As the name suggests, penny stocks offer a low entry price into certain shares, but this benefit may not be worth the risk these investments carry.
IPOs could be an opportunity for investors. Check out our calendar of upcoming IPOs and keep tabs on rumoured, recent and filed for IPOs.
What are dividend stocks, and how do you invest in them in the UK? We explain how to find stocks with high dividend yields and details about safe dividends.
All the steps you need to follow to buy shares in some of football’s biggest teams.
Learn where to buy gold, how to invest in gold and about gold’s historical performance as an investment. Find out all the need-to-knows with our extensive guide.