Aerospace & Defense Stocks in the S&P 500 Index
A complete list of aerospace and defense companies currently included in the S&P 500 Index, all classified under the S&P 500 Industrial Sector.
Disclaimer: The information on this page is provided for informational and research purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investing in stocks involves risk, including the possible loss of principal. Always conduct your own due diligence before making any investment decisions.
The aerospace & defense stocks in the S&P 500 Index represent some of the largest and most strategically significant companies in U.S. industrial markets, spanning commercial aviation, military systems, cybersecurity, and space technology. All 13 companies on this list are components of the S&P 500 Industrial Sector, meaning they meet the index's stringent market capitalization, liquidity, and financial viability requirements. The sector encompasses a broad range of capabilities — from commercial jetliner manufacturing and precision engineering to shipbuilding, missile systems, and satellite operations. Defense contractors on this list are direct beneficiaries of U.S. Department of Defense appropriations, while commercial aerospace names are closely tied to global air travel demand and OEM production cycles. Together, these companies represent a core allocation in many institutional portfolios seeking exposure to long-cycle industrial and government-contract revenue streams.
What You Need to Know
All Companies Are S&P 500 Industrials
Every company on this list belongs to the S&P 500 Industrial Sector. Inclusion in the index requires meeting minimum market cap thresholds and liquidity standards set by S&P Dow Jones Indices.
Defense & Commercial Aerospace Are Both Represented
The list spans pure-play defense primes (Lockheed Martin, Northrop Grumman, Raytheon) and diversified industrials with large aerospace divisions (Honeywell, Textron, United Technologies), giving investors exposure to both government-contract and commercial revenue streams.
Revenue Is Heavily Tied to U.S. Defense Budgets
Several companies on this list — including Lockheed Martin, General Dynamics, and Huntington Ingalls — derive a majority of their revenue from U.S. Department of Defense contracts, making earnings visibility relatively high but also dependent on annual Congressional appropriations.
Additional Stocks Exist Outside the S&P 500
This list covers only S&P 500 constituents. For a broader universe of aerospace and defense investments, including mid- and small-cap names, see the complete list of aerospace and defense companies on U.S. exchanges.
Companies by Primary Business Segment
The 13 S&P 500 aerospace & defense companies can be broadly categorized by their dominant revenue-generating segment. This breakdown helps investors identify concentration risks and diversification opportunities within the sector.
| Company | Ticker | Primary Segment | Key Capabilities |
|---|---|---|---|
| Arconic Inc. | ARNC | Commercial Aerospace | Precision engineering, advanced manufacturing |
| Boeing Company | BA | Defense & Commercial | Commercial jetliners, defense systems, space |
| General Dynamics | GD | Defense Prime | Combat vehicles, submarines, IT systems |
| Honeywell International | HON | Defense & Commercial | Turbochargers, performance materials, sensing tech |
| Huntington Ingalls | HII | Defense Prime | Military shipbuilding, nuclear services |
| L-3 Communications | LLL | Defense Prime | Communication systems, electronic warfare |
| Lockheed Martin | LMT | Defense Prime | Tactical aircraft, missiles, satellites, space launch |
| Northrop Grumman | NOC | Defense Prime | Cyber, reconnaissance, unmanned systems, strike aircraft |
| Raytheon Company | RTN | Defense Prime | Missile systems, integrated defense, cybersecurity |
| Rockwell Collins | COL | Commercial Aerospace | Avionics, cabin electronics, simulation & training |
| Textron Inc. | TXT | Defense & Commercial | Helicopters, aircraft manufacturing, industrial tools |
| Transdigm Group | TDG | Commercial Aerospace | Aerospace components, subsystems, audio systems |
| United Technologies | UTX | Defense & Commercial | Aircraft engines, helicopters, HVAC, industrial products |
Table is sortable by column. Swipe horizontally on mobile to view all columns.
Aerospace & Defense Stocks in the S&P 500
The companies on this list are aerospace & defense companies in the S&P 500 index. These companies are all part of the S&P 500 Industrial Sector.
Additional aerospace & defense companies can be located in the following section:
List of Aerospace and Defense Companies
Select the company's link to access charts, news links and company website and social media information.
Aerospace and Defense Companies
- Arconic Inc. (ARNC) (Precision engineering and advanced manufacturing: aerospace, automotive market)
- Boeing Company (The) (BA) (World's largest aerospace company; commercial jetliners; defense, drones, space and security systems)
- General Dynamics Corporation (GD) (Jet aircraft, combat vehicles, communication systems, cyber security, information technology systems, mission support services, munitions, shipbuilding, submarines and weapons systems)
- Honeywell International Inc. (HON) (Aerospace products and services for commercial and military markets: turbochargers; performance materials; sensing and security technologies)
- Huntington Ingalls Industries, Inc. (HII) (Military shipbuilding: aircraft carriers, submarines, amphibious assault ships; nuclear services)
- L-3 Communications Holdings, Inc. (LLL) (Aerospace products and services for commercial and military markets; communication and electronic systems)
- Lockheed Martin Corporation (LMT) (Aeronautical research, IT services, the Joint Light Tactical Vehicle, naval systems, PAC-3 Missiles, satellites (commercial and government), space launch, strategic missiles, systems integration, training, tactical aircraft and the Terminal High Altitude Area Defense System)
- Northrop Grumman Corporation (NOC) (Cyber security, command and control, communications, intelligence, logistics, reconnaissance, strike aircraft, surveillance, unmanned systems)
- Raytheon Company (RTN) (Aerospace products and services for commercial and military markets: integrated defense systems, cybersecurity, missile systems, space and airborne systems)
- Rockwell Collins, Inc. (COL) (Aerospace commercial and military markets: cabin electronics, communication systems, displays & surveillance systems, flight-deck avionics, mission communications, navigation and simulation and training solutions)
- Textron Inc. (TXT) (Industrial conglomerate: helicopters, aircraft manufacturing; transportation vehicles for golf courses, industrial and electrical tools)
- Transdigm Group Incorporated (TDG) (Aerospace commercial and military markets: components, security systems and subsystems, displays, audio systems)
- United Technologies Corporation (UTX) (Conglomerate: aircraft engines, helicopters, HVAC, and other industrial products)
What Investors Should Consider
Government Budget Dependency
Many aerospace and defense companies on this list generate a significant portion of revenue from U.S. government contracts, particularly Department of Defense appropriations. Annual budget negotiations, continuing resolutions, and sequestration events can create revenue uncertainty and affect contract backlog visibility. Changes in defense spending priorities — including shifts between procurement, R&D, and operations — can materially impact individual company earnings.
Program Concentration Risk
Some companies derive a disproportionate share of revenue from a single major program — for example, a next-generation fighter jet, a class of submarine, or a missile defense system. If a program faces cost overruns, cancellation, or delayed procurement, the financial impact on the dependent contractor can be outsized. Investors should research the revenue contribution of major programs for each company individually.
Geopolitical & Regulatory Risk
International arms sales are subject to U.S. government export licensing and can be restricted or revoked based on diplomatic considerations. Changes in administration priorities, foreign policy direction, or international treaties can affect international revenue streams. Additionally, companies with significant commercial aerospace exposure — such as Boeing — are subject to FAA certification requirements and aviation safety regulations that can affect production rates and deliveries.
Valuation & Cyclicality
Aerospace and defense stocks can trade at elevated valuations during periods of heightened global tension or increased defense spending commitments. Conversely, the commercial aerospace segment is highly cyclical and correlated with global air travel demand, airline capital expenditure cycles, and macroeconomic conditions. Investors should consider where each company falls on the commercial vs. defense revenue spectrum before assessing valuation risk.
Aerospace & Defense S&P 500 — FAQ
This page tracks 13 aerospace and defense companies currently listed as components of the S&P 500 Index. All are classified within the S&P 500 Industrial Sector. The exact composition of the index is managed by S&P Dow Jones Indices and can change as companies are added or removed based on eligibility criteria such as market capitalization, liquidity, and financial viability. For the full universe of aerospace and defense names on U.S. exchanges, including non-S&P 500 companies, visit the complete aerospace and defense company list.
Aerospace and defense companies in the S&P 500 are classified under the S&P 500 Industrial Sector. This sector also includes companies in transportation, machinery, professional services, and other industrial subsegments. Aerospace and defense is one of the larger and more followed subsectors within Industrials due to the size and visibility of the major defense primes.
Lockheed Martin Corporation (LMT) is widely recognized as one of the world's largest defense contractors by revenue, with operations spanning aeronautics, missiles, rotary and mission systems, and space. Boeing (BA) is historically the largest aerospace company by total revenue when commercial aircraft deliveries are included. Market capitalization rankings can shift over time based on stock price performance and earnings results, so investors should verify current figures using live market data tools.
Many of the larger aerospace and defense companies in the S&P 500 have historically paid dividends, with several being considered consistent dividend payers given the long-term nature of government contracts and predictable cash flow generation. Companies such as Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, and Honeywell have maintained regular dividend programs. However, dividend policy is subject to change based on earnings, capital allocation priorities, and balance sheet conditions. Investors should review each company's most recent investor relations disclosures for current dividend information.
Pure-play defense contractors are often considered relatively defensive stocks in an economic downturn because their revenue comes primarily from long-term government contracts rather than consumer or corporate spending. However, fiscal pressure during severe recessions can prompt defense budget cuts, which may negatively affect contractor revenue over the medium term. Companies with heavy commercial aerospace exposure — such as Boeing and Transdigm — tend to be more sensitive to economic cycles due to their dependence on airline orders and MRO spending.
Key drivers of performance in the aerospace and defense sector include U.S. defense budget authorizations and appropriations, contract award announcements, program milestones (such as first flights or deliveries), geopolitical developments that shift defense spending priorities, and for commercial aerospace names, global air passenger traffic trends and airline fleet replacement cycles. Interest rate environments also affect valuations since defense primes carry significant pension obligations. Investors should monitor each company's contract backlog as a leading indicator of future revenue visibility.
Several ETFs provide diversified exposure to U.S. aerospace and defense equities. Some are sector-specific funds focused exclusively on the defense industry, while others track broader industrial sector indices that include these companies as holdings. Common examples include funds benchmarked against aerospace and defense sub-industry indexes. Investors should review fund holdings, expense ratios, and rebalancing methodology before selecting an ETF. This page does not endorse or recommend any specific fund.
A defense prime contractor — such as Lockheed Martin, Northrop Grumman, or General Dynamics — serves as the primary contractor directly responsible to the U.S. government or a foreign defense customer for delivering a complete weapons system, platform, or service. Aerospace suppliers, such as Arconic, Rockwell Collins, or Transdigm, primarily manufacture components, systems, or subsystems that are integrated into platforms built by primes or commercial OEMs. Suppliers can serve both commercial and military markets and often derive revenue from both new aircraft production and the long-tail aftermarket.