--- title: "Aerospace & Defense Industry: Companies" description: "40 SEC filers are classified under the Standard Industrial Classification codes that describe the aerospace & defense industry." canonical: https://www.getswoopr.com/stocks/industries/industrials/aerospace-and-defense/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Aerospace & Defense Industry ## Direct Answer 40 SEC filers are classified under the Standard Industrial Classification codes that describe the aerospace & defense industry, and their latest annual reports show $412.7 billion of combined revenue and a median operating margin of -0.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Aerospace and defense companies design and build aircraft, engines, missiles, ships, space systems and electronics for airlines and governments, then support them for decades. Long programs and backlogs give visibility, and defense budgets and commercial build rates drive results. The first numbers to compare across companies here are backlog and book-to-bill, operating margin by segment and free cash flow conversion. ## Key Industry Metrics - **Backlog and book-to-bill**: Contracted future sales and the ratio of new orders to revenue. A ratio above one means backlog is growing, and long programs make backlog a strong guide to future years. - **Operating margin by segment**: Operating profit for each business such as commercial, defense and space, taken separately. It shows which lines earn well and how the mix of cost-plus and fixed-price work shapes profit. - **Free cash flow conversion**: Portion of net income that becomes free cash after capital spending. Program timing and advance payments move it, so look at several years rather than one. - **Aftermarket and sustainment share**: Portion of revenue from spares, repair and long-term support of fielded platforms. It is steadier and higher margin than new production and persists for decades. - **Program execution charges**: Write-downs taken when a fixed-price program costs more than expected. They reveal estimating and engineering risk, and repeated charges signal weak control. ## Primary Macro Drivers - **Defense budgets and geopolitical tension**: Government spending decides orders for aircraft, missiles and ships, so tension and budget growth lift backlog and book-to-bill. - **Commercial aircraft production rates**: Aircraft builders' output sets demand for parts and systems, so higher rates raise revenue and segment margin. - **Air traffic and fleet utilization**: More flying wears out parts and engines sooner, boosting aftermarket and sustainment revenue. - **Supply chain capacity**: Supplier and workforce capacity limits how fast programs can deliver, so it affects revenue timing and free cash flow. ## Major Risks - **Fixed-price program overruns**: Development costs above contract price create losses; watch program execution charges and margin by segment. - **Supply chain constraints**: Shortages of castings, chips and labor delay deliveries and raise cost, affecting conversion of backlog into cash. - **Government budget and contract changes**: Funding cuts, continuing resolutions or cancelled programs reduce or delay orders; watch backlog and book-to-bill. - **Concentration on a few platforms**: A few big programs make up much revenue, so a delay or cancellation hurts results disproportionately. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Medium | | Regulatory Intensity | High | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## Aerospace & Defense Filers in the SEC Record 40 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3720, 3721, 3724, 3728, 3760, 3812, 3480. Their latest fiscal years end between 2025 and 2026, and together they reported $412.7 billion of revenue. Median revenue growth over the prior year was 9.7%. Median operating margin was -0.3% and median net margin -0.4%. Median total liabilities were 44% of total assets, and 20 of 40 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Boeing Co](https://www.getswoopr.com/stocks/companies/boeing/) | $89.5 billion | 34.5% | 4.8% | 2.5% | FY 2025 | | [Rtx Corp](https://www.getswoopr.com/stocks/companies/rtx-corporation/) | $88.6 billion | 9.7% | 10.5% | 7.6% | FY 2025 | | [Lockheed Martin Corp](https://www.getswoopr.com/stocks/companies/lockheed-martin/) | $75.0 billion | 5.6% | 10.3% | 6.7% | FY 2025 | | [Northrop Grumman Corp](https://www.getswoopr.com/stocks/companies/northrop-grumman/) | $42.0 billion | 2.2% | 10.8% | 10.0% | FY 2025 | | [Honeywell International Inc](https://www.getswoopr.com/stocks/companies/honeywell-technologies/) | $37.4 billion | 7.8% | 21.7% | 12.6% | FY 2025 | | [L3harris Technologies, Inc.](https://www.getswoopr.com/stocks/companies/l3harris/) | $21.3 billion | 9.8% | 9.0% | 7.0% | FY 2025 | | [Textron Inc](https://www.getswoopr.com/stocks/companies/textron/) | $14.8 billion | 8.0% | n/a | 6.2% | FY 2026 | | [Transdigm Group Inc](https://www.getswoopr.com/stocks/companies/transdigm-group/) | $8.8 billion | 11.2% | 47.2% | 23.5% | FY 2025 | The 8 largest of 40 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Aerospace & Defense guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Aerospace & Defense industry include: Backlog and book-to-bill, Operating margin by segment, Free cash flow conversion, Aftermarket and sustainment share, Program execution charges. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Aerospace & Defense industry? The Aerospace & Defense industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Aerospace & Defense industry? The primary risks for Aerospace & Defense companies include: Fixed-price program overruns, Supply chain constraints, Government budget and contract changes, Concentration on a few platforms. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).