10 Best Performing Defense Stocks So Far in 2025

7. GE Aerospace (NYSE:GE)

YTD Gains as of March 25: 27.18%

GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines. It is one of the best performing stocks so far in 2025, with returns of over 27%.

On March 12, the company stated that it plans on investing up to $1 billion in its US facilities this year to strengthen manufacturing and innovation. The investment amount is nearly twice last year’s commitment and is set to improve engine safety, quality, and delivery. The announcement comes amid a rising travel environment, which is resulting in robust demand for GE Aerospace (NYSE:GE)’s engines and spare parts.

On the defense side, GE Aerospace (NYSE:GE) this month was awarded a $5 billion IDIQ contract from the US Air Force to support Foreign Military Sales (FMS) for the F110-GE-129 engines, which power F-15 and F-16 aircraft operated by American allied nations. The agreement reflects the company’s commitment to America’s defense partnerships and in ensuring operational readiness of fleets globally.

GE Aerospace (NYSE:GE)’s financial performance also remains robust. During Q4 2024, the company topped Wall Street’s earnings estimates. It anticipates a major profit surge in fiscal year 2025 as well, which has further enhanced the stock’s appeal among investors. According to Insider Monkey’s database for Q4 2024, 101 hedge funds held a stake in the company.