10 Best Performing Defense Stocks So Far in 2025

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1. Astronics Corporation (NASDAQ:ATRO)

YTD Gains as of March 25: 66.04%

Astronics Corporation (NASDAQ:ATRO) provides advanced technologies to global aerospace, defense, and electronics clients. Some of its offerings include lighting and safety systems, aircraft electronics integration, automated test systems, and distribution and motion systems, among other products and services.

The company’s shares have surged by over 66% this year, making it one of the best performing stocks so far in 2025. About half of the overall returns have come after Astronics Corporation (NASDAQ:ATRO) announced robust financial results for the fourth quarter of FY24 on March 4.

Astronics Corporation (NASDAQ:ATRO)’s sales grew 6.8% year-over-year, while adjusted operating income expanded by 550 basis points. Adjusted EBITDA was posted at $31.5 million, representing 15.1% of sales. The strong performance was driven by an 11.7% increase in aerospace sales, offsetting the $6.6 million decline in Test Systems sales on lower defense revenue.

The positive margins are helping the company improve its cash from operations, which stood at $26.4 million for Q4. Astronics Corporation (NASDAQ:ATRO)’s cash on hand at the end of the quarter was $18.4 million. The company’s net debt was valued at $156.6 million, down from $161.2 million at the end of 2023. It ended the year with a record backlog of $599.2 million.

Astronics Corporation (NASDAQ:ATRO)’s 2025 revenue is forecast to be between $820 million and $860 million, representing a 6% increase over 2024 sales at the midpoint of this range.

Overall, Astronics Corporation (NASDAQ:ATRO) ranks first among the best performing defense stocks so far in 2025. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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