10 Worst Performing Defense Stocks So Far in 2025

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1. Momentus Inc. (NASDAQ:MNTS)

YTD Decline in Share Price: -74.02%

Momentus Inc. (NASDAQ:MNTS) is a commercial space company that offers satellite buses and in-space infrastructure services, including hosted payloads, in-space transportation, and other in-orbit services. It is also working on several space-related defense contracts.

In February, the company was selected by the US Air Force to demonstrate low-cost sensors for in-space Rendezvous and Proximity Operations (RPO). During the same month, Momentus Inc. (NASDAQ:MNTS) was also awarded a contract expansion by the DoD to conduct an in-orbit demonstration of the assembly of large scale structures.

In March, the company announced a strategic partnership with Solstar Space for on-demand communication for space systems. Despite these encouraging developments, Momentus Inc. (NASDAQ:MNTS)’s share price has plummeted this year amid non-compliance warnings over the last few months.

On January 16, NASDAQ granted Momentus Inc. (NASDAQ:MNTS)’s request for continued listing until April 15, while the company works to regain compliance with requirements under Rule 5550(b). The NASDAQ Hearings Panel also noted that MNTS had regained compliance under the minimum $1 per share listing requirements.

On February 11, Momentus Inc. (NASDAQ:MNTS) announced the closing of a $5 million offering with an institutional investor, priced at-the-market, under NASDAQ’s rules. The company intends to use the proceeds for general corporate purposes.

Overall, Momentus Inc. (NASDAQ:MNTS) ranks first among the worst 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 MNTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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