Geopolitical shocks like renewed tension between the US and Iran can quickly reorder investor priorities, especially when vital shipping routes and global energy supply are in focus. Spikes in risk, rising oil concerns and questions around military readiness all tend to shove defense and aerospace stocks back into the spotlight, for better or worse. This article looks at how that news backdrop might affect selected companies from a Global Defense and Aerospace Companies screener and highlights 3 stocks that appear more directly exposed to these developments, helping you decide whether they deserve closer attention or a place on your watchlist.
Electro Optic Systems Holdings (ASX:EOS)
Overview: Electro Optic Systems Holdings is an Australian defense technology company that supplies remote weapon stations, counter drone systems, high energy laser weapons and space focused optical and laser tracking systems to military and government customers worldwide.
Operations: Electro Optic Systems generates most of its A$128.5 million in revenue from Defence at A$115.8 million, with a smaller Space segment at A$12.7 million, and sells into Europe, Australia/Asia, North America and the Middle East.
Market Cap: A$1.7b
Electro Optic Systems operates in an environment shaped by current geopolitical tension, with counter drone, remote weapon and space control systems that are closely aligned with concerns about contested sea lanes and changing defense budgets. Recent orders from L3Harris, a 100 kW laser export to the Netherlands and a planned French hub for AI enabled counter drone systems indicate growing international traction. Analyst forecasts referenced in the market suggest potential for revenue and earnings growth if contracts proceed as anticipated. At the same time, the company remains loss making, carries funding and execution risk and trades on a relatively high P/S multiple, so investors need to balance the thematic appeal and contract momentum against the possibility that defense spending or technology preferences change.
Electro Optic Systems Holdings looks like a classic revenue momentum and contract story, but the real twist may sit in how forecasts stack up against its high P/S and funding needs. For this reason, it is worth studying the analyst forecasts for Electro Optic Systems Holdings
Nordex (XTRA:NDX1)
Overview: Nordex is a German company that designs, builds and sells large onshore wind turbines, then supports them with long term maintenance, upgrades and remote monitoring services for wind farm operators around the world.
Market Cap: €9.6b
Nordex sits at the crossroads of energy security and decarbonization, which has become more important as conflict near key oil routes reminds governments how exposed they are to fossil fuel shocks. A large order backlog, fresh wins across Europe and North America, and a high margin service arm with recurring revenue give the company multiple ways to turn that policy support into earnings, while recent profitability and high quality earnings signals have caught investor attention. At the same time, heavy reliance on Europe, competitive pressure in turbines and a balance sheet funded entirely by external borrowing mean execution and financing risks are real. The real question is how those strengths and vulnerabilities net out as forecasts and valuations are stress tested against future conditions.
Nordex looks like a story where a large backlog and recurring service revenue could be masking something more interesting in its outlook, so it is worth reading the analyst forecasts for Nordex to see what the market might be missing.
SMA Solar Technology (XTRA:S92)
Overview: SMA Solar Technology is a German company that supplies solar and battery inverters, energy storage and management systems, and EV charging solutions for customers ranging from households and businesses to large utility scale power projects around the world.
Operations: SMA Solar Technology generates most of its €1.53b revenue from Large Scale & Project Solutions at €1,268.8 million, with Home and Business Solutions contributing €260.4 million.
Market Cap: €2.0b
SMA Solar Technology sits at the intersection of energy security and the solar transition, which is back in focus as Middle East tensions raise concerns about oil supply and power costs. The company is still working through weak demand and intense price competition in its Home & Business segment, and recent results showed a small Q1 loss. Guidance for 2026 revenue of up to €1.73b and stronger EBIT points to improving order momentum, especially in Large Scale projects and battery storage. With the stock trading below some cash flow and fair value estimates but carrying funding and tariff risk, investors who want exposure to solar and storage as a possible winner from higher energy security spending may find this a story worth unpacking further.
SMA Solar Technology’s stalled Home & Business demand could be masking a more interesting Large Scale and storage story, so it is worth reviewing the analyst forecasts for SMA Solar Technology to see what the order book might really be signalling.
The three stocks covered here are only a starting point, as the full Global Defense and Aerospace Companies screener surfaces 29 more companies with equally compelling defense and aerospace narratives that could change how you think about risk and opportunity. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas in this space.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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