Aerospace & Defense covers aircraft and engine makers, component and aftermarket specialists, defense contractors, shipbuilders, space companies and public-safety technology. MoatScope covers 78 companies here. Fifteen have a wide moat, 23 a narrow moat and 40 none, which makes it one of the most moat-dense industries in the market.
How the industry makes money
Commercial aerospace earns twice on every aircraft: once when it is built and again over decades of service, as engines are overhauled and parts replaced. GE Aerospace operates the world's largest installed base of jet engines, and specialists such as TransDigm, HEICO, StandardAero and Loar earn much of their profit from that aftermarket. Defense contractors such as Lockheed Martin, Northrop Grumman, General Dynamics and RTX's Raytheon business hold franchises on major weapons systems that governments fund for years. Other niches are even narrower: Huntington Ingalls builds ships for the Navy and Coast Guard, BWXT is the single supplier of the reactors that power American submarines and carriers, and SpaceX runs launch and satellite-connectivity businesses.
Where the moats are
Intangible assets, including certifications, intellectual property and security clearances, and switching costs each appear in 27 of the 38 moat-rated companies. Efficient scale appears in 14: many programs and markets only support one or two suppliers.
- Boeing: one of only two makers of large commercial jetliners, alongside a major defense and space business.
- GE Aerospace and RTX: jet engines, aircraft systems and defense electronics with long service tails.
- Lockheed Martin, Northrop Grumman and General Dynamics: prime contractors in an oligopoly that holds the franchises on major weapons systems.
- TransDigm, HEICO, StandardAero and Loar: proprietary or certified parts and services that airlines and militaries rarely switch away from.
- Huntington Ingalls, BWXT and Leonardo DRS: shipbuilding, naval reactors and defense electronics protected by specialized facilities and clearances.
- Axon: an integrated policing platform spanning TASER devices, body cameras and evidence software.
- SpaceX: cost advantages and a growing network in launch and satellite connectivity.
The narrow-moat group includes Howmet, L3Harris, Embraer, Elbit Systems, Curtiss-Wright, Woodward and Rocket Lab. Companies without a moat include air-taxi developers such as Joby and Archer that are still pre-revenue or early in production.
What wears moats down
A moat does not guarantee a good business. Boeing keeps a wide moat on the strength of its duopoly position but scores just 27 on MoatScope's quality scale after years of production and program problems. Fixed-price contracts can turn cost overruns into losses, defense budgets shift with politics, and supply-chain constraints can cap how fast manufacturers deliver.
What the quality scores say
Wide-moat companies range from Boeing at 27 to TransDigm at 80 on quality, and the industry average is 36. The spread shows how much execution matters on top of a strong market position.
What to watch
- Aircraft production rates and delivery schedules.
- Flight activity, which drives engine and parts aftermarket demand.
- Defense budgets and major program awards.
- Competition and pricing in space launch and satellite connectivity.
Moat ratings and quality scores on this page update as companies report. Price versus fair value for every company in the industry is in the screener.