3 Defence Stocks Gaining Attention After The RAF Fairford Security Scare

A foiled terrorist plot near RAF Fairford has pushed security risks around UK based US military assets back into the spotlight, and markets are already weighing what that means for defence and security contractors. When geopolitics and spending priorities collide, some shares exposed to this story can gain fresh attention while others face new questions. This article unpacks the news and profiles 3 stocks from our Defence and Security Contractors screener that appear positively exposed to these developments.

The stocks highlighted below are only a small sample of what this theme can offer, with the full screen surfacing 68 more Defence and Security Contractors that carry equally compelling stories not covered here. If you want to go beyond the shortlist and really pressure test your own ideas, head straight into the Defence and Security Contractors screener to identify, compare, and analyse the highest conviction opportunities that fit your criteria.

Concurrent Technologies (AIM:CNC)

Concurrent Technologies plugs directly into the Defence and Security Contractors theme, supplying rugged embedded computing hardware for mission critical defence and aerospace systems that rely on secure, high reliability electronics rather than headline grabbing platforms.

Concurrent Technologies generates about £48 million from the design, manufacture and supply of high end embedded computer products used across defence, aerospace and other high reliability markets, and the stock is valued at roughly £217 million in market cap.

For investors tracking defence electronics, Concurrent Technologies offers exposure to the shift toward more open, modular architectures in mission systems without requiring a bet on any single weapons platform or base contract.

"The shift toward open systems architectures in defense programs is reducing lock in by larger incumbents, which gives Concurrent Technologies more access to land vehicle and radar upgrades and can broaden its addressable market and long term order book."

Much of the long term payoff still hinges on how one unseen pressure shapes the balance between pricing power and future margin potential.

That hidden pressure point is exactly what the full narrative for Concurrent Technologies unpacks in detail, including how contract timing, mix and capital intensity could be quietly reshaping returns.

Elmet Group (ELMT)

Elmet Group sits squarely inside the Defence and Security Contractors theme, supplying critical materials and high energy systems that feed directly into aerospace, radar and interceptor hardware where secure, domestic inputs matter as much as the finished platforms.

Elmet Group manufactures refractory metal components and high power microwave systems for aerospace, defense and government customers, generating about US$196 million from Critical Materials and Components and US$32 million from Engineered Microwave Products, with the stock valued around US$598 million in market cap.

"Tighter export controls and tariffs on tungsten and molybdenum, combined with Elmet Group's long-standing non China sourcing and offtake arrangement with EQ Resources, are supporting customer prepayments and a larger firm order book in tungsten."

The real swing factor now is how one emerging constraint in this supply chain reshapes pricing power and medium term profitability for Elmet Group.

That emerging constraint is exactly what the full narrative for Elmet Group unpacks, examining how supply risk, pricing power and contract timing could be quietly shaping Elmet Group's long term earnings potential.

Gilat Satellite Networks (GILT)

Gilat Satellite Networks plugs into the Defence and Security Contractors theme by delivering secure satellite broadband and ground equipment that keep government and defense users connected in places where fiber is not practical.

Gilat Satellite Networks generates about US$105 million from Defense, US$304 million from Commercial and US$79 million from Peru, with the stock valued around US$781 million in market cap.

"Growing global investment in secure, mission-critical satellite connectivity, driven by increased geopolitical tensions, public infrastructure modernization, and digital inclusion initiatives, continues to expand Gilat's addressable market, as evidenced by record new defense contracts and major government programs in regions such as Latin America and Europe."

What really matters from here is how one unresolved shift in funding mix and capital costs filters through to long term profitability.

With that funding mix in mind, read the full narrative for Gilat Satellite Networks to see how Gilat Satellite Networks could be quietly decoupling contract momentum from capital costs.

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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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