Electric Vertical Take-Off and Landing (eVTOL) aircraft companies have dominated the headlines. Archer and some of its rivals are racing to bring to market an affordable, convenient lineup of air mobility products. Whichever company—or companies—can successfully meet regulatory requirements and launch eVTOL aircraft on a significant scale is likely to reap the benefits of an anticipated new market surrounding air taxis.
Though these eVTOL firms have captured investor attention, there are a number of other aerospace and defense companies that are worth taking note of heading into 2025. These firms may have less glamorous projects in the works or—in the case of rival eVTOL companies—may not have experienced a share price rally in recent months. The fact that these companies are under the radar may make them all the more attractive to investors looking to avoid jumping on the bandwagon with their investments. The aerospace and defense industry is expected to grow considerably in the coming quarters, thanks in large part to ongoing geopolitical tensions that prompted about $2.4 trillion in global defense spending in 2023. Mounting interest in commercial airline travel after the COVID-related plunge in business and since inflation has settled is another factor likely to boost companies in this industry. Ducommun builds electronic and structural systems used in a variety of aerospace and defense applications as well as in other industries. For the latest quarter, revenue topped $200 million for the first time ever, led in part by Ducommun's military and space business. The firm topped analyst expectations for EPS and EBITDA for the quarter. Despite this strong performance, Ducommun shares are up just under 22% in the year leading to December 13, 2024, meaning that the firm is slightly behind the S&P 500 in its pace of growth. Ducommun has a P/S ratio of 1.2 and a forward P/E ratio of 19.4, which is competitive for the industry, suggesting that it may have room to continue to grow and, perhaps eventually, outpace the broader marke