Aerospace investment is gaining serious traction in 2025. Both the commercial and defense sides of the industry are expanding fast, fueled by rising demand, government contracts, and rapid innovation in manufacturing and propulsion systems.
If you’re tracking long-term trends in industrial growth, advanced tech, or defense modernization, aerospace is back in play—and investors are taking notice.
#Commercial Sector Spending Is Climbing
Howmet Aerospace Inc (NYSE: HWM), a major supplier of aircraft engine components, raised its earnings forecast for 2025. It now expects EPS between $3.36 and $3.44, up from earlier projections. The increase is tied directly to stronger-than-expected demand for castings, fasteners, and structural parts used in next-gen aircraft.
Aircraft backlogs are hitting records. As production ramps up, supply chains are struggling to keep pace. That pressure is driving capital back into aerospace manufacturing, especially among U.S.-based firms that stand to gain from reshoring and defense spending.
#GE Commits $1 Billion to U.S. Aerospace
GE Aerospace (NYSE: GE) plans to invest nearly $1 billion into its U.S. operations. The money will go toward upgrading production lines, scaling new materials, and meeting rising demand across both military and civilian aircraft programs.
The capital will be spread across 16 states and more than two dozen facilities. The focus is on building next-generation engine systems that are more efficient, reliable, and sustainable. This is not a marketing push. It’s a structural bet on the future of flight.
#Hypersonic Travel Is Moving From Fiction to Feasibility
Venus Aerospace is getting closer to launching one of the most ambitious projects in the market. The company’s Stargazer aircraft—a reusable hypersonic jet—could slash transatlantic flight times to just over an hour.
Backed by NASA and private investors, Venus is building toward speeds of Mach 9. That’s around 6,900 mph. Its rocket nozzle tech recently passed a key development milestone, and the team expects to fly a prototype in the near future.
If successful, this changes what aerospace looks like in the 2030s.
#Defense Spending Remains a Core Driver
The U.S. Department of Defense is backing the new B-21 Raider stealth bomber with another $4.5 billion in funding. The long-range bomber is a central pillar of U.S. airpower strategy, and the spending underscores how aerospace remains vital to national security and nuclear deterrence.
While commercial innovation makes headlines, defense remains the backbone of aerospace investment, especially for public companies with government contracts and long project cycles.
The United States remains the largest driver of aerospace funding, with both commercial firms and defense programs leading global innovation and investment.
#Urban Air Mobility Gains Momentum
Doroni Aerospace, a Florida-based company working on electric vertical takeoff aircraft (eVTOL), just locked in $30 million in private investment. It also secured export agreements worth up to $180 million with partners in Saudi Arabia.
The H1-X is designed for short-range, low-noise air mobility, and targets both defense and civilian markets. This signals growing global appetite for urban flight solutions and positions eVTOL developers as a new category within the aerospace sector.
#NewSpace Industry Reshapes Orbital Access
The NewSpace industry refers to the wave of private companies entering the space sector, challenging the long-held dominance of government agencies like NASA and Roscosmos, Russia’s state space agency.
Unlike legacy aerospace firms that rely on government contracts, companies like SpaceX, Blue Origin, and Rocket Lab are commercially driven and privately funded. They’re lowering launch costs, accelerating timelines, and expanding services, from satellite broadband to crewed missions and space tourism.
Investing in space exploration is gaining speed, with record levels of venture capital funding pushing forward innovation in satellites, lunar operations, asteroid mining, and deep-space infrastructure.
This shift is opening new avenues for aerospace investment, especially in launch platforms, orbital logistics, and near-Earth services. What was once a government-led endeavor is now becoming a commercially viable market. Companies like SpaceX now support missions to the International Space Station, underscoring the vital role private firms play in low-Earth orbit operations.
#What This Means for Investors
The aerospace industry is entering a new phase of growth, driven by public-private partnerships, advanced materials, and the expanding role of space in global infrastructure.
The scale and scope of aerospace investment is changing. From defense megaprojects to reusable jets and regional air taxis, capital is chasing new ideas and long-term plays.
Here’s what to watch:
Commercial aerospace suppliers like Howmet and GE are raising forecasts and reinvesting at scale.
Private aerospace firms are getting government funding and VC backing for hypersonic, orbital, and urban air platforms.
Defense budgets are still a massive source of stability and upside for aerospace contractors.
Flight tech breakthroughs are pushing timelines forward on what’s possible in speed, distance, and fuel use.
The mix of innovation, demand, and geopolitical urgency is pushing aerospace back onto the radar for investors who are looking for industrial growth beyond tech and AI.