10 Defense & Aerospace Stocks Gaining From Rising Geopolitical Spending

5. TransDigm Group Incorporated (NYSE:TDG)

Year to Date Gain: 5.89%

Number of Hedge Fund Holders: 68

TransDigm Group Incorporated (NYSE:TDG) is one of the defense & aerospace stocks gaining from rising geopolitical spending. On January 16, TransDigm Group Incorporated (NYSE:TDG) agreed to acquire Jet Parts Engineering and Victor Sierra Aviation from private equity firm Vance Street Capital.

The $2 billion purchase is poised to strengthen the company’s prospects in the aerospace market as both entities design and manufacture aftermarket solutions for the sector. It focuses on the sales of replacement parts and maintenance products. The company is increasingly capitalizing on the booming demand for aircraft parts as airlines extend the lives of their fleet amid delivery delays.

The aftermarket service sector is one of the most profitable segments of the aerospace industry, thanks to its high margins. Jet Parts and Victor Sierra generated $280 million in revenue in 2025 from their commercial, regional, and cargo aviation operations.

“This is a natural progression for TransDigm. We have had a long-term and sizable Parts Manufacturer Approval effort within our existing operating units,” said Nick Howley, TransDigm’s Chairman.

TransDigm Group Incorporated (NYSE:TDG) designs, produces, and supplies highly engineered, proprietary aircraft components, systems, and subsystems for commercial and military aircraft. It focuses on critical components such as seatbelts, actuators, pumps, and flight controls, with a strong aftermarket for ongoing maintenance and replacements.