Beneficiaries of the New Security Landscape: Can Three Technology and Defense Stocks Continue to Soar? BAE Systems, RTX, and Volatus Aerospace

RTX at Record High: Strong Quarterly Results Drive the Price

RTX shares (WKN: A2PZ0R | ISIN: US75513E1010 | Ticker: RTX) closed the past trading week at a new record high of USD 225.65. Since the closing price on July 22, one day before the release of the latest quarterly results, the stock has already risen by about 14%. Year-to-date, the gain stands at 18.6%, while on a 52-week basis, the stock has gained as much as 42.6%. The group's market capitalization now stands at USD 299.27 billion, putting it just shy of the USD 300 billion mark.

RTX is one of the world's leading aerospace and defence companies. The company consists of three major divisions. Collins Aerospace supplies, among other things, avionics, aircraft systems, and cabin equipment. Pratt & Whitney manufactures engines for civil and military aircraft. Raytheon develops missiles, radar, air defence, and other military systems. As a result, RTX benefits from both the growth in civil air traffic and rising global defence spending.

The 2025 fiscal year already laid a strong foundation. Revenue rose 10% to USD 88.6 billion, with organic growth of 11%. Adjusted earnings per share also increased by 10% to USD 6.29. Free cash flow reached USD 7.9 billion, up USD 3.4 billion from the previous year. At year-end, RTX had a backlog of USD 268 billion. The Q2 2026 results released on July 23 accelerated this positive trend. Revenue grew by 14% to USD 24.7 billion, with organic growth reaching 16%. Adjusted earnings per share rose by 21% to USD 1.89. Free cash flow reached USD 2.9 billion. At the same time, the total order backlog climbed to USD 289 billion, of which USD 170 billion was in the commercial segment and USD 119 billion in the defence segment. All three segments improved their operating margins.

Following a strong first half of the year, management significantly raised its full-year guidance. RTX now expects adjusted revenue of between USD 95 billion and USD 96 billion, as well as adjusted earnings per share of USD 7.10 to USD 7.25. The company is targeting free cash flow of USD 8.50 billion to USD 8.75 billion. Risks remain, including potential supply chain issues, rising production costs, and the ongoing challenges surrounding Pratt & Whitney's GTF engines.

From a technical analysis perspective, the stock is in a clear uptrend. The price is trading above the 20-, 50-, 100-, and 200-day moving averages. The 200-day moving average stands at around USD 189 and serves as long-term support. Following the rapid price rise, short-term profit-taking is possible. However, as long as RTX remains above the moving averages, the bulls are in control. The next resistance levels are at USD 237 and then again at USD 286.

Volatus Aerospace Combines Canada's Sovereign Drone Expertise and NATO-Compatible Networking

Increased government spending on arms and defence in many countries is also driving global demand in the drone market to significantly higher revenue levels. Forecasts project a market volume of over USD 160 billion by 2034, driven by demand for security-related infrastructure as well as maintenance, search, and rescue operations. Against this backdrop, Volatus Aerospace (WKN: A2JEQU | ISIN: CA92865M1023 | Ticker: ABB) is positioning itself as a Canadian systems integrator with a dual-use strategy: drone and software solutions that can be used for civilian purposes but also seamlessly meet government operational and security requirements. The latest cooperation agreements also increase the company's visibility in the public procurement sector, particularly in Canada.

At the operational level, recent press releases demonstrate how Volatus intends to further advance its marketing of autonomous drones and related services, among other initiatives. The partnership with Singular Aircraft to further develop the FlyOx 1 in Canada underscores the company's ambition to establish an independent drone system in the heavy payload segment. With local manufacturing in Mirabel and the associated supply chain infrastructure, the drones are also set to be deployed in firefighting and emergency management. With a maximum takeoff weight of approximately 4,000 kg and the ability to carry 1,560 litres of water or fire-retardant agents, the FlyOx 1 represents an entirely new class of autonomous aerial vehicles.

At the same time, Volatus is working with Kraus Hamdani Aerospace to advance the development of an open, network-based intelligence and communications ecosystem. This ecosystem is intended for use in the K1000ULE, which already has a very long flight duration, and will also lead to improvements in the resilient aerial communications architecture—Aerial Tier Network Extension++ (ATNE++). Together, the two companies aim to improve emergency management in response to the annual wildfires in Canada.

"Unlike conventional unmanned aircraft, which are designed for relatively short missions, the K1000ULE was specifically developed for continuous operation even in remote areas to ensure continuous reconnaissance and fail-safe communications in some of the world's most challenging operational environments," said Fatema Hamdani, CEO of Kraus Hamdani Aerospace. "Canada has the opportunity to leverage these proven capabilities in wildfire management while simultaneously building an independent aerospace capability that can also support emergency management, public safety, defence, and other critical national missions. Volatus brings the operational expertise, industrial capabilities, and long-term vision necessary to make this a reality."

Through this partnership, Volatus aims to gradually expand its business model, which has so far been based on high-margin software components and scalable services related to BVLOS operations. In Q1 2026, Volatus achieved an impressive margin of 35% with its proprietary SKYDRA platform, demonstrating the importance of in-house software as a growth driver. The collaboration is therefore intended to expand the value chain in the medium term and further increase the company's chances of winning upcoming tenders in the security and defence sectors as well as in the civilian critical infrastructure sector.

BAE Systems Stock Begins New Rally: Record Orders and Higher Forecast

BAE Systems shares (WKN: 866131 | ISIN: GB0002634946 | Ticker: BSP) were trading at around 2,220 pence, or GBP 22.20 (EUR 25.84), on August 7. Since the release of its half-year results on July 30, the stock has already gained more than 7%. Year-to-date, it has risen by about 25%, and on a 52-week basis, by approximately 18%. With a market capitalization of roughly GBP 64.5 billion, BAE Systems is one of Europe's largest publicly traded defence companies.

The British defence, aerospace, and security conglomerate develops, among other things, fighter jets, submarines, warships, armoured vehicles, artillery systems, guided missiles, and electronic systems. It also provides solutions for space technology, cybersecurity, and military communications. BAE is involved in major long-term programs such as the Eurofighter Typhoon, F-35, AUKUS, and the future GCAP fighter aircraft system. Its largest markets are the US, the UK, Europe, Saudi Arabia, and Australia.

Business performed strongly as early as 2025. Revenue rose 10% on a currency-adjusted basis to GBP 30.7 billion. Adjusted EBIT increased by 12% to GBP 3.32 billion, and adjusted earnings per share also rose by 12% to 75.2 pence. Free cash flow reached GBP 2.16 billion. Of particular importance was the order backlog, which grew by GBP 5.8 billion to a then-record high of GBP 83.6 billion. On July 30, the results for the first half of 2026 were released. Revenue, adjusted for currency effects, rose by 9% to GBP 15.77 billion. Adjusted EBIT increased by 11% to GBP 1.70 billion, while adjusted earnings per share grew by 13% to 38.9 pence. Free cash flow improved to GBP 1.79 billion. With new orders totaling GBP 16.4 billion, the total order backlog reached a new record of GBP 84 billion.

Due to this strong performance, management raised its full-year forecast. BAE now expects revenue growth of 8 to 10%, EBIT growth of 10 to 12%, and EPS growth of 11 to 13%. Free cash flow is expected to exceed GBP 2 billion. Rising defence spending is driving long-term demand, though the share price already reflects high expectations.

From a technical analysis perspective, the picture has brightened significantly. The stock is once again trading above the 20-, 50-, 100-, and 200-day moving averages. The 200-day moving average stands at approximately 1,960 GBX and serves as long-term support. In the short term, the zone around 2,150 GBX provides key support. On the upside, key resistance lies between 2,300 GBX and the previous 52-week high of 2,360 GBX. If the stock manages a sustained breakout above this level, new record highs could be reached. This would keep the medium-term uptrend fully intact. If, on the other hand, the price falls below 2,100 GBX, a consolidation toward 2,050 GBX to 2,000 GBX could follow initially.

RTX reaches a new all-time high thanks to strong quarterly results and a USD 289 billion order backlog. BAE Systems raised its full-year forecast for 2026 based on a new record order backlog of GBP 84 billion. Volatus Aerospace is boosting its margins in the growing security market with autonomous dual-use drone systems and could also attract interest from both companies in the medium term.