Iran Sanctions Send Shockwaves Through Defense Stocks
The recent freezing of US$30 billion in annual trade between the UAE and Iran has sent shockwaves through defense and aerospace stocks, making them a key focus for investors tracking geopolitical risk. The stakes are high, and sitting on the sidelines may mean missing meaningful shifts in capital flows.
Three stocks that could be affected by these developments are Elmet Group (ELMT), AEVEX (AVEX), and Boeing (BA). Elmet Group manufactures precision refractory metal components and high power microwave systems for defense and aerospace applications. It generates most of its revenue from the US, with around 90% coming from within the country.
AEVEX is a U.S. defense technology contractor focused on unmanned aerial and maritime systems. The company supports airborne intelligence, surveillance, and reconnaissance, as well as counter-UAS and specialized mission aircraft work. It generates around $585 million in revenue from Tactical Systems and roughly $112 million from Global Solutions.
Boeing is a US aerospace and defense company that builds and supports commercial jetliners, military aircraft, missile defense systems, satellites, and human spaceflight platforms. The company supplies aircraft, weapons systems, and mission support to airlines and governments worldwide.