ASX defence stocks are in the spotlight as geopolitical tensions continue to ramp up and governments raise their budgets for defence spending.
The shift in sentiment has attracted a lot of investors to the sector too, with some stocks seeing impressive share price surges.
And it's not too late to jump on board.
Here's a rundown of the best ASX defence stocks to buy right now.
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Droneshield Ltd (ASX: DRO)
Droneshield shares have attracted a lot of attention recently. The company announced plans this week to build a new $13 million counter-drone research and development facility in South Australia, doubling its employee numbers to 400.
In September, the counter-drone technology company joined the ASX 200 Index and also released a sales update.
Droneshield has surpassed 4,000 systems sold worldwide with the receipt of a package of two standalone contracts totalling $7.9 million for handheld systems for delivery to the U.S. Department of Defense.
At the time of writing on Wednesday morning, Droneshield shares are 2.97% lower and changing hands for $5.88 a piece. Droneshield's share price has jumped 84.6% over the past month and is now a huge 337.8% higher over the past year.
Earlier this month, Bell Potter listed Droneshield shares as one of its best buys, commenting that the ASX stock is in a strong position in a booming industry.
Electro Optic Systems Hldgs Ltd (ASX: EOS)
EOS has been another strong performer this year thanks to strong revenue growth and tailwinds in the defence sector.
The company has seen some big contract wins too. Most recently, it announced a new contract win worth $108 million for its remote weapon system, which means there could easily be much more upside for the stock to come.
At the time of writing, EOS shares are trading 6.75% lower at $8.01 a piece. For the year, the share price is an enormous 399.07% higher.
Yesterday, Bell Potter updated its price guidance on the shares. The broker confirmed its buy rating on the ASX tech stock and raised its price target to $11.20 (up from $11.00 previously). That represents a potential 39.8% upside for investors over the next 12 months.
Titomic Ltd (ASX: TTT)
Titomic is another great defence stock buy. The company specialises in metal additive manufacturing (cold spray technology), which has applications in defence (and other markets).
There has been no major news out of the company recently, but it announced a strong 37% increase in revenue for FY25 in August.
At the time of writing, the Titomic share price is down 2.99% to 32.5 cents. For the year, the share price has surged 170.83%.
Bell Potter is optimistic that the share price will keep rising, too. In July, the broker placed a speculative buy rating and 50-cent price target on Titomic shares. That represents a potential 53.85% upside for investors over the next 12 months.
