2 Space and Defense Stocks Turning Backlogs Into Revenue Growth

Two space and defense companies are converting strong backlogs into revenue growth amid rising global defense spending. Karman (KRMN) reported record Q1 2026 revenue of $151M (+51% YOY) with a $1B+ backlog, though its stock has fallen 40% YTD and trades at a high P/E of ~200. AeroVironment (AVAV) boasts a $1.1B funded backlog and $4.6B in YTD awards with 143% YOY revenue growth, despite missing analyst predictions and a 40% YTD decline. Both stocks are favored by Wall Street analysts despite recent selloffs.