3 Best ASX Defence Stocks to Buy Now
The defence sector is entering a major growth cycle and on Wednesday these ASX-listed defence companies surged due to improved investor sentiment.
Electro Optic Systems Holdings Limited (ASX: EOS)
on 26 November confirmed it had reached a settlement with ASIC over 2022 disclosure matters, agreeing to a proposed $4 million penalty which removes a major legal issue that had been weighing on sentiment.
The company also confirmed completion of its acquisition of the UK-based interceptor business for €5.5 million from MARSS Group and under this deal, EOS has taken ownership of all interceptor assets and the specialist engineering team behind the technology.
For the half-year ending 30 June 2025, total net profit before tax came in at $46.1 million which includes loss of $45.2 million from continuing operations and profit of $91.3 million from discontinued operations.
At 30 June 2025, the Group held $130.3 million in cash and term deposits compared to $52.3 million at 31 December 2024.
DroneShield Limited (ASX: DRO)
has regained momentum after facing setbacks earlier this month which created volatility in its share price.
On 25 November 2025, DroneShield announced a $5.2 million follow-on contract with a European military customer and confirmed that all required hardware is already in stock and cash conversion is expected in 4Q25.
The company also highlighted that this same reseller has placed 12 contract orders of more than $70 million over the past three years.
The stock had dipped earlier this month because of an administrative error which caused confusion in contract values and also 44.45 million performance options were vested which added selling pressure as investors responded to potential dilution despite the milestone being tied to revenue progress.
DroneShield is well placed to build scale and credibility as a leading counter-drone and electronic warfare company.
AML3D Limited (ASX: AL3)
is gaining momentum as an update on 18 November 2025 confirmed a $1.7 million ARCEMY system order from U.S based FasTech LLC which services the defence, aerospace and energy sectors.
During the September quarter, customer receipts reached $2.5 million and soon after the quarter, AML3D secured a $4.5 million ARCEMY order from Huntington Ingalls Industries which is the largest military shipbuilder in the U.S.
The company finished the quarter with $30.7 million cash which was strengthened by government grants and exercised options.
AML3D expects FY26 to be a major year as demand rises across aerospace, utilities and marine sectors with repeat orders expected over time.
(Source: Company Reports)
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