Best 5 ASX Defense Stocks to Buy in November

Due to the rise in geopolitical tensions, global defence spending has surged and these companies in the defence sector are winning big contracts which makes them compelling buys for investors in November.

DroneShield Limited (ASX: DRO)

recently faced a dip in its stock price due to the vesting of 44.45 million performance options but this does not change the underlying strength and long-term growth potential of the company. 

The company said that the total number of new options issued from now on will not exceed 1% of its issued share capital which will protect shareholders from dilution.

They secured a $25.3 million contract in Latin America which will be delivered and paid across Q4 2025 and Q1 2026 while the SaaS revenue climbed to $3.5 million for the quarter.

DroneShield delivered a great performance in 3Q25 with revenue of $92.9 million which is a massive jump from only $7.8 million in the same quarter last year.

Electro Optic Systems Holdings Limited (ASX: EOS)

recently secured a landmark export order for a 100kW High Energy Laser Weapon from a NATO member nation in Western Europe worth €71.4 million.

It also won a $108 million contract with Hanwha Australia to supply remote weapon systems for the Australian Defence Force’s LAND 400-3 program.

The company has launched its “Apollo” High Energy Laser Weapon system at the DSEI Defence Exhibition in London and also introduced its “Atlas” Space Control System at the International Astronautical Congress in Sydney which is designed to protect satellites and ground assets from potential threats in orbit.

The company had $91.5 million in total cash holdings at the end of September 2025 and receipts from customers were $16.5 million for the quarter.

Austal Limited (ASX: ASB)

showed impressive progress in FY25 as it reported revenue of $1.82 billion which is a 24% increase from last year and net profit after tax of $89.7 million which grew by 503%.

The company also achieved a major step forward in submarine module manufacturing with the construction of its US$450 million Module Manufacturing Facility 3 in Alabama.

Austal’s order book reached a record $13.1 billion which includes multiple long-term projects across Australia and the United States.

The company was officially approved as the Commonwealth of Australia’s Strategic Shipbuilder which is a great milestone that secures its role in delivering critical naval programs in future.

Vection Technologies Limited (ASX: VR1)

recently signed a big $22.3 million defence framework deal with a NATO approved partner, which can go up to $29.5 million. 
In Asia-Pacific, the company is also expanding its reach after buying Digital Experience Labs (DXLabs) and Monogic Limited.
Vection finished the September 2025 quarter with around $23.3 million in cash and equivalents on a pro-forma basis and this was supported by a $21 million capital raise done in October.

The company expects FY26 to be a key year as it starts joining the new acquisitions, expands its defence and AI areas, and moves towards stable profitability backed by long-term contracts.

VEEM Limited (ASX: VEE)

kept up its strong run in both marine and defence parts of the business during FY25 mainly because of new defence tie-ups and a steady rise in revenue.

The company made around $19.1 million from engineering products and services which is up by about 5% from last year. 
Its defence segment continued to be a key growth driver bringing in $15.6 million in FY25 and VEEM also extended its six-year contract with ASC worth $65 million to keep supporting Australia’s Collins Class submarine project. 

VEEM is planning to install more machines in the second half of FY26 to lift production capacity and it is well placed to gain from the AUKUS defence push and growing demand for marine stabilisation systems.

(Source: Company Reports)

FAQ About ASX Defense Stocks

1. Which ASX defence stocks are the best buys this November?

The foremost companies that should not be overlooked are Electro Optic Systems (EOS), DroneShield (DRO), Austal Limited (ASB) and Elsight (ELS), all of which enjoy the advantages of increasing worldwide military spending and gaining contracts.

2. What catalysts are driving ASX defence stocks right now?

Some of the most important factors are:
Worldwide defence budgets are increasing and moving fast. 
Tiger Brokers
More and more applications for high-tech systems such as drone defence, weapon systems operated from a distance, and space surveillance are being developed. 
Veye
Australian firms are getting international contract and supply chain positions.

3. Is now a good time to invest in ASX defence stocks?

Absolutely, concerning themes: The industry is gaining ground with persistent favourable factors in the long run. However, the right moment is crucial: prices have increased, thus it is essential to prioritise firms with robust product pipelines and clear views on future contracts. As per the latest report: “military shares is the exceptionally rare instance where there is long-term demand coupled with long-term funding.”

4. Should I buy a defence-focused ETF or individual ASX defence stocks?

ETF: Provides broad market access, reduced risk associated with a single company.
Individual stocks: possibly greater profit, more risk.

The decision is determined by your willingness to accept the risk, your interest in following particular companies, and the level of your monitoring of contract developments.

5. What catalysts are driving ASX defence stocks right now?

The major factors contributing to this phenomenon are as follows:
Global disruption of defence budgets is at an unprecedented level. 
Tiger Brokers
An increase in the need for sophisticated technologies such as drone-killing systems, remote guns and satellite monitoring. 
Veye
Australian firms are winning overseas contracts and roles in the supply chain.