Boeing (BA) and Huntington-Ingalls (HII) have multiple ways to benefit from the war against Iran. Further, both companies are well-positioned to be boosted by significantly higher global defense spending in general and by the U.S. in particular in the medium-to-long term. Also importantly, the valuations of both stocks are attractive, given the firms’ multiple, positive catalysts, and strong growth outlooks.
Boeing specializes in making planes for both airlines and militaries. Last quarter, its revenue jumped 57% versus the same period a year earlier to $23.95 billion, while its core operating earnings surged to $8.5 billion, compared with a loss of $4 billion.
BA has a market capitalization of $158 billion and an Enterprise Value/EBITDA ratio of 24.89 times.
HII specializes in building and repairing military ships. The company reported full year revenue advance of 8.2% year-over-year (YOY) to $12.5 billion, while its Q4 2025 EPS came in at $4.04, versus $3.15 YOY.
The company has a forward price-earnings ratio of 24.92 times and a market capitalization of $16.42 billion.
Boeing is reportedly one of the contractors that provides “aerial and space-based reconnaissance technology” which can be used to find small Iranian minelayers and the mines that have been planted in the Strait of Hormuz. The U.S. will likely use a great deal of this technology during the current war in order to help open the strait.
Boeing also manufactures the Orca sea drones that the U.S. may be using to “hunt autonomously” for Iran’s mines. Additionally, HII’s Kingfish and Lionfish drones can detect mines, so they could have been deployed for the same purpose.
Further, Boeing makes fighter jets, bombers, and airborne tankers that are being used to combat Iranian drones, attack other Iranian targets, and refuel U.S. planes. The U.S. Navy’s ships will likely participate in the effort to reopen the Strait of Hormuz. (Huntington manufactures many of the Navy’s ships.)
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