In this article we look at four lesser-known UK-listed stocks serving the defence industry. The defence sector has been an outstanding performer in the last few years, and investors are searching for new names.
Our choices range from a £5 billion FTSE 100 metals and energy group to a £13 million AIM-listed consultancy. They also range in terms of business model, from supplying actual defence hardware to providing high-impact personnel solutions. Which of the four appeals will depend very much on your appetite for risk.
METLEN ENERGY & METALS (MTLN)
| Share price: €42.20 | PE: 11.8x |
| Market cap: £4.9bn | Yield: n/a |
The first of our four under-the-radar stocks is Athens-based but FTSE 100 listed Metlen Energy & Metals. The firm only came to market in September last year so not a great deal is known about it.
Metlen’s website describes it as operating across all five continents in the energy and metallurgy sectors. It also describes it as ‘strategically placed at the forefront of the energy transition’.
What it doesn’t say is, through its M Technologies division, it makes assemblies for Leopard tanks built by Germany’s KNDS. Moreover, Metlen has a 20-year-plus relationship with KNDS as a trusted supplier of key parts.
The Leopard 2A8 is Europe’s most advanced main battle tank and is crucial to the defence of the West. Metlen has agreed to deliver KNDS 200 Leopard assemblies and the two firms are in talks to deepen their cooperation.
That could mean new, higher-value types of defence systems to strengthen Europe’s strategic autonomy. Metlen’s Defence Hub can work on up to six different programmes simultaneously.
With Europe having to wean itself off US military support, Metlen could be a big beneficiary of increased spending on defence. In turn, defence could be the biggest growth driver for the group in the medium term.
Read related news here: https://sharesify.com/metlen-rises-on-major-european-defence-contract/
COHORT (CHRT)
| Share price: £11.40 | PE: 23.3x |
| Market cap: £528m | Yield: 1.6% |
AIM-listed defence group Cohort is a miniature version of FTSE 100 compounder Halma (HLMA). It operates as the parent company of seven innovative businesses providing products and services to UK and international customers.
Each of Cohort’s subsidiaries is run by experienced leadership teams with core capabilities in defence and security. Each operates with a large degree of autonomy but also has a close working relationship with the others.
This means they can benefit from each other’s technical capabilities, customer relationships and market knowledge. From time to time, Cohort acquires complementary businesses and helps them develop, adding to its own organic growth.
It may be small in comparison with the well-known players, but it has a strong track record and financial position. In March 2024 it won a 10-year, £135 million order from the Royal Navy for electronic warfare countermeasures.
The firm provides combat systems for anti-submarine warfare and electronic warfare including autonomous sea and air systems. It also provides cyber security services, digital forensics, intelligence, training and exercise support to the armed forces.
Although 1H operating profit was slightly short of the previous year due to margin mix, this was well flagged. For the FY, with over 96% of revenue covered, the group is sticking to its forecasts.
Read related news here: https://sharesify.com/cohort-slips-on-disappointing-update/
SRT MARINE SYSTEMS (SRT)
| Share price: 94p | PE: 24.5x |
| Market cap: £206m | Yield: n/a |
While it may not appear a defence play, AIM-listed SRT is a major player in MDA (maritime domain awareness). Its client list is international and continues to grow as threats multiply above and below the surface.
Originally a maker of ship-to-shore transceivers for the leisure boat market, SRT has evolved into a systems provider. Its products and services help nation-states tackle key issues of safety and security along with efficiency and the environment.
SRT’s latest integrated surveillance system delivers AI-driven maritime intelligence with integrated command and control. From detecting suspicious activity and identifying threats, the system allows users to make intelligence-led decisions and operate effectively.
Its shore-based systems are fully secure and it has recently developed remotely-operated surveillance USVs (unmanned surface vessels). So far, five states have adopted the firm’s MDA technology and more are in the works.
The company has a validated sales pipeline of £1.8 billion with projects ranging in value from $5 million to $300 million. Most of the pipeline is either new orders or contract extensions with existing clients, which increases long-term visibility.
Timing of sales can be unpredictable due to the nature of overseas contracts, but the market opportunity is immense. Only confirmed orders are included in the firm’s current sales and earnings forecasts.
Read more about the company here: https://srt-marine.com/
RC FORNAX (RCFX)
| Share price: 13.5p | PE: n/a |
| Market Cap: £12.7m | Yield: n/a |
The smallest of our four stocks, and from that perspective the most risky, is AIM-listed support solutions provider RC Fornax. The firm’s bespoke, dedicated teams work with clients on specific projects to get them completed and delivered.
Support can be through traditional outsourcing, where the company is given packages of work to deliver back as an external entity. Alternatively, RCFX can provide capability uplift by providing small teams to fill gaps in projects as and when needed.
This flexibility, to be hands-on or hands-off, remote or embedded, has been central to the firm’s success. The approach comes straight from the founders, both of whom are veterans of previous mission-critical MoD programmes.
The firm’s services are delivered as Statements of Work, with contracts based on fully-managed, outcome-focused services. This lets customers concentrate on the big picture while RC Fornax owns the project outcome, improving efficiency, accountability and quality.
This month, the firm announced its acceptance as a specialist provider on a major UK defence engineering framework. Since its launch in 2018, this framework has supported nearly £2 billion in contracted works.
The firm also announced it had been awarded a contract extension with a Tier-1 defence company worth just under £0.5 million. The award followed a ‘strong start’ to 2026 thanks to the SDR (Strategic Defence Review) and increased customer engagement.
RC Fornax is still a young company and may run losses for some time, so it isn’t for the feint-hearted. Also, due to lack of liquidity, the bid-offer spread is much wider than usual, so it is not suitable for traders.
Learn more about the company here: https://www.rcfornax.co.uk/
Disclaimer: The author (Ian Conway) owns shares in RC Fornax and SRT Marine Systems.
Note: Share prices and market caps correct as of 26 January 2026
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
