From Yahoo Finance: 2025-03-31 17:18:00

US defense stocks have been struggling in 2025 due to concerns about government budget cuts. President Trump’s hints at reducing military spending if tensions with China and Russia ease have impacted investor confidence. European stocks, on the other hand, have surged with billions being allocated for military enhancement.

Analysts at UBS are optimistic about America’s defense sector, anticipating a better outlook with the FY26 budget request. Citi analyst Jason Gursky also recommends investing in American defense stocks, citing the evolving global order and the persistent need for deterrence tools. Defense spending is expected to remain robust.

Draganfly Inc. (NASDAQ: DPRO) is among the worst performing defense stocks in 2025, with a 23.69% decline in share price. The company, specializing in unmanned aerial vehicles and data analysis platforms, reported a slight revenue increase but a decrease in gross profit. Former Acting U.S. Secretary of Defense Chris Miller has joined the company’s Board of Directors.

Draganfly Inc. (DPRO) has opened a new facility in Tampa, Florida, to strengthen its national security and defense partnerships. Despite its ranking as one of the worst performing defense stocks, there is optimism for AI stocks to deliver higher returns within a shorter timeframe. The company’s performance reflects the challenges within the defense industry.

Read more: Is Draganfly Inc. (DPRO) Among the Worst Performing Defense Stocks So Far in 2025?