HII On EO. Following the White House’s new executive order calling on defense industry executives to prioritize increasing production capacity over paying out dividends and stock buybacks, HII CEO Chris Kastner told reporters on Jan. 8 he believes his company is on “the right path” to meeting the Trump administration’s objectives. “There’s been a consistent theme across the administration about investing more and there’s opportunity for growth. We’ve been investing more. I expect us to grow more and I expect to be held accountable to meet the commitments I make in my contracts,” Kastner said. “When I read the executive order, it felt like, ‘Okay, we’re doing the right stuff. We’re going down the right path. I don’t have to do anything significant different than what I’m already doing.’” Kastner said HII stopped doing share buybacks a year ago “because the requirements for investment in the shipyards are so great.”
Sierra Tranche 2 Update. Sierra Space last week said it has completed the fist nine satellite structures of the 18 it is producing for the Space Development Agency’s Tranche 2 Tracking Layer, three months ahead of schedule. Sierra Space is producing the satellites at its Victory Works facility in Colorado. The company is beginning the build phase for the next nine satellites, called Plane 2. The Plane 1 satellites are transitioning to the assembly, integration and testing phase, which entails the integration of components, subsystems and payloads for testing ahead of deployment.
ICBM Target. Northrop Grumman said it tested a new ICBM target by using a decommissioned LGM-118 “MX” Peacekeeper ICBM’s SR119 second stage motor from the Space Force’s Rocket Systems Launch Program. The company makes components for the LGM-35A Sentinel future ICBM, as well as ICBM targets, in Chandler, Ariz. The Missile Defense Agency uses the targets to test missile defense systems, including the Aegis ballistic missile defense system and the Ground-based Midcourse Defense System. Northrop Grumman said it has delivered 27 such missile defense targets and supported 12 launches since 2011. In the recent test, the target “met all performance goals for the missile defense test event, verifying the target’s enhanced capabilities and longevity to support future missile defense tests,” the company said. “The use of digital tools optimized processes, increased operational safety, enhanced end-to-end test capability and contributed to a 25 percent reduction in field execution during Pathfinder operations before supporting the successful maiden launch.” The SR119 provides more range, apogee and payload, and the new ICBM target “is compatible with advanced front ends to simulate sophisticated, long-range ballistic missile threats,” according to Northrop Grumman.
All-Time Highs. General Dynamics, RTX, L3Harris Technologies, and Rolls-Royce Holdings recorded their highest historical per share closing prices the week of Jan. 5–two days after the Trump administration ordered Venezuela strikes to capture Nicolas Maduro. On Jan. 7, Trump floated a $1.5 trillion defense budget number for fiscal 2027. On Jan. 6, GD ended the day at $360.71, and RTX at $190.40. On Jan. 7, Rolls-Royce closed at the equivalent of $16.50 on the London exchange, and on Jan. 8 L3Harris closed at $325.74. A day after RTX closed at its all-time high, Trump called out the company’s Raytheon unit as “the least responsive” in the defense industry to military needs, “the slowest in increasing their volume, and the most aggressive spending” on shareholders, rather than military needs. After Trump’s statement, RTX stock dipped slightly.
Final Upgrades. NATO’s final lifetime extension program of the alliance’s 14 Boeing-built E-3 Airborne Warning and Control System (AWACS) aircraft at Geilinkirken, Germany, is to keep the aircraft flying through 2035–a task that may have more import now, given the U.S. Air Force’s lack of commitment to the previously planned Boeing E-7 Wedgetail as an AWACS replacement. The Air Force is surveying industry to find suppliers for three AWACS parts of the AN/UPX-40 Identify Friend or Foe (IFF) system by New York-based Telephonics–a quad processor, a power converter, and an IFF receiver. The Air Force began a $60 million AWACS’ IFF modernization in 2015 by moving from the Telephonics Mode 4 AN/APX-103C to the company’s Mode 5 AN/UPX-40. Since 2023, the Air Force has retired 15 of its 31 AWACS but has said it may retain the remaining 16 until 2033. Instead of Wedgetail for air moving target indication (AMTI), the Pentagon now wants to move to space AMTI sensors and, in the interim, wants to rely on U.S. Navy E-2D Advanced Hawkeye aircraft by Northrop Grumman for AMTI. The fiscal 2026 continuing resolution, effective through Jan. 30, keeps the Air Force Wedgetail alive with $200 million for E-7 prototyping.
Lift Challenge Open. The Defense Advanced Research Projects Agency last week began accepting applications for its “Lift Challenge,” a $6.5 million competition seeking designs that can solve a vexing problem of vertical lift aviation, the payload-to-weight ratio. Current multi-rotor drones have a low payload-to-weight ratio, 1-to-1 or lower, which means as mission payload requirements increase, the size of the drone and its cost increase. The “Lift Challenge” seeks substantial improvements in the current payload-to-weight ratio with drones that will be tested on a competition course. The challenge is open to U.S.-registered entities and individuals.
Apache Support. The Army on Dec. 31 awarded Boeing a $2.73 billion contract for post-production support services for its Apache attack helicopters. Work on the deal is expected to be completed by the end of 2030. Army officials have said previously a decision on awarding Boeing a new multi-year production contract for Apache helicopters may be reflected in its fiscal year 2027 budget request.
T408 Engines. GE Aerospace said on Jan. 8 it has received a $1.4 billion contract to deliver more T408 engines that power the Marine Corps’ Sikorsky CH-53K heavy-lift helicopters. The Lots 9-13 production deal also covers spare engines and sustainment services, according to GE Aerospace. “This latest contract is a testament to the T408’s ability to deliver the power, durability and efficiency the Marine Corps depends on,” Scott Snyder, the company’s program director for heavy lift engines, said in a statement.
Teledyne Taps Ursa. Teledyne Brown Engineering has added Ursa Major as a partner under the company’s Design, Development, Demonstration, and Integration (D3I) Domain 1 contract with the Army Space and Missile Defense Command. The D3I indefinite-delivery, indefinite-quantity contract funds threat representative ballistic and hypersonic target vehicles for missile defense testing. Ursa Major will provide Teledyne with propulsion solutions.
GEOINT Partnership. SkyFi, which offers customers a self-service Earth observation platform that leverages satellite imagery, analytics and maritime data from various providers, has added Vantor’s satellite tasking, imagery and geospatial products to its platform. SkyFi customers also have access to Vantor’s more than 20 years of archived imagery. “Integrating Vantor into the SkyFi platform represents a major step forward in our mission to make Earth observation data simple, accessible and cost-effective for both businesses and individuals,” Luke Fisher, SkyFi’s CEO, said in a statement last week.
New COO. Leonardo DRS last week named Sally Wallace as the company’s new chief operating officer (COO), succeeding John Baylouny, who became the company’s new CEO at the start of the year. Wallace will continue to report to Baylouny. She has been with the company since 2002 and previously was executive vice president of business operations for nine years. Prior to that role, Wallace led the C4ISR Group.
Another Magnet Acquisition. Shortly after announcing the acquisition of shipbuilder Metal Shark, Magnet Defense last Friday said it has agreed to acquire Advanced Technology Group (ATG) to bolster its autonomy solutions. Magnet Defense is developing autonomous unmanned surface vessels. The Miami-based company said it will integrate ATG’s open architecture autonomy stack with its existing capabilities, enabling Magnet to more easily integrate “into the native command and control systems found in the military services, operations centers, and combatant commands across sea, land, air, space and cyber domains.”
ACV-30 Turrets. The Marine Corps recently awarded Kongsberg Defence & Aerospace an $80.2 million order to deliver 52 more 30mm turret weapon systems for the medium caliber cannon variant of the BAE Systems-built Amphibious Combat Vehicle, the ACV-30. Work on the deal is expected to be completed by the end of November 2028, according to the Pentagon.
