Analysis & Reports

The report discusses significant changes in the U.S. Army and Pentagon's contracting and acquisition processes in 2025, initiated by Defense Secretary Pete Hegseth. It highlights an overhaul of the Army's acquisition structure, cuts to certain programs, and new policies to enhance the use of small drones on the battlefield.

Sweden is accelerating the integration of Taurus missiles with its Gripen aircraft, enabling deep-strike capabilities earlier than expected. This development represents a significant shift in Sweden's military strategy, moving towards offensive operations.

The Pentagon's Joint Interagency Task Force 401 is planning to enhance counter-drone capabilities by sharing data with the Golden Dome missile defense project, focusing on larger drones classified as Group 3. This initiative aims to integrate counter-UAS efforts across military branches and improve defenses against drone threats, particularly in light of increasing drone activity along the U.S.-Mexico border.

EDGE Group, the UAE's defense conglomerate, announced new partnerships and ambitions for global expansion at the Dubai Airshow, including a satellite constellation.

A California Air Guard team successfully executed a high-risk night rescue from a fog-covered cruise ship, demonstrating their operational capabilities in challenging conditions.

This report outlines the top 10 defense news stories of 2025, highlighting key developments in military equipment and defense policies.

US forces have successfully seized an oil tanker in the Caribbean, indicating a military operation related to maritime security.

US forces are returning to Ecuador for a short-term counter-drug mission.

The U.S. Army has decided to discontinue its Spiritual Fitness Guide after four months of use, indicating a shift in policy.

Jordan confirmed that its air force joined U.S. military strikes against Islamic State targets in Syria, responding to the killing of three U.S. citizens. The operation aimed to eliminate ISIS fighters and prevent threats to regional security. U.S. Central Command reported over 70 targets were struck in central Syria, with support from Jordanian fighter aircraft.

The Pentagon has failed its audit for the eighth consecutive time, raising concerns about financial management within the Department of Defense.

The Missile Defense Agency has awarded contracts to an additional 1,086 defense companies for the Golden Dome initiative, doubling the number of firms competing for up to $151 billion in missile defense technology contracts. This initiative aims to enhance missile defense capabilities, including space-based interceptors, and is expected to take a decade to complete.

The US Air Force has selected nine companies for contracts in the second round of its Collaborative Combat Aircraft program, focusing on developing drone wingmen to operate alongside manned aircraft. This phase, known as 'Concept Refinement', will evaluate various designs for future prototyping. The Air Force is also collaborating with the Navy and Marine Corps to ensure interoperability among services.

US forces have launched strikes on ISIS in Syria as a response to the death of two soldiers.

The U.S. has launched an operation to eliminate ISIS fighters and infrastructure in Syria following the deaths of three U.S. citizens in an attack attributed to ISIS. Defense Secretary Pete Hegseth announced the operation, emphasizing it as a declaration of vengeance. Airstrikes have targeted ISIS positions in Deir ez-Zor and Raqqa provinces, utilizing F-15 jets, A-10 aircraft, and Apache helicopters. President Trump has promised serious retaliation for the attack on U.S. personnel.

The Pentagon has failed its financial audit for the eighth consecutive year, revealing ongoing systemic challenges in accounting for its assets. The Department of Defense has not passed any audits since annual reviews were mandated in 2018, and auditors identified numerous weaknesses in financial reporting. The Pentagon reported significant assets and liabilities and aims to resolve critical issues by 2028.

President Trump has nominated Marine Corps Lt. Gen. Frank Donovan to lead US Southern Command, overseeing operations in the Caribbean, including strikes on drug smuggling boats. Donovan will replace Adm. Alvin Holsey, who retired recently.

The U.S. military is ending the practice of using live animals for medic training, opting for advanced simulation technology instead. This decision is part of the annual defense bill and aims to reduce animal suffering while maintaining effective training for medics. The change has been supported by animal rights advocates and reflects a broader shift towards humane training methods.

The Pentagon is preparing to enforce a ban on companies with indirect ties to Chinese military firms, aiming to eliminate such entities from defense supply chains. This ban will take effect in stages, starting with direct contracts in June 2026 and extending to indirect contracts by June 2027. The Pentagon plans to assist contractors in identifying risks associated with subcontractors' affiliations.

The report outlines significant changes in defense policy and features opinion pieces that will influence discussions in the defense sector going into 2026.