Analysis & Reports

The US Navy dismantles retired aircraft carriers in Brownsville, Texas, where they are recycled for steel. This process involves strict environmental regulations and reflects the end of service for many significant vessels, including the USS Kitty Hawk and USS John F. Kennedy. Brownsville has become the largest commercial ship recycling hub in the US, marking the transition from old naval power to the next generation of supercarriers.

The F-35 program is experiencing significant readiness issues, with the fleet's mission-capable rate dropping to 25% as of July 31, 2026. The U.S. Air Force is addressing these challenges through a proposed $13.7 billion sustainment reset. Key issues include delays in Block 4 modernization and insufficient power and cooling capacity for future upgrades. Locations involved include Columbus, Ohio, Jacksonville, Florida, and Santiago, Chile.

The U.S. Navy sold five retired aircraft carriers for one cent each in 2021, with the dismantling process being costly due to environmental regulations and logistical challenges. The carriers, including Forrestal and Ranger, were sent to Brownsville, Texas, for dismantling, where the contractor assumed various responsibilities. The Navy's decision reflects a cost-avoidance strategy rather than a simple sale of usable warships.

USS Nimitz completed its final operational deployment on December 17, 2025, and returned to Naval Station Norfolk on July 9, 2026. The carrier is transitioning to training and deactivation, with its deactivation scheduled for March 2027. During its last deployment, Nimitz operated in multiple fleet areas and conducted over 8,500 sorties.

USS Gerald R. Ford entered a major maintenance period at Norfolk Naval Shipyard in February 2026 following an 11-month deployment that included combat operations. The carrier faced mechanical issues, including a fire that injured sailors and damaged equipment. The Navy anticipates that repairs will take 18-24 months due to challenges in naval shipyards and the complexity of the repairs needed.

Pratt & Whitney was awarded a $54 million contract to perform engineering work on the F135 engine, which powers the F-35 Lightning II. The contract, part of a broader agreement with the U.S. Navy, aims to address ongoing technical issues and improve operational readiness. Work will be conducted at multiple locations, with the majority in East Hartford, Connecticut, and is expected to conclude by December 2028.

Saab and Embraer signed a Heads of Agreement to potentially produce 20 additional Gripen aircraft at Embraer's facility in Gavião Peixoto, Brazil, by 2026. This agreement aims to enhance production capacity to meet global demand for the Gripen fighter, reflecting a decade-long partnership between the two companies. The collaboration emphasizes increased industrial output and technological exchange.

Embraer and Saab signed a Heads of Agreement on July 21, 2026, to produce 20 additional Gripen aircraft at Embraer's facility in Gavião Peixoto, São Paulo. This agreement strengthens their decade-long partnership and aims to enhance production capacity to meet global demand for the Gripen fighter. The collaboration reflects mutual trust and aims to support future business opportunities in the region.

The U.S. Army awarded a $447 million contract to TCOM LP for the production and support of Persistent Surveillance Systems-Tethered aerostats at Aberdeen Proving Ground, Maryland. This contract, expected to last until July 20, 2031, aims to enhance the Army's surveillance capabilities with aerostats that can operate continuously for weeks. TCOM's aerostats will provide 360-degree coverage and support military operations, reflecting the Army's commitment to maintaining and expanding its surveillance systems.

The U.S. military has conducted 66 airstrikes as part of Operation Southern Spear targeting narco-terrorists in the Caribbean Sea and Eastern Pacific Ocean since November 2025. Despite these efforts, drug trafficking remains prevalent, with increased cocaine seizures reported. The operation has resulted in significant costs and casualties, raising questions about its effectiveness and long-term impact on drug trafficking in the region.

Saronic is constructing the $3 billion Port Alpha shipyard in Brownsville, Texas, expected to create 10,000 jobs and open in 2028. The facility will support the production of unmanned surface vessels, contributing to U.S. maritime capabilities amid a federal push for enhanced shipbuilding. Texas has provided financial incentives to facilitate the project, which is anticipated to have a significant economic impact.

EDGE Group announced the acquisition of a 100% stake in Brazilian aerospace engineering firm AKAER on 16 July 2026. This acquisition aims to enhance EDGE's engineering capabilities and support the development of unmanned systems and advanced aerospace technologies. AKAER, based in São José dos Campos, has a strong reputation in the aerospace sector, contributing to various military and commercial programs.

Saronic announced plans to construct a new shipyard in Brownsville, Texas, starting later this year. The facility will cover 800 acres initially, with potential expansion to 4,000 acres, and aims to employ 10,000 workers over the next decade. It will focus on building both defense and commercial ships, including manned and unmanned vessels, with operations expected to begin in 2028.

MAURIC partnered with Couach to deliver 24 coastal surveillance patrol vessels for the Maritime Gendarmerie, with the contract awarded on 29 June 2026. The first unit is expected in 2029, and five vessels will be deployed overseas in French Guiana, Mayotte, and New Caledonia. These vessels will support maritime policing and environmental protection missions.

MAURIC partnered with Couach to construct 24 coastal surveillance patrol vessels for the Maritime Gendarmerie, with the first unit expected by 2029. The contract was awarded on 29 June 2026, and five vessels will be deployed overseas in French Guiana, Mayotte, and New Caledonia. The vessels will support maritime policing, counter-trafficking, and search and rescue missions.

The United States Navy initiated excavation for a third set of locks in the Panama Canal between 1940 and 1943 to accommodate the Montana-class battleships, which were ultimately canceled. The excavation was abandoned but later reused for modern locks completed in 2016. This reflects a significant shift in naval strategy and logistics during World War II.

U.S. airmen and Marines are assisting in air traffic control operations at Simón Bolívar International Airport in Venezuela as part of earthquake relief efforts. Approximately 2,000 U.S. troops are involved, with the 621st Contingency Response Wing managing logistics and air traffic. The 24th Marine Expeditionary Unit is also delivering supplies and providing humanitarian support following the earthquakes that occurred on June 24, 2026.

U.S. Southern Command deployed 2000 personnel to Venezuela in July 2023 to conduct earthquake rescue operations, asserting control over airspace and ports. The U.S. Air Force now manages air traffic at Maiquetía International Airport, while over $300 million in aid has been provided. This military presence is perceived as a strategic establishment rather than a temporary humanitarian mission, with local military forces notably absent from operations.

The Royal Navy currently has no attack submarines deployed at sea, creating a significant operational gap in Britain's maritime strategy. This situation is exacerbated by increased Russian submarine activity in the North Atlantic. The Royal Navy's Astute-class submarines, while highly capable, are facing prolonged maintenance issues, limiting their availability. This decline in operational readiness poses risks to NATO's undersea surveillance capabilities and British national security.

The U.S. military deployed approximately 100 airmen from the 621st Contingency Response Wing to Caracas, Venezuela, on June 27, 2026, to assist in disaster relief following two major earthquakes. Their mission includes restoring airport operations at Simón Bolivar International Airport and facilitating the flow of aid. Additionally, U.S. Southern Command has sent C-17s, CH-47 Chinooks, and MV-22 Ospreys to support the relief efforts.