Analysis & Reports

Oshkosh Defense and Grid Aero announced a strategic partnership to develop autonomous modular payload aircraft technology in Oshkosh, Wisconsin. This collaboration aims to meet the Department of War's urgent need for resilient aircraft solutions. The partnership will utilize Oshkosh's manufacturing capabilities to produce Lifter aircraft at scale, focusing on production engineering and customer engagement.

Germany is analyzing its potential participation in the Global Combat Air Program (GCAP), which includes Japan, the UK, and Italy. Japan is concerned that Germany's involvement could complicate the program and delay its operational target of 2035. Meanwhile, Canada has joined GCAP as an observer and is seeking future cooperation on combat aircraft technologies.

The U.S. Army's unclear demand signal is hindering the production of unmanned ground vehicles (UGVs) by industry, according to NAMC CEO Warren Sponsler. He highlighted that companies are uncertain where to invest due to ambiguous mission objectives and stressed the importance of clearer communication from the Army. Sponsler noted that new organizations like AUTOWARCOM could help streamline autonomy efforts within the Army.

The Pentagon's Office of Strategic Capital has agreed to lend Neros $450 million to expand drone production in Torrance, California. Neros will invest an additional $165 million, aiming to produce up to 1 million drones annually by 2028. The Archer attack drone, which complies with U.S. defense procurement law, is part of this initiative, with a significant contract to supply 6,000 drones to Ukraine by early 2025.

The U.S. Navy received its 1,000th Evolved SeaSparrow Missile Block 2 in September 2025, marking a significant milestone for the NATO SEASPARROW Consortium. This missile, designed for ship defense, enhances naval capabilities against various aerial threats. Raytheon, the prime contractor, continues to produce these missiles in Tucson, Arizona, with contracts extending through 2030.

Leonardo DRS will supply power, cooling, and vehicle integration hardware for the U.S. Army’s first production laser weapon, the LOCUST X3, designed to shoot down small drones. The contract, awarded to AeroVironment, is valued at $464.8 million and aims to deliver dozens of systems over the next few years. DRS will provide essential systems to ensure the laser can operate effectively on military vehicles.

Oshkosh Defense announced a partnership with Grid Aero to manufacture thousands of Lifter military drones in Wisconsin. This collaboration aims to leverage Oshkosh's manufacturing capabilities and Grid Aero's innovative design to meet Defense Department needs. The Lifter, an autonomous aircraft, is designed for modular payload capacity and is expected to enter low-rate production soon.

Oshkosh Defense announced a partnership with Grid Aero to scale production of the Lifter drone in Washington. The collaboration aims to produce hundreds to thousands of these unmanned aerial systems by the early 2030s, focusing on modular design for various missions including intelligence, surveillance, and reconnaissance. Testing of prototypes is ongoing, with a pilot production line expected to launch within a year.

Oshkosh Defense partners with Grid Aero in Washington to scale production of the Lifter drone, designed for various missions including ISR and cargo transport. The partnership aims to produce hundreds to thousands of these drones by the early 2030s, with testing of prototypes ongoing for the next 6 to 12 months. A pilot production line is anticipated to launch within a year.

Thales' subsidiary, Advanced Acoustic Concepts, was awarded a $53.9 million contract by the U.S. Navy to produce two integrated Remote Mine Hunting (RMH) modules. This contract includes options that could increase its total value to approximately $196.2 million. The RMH solution enhances the Navy's mine countermeasures capabilities by enabling remote detection and classification of undersea mines, thereby improving mission effectiveness and reducing risks in contested maritime environments.

Hanwha Defense USA (HDUSA) was awarded a $269 million contract by TOTE Services to construct a Medium Landing Ship in Philadelphia, with construction set to begin in late 2027. This contract marks HDUSA's first engagement with the U.S. Navy and supports the planned 35-ship LSM fleet. The first vessel is anticipated to be delivered by 2030.

The U.S. Air Force launched a free Wi-Fi service for airmen living in dormitories at 28 sites, including the Air Force Academy and Joint Base San Antonio, in October 2023. This initiative, provided by Boingo Wireless, follows a Congressional mandate in the 2025 National Defense Authorization Act aimed at enhancing the quality of life for military personnel. The rollout is intended to help airmen stay connected with family and friends, thereby improving their readiness.

HMS Queen Elizabeth and HMS Prince of Wales are currently operational but face significant mechanical failures and logistical challenges. The Royal Navy lacks sufficient aircraft, oilers, and escorts, relying on US support for operations. Both carriers have experienced serious issues since commissioning, undermining their intended role as power projection assets.

The U.S. Marine Corps is upgrading AH-1Z Viper and UH-1Y Venom helicopters under the SPINE program, with modifications scheduled to begin in fiscal 2027. The upgrades will enhance the helicopters' capabilities to carry heavier loads and integrate advanced weapon systems. Bell Textron has received contracts totaling $33.6 million for the hardware needed for these upgrades, with first deliveries expected in 2028. Developmental testing is currently ongoing at Naval Air Station Patuxent River, Maryland.

The U.S. Navy is inviting companies to demonstrate cargo drones for the U.S. Marine Corps' TRUAS Increment II program in Huntsville, Alabama, from January 25 to February 5, 2027. The drones must carry 100 pounds to a point 40 nautical miles away and return without refueling. Applications are due by November 30, 2026, and the current TRUAS is the TRV-150C, which has been operational since October 2023.

On November 1, 2023, the Sudanese Armed Forces reported drone attacks on multiple energy facilities in Abu Hamad and other locations in Nile State and Northern State, causing widespread power outages. The attacks were attributed to the Rapid Support Forces, which have not yet responded. Since mid-October, over 25 energy facilities have been targeted, exacerbating the power supply crisis amid ongoing armed conflict in Sudan.

USS John C. Stennis (CVN-74) has been undergoing Refueling and Complex Overhaul since May 2021, with its completion delayed to October 2026. As of now, the carrier is not ready for deployment, facing challenges in systems integration and crew training. These delays have significant implications for U.S. Navy operational readiness, particularly amid ongoing military commitments.

The USS John F. Kennedy (CVN-79) is 99% complete and expected to join the U.S. Navy fleet by March 2027, but it will not be ready for frontline deployment soon. The carrier is currently undergoing final testing at Norfolk Naval Station after leaving the Newport News Shipbuilding Facility. Delays have been caused by issues with its Advanced Weapons Elevators and Advanced Arresting Gear, as well as mandated modifications from Congress.

The U.S. Navy ordered $114.7 million in upgrades for AH-1Z Viper and UH-1Y Venom helicopters, including 15 A-kits and 4 mission kits. The upgrades aim to enhance electrical capacity and structural integrity, allowing the helicopters to carry new equipment. Work is scheduled to be completed by June 2028, with significant portions of the work taking place in Texas and Maryland. The U.S. Marine Corps operates approximately 189 Vipers and 160 Venoms, which will benefit from these enhancements.

The USS Gerald R. Ford (CVN-78) is currently undergoing Planned Incremental Availability (PIA) at Norfolk Naval Shipyard in Portsmouth, Virginia, since July 7, 2026. Following a 326-day deployment, the carrier is expected to complete repairs and begin sea trials in May 2027, with a realistic return to deployable status in early 2028. The shipyard faces logistical challenges as it undertakes repairs on the first Ford-class carrier.