Analysis & Reports

Northrop Grumman is expanding its market share in munitions supply, engaging in discussions about eight weapons programs. Lockheed Martin is also involved in munitions production agreements and is seeking full funding from Congress. Both companies are adapting to the Pentagon's focus on increasing munitions production and have ongoing projects like the PAC-3 missile and GRIZZLY launch system.

The U.S. Army is prioritizing training for soldiers to operate drones effectively in contested electromagnetic environments as part of the Drone Dominance program. With 12,080 drones acquired, the focus is on ensuring every squad is equipped and trained by the end of fiscal 2026. Recent exercises in Germany highlighted the need for soldiers to navigate the electromagnetic spectrum effectively.

The U.S. Army is focusing on training soldiers to operate small, one-way attack drones, particularly in contested electromagnetic environments. This initiative follows the acceptance of 12,080 drones from the Drone Dominance program's first gauntlet. Training is being conducted both domestically and abroad, including exercises in Germany with NATO partners. The Army aims to ensure every squad is equipped and capable of using these drones effectively by the end of fiscal 2026.

The U.S. Air Force is seeking a ground-based, medium-caliber gun weapon system to defend against drones and cruise missiles as of September 3. This initiative aims to enhance air base defenses in response to the increasing threat from inexpensive and effective drone technology. The system must be rapidly deployable and capable of engaging multiple threats simultaneously, reflecting a significant shift in air defense strategy.

The Air Force Test Center is prioritizing safety while rapidly developing and testing new technologies, including upgrades for the B-52 Stratofortress and the introduction of Massed Modular Aircraft to replace the MQ-9 Reaper. This follows a recent incident where eight airmen died during a B-52 test flight. The center is collaborating with tech industries to enhance capabilities and integrate AI into military operations.

GM Defense delivered its first batch of PAC-3 MSE missile-housing components to Lockheed Martin on September 16, 2026, just 22 days after signing a production contract. This delivery is part of a broader effort to increase the production capacity of the PAC-3 MSE interceptor, which has seen a surge in demand due to its use in combat. The U.S. Army previously awarded Lockheed Martin a $9.8 billion contract for 1,970 interceptors.

The U.S. Army is seeking contractors to develop two prototype UAVs for the Army Blood Link project to transport blood supplies in the field. Each drone must carry 20 units of blood products and have a one-way transport radius of 30 kilometers. The deadline for proposals is September 21, with delivery expected within three months of contract award.

Latvia's government decided to purchase Czech-made Morana howitzers for its National Armed Forces on September 15, 2025, opting for this system over Sweden's Archer due to cost and delivery issues. The Morana howitzer, a 155mm system, will enhance Latvia's artillery capabilities and includes local industry participation in its procurement. Despite this decision, Latvia continues to maintain a strategic defense partnership with Sweden.

Lockheed Martin received its first shipment of critical components for Patriot interceptors from General Motors on August 28, 2023, just 22 days after signing a manufacturing agreement. This initiative aims to accelerate weapons production in response to increased demand, particularly due to ongoing conflicts involving the U.S. and its allies. Lockheed Martin is investing significantly to enhance its production capacity and supply chain resilience.

USS Cooperstown returned to Naval Station Mayport on August 31, 2026, after a four-month deployment. The Littoral Combat Ship program has been criticized for cost overruns, reliability issues, and a lack of effective combat capability, leading to a gradual retirement of the class. The U.S. Navy is adjusting its expectations and roles for the LCS amid changing maritime threats.

The U.S. Air Force operates 183 F-22 Raptors and over 800 F-35s, while China has around 500 J-20s and 60 J-35s, with production rates of 120 J-20s annually. The J-20's combat range of 1,200 miles exceeds that of the F-22, which has a range of 530 miles. The report highlights the growing challenge posed by China's mass production capabilities to U.S. air dominance.

Lockheed Martin proposed the F-16G fighter to the U.S. Air Force to meet increasing demands for aircraft due to an aging fleet and global threats. The Air Force aims to expand its fighter inventory from 1,098 to 1,558 by Fiscal Year 2035. The F-16G would utilize the existing Block 70 production line and incorporate advanced systems to enhance capabilities. Lockheed's Greenville facility is prepared to expand production to accommodate this new order.

The Royal Navy is set to introduce four Dreadnought-class ballistic missile submarines, with the first, HMS Dreadnought, expected to be commissioned in the early 2030s. These submarines will replace the aging Vanguard-class and are designed to enhance the UK's nuclear deterrent capabilities. Each submarine will be equipped with 12 Trident 2 D5 missiles and advanced stealth technology, including new X-rudders and Pumpjet propulsors for reduced noise.

The U.S. think tank Center for Strategic and International Studies proposed that the U.S. Navy should target Chinese aircraft carriers, viewing them as a strategic vulnerability. The report outlines tactics involving submarines and land-based missiles to counter China's growing naval capabilities. It highlights the need for the U.S. to adapt its naval strategy and increase its submarine fleet to effectively challenge the People's Liberation Army Navy.

The U.S. Defense Department and Lockheed Martin signed a framework agreement to expand production of the AIM-260 missile at Eglin Air Force Base, Florida. This agreement lays the groundwork for a future multiyear buy of the missile, which is designed to enhance air dominance capabilities. Australia has committed to purchasing the AIM-260 for its Royal Australian Air Force, marking its first export customer.

Japan plans to introduce approximately 52,000 drones for long-range strikes and intelligence gathering between 2027 and 2031 as part of its defense strategy. The government aims to counter threats from China, Russia, and North Korea, with a defense budget projected to reach 70-80 trillion yen. This military expansion has sparked public criticism regarding the allocation of resources and potential impacts on civilian sectors.

Babcock International Group and Ark Robotics have partnered to supply combat-proven uncrewed ground vehicles to UK forces. This collaboration aims to enhance the capabilities of the UK military with advanced unmanned technology.

HMS Duncan began a major refit in Portsmouth on September 6, 2023, as part of the Royal Navy's Power Improvement Project to resolve ongoing propulsion issues with the Type 45 destroyers. This project aims to replace the original diesel generators with more powerful units, enhancing the operational reliability of the fleet. Three Type 45s have already completed their upgrades, with full completion expected by 2028.

The Pentagon and Lockheed Martin have reached an agreement to ramp up production of the AIM-260 Joint Advanced Tactical Missile (JATM) in Washington. This agreement aims to support future multi-year procurement and boost foreign military sales. The JATM is designed to succeed the AMRAAM and has enhanced capabilities, with Australia announced as its first international customer.

The U.S. Navy awarded a $200 million contract to defense startup Castelion for the production of the Blackbeard hypersonic missile, enhancing carrier-based strike capabilities. This missile, designed for aircraft like the F-35 and F/A-18, has a range of 200 nautical miles and aims to fill a gap in the Navy's weapons systems. The contract is part of a broader effort to adapt acquisition processes to meet military needs more rapidly.