Analysis & Reports

Four NATO nations, including Lithuania, the Netherlands, Czech Republic, and Croatia, selected Rafael's Trophy Active Protection System for their Leopard 2 A8 Main Battle Tanks. The contract, valued at approximately $390 million, was signed between EuroTrophy GmbH and KNDS Deutschland. This selection reflects confidence in the system, which is combat-proven and aligned with NATO standards, and includes logistical support for long-term availability.

Israel's Ministry of Defense signed a $183 million contract with Elbit Systems for the procurement of air-delivered munitions. This agreement is intended to support the operational requirements of the Israeli Defense Forces (IDF) and enhance the domestic defense industrial base. The deal reflects a strategic shift towards increasing local production capabilities amid ongoing regional conflicts.

SYOS Aerospace has been selected to advance to the next stage of Project NYX in the United Kingdom, focusing on developing wingman drones to operate alongside Apache attack helicopters. This initiative is part of the UK government's Strategic Defence Review, aiming to integrate uncrewed aircraft into combat formations. The project emphasizes rapid development and collaboration with industry partners to enhance military capabilities.

The Kronos Grand Naval radar was installed at the Shore Integration Facility in Saint-Mandrier, France, on 17 December 2025, marking a significant milestone in the Horizon Mid-Life-Upgrade Programme. This installation is crucial for the qualification and acceptance of the PAAMS system, with operational testing planned for the coming year. The upgraded anti-air warfare frigates are expected to be delivered between 2028 and 2030.

South Korea is commencing mass production of the KF-21 fighter jet in 2023, aiming to produce at least 40 units by 2028 and 140 by 2032. The KF-21, priced significantly lower than competitors like the F-35 and Eurofighter Typhoon, is attracting international interest, particularly from NATO countries. Korean Aerospace Industries is positioning the KF-21 as a viable low-cost alternative in the global defense market.

Various militaries are evolving their minefield breaching systems to address increasing threats from UAVs and precision strikes, particularly in the context of the ongoing conflict in Ukraine. Armoured breaching vehicles (ABVs) and unmanned ground vehicles (UGVs) are being developed to enhance breaching capabilities while minimizing personnel risk. Artillery is also being considered for breaching operations, although it presents its own challenges.

President Donald Trump announced the development of a new class of U.S. Navy battleships, the Trump-Class, on December 22, 2025. The first ship is projected to cost between $14.3 billion and $22 billion, with construction expected to begin in the early 2030s. The fleet may include 10 to 25 vessels equipped with advanced weapon systems, although challenges in the shipbuilding industrial base could affect costs and timelines.

The U.S. Air Force is pursuing $50 million in FY 2026 funding to upgrade the B-1B Lancer with External Heavy-Stores Pylons, enhancing its capacity to carry standoff weapons. This upgrade aims to increase the volume of fires from safer ranges and is seen as a temporary measure until the B-21 Raider becomes operational. The B-1B will be able to carry advanced munitions, including the Long-Range Anti-Ship Missile and AGM-158 JASSM, while also integrating hypersonic capabilities.

The Space Force is planning to procure RG-XX neighborhood watch satellites on a rolling basis through an indefinite delivery, indefinite quantity contract. This new satellite system is designed to be more maneuverable and capable of refueling in orbit, enhancing the Space Force's ability to monitor potential threats from Russia and China. Proposals for the RG-XX program are due by February 12, 2024, with the first task orders expected to be issued shortly thereafter.

China critiques the U.S. F-47 fighter jet, claiming it is already obsolete due to design flaws, particularly its canards which may compromise stealth. The Chinese J-36 and J-50 prototypes are reportedly already flying, with initial operational capability expected by the mid-2030s. The F-47, linked to Trump's presidency, faces significant technical and budget challenges, aiming for a combat radius of 1,000 nautical miles, which would surpass existing U.S. 5th-generation aircraft.

The U.S. Navy has ordered 24 Arleigh Burke Flight III destroyers, enhancing naval capabilities with advanced AN/SPY-6(V)1 radar and Aegis Baseline 10 combat systems. These destroyers, known for their multi-mission flexibility, are crucial for modern naval warfare and are currently under construction. The integration of these systems significantly improves ballistic missile defense and operational effectiveness in various maritime environments.

The U.S. Air Force developed the D-21 drone in the 1960s to address intelligence gaps following the U-2 incident. The drone was designed for high-speed reconnaissance over hostile territory, specifically targeting areas in communist China. Despite several operational attempts under Project Senior Bowl, the program was ultimately canceled in 1971 due to a lack of success and advancements in satellite technology.

Airbus Helicopters secured 544 gross orders in 2025, reflecting strong growth in both civil and military sectors. Spain ordered 100 helicopters for its armed forces, while Germany increased its H145M fleet. The company is expanding its production capabilities in India and has introduced new models like the H160M 'Guépard', enhancing its military offerings.

The U.S. Navy's F/A-XX sixth-generation fighter program received a significant funding boost, increasing from $74 million to $972 million for FY2026. This program aims to replace the aging F/A-18 Super Hornet and enhance naval air capabilities with advanced features like hypersonic weapons. Boeing and Northrop Grumman are potential contractors, and the F/A-XX is critical for countering threats from Chinese anti-ship missiles.

The UK Ministry of Defence announced on January 24, 2026, that seven companies have been selected to develop unmanned aerial vehicles (UAVs) under Project NYX, intended to operate alongside British Army Apache attack helicopters. The UAVs will enhance military capabilities in reconnaissance, strike, and electronic warfare, with initial operational capability expected by 2030. This initiative reflects the UK's strategic shift towards integrating advanced technology in military operations.

Seven suppliers, including Anduril, BAE, Leonardo, Lockheed, Syos, Tekever, and Thales, have been selected to design a new Apache wingman in the United Kingdom. This initiative highlights advancements in military technology and the development of new weapon systems.

Soframe was selected to equip the French Army with Heavy Recovery Vehicles (ELD) following a competition by the French Defense Procurement Agency. The contract includes an initial delivery of 20 units in 2027, with 5 units expected before the end of the first semester. The framework allows for an optional order of up to 80 additional units, enhancing the French Army's capabilities.

Abu Dhabi Ship Building (ADSB) is increasing production of offshore vessels and corvettes, with the first Falaj-3 vessel expected to be delivered to Kuwait by mid-2027. The company is also developing unmanned surface vessels and integrating new technologies, while 70% of its order book is for export to markets including Angola and Kuwait. The first BR71 MKII corvette will be launched on March 4 in Cherbourg, France.

ST Engineering was awarded a contract by Singapore's Ministry of Defence in December 2025 for the production of next-generation infantry fighting vehicles (IFVs) based on the Terrex s5. The delivery of these vehicles is scheduled to begin in 2028, featuring advanced capabilities such as enhanced situational awareness and cyber security. ST Engineering will work with MINDEF to integrate additional capabilities into the new IFVs.

Elbit Systems completed the acquisition of UAV Tactical Systems in Leicester, UK, to produce drones for European customers. This acquisition follows the British government's decision to phase out the Watchkeeper drones. Elbit is also involved in other drone technologies, including the Hermes 900 and loitering munitions.