Analysis & Reports

In 2025, NATO countries and defense firms experienced a significant increase in military spending, with global defense revenues reaching $700 billion. The U.S. defense budget was approximately $900 billion, supplemented by $156 billion from the Reconciliation Act. European nations have ramped up military expenditures in response to security threats, particularly from Russia. However, production bottlenecks are emerging as a key challenge for the defense industry.

The Canadian military has formed a partnership with two technology suppliers from Quebec to develop a unified tactical communications (TACCOM) capability. This initiative aims to enhance the military's communication systems, although specific details regarding implementation and timelines are not provided.

Hermeus is developing the Mk 2 Quarterhorse drone in Washington, equipped with autonomy software from Anduril, with flight testing scheduled for next year. The Pentagon's Defense Innovation Unit is funding the project, which aims to achieve speeds of Mach 3. The partnership focuses on enhancing command-and-control capabilities for the drone's operations.

Chinese military analysts assess the U.S. Navy's proposed Trump-class battleship, highlighting its potential advantages and significant costs. They express skepticism about the feasibility of the project, noting that the estimated cost of $275 billion for 15 ships is exorbitant. The analysis points out that the U.S. Navy is currently facing shipbuilding delays and challenges, which could impact its naval capabilities in the Asia-Pacific region.

Boeing has been awarded a $55.4 million contract by U.S. Special Operations Command to supply Active Parallel Actuator Systems for the MH-47G special operations helicopter fleet. The contract will be executed primarily at Boeing’s facility in Ridley Park, Pennsylvania, and is expected to be completed by August 2033. This new flight control technology aims to enhance safety and reduce pilot workload during special operations missions.

The U.S. Air Force awarded a $31.8 million contract to Sierra Nevada Corp. on September 1, 2023, to design a modification kit for converting C-130J Super Hercules aircraft into ski-equipped LC-130Js. The work will be conducted in Colorado Springs, Colorado, and is expected to be completed by March 27, 2028. This modification aims to enhance the Air Force's airlift capabilities in snow and ice conditions.

The U.S. Marine Corps plans to acquire ten high-resolution 3D scanners for inspecting body armor, with locations in the continental U.S., Japan, Hawaii, and Guam. The scanners aim to detect cracks and delaminations in armor plates, enhancing current inspection methods. A Request For Information is due by October 2, detailing the specifications for the automated system.

The U.S. Navy is experiencing a significant shipbuilding crisis, with only one shipyard in Virginia capable of constructing and maintaining its aircraft carriers. As of July 14, 2024, only 4 out of 11 carriers are available for deployment due to long maintenance cycles. The Navy's logistical challenges are compounded by an inadequate workforce and supply chain issues, hindering its operational readiness in the Middle East.

AeroVironment was awarded a $464.8 million contract to supply the US Army with Locust X3 laser weapon systems as part of the Enduring-High Energy Laser program. The contract aims to produce and rapidly field up to 24 systems designed to neutralize Group 3 UAVs. The Locust X3 features advanced AI capabilities and is intended for deployment on various military platforms, enhancing the Army's defense against drone threats.

GE Aerospace is upgrading its manufacturing capabilities in Lynn to enhance production of military engines, including the T700 and T408. The company is also developing a hypersonic test bed for the HyCAT program, with the first flight planned for 2028. This initiative is part of a broader effort to meet increasing military demands and improve production efficiency.

AEVEX Corp. and Divergent Technologies announced a partnership to develop a new autonomous aircraft platform in California. The collaboration aims to integrate AEVEX's unmanned systems expertise with Divergent's 3D-printing technology to enhance production efficiency. Early efforts will focus on adaptable airframe designs and faster integration processes.

AZAK signed an Other Transaction Agreement with the U.S. Army's Global Tactical Edge Acquisition Directorate in 2025 to field a wheel-centric robot system. The robot demonstrated the capability to tow a Palletized Load System truck and additional ammunition, showcasing its potential for military logistics. The agreement aims to expedite the transition of new technologies into operational use.

LeVanta Tech demonstrated its HALIA unmanned system at ANTX Coastal Trident in Port Hueneme, California, showcasing its capabilities to operate in air and water. The drone can fly, land on the ocean, and remain in a low-power mode for extended periods. It features a unique design with ducted fans and a modular payload bay for various military applications, including ISR missions. The company has secured funding and contracts from the Air Force for further development.

Seasats announced that its Quickfish interceptor-class unmanned surface vessel has entered production and is now available at scale. The Quickfish demonstrated its capabilities during the Silent Swarm 2026 exercise at the Alpena Combat Readiness Training Center in Michigan, where it operated alongside four other autonomous vessels. The Quickfish can reach speeds over 40 knots and is designed for long-duration missions with a modular payload bay for various unmanned aircraft.

The U.S. Army awarded AV a $464.8 million contract to produce 26 high-energy laser weapons under the Enduring High Energy Laser program. These 30 kilowatt LOCUST X3 systems are intended to counter low-cost weaponized drones and will be delivered over the next five years. This marks a significant advancement in the Army's directed energy capabilities, following successful demonstrations of the technology.

President Trump nominated Gao Xiong to officially become the U.S. Navy Secretary on September 1, 2023, amid concerns about Navy personnel's heavy workload during the Iran conflict. Gao, a 25-year Navy veteran, previously served as Deputy Secretary of the Navy. This nomination follows the unexpected departure of former Navy Secretary John Ferrell in April 2023.

The U.S. Navy currently has only 3 nuclear-powered aircraft carriers ready for action, while 8 are either in maintenance or training. This reflects the operational reality and maintenance-intensive nature of aircraft carriers. The Navy's Optimized Fleet Response Plan outlines the readiness cycle, indicating that maintaining one carrier forward typically requires three carriers in various stages of readiness.

The U.S. Army awarded $192 million to Palantir Technologies and Anduril Industries for the production of the Tactical Intelligence Targeting Access Node (TITAN) program. Palantir will lead the production, while Anduril will manufacture vehicle-mounted systems. The program aims to enhance data-gathering capabilities for soldiers and includes the delivery of advanced and basic variants over the next 18 months.

The U.S. military faces a critical shortage of skilled engineers necessary to rebuild space capabilities during potential conflicts with China or Russia. This shortfall could hinder the rapid restoration of space-based intelligence, targeting, and communications assets. RAND researchers emphasize the need for increased workforce development and innovative solutions to address these challenges, particularly as adversaries threaten U.S. space assets.

GE Aerospace was awarded a contract worth up to $2.9 billion to supply parts for F414 engines used in the Navy's F/A-18 Super Hornet and EA-18G Growler. The contract, which runs until August 2031, is part of GE's efforts to increase production of its F404 engine for the T-7 Red Hawk. Additionally, GE was selected to provide a hypersonic test vehicle for the Defense Innovation Unit's HyCAT program, marking a significant milestone in high-speed systems development.