Analysis & Reports

Austal Defence Australia has been awarded a $4 billion contract to build eight Landing Craft Heavy vessels for the Australian military at Henderson, Western Australia. Construction is set to begin later this year, with the last vessel expected to be delivered in 2038. These vessels will significantly enhance Australia's amphibious capabilities and support humanitarian efforts.

The U.S. Department of Defense began testing commercial drones at Fort Benning, Georgia, as part of the Drone Dominance Program. This initiative aims to evaluate uncrewed aerial systems to streamline procurement and enhance military capabilities. The Pentagon plans to invest over $1 billion in domestic drone production and aims to acquire 300,000 drones by 2028, with testing scheduled to continue every six months.

The U.S. Department of Defense began testing commercial drones at Fort Benning, Georgia, as part of the Drone Dominance Program, aiming to acquire 300,000 drones by 2028. The program includes a list of 54 cleared drone models, with 29 approved for operational use. This initiative seeks to enhance military capabilities while reducing reliance on foreign-made components and boosting domestic production.

U.S. President Donald Trump issued an executive order in February 2025 to restructure foreign arms sales, focusing on prioritizing countries that invest in their self-defense. The order aims to streamline processes and improve transparency in arms sales, potentially reshuffling the priority list for arms recipients. Canada is responding by seeking to diversify its defense partnerships away from the U.S.

The USS John C. Stennis (CVN-74) remains sidelined at Newport News, Virginia, due to a 14-month delay in its midlife overhaul caused by supply chain issues and significant mechanical degradation. Inspections revealed a degraded steam turbine generator, impacting its operational readiness. Meanwhile, the USS Gerald R. Ford is engaged in high-tempo operations, raising concerns about crew fatigue and system strain.

The U.S. Air Force awarded a $94.7 million contract to DCS for the development of advanced multi-domain analysis systems at Wright-Patterson Air Force Base, Ohio. This contract, announced on February 19, 2026, aims to enhance mission-level operational effects modeling across air, ground, space, and cyber domains, with completion expected by February 19, 2031. The initiative supports the Air Force's multi-domain operational framework and focuses on integrating real-world sensor data with simulated conditions.

Fincantieri has been contracted to build four Medium Landing Ships for the U.S. Marine Corps at its Marinette Marine yard in Wisconsin. This contract follows the cancellation of the Constellation class frigates. A Vessel Construction Manager will be appointed to oversee the program, which aims to deliver a total of 35 vessels. Congress has allocated $800 million to assist in the transition from the Constellation project to the new landing ship program.

The U.S. Air Force concluded A-10 Thunderbolt II depot-level maintenance at Hill Air Force Base, Utah, with a farewell ceremony on February 12, 2023. The final Warthog, tail number 78-0655, is set to depart by the end of February, leading to the deactivation of the 571st Aircraft Maintenance Squadron. This marks the end of an era for the A-10 at Ogden ALC, which has been the primary depot for its maintenance since 1998.

BAE Systems and SURVICE Engineering signed a framework agreement to develop uncrewed air system technologies in the United States. This collaboration aims to enhance military logistics and tactical operations, building on their existing partnership since 2015. The T-150 platform, utilized by the U.S. Marine Corps as the TRV-150, will be central to this initiative, which seeks to expand the operational roles of uncrewed aircraft.

The U.S. Navy issued a Request for Proposal for a Vessel Construction Manager to oversee the acquisition of Medium Landing Ships in Washington on February 18, 2026. This strategy aims to accelerate delivery and improve cost discipline by managing construction at Bollinger Shipyards and Fincantieri Marinette Marine. The program will deliver a 35-ship fleet to enhance expeditionary agility and support Marine Corps operations.

Lockheed Martin and Insta signed a memorandum of understanding in Fort Worth, Texas, to enhance defense innovation and collaboration. The agreement focuses on command and control, sensor integrations, and sustainment, aiming to strengthen industrial resilience and capacity. This collaboration supports the strategic connection between the U.S. and Finland, enhancing security of supply and integrating local industry into the F-35 program.

Swarm Aero opened its Advanced Manufacturing Center in Fayetteville, Arkansas, on February 17, 2026, to produce large uncrewed aerial vehicles (UAVs). The facility will have the capacity to manufacture thousands of UAVs and is expected to create hundreds of aerospace jobs. This center will serve as Swarm Aero's primary hub for large UAV systems and swarm command-and-control software integration, reflecting a significant advancement in military drone technology.

Boeing is relocating its defense and space business headquarters back to St. Louis, ensuring leaders remain close to the 18,000 personnel in the area. The move, announced on Wednesday, aims to enhance operational efficiency and is part of Boeing's strategy to invest in future products and growth in St. Louis and Charleston. The defense division will continue to have a presence in Virginia, where the global headquarters remains.

Japan purchased 20 Wave Glider SV6 unmanned surface vehicles from Liquid Robotics under a $25 million Foreign Military Sales program. The U.S. Air Force Test Center at Eglin Air Force Base authorized the acquisition to support operational testing activities. The first unit is scheduled for delivery within 360 days, with final delivery within 720 days. This procurement ensures compatibility with Japan's existing unmanned systems.

The U.S. Army awarded Lockheed Martin a $33.8 million contract for ground and flight test support of the Lower Tier Air and Missile Defense Sensor (LTAMDS) integrated with the Patriot Advanced Capability-3 (PAC-3) system. This contract, announced on February 18, 2026, aims to validate the sensor's performance and operational functionality, with completion expected by March 31, 2027. The LTAMDS program is intended to enhance air and missile defense capabilities by replacing the legacy Patriot radar.

The U.S. Air Force awarded Boeing a $13 million contract to upgrade infrared countermeasure systems on C-17 Globemaster III aircraft operated by Canada and Australia. The upgrades will convert existing Block 10 systems to the newer Block 30 configuration, enhancing the aircraft's survivability against infrared-guided threats. Work will be performed in San Antonio, Texas, with completion expected by July 2030.

The U.S. Air Force's Sentinel ICBM program is experiencing significant software delays and risks associated with the aging Minuteman III system. A January 2024 Nunn-McCurdy breach has prompted a restructuring effort to address these issues. The program, led by Northrop Grumman, is projected to cost at least $141 billion, with the first flight now scheduled for March 2028. The GAO report highlights the need for improved project management and risk mitigation strategies to ensure nuclear readiness during the transition.

The U.S. Air Force's Sentinel ICBM program faces significant risks due to software delays and an extended reliance on the aging Minuteman III system. A Nunn-McCurdy breach in January 2024 has prompted a restructuring effort, with the program's cost now estimated at over $141 billion and the first flight delayed to March 2028. The Air Force is actively working to address these challenges and mitigate risks to prevent capability gaps during the transition.

Northrop Grumman's CEO announced that the company will not pursue direct Department of Defense investment for its solid rocket motors business during a conference in Washington. However, she indicated that some suppliers might seek such investments. The company believes it can scale production independently, maintaining strategic control over its solid rocket motors and related missile programs.

The USS Gerald R. Ford (CVN-78) is currently deployed to the Middle East, marking a projected 300-day deployment to counter Iran. Since June 24, 2025, the carrier has participated in high-intensity exercises in the North Sea and missions in the Caribbean. The U.S. Navy faces significant maintenance backlogs and a shipbuilding crisis, impacting its operational readiness and power projection capabilities.