Analysis & Reports

The U.S. Navy awarded Kongsberg Defence and Aerospace a $50.3 million contract modification on July 2, 2025, for additional launcher missile modules supporting the NMESIS system. This system enables the Marine Corps to launch Naval Strike Missiles from unmanned ground vehicles, enhancing their anti-ship capabilities. The contract reflects a broader modernization strategy and involves international collaboration across NATO countries.

The Federal Office for Equipment, Information Technology and Use of the Bundeswehr (BAAINBw) signed a contract on 9 June 2026 with MBDA and Rheinmetall to develop a high-energy laser weapon system for the German Navy, expected to be operational by 2029. This system aims to enhance naval defense capabilities against air, sea, and land threats, with a focus on utilizing German supply chains. Extensive testing has already demonstrated its effectiveness in various conditions.

Quantum Systems expanded its operations in Tallinn, Estonia, on 10 July 2026, by acquiring SensusQ, a local intelligence software company. This acquisition enhances Quantum Systems' capabilities in data analysis for defense and security. The new office will integrate local engineering talent and strengthen the company's presence along NATO's Eastern Flank.

Ukrainian President Zelenskyy confirmed that the U.S. is testing Ukrainian-made aerial and maritime drones, receiving positive feedback. This marks progress on a long-stalled drone production deal valued at $35 billion to $50 billion. Zelenskyy also highlighted the importance of a Patriot interceptor license for Ukraine's defense amid ongoing Russian strikes. The developments indicate a strengthening military partnership between Ukraine and the U.S.

IAEA teams reported hearing military activity sounds, including drones and gunfire, near Khmelnytskyi, South Ukraine, and Zaporizhzhia Nuclear Power Plants from July 2 to 8, 2023. IAEA Director General Grossi highlighted the ongoing risks to nuclear safety amid the conflict, urging military restraint around nuclear facilities. No damage to the plants has been reported.

Ukrainian Unmanned Systems Forces conducted significant strikes on July 6, targeting 47 Russian military assets, including two S-400 launchers in Bryansk and Crimea. The campaign focuses on destroying critical radar systems to blind Russian air defenses, with reports indicating a high rate of attrition against these assets. Despite Russia's ability to produce launchers, the slow replacement of radars poses a challenge for their air defense capabilities.

HMS Ambush, a Royal Navy Astute-class submarine, has not been operational since August 2022 and is currently at Faslane, Scotland, being stripped for parts to maintain other submarines. One-fifth of Britain's nuclear attack submarine force is effectively non-operational, with a recovery plan initiated in January 2026 to address logistical challenges. The Royal Navy is facing significant shortages in dry docks, spare parts, and qualified engineers, jeopardizing its operational readiness.

The demand for HIMARS has surged due to its successful deployment in Ukraine, prompting Lockheed Martin to double production to 96 launchers in 2024. Countries like Poland, Estonia, and Canada have placed significant orders, while HIMARS has also been utilized in operations against Iran. Despite its effectiveness, challenges remain with ammunition supply, impacting operational capabilities.

The Royal Navy is facing a severe readiness crisis in 2026, with both aircraft carriers and all five Astute-class submarines unavailable for operations. The fleet has been significantly reduced, now comprising only about 14 destroyers and frigates, and has fewer ships than the U.S. Coast Guard. The Defence Secretary resigned due to inadequate funding, highlighting the political implications of the Navy's declining capabilities.

The K9 Thunder howitzer, produced by South Korea's Hanwha Aerospace, has become the most exported tracked self-propelled howitzer globally, outselling competitors like the American M109 Paladin and German PzH 2000. Its success is attributed to rapid delivery, technology transfer, competitive pricing, and a self-sufficient production model. Eleven nations, including Poland and India, have adopted the K9, which is designed for quick firing and mobility, making it a preferred choice in the defense market.

Poland committed to purchasing up to 1,000 K2 Black Panther tanks from South Korea, with plans to produce 820 of them domestically under license. This initiative aims to rebuild Poland's tank industry and create over 10,000 jobs. The production of the K2PL variant is set to begin around 2028, marking a significant shift from being a buyer to a manufacturer of military equipment.

The Dassault Rafale has secured over 640 orders by the end of 2024, becoming a preferred choice for countries like Egypt, Qatar, and India. It is marketed as a sovereign purchase, free from American control, appealing to nations seeking operational independence. The aircraft's continuous upgrades further enhance its attractiveness, contrasting with the F-35's market dominance.

President Trump departed Turkey on an older Air Force One before switching to a new Qatari-donated jet at RAF Mildenhall in Britain. He acknowledged potential assassination threats from Iran during his trip. The new aircraft, a Boeing 747, was intended for U.S. service members to tour, but its security has drawn scrutiny due to rapid retrofitting.

Fincantieri signed two Memoranda of Understanding with Croatian shipbuilding companies Brodotrogir Cruise d.o.o and Iskra Shipyard LLC to support the Multi Role Corvette program. The agreements aim to enhance local shipbuilding capabilities and foster industrial cooperation in Croatia. This initiative reflects the commitment to strengthen defense sector collaboration between Italy and Croatia.

Thales, RAF Digital, and NAD have successfully integrated AI capabilities into the Multi-Domain Mission Support System (MD MSS) in the UK, enhancing operational effectiveness. This system, operational since 1986, now includes machine learning for maritime track analysis, improving decision-making for aircrew and planners. The deployment represents a significant milestone in military AI application, supporting various platforms including the F-35B and Typhoon.

The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) signed a contract on 9 July 2026 with the High-Energy Laser Naval Demonstrator Working Group (ARGE HEL) for the development of a high-energy laser weapon system for the German Navy. The system, expected to be operational by 2029, aims to enhance defense capabilities against airborne, maritime, and land-based threats, with a focus on utilizing German supply chains.

The United Kingdom announced a $50 billion initiative to enhance European deep precision strike capabilities during the NATO summit in Vienna. This initiative involves collaboration among 12 NATO allies, with the UK contributing £3 billion ($4 billion) towards missile development projects, including stealth and hypersonic weapons. The program aims to address military needs highlighted by the war in Ukraine and is part of a broader effort to improve NATO's defense capabilities.

Turkey signed a $10.7 billion deal for 20 Eurofighter Typhoons in October 2025, marking a significant shift in military procurement as nations prioritize sovereignty over reliance on U.S. defense systems. Countries like Portugal are also leaning towards the Typhoon, citing concerns about U.S. reliability. The Eurofighter consortium continues to enhance the aircraft's capabilities, making it an attractive option despite its higher purchase price compared to the F-35.

Germany will purchase Tomahawk cruise missiles from the United States and station them on its soil, marking a shift towards its own long-range strike capability. Chancellor Friedrich Merz announced the deal was finalized during a NATO summit in Ankara. The exact number of missiles and launchers remains classified, but this move aims to enhance Germany's defense strategy amid changing U.S. military presence in Europe.

DEUTZ signed an agreement to acquire FFG Flensburger Fahrzeugbau Gesellschaft mbH for €1.6 billion on July 9, 2026, establishing a leading systems provider for military vehicles and energy solutions in Europe. FFG will remain operationally independent and form the core of DEUTZ's defense activities, enhancing its capabilities in the defense sector. The acquisition is expected to accelerate DEUTZ's growth and help achieve strategic revenue targets ahead of schedule.