The US Marine Corps has selected Northrop Grumman and Kratos as the sole bidder for the MUX TACAIR program, worth up to $231.5 million. The teaming arrangement will integrate mission equipment onto Kratos's XQ-58 Valkyrie aircraft with Northrop's Prism software for autonomy.
President Donald Trump has issued a warning to defense firms about limits on share repurchases and executive compensation, citing concerns over investments in modernizing weapons production facilities. The move comes as the administration plans to issue an executive order targeting defense company share buybacks, dividends, and executive compensation.
2025 was a year of significant change in the defense industry, from the Army's review of contracting to the introduction of executive orders affecting diversity initiatives. The Navy's autonomous drone development program and the controversy surrounding the Small Innovation Research Program fund highlight the challenges facing the industry.
The US Air Force expects to receive its first modernized Air Force One aircraft in mid-2028, roughly two-and-a-half years later than initially forecast. The program's revised timeline comes after Boeing secured a deal personally mediated by President Trump in 2018 and faced numerous challenges, including COVID-19 disruptions and workforce woes.