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.
Saab CEO Micael Johansson is pushing for the GlobalEye aircraft as an alternative to the Boeing E-7A Wedgetail AEW&C aircraft, following NATO's rejection of the latter. The Swedish firm claims that SHAPE has looked into using GlobalEye for future AWACS operations and believes it can fill a gap left by retiring E-3 Sentry fleet.
Qatari Performance Marines unveiled its new Ghost 7 unmanned surface vessel at DIMDEX 2026 in Qatar. The system is designed for both naval combat and ISR missions, with two primary configurations.
The US Air Force has accepted a donated 747 jetliner from Qatar to serve as an interim Air Force One, amid delays for Boeing-modified jets. The aircraft was accepted in May and modifications began in September.
The Pentagon has agreed to invest $1 billion into L3Harris's solid rocket motors business, with plans to spin off the division as a separate company later this year. The department will take a direct ownership stake in the business, which will be publicly traded.
The Pentagon has completed its initial review of defense contractors, but needs more time to assess before finalizing a list of noncompliant companies that could impact stock buybacks and investor dividends. Defense Secretary Pete Hegseth was directed to work with each company to remediate issues and initiate actions through legal and regulatory channels.
Northrop Grumman's CEO Kathy Warden stated that her company has no plans to follow L3Harris' lead in allowing the Pentagon to take a financial stake in its solid rocket motors business. However, some suppliers may consider similar investments.
The Netherlands Ministry of Defence has jointly ended the acquisition of six Boeing E-7 Wedgetail Airborne Warning & Control System (AWACS) aircraft with several NATO partner countries due to loss of strategic and financial foundations. The decision comes amid cost and survivability concerns, as well as the US Air Force's withdrawal from the Wedgetail effort.
The US Marine Corps has selected L3Harris as the winner of its Precision Attack Strike Munition (PASM) program, worth $86.2 million. The contract will cover delivery of an unspecified number of 'Red Wolf' weapons by end of fiscal 2027.
L3Harris has announced that its F-16 electronic warfare system, Viper Shield, has been cleared for low-rate production by the US Air Force. The company plans to deliver the first batch of systems in December 2026, with a total of 219 systems on order.
L3Harris has begun converting two Bombardier business jets into Airborne Early Warning and Control (AEW&C) aircraft for South Korea. The work is part of a $1 billion contract awarded to the US firm in September 2025, with four Global Express 6500 jets to be converted in total.
Joby Aviation has completed the first flight of its hybrid turbine-electric demonstrator aircraft, marking a significant expansion of its technology roadmap. The aircraft integrates a hybrid powertrain into its existing electric VTOL platform and is equipped with SuperPilot autonomous flight technology.
Joby Aviation has successfully flown its first hybrid-electric vertical takeoff and landing aircraft, with plans to pitch it to military customers through an agreement with L3Harris. The autonomous system will be produced by Joby but missionized for military users.
The first of four MC-55A Peregrine surveillance jets has arrived at RAAF Base Edinburgh, based on the Gulfstream G550 business jet. The aircraft is heavily modified for airborne surveillance and electronic warfare by L3Harris, according to a joint media release issued by Australian Defence Minister Richard Marles and Defence Industry Minister Pat Conroy.
Firefly Aerospace has closed a third tranche of Series C funding, valuing the company at $1.5 billion pre-money. The round is being led by existing investors AE Industrial Partners and new investor Mitsui & Co.
Firefly Aerospace has secured an oversubscribed $175 million Series D funding round led by RPM Ventures. The round valued Firefly at over $2 billion, solidifying the company's position as a leader in responsive space services.
Firefly Aerospace has signed a multi-launch agreement with L3Harris for three dedicated launches on its Alpha vehicle in 2026. The contract further positions Firefly as the leader in small-lift launch services.
Firefly Aerospace announced a second multi-launch agreement with L3Harris for up to 20 Alpha launches, expanding its launch services beyond existing agreements. According to Firefly, the new agreement supports L3Harris' space business and will enable the company to provide dedicated launch options for customers.
General Atomics Aeronautical Systems demonstrated a pilot controlling an MQ-20 Avenger drone from the F-22 Raptor's cockpit at the Nevada Test and Training Range on Oct. 21. The demonstration leveraged Lockheed Martin and L3Harris teaming up for the internal research and development, according to Breaking Defense.
Embraer has dropped its proposal for a final assembly line in Saudi Arabia, opting instead to pursue a similar facility in the UAE. This move comes after a Memorandum of Understanding was signed with Saudi Arabian Military Industries in 2023.
Senate Democrats have raised concerns over the Pentagon's rare earth mineral equity deal with MP Materials, citing questions about the legal basis and financial terms of the arrangement. The deal, valued at $400 million, aims to shore up the US supply chain for rare earth magnets.
The World Defense Show will take place in Riyadh, Saudi Arabia, featuring a diverse range of exhibitors including Saudi Arabian Military Industries, AIC Steel, China, Russia, Lockheed Martin, Boeing, L3Harris, and many others. The event is expected to include product demonstrations, announcements, and partnerships, with a focus on regional security and defense capabilities.
Breaking Defense reports that seven major defense contractors generated $21.2 billion in free cash flow in 2024, with RTX issuing the most in dividends at $3.2 billion. The data suggests that these companies are prioritizing shareholder returns over investments in production lines, which could impact the president's demands for increased production capacity.
Booz Allen has long been a trusted advisor to the Pentagon, with a history of strengthening government processes and systems. The company is now shifting its focus toward rapid engineering capabilities, which it believes can help address the defense enterprise's time bottleneck.