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Industry · Shipbuilding

Fincantieri targets wider shipyard rollout of robotics and physical AI

Its BOOST² program provides for almost €100 million in investment, with employees at 13 yards, including in the United States, involved so far.

Fincantieri is turning its BOOST² shipyard technology program toward industrial deployment, following an initial phase of scouting and experimentation. The aim is to bring new solutions into daily operations and progressively roll them out across the group’s yards.1

Fincantieri targets wider shipyard rollout of robotics and physical AI

BOOST² investment provision and employee participation

Almost €100 millionInvestment provided for under the Industrial Plan
More than 450Employees engaged in BOOST²
13 shipyardsYards with participating employees

The shipyard count measures employee participation in the program. Wider industrial rollout remains an aim.

Source: Fincantieri

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The program provides for investments of almost €100 million under Fincantieri’s Industrial Plan. The announcement does not specify a spending period, allocate the money by yard or tie it to a named ship program.1

Fincantieri reported demonstrations at its Castellammare di Stabia yard of solutions already operating, technologies undergoing validation and applications intended for further development. More than 450 employees across 13 shipyards in Italy and abroad, including facilities in Romania and the United States, have participated in the program.1

The work centers on physical AI, which enables intelligent systems to interact with the physical world, and collaborative robotics designed to help people perform complex tasks. Digital twins, smart supply chain systems, additive manufacturing and automated industrial equipment complement that work.1

Chief Executive Officer and Managing Director Pierroberto Folgiero described deployment at scale as the next challenge, with greater productivity, safety and quality as the intended results.1

Outside technology firms have a role in developing and tailoring these systems for shipbuilding. Through its Open Innovation strategy, Fincantieri selects partners in Italy and internationally, including small and medium-sized companies and start-ups, to adapt solutions to the industry’s needs.1

Sources (1)
  1. Fincantieri press release, “Fincantieri accelerates robotics and Physical AI to build the shipyard of the future” www.fincantieri.com
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Industry · Unmanned systems

Kratos plans a turbojet production ramp ahead of expected sales

Kratos targets up to 3,000 engines produced in 2027. It forecasts about 1,500 sold, with cash flow estimates including working capital for the ramp.

Kratos plans to increase turbojet production to address expected customer demand for jet engines for small cruise missiles and drones. Its 2027 forecast assumes about 1,500 engines sold, with most deliveries in the second half.1

Kratos plans turbojet production ahead of forecast sales

Turbojet engines, 2027: company production target and sales forecast

Planned productionUp to 3,000
Forecast salesApproximately 1,500

Kratos forecasts the significant majority of engine deliveries in the second half of 2027.

Source: Kratos third-quarter 2026 results. As of Nov. 5, 2026.

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Kratos's fiscal 2026 and 2027 cash flow estimates include working capital for materials, components and equipment to increase production of turbojet engines up to 3,000 engines produced in 2027.1

Third-quarter 2026 revenue grew 35.7% year over year. Organic growth, excluding the current-year contribution from acquisitions, was 23.2%. Turbine Technologies posted 27.1% organic revenue growth.1

Growth is already absorbing cash. Third-quarter 2026 operations used $5.2 million, which Kratos attributed primarily to receivables growth, alongside inventory increases tied to production ramps and development investments.1

For full year 2026, Kratos forecasts free cash flow use of $110 million to $120 million. It forecasts capital expenditures of $100 million to $110 million. It expects investments in inventory, property, plant, equipment and facilities to continue at least throughout fiscal 2027.1

Kratos raised $1,348.4 million from common stock issuance, net of issuance costs, in the first nine months of fiscal 2026. It ended the quarter with $1,404.3 million in cash and cash equivalents.1

Separately, third-quarter Unmanned Systems revenue fell to $74.6 million from $87.2 million a year earlier. Kratos attributed the decline to a prior-year shipment of Valkyries to an international customer that generated $16.1 million.1

Kratos says continuing resolutions typically restrict production-rate increases and new program starts. Its guidance assumes a continuing resolution into its first fiscal quarter of 2027. If it extends beyond March 31, 2027, the company says it will need to reassess its initial forecast for that year.1

Sources (1)
  1. Kratos Reports Third Quarter 2026 Financial Results, Nov. 5, 2026 ir.kratosdefense.com
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Industry · Submarines

Rolls-Royce's submarine reactor business plans large-component prototyping at a Derby technology park

Rolls-Royce expects the Derby technology park to expand capacity supporting submarine programmes while allowing its Raynesway site to focus on delivery.

Rolls-Royce Submarines announced a partnership on Nov. 6 with INFINITY, a private company creating a technology park in Derby, to develop large-scale prototypes of advanced defence components.1

Rolls-Royce Submarines announced a strategic partnership with INFINITY

aimed at developing large-scale prototypes of advanced defence components

technology park in Derbyfull-scale prototypingplanned

digital engineering, testing and validation, skills development and supply chain collaboration

technologies and processes includinghot isostatic pressingplanned

power beam welding and additive manufacturing

Rolls-Royce release, 6 November 2026

Sources
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Lee Warren, engineering and technology director at Rolls-Royce Submarines, said the park would allow the company to focus on delivery at Raynesway while developing advanced manufacturing techniques at purpose-built facilities. Warren tied the need to explore new technologies to the business's growth to meet demand for naval nuclear propulsion work. That includes increasing its manufacturing pace and providing reactors to Australia under the AUKUS agreement.1

The planned capabilities include hot isostatic pressing, power beam welding and additive manufacturing. Rolls-Royce expects these to provide greater control over manufacturing large, strategically important components for markets including fission, fusion, defence and aerospace.1

The Rolls-Royce Nuclear Skills Academy already operates on the 200-acre site, where the company will work with INFINITY to develop the additional capabilities. The park is intended to bring full-scale prototyping, digital engineering, testing and validation, skills development and supply chain collaboration together on one site.1

Rolls-Royce Submarines designs, manufactures and supports the pressurised water reactors powering every Royal Navy submarine. It currently supplies reactor plant and associated components for the Astute and Dreadnought build programmes.1

Rolls-Royce expects the new capabilities to shorten development cycles and expand the industrial capacity available to support submarine programmes. The announcement gives no timetable for bringing those capabilities into use.1

Sources (1)
  1. Rolls-Royce: Rolls-Royce Submarines partners with INFINITY to develop new capabilities for UK defence, Nov. 6, 2026 www.rolls-royce.com
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