The business of defense, October 23

Warhound emerged from stealth with a $200 million seed round and plans to supply working dogs to U.S. military forces, law enforcement and emergency first responders.¹

$200 millionWarhound seed round

More than 80%U.S. military working dogs acquired from Europe, Warhound says

Less than halfProcured dogs deemed fit for service after a roughly three-year acquisition-and-training pipeline, Warhound says

The supply and training figures describe the existing military working-dog pipeline, not Warhound's results.

Source: Warhound release via PR Newswire, Oct. 22, 2026.

TGOs tgos.ioShare

Its model combines biotechnology licensed from Colossal Biosciences, which Lamm co-founded, with training and Anduril's cybernetic augments and software. Warhound plans to produce dogs through cloning and equip them through its partnership with Anduril.¹

Led by CEO David Spirk, Warhound lists In-Q-Tel, Sequoia Capital, ARK Invest, Franklin Templeton, 8VC and Lux Capital among its backers.¹

The company describes a supply problem involving both overseas dependence and training losses. Warhound says more than 80% of U.S. military working dogs are acquired from Europe. It says fewer than half of procured dogs are ultimately deemed fit for service after a roughly three-year acquisition-and-training pipeline.¹

Booz Allen's Civil and Commercial revenue fell in the quarter ended Sept. 30, 2026. The 15% decline helped pull total revenue down 3.9%.¹

2025$827M

2026$702M

Source: Booz Allen Hamilton, fiscal 2027 second-quarter results, Exhibit 99.1. As of Oct. 23, 2026.

TGOs tgos.ioShare

National Security's reported revenue rose 0.6% to $2.076 billion. Booz Allen now groups defense and intelligence customers in that line, with prior periods presented on the same basis.¹ On the company's measure excluding billable expenses, National Security revenue grew 5.9%.² First-half payments for business acquisitions and dispositions, net of cash acquired, totaled $934 million; the results release and presentation do not separate acquired revenue.^1–2

Management attributed the overall revenue decline primarily to a slowed procurement environment in the prior year that led to a slower start to programs this year, predominantly from civil customers.² Headcount fell to 31,000 from 32,500 a year earlier.¹

Leonardo and Rheinmetall secured two Italian Army vehicle contracts worth $4.16 billion through their joint venture, Italy's MF newspaper reported, according to Defense News, which carried the Reuters story. Leonardo CEO Lorenzo Mariani could not confirm whether the contract had been signed, saying communication must be coordinated with clients. Rheinmetall declined to comment.¹

$4.16 billionReported combined contract value

Leonardo CEO Lorenzo Mariani could not confirm whether the contract had been signed.

Reported by Defense News (Reuters, citing Italy's MF newspaper). As of Oct. 23, 2026.

TGOs tgos.ioShare

If confirmed, the orders reported by Defense News would follow the initial Army Armoured Combat System (A2CS) contract with orders for combat vehicles and new-generation main battle tanks.¹²

Mariani said in Rome that the program was ready to enter production from Leonardo's side, according to Defense News. He said work was progressing on both the tank program and the Future Combat System in cooperation with Rheinmetall. The report gives no breakdown of the contract values, vehicle quantities or delivery schedule.¹

The venture's first A2CS supply contract, announced last November, covered 21 combat vehicles. It included another 30 vehicles as options.²

On Jan. 27, 2026, the venture delivered its first four Lynx infantry fighting vehicles to the Italian Army.³

Portugal has authorized the purchase of three Embraer KC-390 transports and an entry-into-service logistics package for resale to Greece.¹ The authorization allows spending of up to €532.9 million plus VAT with a consortium of Embraer S.A. and Embraer Portugal S.A.¹

Up to €532,894,587.68Three KC-390 aircraft and entry-into-service logistics

Up to €57,081,320.28Electronic warfare equipment, training, logistics, technical support teams in Greece and program management

Greek sale revenue is to finance the operation entirely; the government-to-government contract remains to be concluded.

Source: Diário da República, Resolution 207/2026. As of October 22, 2026.

TGOs tgos.ioShare

Greece formally asked Portugal for the aircraft, training and initial logistics support. The resolution provides for Greek sale revenue to finance the operation entirely, although the government-to-government contract is still to be concluded. It does not state the price Greece would pay.¹

A separate authorization allows Portugal's Air Force to spend up to €57.1 million plus VAT on electronic warfare equipment, training, logistics support, technical support teams in Greece and program management. The resolution estimates the overall charge at about €590 million, with spending spread over 2026–2031. The Council of Ministers approved the resolution on October 14, 2026; it was published in the official gazette on October 22.¹

Portugal established the broader purchase route in 2025, when it exercised an option for a sixth KC-390 and secured options for up to 10 additional aircraft for European or NATO nations. Those nations could buy through the Portuguese state under government-to-government arrangements; the resolution does not specify whether the Greek aircraft would use those options.¹

Space Systems Command announced the awards Oct. 22, 2026.^1–2 The six purchase agreements establish the initial space domain awareness (SDA) surge capability of its Commercial Augmentation Space Reserve (CASR).¹

SixPurchase agreements awarded

Participating commercial providers will furnish agreed-upon space domain awareness capabilities to support Joint Commercial Operations during periods of increased demand.

Source: Space Systems Command. As of Oct. 23, 2026.

TGOs tgos.ioShare

The awards build on earlier pilots, with participating commercial providers agreeing to make SDA capabilities available to support Joint Commercial Operations during periods of increased demand.¹

The agreements use the ACCESS Contract, part of the General Services Administration framework that Joint Commercial Operations uses to buy commercial data and data-fusion services from multiple providers. The announcement did not identify the awardees or disclose agreement values or activation terms.¹

Watchtower Labs emerged from stealth on Oct. 21, 2026, with $35 million in seed financing led by Shield Capital and Conviction, with Founders Fund participating.¹

Joint Sustainment Decision ToolJanuary 2026actual

awarded two prototype contracts to Air Space Intelligence (ASI) and Watchtower Labs, Inc.

The financingbroader operational planningplanned

The company says the financing will support team growth, more applications, and continued testing and deployment as the technology extends beyond sustainment into broader operational planning

Source: Watchtower Labs release via PR Newswire; Defense Innovation Unit. As of Oct. 21, 2026.

Sources

• www.diu.mil ↗
• www.prnewswire.com ↗

TGOs tgos.ioShare

The company is starting with logistics planning and already holds a government prototype contract.^1–2 It says the financing will support team growth, more applications, and continued testing and deployment as its technology extends beyond sustainment into broader operational planning.¹

Shield's involvement extends beyond the financing: Watchtower was incubated within the venture firm, and Shield founder and managing partner Raj Shah chairs the company. Watchtower's co-founders include Akhil Iyer, a former Marine special operations officer and Shield investor, alongside Souren Aghajanyan and John Morman.¹

The Defense Innovation Unit awarded prototype contracts to Watchtower and Air Space Intelligence in January 2026 under its Joint Sustainment Decision Tool program, following a competitive commercial solutions opening assessment.²

HD Hyundai and Kiewit Maritime Co. unveiled plans for a new US shipyard aimed at Navy auxiliary and commercial vessels, Breaking Defense reported. The proposed joint venture is called HD Kiewit Shipbuilding LLC.¹

Aiming to buildUS Navy auxiliary and commercial vesselsplanned

new shipyard in the US

Will also be designed to produceship blocks and modulesplanned

for the US shipbuilding industry

Full operations expected to launch in 2029

Reported by Breaking Defense. As of October 23, 2026.

Sources

• breakingdefense.com ↗

TGOs tgos.ioShare

The yard would also be designed to produce ship blocks and modules for the wider US shipbuilding industry, giving the proposal a role in supplying other builders.¹

The companies plan to start construction in 2027 at an existing industrial site and expect full operations in 2029. Their announcement describes deep water and unrestricted access to the Gulf.¹

The yard aims to support up to 3,000 full-time jobs. Breaking Defense's report gives no investment figure, specific site, Navy contract or approval status for the venture.¹

The Department of War has issued templates for implementing the Trump administration's “truth-seeking” and “ideological neutrality” principles in AI procurements, DefenseScoop reports. Compliance with the White House directives is mandatory, but components can tailor the language to each acquisition's context and risk level.¹

Requiring activity memorandumFor the requiring activity to select the appropriate transparency requirements for the procurement

Solicitation languageInstructs vendors on the documentation they must provide to demonstrate compliance

Formal contract languageCould be included in a Statement of Work or Performance Work Statement, in solicitations and final contracts

→

Unbiased AI PrinciplesThe memo's stated aim for the templates: to document, solicit and enforce the principles in procurements

The memo says compliance with the White House directives is mandatory; components can tailor the template language to each acquisition's context and risk level.

Reported by DefenseScoop, Oct. 23, 2026, on an Oct. 20 Pentagon memo

TGOs tgos.ioShare

The Oct. 20 memo came from John Tenaglia, principal director for Defense Pricing, Contracting, and Acquisition Policy. It supports President Donald Trump's executive order, “Preventing Woke AI in the Federal Government.” It also supports the Office of Management and Budget memo, “Increasing Public Trust in Artificial Intelligence Through Unbiased AI Principles.”¹

The templates include a memorandum for the requiring activity to select appropriate transparency requirements and solicitation language specifying the documentation vendors must provide to demonstrate compliance. Formal contract language could go into a Statement of Work or Performance Work Statement in solicitations and final contracts.¹

The memo also recommends defining terms, spelling out submission requirements and making the documentation a formal part of the proposal process.¹

Unusual Machines completed its acquisition of DroneNX LLC, operating as Upgrade Energy, on Oct. 19, 2026.¹ The U.S. manufacturer of drone batteries and power systems adds batteries to Unusual Machines’ lineup of motors, headsets and other drone components.²

shares of common stockapproximately $25.0 millionactual

1,792,012 shares of common stock

cash at closing$1,000,000actual

Consideration at closing

post-closing earn-out paymentup to $26,000,000 in cashcontingent

payable if Upgrade’s revenue exceeds $10,000,000 during the first calculation period or, if not, then during the second calculation period (subject to pro rata reduction if revenue for the second calculation period does not exceed $10,000,000 in the second calculation period)

The two 12-month calculation periods begin on the date of the agreement (May 7, 2026), not at closing

Source: Unusual Machines, Form 8-K, press release and merger agreement. As of Oct. 23, 2026.

Sources

• www.sec.gov ↗
• www.sec.gov ↗
• www.sec.gov ↗

TGOs tgos.ioShare

Production expansion began ahead of closing, with Unusual Machines scaling battery production and hiring at Upgrade’s Torrance, California, facility.² In May, Upgrade operated from an 18,500-square-foot facility with approximately 30 engineering and production personnel.³ Unusual Machines also plans battery pack operations in Orlando, Florida.²

Closing consideration included 1,792,012 Unusual Machines shares valued at approximately $25 million. The company also paid $1 million from cash on hand.¹

The deal also includes a cash earn-out of up to $26 million. The full payment requires Upgrade’s revenue to exceed $10 million in the first calculation period or, failing that, the second.¹ No earn-out is due for the first period if revenue does not exceed that threshold; a second-period payment is reduced pro rata if revenue does not exceed it. The earn-out uses two 12-month calculation periods running from the agreement date, before closing. The agreement is dated May 7, 2026.^{1, 4}

Also announced: Unusual Machines issued 137,260 shares to Rotor Lab’s sellers on Oct. 20 as earn-out consideration. The payment falls under its June 2025 acquisition agreement.¹

TTM Technologies' aerospace and defense segment recorded $416.5 million in sales for the quarter ended Sept. 28, 2026, up 9% from the second quarter.^1–2

Commercial92.7%

Aerospace & Defense20.9%

Prior-year segment figures are recast. The release does not separate organic from acquired sales.

Source: TTM Technologies Q3 2026 results, SEC Exhibit 99.1; TGOs calculations. As of Oct. 22, 2026.

TGOs tgos.ioShare

Commercial sales grew 93% year over year, leaving aerospace and defense a smaller part of TTM's business. The aerospace and defense end market accounted for 34% of total sales, down from 45% a year earlier. The release does not separate organic from acquired sales.¹

The aerospace and defense segment's operating margin reached 18.5%, compared with 16.3% a year earlier. It was 16.7% in the second quarter. TTM recast prior-year segment figures after moving its RF and Specialty Components business into aerospace and defense during the first quarter of 2026.¹

Hexcel attributed its third-quarter 2026 Defense, Space & Other sales decline primarily to industrial business exits and temporary softness in a few fighter and space programs. It cited the F-35, an unnamed international fighter program, launchers and rocket motors.¹

Commercial Aerospace$330.3M

Defense, Space & Other$166.1M

Defense, Space & Other includes industrial businesses.

Source: Hexcel Q3 2026 earnings release, Exhibit 99.1. As of Oct. 21, 2026.

TGOs tgos.ioShare

The company divested a non-core Austrian industrial business at the end of September 2025 and closed a non-core industrial business in Leicester, UK, earlier in 2026.¹

Defense, Space & Other sales totaled $166.1 million in the quarter ended Sept. 30, down from a year earlier. Commercial aerospace sales rose year over year to $330.3 million, Hexcel reported Oct. 21.¹

Through September 2026, Defense, Space & Other sales fell 6.8% from a year earlier. Sales for that period totaled $517.6 million. Hexcel kept its full-year sales and adjusted diluted earnings-per-share forecasts unchanged.¹

Also announced

Hexcel's board raised its share repurchase authorization to $750 million on Oct. 21. The remaining authorization had been $380.6 million.² The company repurchased no shares during the third quarter.¹

Pratt & Whitney has started construction on a $100 million facility in Rzeszów, Poland, the RTX business announced Oct. 23. The company intends the expansion to meet growing demand for commercial and military engines, including the GTF, F135 and F100.¹

Rzeszówprocessing isothermally forged partsplanned

will house specialized capabilities for processing isothermally forged parts, including heat treatment, sonic machining and inspection operations

Columbus Forgeseventh isothermal forging pressplanned

The isothermal forging press is expected to become operational in 2028.

These capital projects, expected to be fully operational by 2028

Source: Pratt & Whitney / RTX, Feb. 24, April 22 and Oct. 23, 2026. As of Oct. 23, 2026.

Sources

• www.rtx.com ↗
• www.rtx.com ↗
• www.rtx.com ↗

TGOs tgos.ioShare

The Polish expansion supports a $200 million investment announced in February for a seventh isothermal forging press at Columbus Forge in Georgia.^{1, 3} In April, Pratt & Whitney said the new facility at its Rzeszów site would house capabilities for processing isothermally forged parts, including heat treatment, sonic machining and inspection.²

The new 6,500-square-meter building is intended to introduce manufacturing of critical rotating components at Rzeszów. The site already makes the GTF fan drive gear system, F100 static structures and key F135 parts. Pratt & Whitney expects the expanded site to become operational in 2028 and create more than 120 jobs.¹

The Royal Navy has five frigates fitted with towed-array sonar against a requirement of eight, the House of Commons Defence Committee found.¹

In service5 frigates

Required8 frigates

Source: House of Commons Defence Committee, Defence in the High North. As of 22 October 2026.

TGOs tgos.ioShare

The committee attributed the gap mainly to ageing Type 23 frigates being unable to remain in service through the Type 26 build schedule.¹

HMS Richmond and HMS Iron Duke were decommissioned in mid-2026. Iron Duke's withdrawal came less than three years after a £103 million refit.¹

Eight Type 26 frigates are due to take over the anti-submarine role.¹ Defense News reported that the UK ordered them from BAE Systems, with the lead ship scheduled to enter service in 2028.²

The committee says Norway has ordered at least five Type 26s for £10 billion. It says Norway wants its first ship in service by 2029–30.¹

The committee wants the government to assess how the Norway Type 26 agreement and other naval export programs affect UK delivery timelines and industrial capacity. It also wants the government to explain how those programs will protect Royal Navy capabilities.¹

Also announced: The committee is not yet persuaded that the £1.3 billion allocated to the Hybrid Navy will be sufficient to develop, procure and integrate its five planned classes of maritime platform.¹

Marine Forces Reserve is seeking a Maven field service representative through a sources-sought notice from its Regional Contracting Office in New Orleans. The Oct. 22 update changed the notice's set-aside from HUBZone to total small business.¹

HUBZoneOriginal set-aside

Total small businessUpdated set-aside

Oct. 30, 2026Responses due, noon Central

Source: SAM.gov. As of Oct. 23, 2026.

TGOs tgos.ioShare

Responses are due at noon Central on Oct. 30, replacing the original Oct. 26 response date. Respondents are asked to provide a rough order of magnitude estimate and a capabilities statement. The notice lists New Orleans as the place of performance and refers to an attached performance work statement for details.¹

The search follows an Oct. 16 Marine Corps message adding Marine Forces Reserve Command to the units covered by its Maven Smart System enterprise license. The message says that, effective Oct. 1, the Marine Corps is licensed for unlimited access across all applicable networks for all commands and organizations. It addresses field service representative support through a separate addendum.²