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Industry · Capital

Army plans to expand private-capital program, Federal News Network reports

The Army plans to expand the private-capital program across installations over three to five years, with another round of industry outreach expected, Federal News Network reports.

The Army plans to expand its Strategic Capital Initiative across its installations over the next three to five years, Federal News Network reported. Launched earlier in 2026, the program seeks industry co-investment in Army infrastructure, the industrial base and supply chains.1

Army plans private-capital expansion, Federal News Network reports

Strategic Capital Initiative: planned expansion and investment scope

three to five yearsPlanned expansion across Army installations
sixStrategic pillars organizing the initiative

Reported by Federal News Network, October 23, 2026. As of October 26, 2026.

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Jordan Gillis, assistant secretary of the Army for installations, energy and environment, said industry should expect another round of requests for information (RFIs).1

Former Army Secretary Dan Driscoll, who launched the initiative among other efforts, resigned last month. Marc Andersen, the Army's assistant secretary for financial management and comptroller, said the initiative was not slowing under new leadership.1

The program's six pillars include energy resilience and dominance, modernizing the organic industrial base, and critical minerals and resource development. Earlier selections show the kinds of projects involved: Carlyle and its portfolio company CyrusOne were selected to build data centers at Fort Bliss, Texas, and Dugway Proving Ground, Utah.1

In September, the Army also announced conditional awards of long-term leases to three companies to finance, build and operate commercial power generation at six installations.1

Gillis said the expected outreach would include targeted requests tied to the initiative's pillars and broader invitations for companies to propose ideas, Federal News Network reported.1

Sources (1)
  1. Federal News Network: Army's Strategic Capital Initiative is 'not slowing down' under new leadership, October 23, 2026 federalnewsnetwork.com
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Contracts · Munitions

Air Force wants ERAM deliveries to begin within three months of award

The request seeks production capacity for more than 1,000 all-up rounds, alongside a separate glide-version request with its own capability-delivery timetable.

The Air Force issued requests for information on Nov. 2, 2026, for the Extended Range Attack Munition (ERAM) and an ERAM Glide version.1–2

Air Force wants ERAM deliveries to begin within three months of award

Extended Range Attack Munition (ERAM): production and delivery requirements in the Nov. 2, 2026 request for information

More than 1,000All-up rounds: required production capacity
No later than 3 months after awardDeliveries begin
No later than 15 months after awardDeliveries complete

Award is pending approval and funding. These are requested capabilities, not awarded orders.

Source: Department of the Air Force, SAM.gov ERAM notice FA865927W0002. As of Nov. 2, 2026.

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The ERAM notice asks respondents to show they can produce more than 1,000 all-up rounds, with deliveries beginning no later than three months after award. Deliveries must finish no later than 15 months after award. Award remains subject to approval and funding.1

Both notices begin two-step competitive processes.1–2 For ERAM, only respondents whose initial submissions are selected by the Agreements Officer can receive the Step 2 request for Commercial Solutions Proposals.1

The glide version requires delivery of capability within 14 months after award. That capability must reach technology readiness level 7 and manufacturing readiness level 8. Its glide ratio must be at least 10:1.2

ERAM responses are due Nov. 19, 2026.1 Glide responses are due Dec. 2, 2026.2 Both deadlines are at 2 p.m. Central.1–2

ERAM respondents must qualify under at least one of four eligibility conditions. Those relying on the cost-sharing condition must commit to paying at least one-third of total project cost with non-Federal funds.1 Respondents to both notices must be able to obtain an active Top Secret/SCI facility clearance.1–2

Sources (2)
  1. SAM.gov: Request for Information - Extended Range Attack Munition (FA865927W0002) sam.gov
  2. SAM.gov: Request for Information: Extended Range Attack Munition Glide (FA865927W0003) sam.gov
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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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