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Industry · Space communications

Ukraine signs letter of intent with ICEYE and Nokia for sovereign satcom

The planned systems would give governments ownership and control of satellite communications infrastructure. ICEYE told Breaking Defense the Ukrainian letter implies no system order.

Ukraine's Ministry of Defence signed a letter of intent with ICEYE and Nokia on 22 October to explore space cooperation, with the aim of building sovereign satellite communications.1 An ICEYE spokesperson told Breaking Defense that the letter expresses intent and does not imply an order for any system for Ukraine.3

ICEYE and Nokia signed a Letter of Intent with Ukraine's Ministry of Defence

Partnership to develop LEO broadband satellite communications systems for governments

Jointly developed satellite communications systemsOwnership and controlplanned

Will give nations ownership and control of the satellites, ground segment and terminals.

First communications satellites2028planned

The first communications satellites are expected to be launched in 2028.

An ICEYE spokesperson told Breaking Defense the LOI is an expression of intent and does not imply an ordering of any system for Ukraine

Sources: Nokia, 22 October 2026; ICEYE, 1 October 2026. Reported by Breaking Defense, 23 October 2026.

Sources
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The proposed cooperation brings Ukraine into discussions about the satellite communications partnership ICEYE and Nokia announced on 1 October.1–2 The companies plan to develop broadband systems in low Earth orbit that would give government customers ownership and control of the satellites, ground segment and terminals.2

“We must all rely on capabilities that we can control,” Ukrainian President Volodymyr Zelenskyy said in Nokia's 22 October release.1

ICEYE and Nokia plan to integrate satellites, ground infrastructure and ruggedized end-user terminals, extending ICEYE's sovereign space intelligence business model to satellite communications.2

The companies' proposed ownership model addresses Ukraine's stated goal of controlling its communications capabilities, but delivery remains prospective. ICEYE and Nokia expect their first communications satellites to launch in 2028; Nokia's announcement of the Ukrainian letter gives no delivery date for Ukraine.1–2

Sources (3)
  1. Nokia release, 22 October 2026 www.nokia.com
  2. ICEYE release, 1 October 2026 www.iceye.com
  3. Breaking Defense, 23 October 2026 breakingdefense.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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