The business of defense, October 27

The Air Force awarded Lockheed Martin a $694 million contract for production and fielding of the AGM-183A Air-Launched Rapid Response Weapon (ARRW). Awarded Sept. 29, 2026, the contract marks the boost-glide hypersonic missile program's formal transition from prototyping and flight testing into production. The service announced it Oct. 26.¹

production and fielding$694 millionactual

Sept. 29, 2026

Building P-20 in Troy, Alabama47,000 square feetplanned

will add 47,000 square feet of production space for ARRW

Quantities and delivery dates will not be released, to protect operational security

Sources: Air Force; Lockheed Martin (planned expansion).

Sources

• news.lockheedmartin.com ↗
• www.af.mil ↗

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Lockheed says it invested $67 million in ARRW production facility expansion and equipment before receiving government funding. The company broke ground Oct. 27 on an expansion of Building P-20 in Troy, Alabama. It says the addition will provide 47,000 square feet for ARRW production and triple the facility's production space.²

Defense News reported that the Air Force moved to halt ARRW procurement in 2023 after unsuccessful tests and opted to focus on the Hypersonic Attack Cruise Missile. Citing budget documents, the outlet reported roughly $387 million in the Air Force's fiscal 2026 procurement request for ARRW. It also reported a $452 million request for the program in fiscal 2027.³

The Air Force is withholding quantities and delivery dates, citing operational security. Its announcement does not specify how much of the $694 million contract value is obligated.¹

HII's Ingalls Shipbuilding division has received a $99 million Navy contract modification to conduct sea trials for the Zumwalt-class destroyer Lyndon B. Johnson (DDG 1002). HII announced the award Oct. 19, 2026.¹

$41.6 millionAugust 2022 contract to begin combat systems availability

$99 millionOctober 2026 modification to conduct sea trials

These values identify the earlier contract and the sea trials modification, not the ship's total cost.

Source: HII releases, Aug. 29, 2022 and Oct. 19, 2026. As of Oct. 19, 2026.

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The award builds on Ingalls' work to complete installation, activation and testing of the ship's combat systems under the Navy's phased delivery approach.^1–2 The destroyer arrived at Ingalls in January 2022 for installation, activation and testing of those systems.¹ HII announced in August 2022 that Ingalls had received a $41.6 million cost-incentive-fee contract to begin the combat systems availability.²

Boeing's Defense, Space & Security segment earned $492 million from operations in the third quarter of 2026. That included a $252 million gain on the HRL Laboratories sale, accounting for about half of the segment's operating earnings. Boeing attributed the segment's 6.2% operating margin primarily to the sale gain and improved operational performance.¹

Reported operating earnings$492M

Included HRL sale gain$252M

The HRL sale gain is included in reported operating earnings; the bars do not add together.

Source: Boeing Q3 2026 results, SEC Exhibit 99.1. As of October 27, 2026.

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Removing the gain leaves $240 million in operating earnings and a margin of about 3.0%, by our calculation, with no other adjustments. The segment's reported margin was 1.7% a year earlier. Segment revenue rose 15% to $7.9 billion, which Boeing attributed to higher volume.¹

Defense backlog reached $101 billion. It rose 18.5% from year-end 2025 by our calculation. The U.S. Navy selected the segment for a contract to design, build and deliver the F/A-XX next-generation fighter. That order is not in backlog pending completion of the source selection and evaluation review process. Boeing also received a seven-year contract award to expand PAC-3 Seeker production.¹

Anduril and Qualcomm Technologies unveiled BlueChip on Oct. 27, introducing a computing hardware line aimed at government, defense, first responders and public safety, among other critical industries. Anduril has functional prototypes of its first laptop and plans to begin taking orders in 2027.¹

Qualcomm TechnologiesSnapdragon X Seriesplanned

providing the laptop’s core computing capabilities

circuit board assemblyArsenal-1planned

planned for Anduril's Arsenal-1 facility in Ohio

Anduril has functional prototypes of the first BlueChip laptop and plans to begin taking orders in 2027.

Source: Anduril

Sources

• www.anduril.com ↗

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The companies are putting their own research and development dollars into the effort, DefenseScoop reports, citing Anduril co-founder Palmer Luckey. Luckey said the U.S. government has not yet provided subsidies or contracts to develop the laptops; he did not disclose the companies' investment.²

Anduril plans to assemble the laptop circuit boards at Arsenal-1 in Ohio.¹ The facility also builds autonomous drones for the Air Force's Collaborative Combat Aircraft program, DefenseScoop reports.²

Qualcomm Technologies will supply Snapdragon X Series chips for general-purpose processing, graphics and on-device AI.¹ DefenseScoop reports that Qualcomm President and CEO Cristiano Amon said the laptop chips will be made at a TSMC facility in Arizona.²

DefenseScoop reports that Luckey declined to disclose production quantities and said full-rate production would not begin until next year. He also said the allocation of manufacturing steps among facilities remained in flux.²

The Space Force plans to release two requests for information soon, Air & Space Forces Magazine reported. The first will seek existing commercial technology that can be ready to launch by 2029. Maj. Gen. Stephen Purdy, the service’s portfolio acquisition executive for advanced programs, outlined the plans.¹

The firstexisting commercial technologyplanned

can be ready to launch by 2029

The second requestAI and autonomous processing capabilities for spacecraft operating in cislunar spaceplanned

it plans to release imminently

Reported by Air & Space Forces Magazine, Oct. 26, 2026

Sources

• www.airandspaceforces.com ↗

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Breaking Defense reported that Purdy said the service does not want to spend heavily on research and development for new cislunar capabilities.²

Air & Space Forces Magazine reported that the first request favors commercial or near-commercial, non-developmental solutions. Purdy described hardware backed by relevant evidence, software without heavy additional work and ground systems.¹

The second request seeks artificial intelligence and autonomous processing capabilities for spacecraft operating in cislunar space. The goal, Purdy said, is a fully autonomous system capable of managing its hardware faults, processing and sensor activities.¹

For earlier-stage technology and research, the Space Force plans a separate industry challenge called Lunar Prime with the Air Force Research Laboratory and SpaceWERX. The effort has $30 million in funding and targets flight demonstrations within two years of contract award.¹

The Department of War will consider otherwise compelling offers involving sites outside its recommended 100,000 to 250,000 contiguous acres for the Next Great American Base.^1–2 The department estimates a population of 15,000 to 25,000 active-duty members for the proposed installation.¹

100,000–250,000Recommended contiguous acres

December 1, 2026Self-nomination letter due

The acreage range is a planning guideline. Otherwise compelling offers outside it will receive full consideration.

Department of War: Next Great American Base Fact Sheet and NGAB Facts and FAQ. As of October 26, 2026.

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The acreage range is a planning guideline, and communities offering such sites may self-nominate and receive full consideration.² Eligible locations must be in the continental United States and meet the Preliminary Screening Criteria.^1–2 Former military installations, sites adjoining current installations and locations away from water can compete if they meet those criteria.²

Self-nominations are due by Dec. 1, 2026.¹ Only a one-page letter is due; a submission addressing the screening and evaluation criteria is not required at that stage. Locations that meet screening requirements will receive instructions for the next stage.²

Top-scoring candidates will be notified in early 2027 and offered a pitch meeting and site visit in spring 2027.² The department anticipates selection in June 2027.¹

Germany's Helsing unveiled Contra on Oct. 26, pairing two air-defense missiles with artificial intelligence software to organize intercepts, Defense News reported. Company officials said the offering could down fast attack drones for under $100,000 per shot.¹

under $100,000 per shotCompany officials' cost claim

second half of 2027Market readiness, CEO forecast

Contra remains in testing; market readiness is an expectation.

Reported by Defense News, Oct. 26, 2026. As of Oct. 27, 2026.

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Helsing CEO Gundbert Scherf said one contract had already been signed. Contra remains in testing; Scherf expects market readiness in the second half of 2027. Defense News did not identify the buyer, contract value or delivery date.¹

Jet-powered Inferno is intended as the main countermeasure against all but the most sophisticated threats, with a stated speed of 700 km/h and range of 20 kilometers. Ambush uses a solid rocket motor.¹

A computer animation at the launch illustrated 20 Inferno and 40 Ambush interceptors launching from shipping containers against a drone swarm, with AI calculating the order and distance of intercepts.¹

The United States announced on Oct. 27 that Poland will host the European Patriot Advanced Capability-3 (PAC-3) Missile Maintenance Facility.¹ Lockheed Martin plans to establish the site in coordination with the U.S. government.²

Polandonsite repair, refurbishment, lifecycle support and re-certificationplanned

will support NATO Allies operating PAC-3 interceptors

Germany, the Netherlands and Swedencritical supply chain integrationplanned

transatlantic industrial cooperation

Sources: Department of War; Lockheed Martin. As of Oct. 27, 2026.

Sources

• news.lockheedmartin.com ↗
• www.war.gov ↗

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The facility would give NATO allies operating PAC-3 interceptors a regional site for repair, refurbishment, lifecycle support and recertification, according to Lockheed Martin.²¹

The Department of War said Germany, the Netherlands and Sweden will lead critical supply chain integration.¹ Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said allies are investing national resources to establish the sustainment capability.¹

Defense News reported that European allies are advancing talks with the United States on possible local production of PAC-3 MSE interceptors. Germany, Poland and Ukraine, among others, have lobbied Washington to allow domestic manufacturing, the outlet reported.³

Britain will not join the Canada-led Defence, Security and Resilience Bank (DSRB), according to a person familiar with the matter, Defense News reported Oct. 27, carrying a Reuters story. Britain had previously declined to join, citing concerns over value for money.¹

Around €100 billionFundraising target for low-cost loans to governments and contractors for defense projects

Nov. 30Planned signing of articles of agreement in Luxembourg

Canadian Finance Minister Francois-Philippe Champagne announced the planned signing.

Reported by Defense News, carrying Reuters reporting. As of Oct. 27, 2026.

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The bank has been aiming to raise around €100 billion ($112 billion) to provide low-cost loans to governments and contractors for defense projects.¹

In an Oct. 25 joint statement, Canada and Britain said they had agreed to develop two distinct but complementary institutions and a framework for cooperation between them. Their joint statement does not say whether Britain will join the bank.²

A second person cited in the Reuters story said the governments could not agree on several issues, Defense News reported. These included a joint institution's headquarters, joint procurement levels, lending to members and rules for new members.¹

The Department of Energy announced Oct. 19 that it will use up to $42 million in Defense Production Act (DPA) Title III funding to advance Constitution Pipeline.^1–2 Constitution Pipeline Company, LLC's proposed natural gas line would run 125 miles from Pennsylvania to New York.¹

Pre-construction and permitting activitiesSecuring required regulatory approvalsplanned

The DPA funding will support eligible pre-construction and permitting activities necessary to advance the project

Complementary natural gas infrastructureAfter permits are obtainedcontingent

Remaining funds will support the deployment of complementary natural gas infrastructure.

Defense Production Act (DPA) Title III funding

Department of Energy release and fact sheet, October 19 and 21, 2026

Sources

• www.energy.gov ↗
• www.energy.gov ↗

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The funding would support eligible pre-construction and permitting activities, which may include environmental reviews, engineering, site preparation and the costs of securing regulatory approvals.¹ DOE says New York regulators denied the project a water quality certification in 2016, preventing it from moving forward.²

The proposed 30-inch pipeline would run from Susquehanna County, Pennsylvania, to Schoharie County, New York.³

DOE cites Presidential Determination No. 2026-12, issued in April 2026, which identifies natural gas pipelines, processing and storage infrastructure as essential to national defense. The department also cites a $1 billion appropriation for energy-related projects deemed critical to national security.²

U.S. Southern Command commander Gen. Francis Donovan is interested in a river reconnaissance system combining unmanned surface, air and subsurface platforms, Breaking Defense reported Oct. 26. The outlet describes a concept in which an autonomous vessel would sail South and Central American rivers to conduct reconnaissance and collect data.¹

Unmanned surface platforms

Unmanned air platforms

Unmanned subsurface platforms

→

River reconnaissance systemConcept: a tailorable mix of autonomous platforms

Donovan expressed interest in the system.

Reported by Breaking Defense, October 26, 2026

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Donovan described SOUTHCOM's Autonomous Warfare Command as a place for U.S. and allied forces to train and experiment with unmanned technology, including at a facility in Guantanamo Bay, Cuba. Industry and other federal agencies are invited to bring systems, and Donovan said he wants partners to test platforms in the command's area of responsibility.¹

In the Oct. 13 interview, Donovan said the command wants to understand how criminal networks use rivers to transport narcotics and foliage to conceal vessel assembly sites. He said competition for joint resources makes unmanned platforms more attractive to SOUTHCOM.¹

Saronic-made Corsair unmanned surface vessels have moved to Guantanamo and have also been deployed on either side of the Panama Canal, Donovan said.¹

The Army opened a market survey Oct. 26 for continued development, production and sustainment of the Infantry Squad Vehicle family.¹ Its estimated requirement totals 20,787 vehicles, subject to funding and demand from the Army, other services and potential Foreign Military Sales customers.²

20,787 vehiclesEstimated total requirement

July 2028 (4QFY28)Contract award target

4QFY29Anticipated initial deliveries

Quantities depend on funding and requirements from the Army, other services and potential Foreign Military Sales customers. There is no solicitation yet.

Source: U.S. Army Infantry Squad Vehicle Market Survey, SAM.gov. As of October 27, 2026.

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Responses will be evaluated solely to determine whether the procurement can be competed; there is no solicitation yet. Companies can express interest in producing both variants, either one, or providing sustainment and support services alone.²

The requirement comprises 9,003 nine-passenger ISV-9 vehicles and 11,784 ISV-Utility vehicles.^1–2 The survey lays out those quantities by fiscal year from 2028 through 2038. The Army targets a July 2028 contract award and anticipates initial deliveries in the fourth quarter of fiscal 2029.²

The potential solicitation and resulting contract would seek unlimited rights to technical and logistical data and test support information newly developed under the contract. The Army also expects unlimited rights to all form, fit and function data and operator, maintenance, installation and training materials, regardless of funding source.²

The acquisition strategy remains under assessment, including whether a multiyear procurement structure would provide measurable value compared with annual procurements or a contract with priced options.² Responses are due Wednesday, Nov. 25, 2026, at 5 p.m. Eastern.²

U.S. Special Operations Command awarded Smack Technologies a prototype Other Transaction agreement for Omega, its AI decision platform for commanders, the company announced Oct. 26.¹ Smack valued the agreement at $7.5 million; DefenseScoop reports it is worth up to that amount.^1–2

Up to $7.5 millionPrototype Other Transaction agreement value

The agreement covers prototyping Smack's AI-powered planning and decision support platform.

Smack Technologies; value reported by DefenseScoop. As of Oct. 26, 2026.

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The award extends Smack's military prototyping work: DefenseScoop reports that it follows contracts from the Marines, Air Force and Navy.² Smack said Aug. 4 that it had been awarded a competitive prototype agreement to support maritime operational planning and decision-making.³

DefenseScoop reports that Omega is designed to generate courses of action for joint military campaigning. CEO Andy Markoff told the outlet that commanders can use Omega to link operational objectives, tactics and tasks into a single plan, then repair it in seconds as conditions change. He also said Omega does not depend on constant cloud connectivity.²