Defense News: Oshkosh partners with Grid Aero on Lifter production

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

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

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

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

• www.rolls-royce.com ↗

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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