The business of defense, November 3

Leidos' acquisition of ENTRUST Solutions supplied $142 million of revenue in the fiscal third quarter, which ended Oct. 2, 2026. Total revenue rose 4% to $4.63 billion.¹

$142 millionQuarterly revenue from the ENTRUST Solutions acquisition, included in total revenue

$4.63 billionTotal quarterly revenue, up 4%

0.6%Organic revenue growth

Leidos' organic revenue measure excludes acquisitions within the last 12 months and divestitures within the current and year-ago periods.

Source: Leidos third-quarter 2026 results release, SEC Exhibit 99.1. As of November 3, 2026.

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Organic revenue grew 0.6%. Leidos' organic measure excludes revenue from acquisitions within the last 12 months and divestitures within the current and year-ago periods.¹

Homeland, which includes Entrust Solutions, grew revenue 32%, or 14.8% organically. Leidos attributed growth to demand for air traffic management and electric power distribution engineering solutions, alongside the acquisition.¹

Also announced

On Oct. 5, 2026, Leidos closed a transaction contributing its Security Enterprise Solutions and Industrial Automation businesses to a newly formed joint venture with Altaris. Leidos lowered fiscal 2026 revenue guidance to $18.00 billion–$18.20 billion. Its prior revenue guidance for that fiscal year was $18.20 billion–$18.40 billion.¹

The revised guidance adjusts for the joint venture and reflects year-to-date performance and the current outlook; the guidance section does not quantify the venture's share of the revenue reduction. The company raised fiscal 2026 non-GAAP diluted earnings per share guidance to $12.50–$12.70. It also raised operating cash flow guidance for that fiscal year to approximately $1.90 billion.¹

The State Department approved a possible Foreign Military Sale to Jordan of Advanced Precision Kill Weapon System (APKWS) II guided rockets and related equipment, at an estimated total cost of $100 million. The congressional notification is dated November 2, 2026.¹

Estimated total cost$100 millioncontingent

possible Foreign Military Sale to Jordan for APKWS II and related equipment

all-up-rounds or guidance sectionsup to 1,500requested

WGU-59A/B or B/B Single Variant Block Upgrade APKWS II

The principal contractor will be BAE Systems, Inc.

Source: U.S. Department of State. As of November 2, 2026.

Sources

• www.state.gov ↗

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BAE Systems, Inc., of Nashua, New Hampshire, would be the principal contractor. The estimate covers the whole proposed package; the notification announces no contract award and gives no delivery schedule.¹

Jordan requested up to 1,500 WGU-59A/B or B/B Single Variant Block Upgrade all-up rounds or guidance sections, usable in air-to-air, ground-to-air or air-to-ground roles. The proposed package also includes launchers, Mk-152 high explosive warheads, MK66 rocket motors, proximity fuzes, practice warheads, inert rocket motors and support equipment. Engineering, technical, training and logistics support are included.¹

Advanced Acoustic Concepts (AAC), a U.S.-based Thales subsidiary, won a $53.9 million Navy contract to produce and deliver two Remote Mine Hunting modules and engineering support. Thales announced the award Nov. 2. The award includes options for additional modules that could raise the cumulative contract value to approximately $196.2 million.¹

Navy contract$53.9 millionactual

to produce and deliver two integrated Remote Mine Hunting modules and engineering support

total cumulative contract valueapproximately $196.2 millioncontingent

The award includes options for additional modules that could raise total cumulative contract value to approximately $196.2 million

Source: Thales, Nov. 2, 2026

Sources

• www.thalesgroup.com ↗

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The module suite includes multiview towed synthetic aperture sonar for mine detection and imaging, plus AI-augmented automatic target recognition software for processing, classifying and mapping mine-hunting data. AAC President Mike Carnovale said the solution helps accelerate the path from detection to action for both manned and unmanned surface vessel platforms.¹

Also announced

In a separate development, Breaking Defense reported that Thales and HII announced they had teamed up to deploy the SAMDIS 600 on HII's Remus 620 unmanned underwater vehicle.²

Airbus has scrapped development of its Wingman combat drone concept as Germany accelerated the timetable for potential service entry, Breaking Defense reported from Munich on Nov. 3.¹

Wingman was to usea bespoke engineplanned

Wingman was to use a bespoke engine from Rolls Royce Deutschland and ITP Aero

the U760 will usea business jet engineplanned

the U760 will use a business jet engine

Reported by Breaking Defense. As of Nov. 3, 2026.

Sources

• breakingdefense.com ↗

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Laurent Le Quément, Airbus's head of future air power and uncrewed aerial systems marketing, told reporters at the International Fighter Conference that customers wanted earlier service entry. He said Airbus chose to pursue the U760 because it builds on the Barracuda demonstrator.¹

He did not identify the customer, though Airbus said in 2024 that Wingman was designed for emerging German Air Force requirements. At Wingman's 2024 unveiling, Airbus Defence and Space CEO Michael Schoellhorn had indicated a fielding timeline much closer to 2040.¹

Breaking Defense also reported that Airbus is developing the U740 Valkyrie with Kratos to support a 2029 German requirement. The outlet cited recent reporting that the requirement's timeline was in doubt after Germany reconsidered a direct purchase of Boeing MQ-28 Ghost Bat drones. That left competitors including Airbus, offering Valkyrie, still in the running for an order from Berlin.¹

AE Industrial Partners announced Nov. 2 that it closed an approximately $850 million single-asset continuation vehicle in connection with the recapitalization of Blue Raven, its defense distribution portfolio company.¹

AE Industrial announced the closing of AE Industrial Partners BR Fund, LP, a single asset continuation vehicle of approximately $850 million in connection with the recapitalization of its portfolio company Blue Raven

Blue Raven management and certain existing shareholders rolled significant proceeds in connection with the transaction.

Source: AE Industrial Partners

Sources

• www.aeroequity.com ↗

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The transaction brings in Lexington Partners as lead investor while AE Industrial continues a partnership that began with its initial investment in 2019. Several institutional investors also invested, and Blue Raven management and certain existing shareholders rolled proceeds into the transaction.¹

The vehicle is named AE Industrial Partners BR Fund, LP. AE Industrial did not say how much of the approximately $850 million is new capital for Blue Raven, or what the company is valued at.¹

Blue Raven serves as an authorized and exclusive distributor of highly engineered parts, complex systems and hard-to-source components for original equipment manufacturer partners, reaching customers in more than 40 countries. Its proprietary SEDNA analytics platform provides intelligence and forecasting that AE Industrial says help reduce lead times and mitigate obsolescence.¹

Northwood Space raised $375 million in a Series C funding round announced Nov. 2, Defense Daily reported. The round values the company at $2 billion.¹

$375 millionSeries C funding raised

$2 billionCompany valuation at the round

400 peoplePlanned team additions over the next three years

Northwood plans to expand its ground network by accelerating antenna production and growing its team.

Reported by Defense Daily, Nov. 2, 2026. As of Nov. 3, 2026.

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The expansion plan pairs faster antenna production with team growth to build out Northwood’s ground network. The company plans to add 400 people over the next three years, the outlet reported.¹

Babcock has awarded KierBAM a roughly £600 million contract for the water-retaining boundary and associated infrastructure at Devonport’s 10 Dock. The Ministry of Defence-funded award, announced Nov. 2, moves the submarine dock redevelopment into its main construction phase.¹

KierBAMcirca £600 millionactual

Babcock has awarded a MOD funded circa £600 million contract to KierBAM to deliver the dock’s water-retaining boundary and associated infrastructure.

upgraded facilitywill support deep maintenanceplanned

Babcock says the upgraded facility will support deep maintenance of Royal Navy submarines, helping sustain submarine availability

Babcock International Group

Sources

• www.babcockinternational.com ↗

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The contract follows completed enabling works, including the commissioning of an on-site concrete batching plant. Babcock is delivering the redevelopment on behalf of the Defence Nuclear Enterprise.¹

Babcock expects the wider 10 Dock programme to support around 1,500 jobs across the supply chain, including approximately 300 Babcock roles at Devonport.¹

India's Ministry of Defence signed contracts worth Rs 53,866.50 crore on Nov. 2, 2026, for eight Next Generation Corvettes for the Indian Navy. Garden Reach Shipbuilders & Engineers Limited (GRSE) will build five ships and Goa Shipyard Limited (GSL) three.¹

Garden Reach Shipbuilders & Engineers Limited (GRSE)five corvettesplanned

GRSE will construct five corvettes

Goa Shipyard Limited (GSL)remaining threeplanned

GSL will construct the remaining three

Source: India's Ministry of Defence via PIB

Sources

• www.pib.gov.in ↗

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The project assigns design to the Indian Navy and construction to state-owned shipyards selected through a competitive process.¹ GSL calls the order the largest in its history.² The ministry disclosed the combined contract value but no per-yard values or delivery schedule.¹

Defense News reported, citing GRSE, that the ships would measure 127 meters long and have a maximum speed of 26 knots. The outlet reported that their armament would include medium-range anti-ship and surface-to-air missiles and 324 mm torpedo tubes.³

The Department of the Air Force is targeting early to mid-December 2026 for the final request for proposals for its Battle Network “Megatron” contract vehicle. The Nov. 3 update is not a solicitation or promise of award, and schedule timelines remain subject to change.¹

early- to mid-December 2026Final request for proposals release target

Two planned poolsSmall business and unrestricted awardees

Schedule timelines are subject to change. The announcement is not a solicitation or promise of contract award.

Source: SAM.gov, Department of the Air Force Megatron notice. As of Nov. 3, 2026.

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The planned multiple-award contract would have small-business and unrestricted pools. The government is facilitating a voluntary teaming list across large and small businesses, with information to be shared publicly through the notice to support subcontracting and partnering opportunities. Inclusion carries no government endorsement; vendors remain responsible for matchmaking, nondisclosure agreements and organizational conflict-of-interest assessments.¹

The Nov. 3 update posted recorded industry day briefings as controlled attachments on SAM.gov, available to companies after their access requests are approved. Questions on the industry day briefing close Nov. 8 at 2359 EST.¹

Delphinus Engineering, a Navy maintenance and modernization contractor, announced its combination with Professional Analysis, LLC (PAI) on Nov. 3. PAI provides logistics, materials management and program support to the Navy, Marine Corps and other Department of War customers.¹

PAI

Based in Alexandria, Virginia, PAI provides logistics, materials management and program support services to the U.S. Navy, U.S. Marine Corps and other Department of War customers.

Delphinus

Delphinus is a portfolio company of Bluestone Investment Partners.

Source: Bluestone Investment Partners release via PR Newswire. As of Nov. 3, 2026.

Sources

• www.prnewswire.com ↗

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The combination follows Delphinus' July 21 announcement of backing from private equity firm Bluestone Investment Partners.^1–2 Bluestone principal Kevin Doherty said PAI advances Bluestone's naval sustainment platform strategy by connecting maintenance and modernization with logistics and supply chain capabilities.¹

Based in Alexandria, Virginia, PAI has more than 200 employees. Its work includes spares planning and configuration management for new ship construction. It also provides program support to commands including Naval Sea Systems Command, Naval Supply Systems Command and Military Sealift Command.¹

Delphinus CEO Roby Lentz said the combination expands the company's ability to support the Navy and Marine Corps across engineering, maintenance, modernization and logistics. The announcement did not disclose a price, closing status or ownership terms for the combined company. WISTLR served as PAI's exclusive financial adviser.¹

The Navy plans a sole-source contract with Northrop Grumman Systems Corporation to develop and produce new 5-inch projectile bodies compatible with the MK 45 Gun Weapon System. The Naval Surface Warfare Center, Indian Head Division intends a firm-fixed-price contract for the austempered ductile iron bodies.¹

development and qualificationcompetitively awardedactual

projectile body development and qualification was competitively awarded

Northrop Grumman Systems Corporationsuccessfully completedactual

successfully completed the prototype projects

Northrop Grumman Systems Corporationsole sourceplanned

Contracts Department intends to issue a Firm-Fixed-Price (FFP) contract on a sole source basis to Northrop Grumman Systems Corporation.

This notice should not be construed as a commitment by the Government for any purpose.

Source: Naval Surface Warfare Center, Indian Head Division, SAM.gov. As of Nov. 3, 2026.

Sources

• sam.gov ↗

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The competition took place at the prototype stage: the other transaction agreement for projectile body development and qualification was competitively awarded, and Northrop completed the prototype projects. The underlying Naval Energetic Systems and Technologies request for prototype projects included provisions for a follow-on production contract.¹

The Navy says those conditions allow production to proceed without further competition under the prototype follow-on authority in 10 USC 4022(f)(1). The notice’s description gives no quantity, dollar value or delivery schedule for the planned contract.¹

The Navy published the notice Nov. 3 and updated it the same day, changing the response date from Nov. 13 to Nov. 18.^1–2

Hanwha Philly Shipyard named Hyuk Kim president effective Nov. 2, 2026, to lead its expansion and transition to dual-use shipbuilding.^1–2

operational excellencestrengthening operational excellenceStated scope

strengthening operational excellence

shipbuilding capacityexpanding shipbuilding capacityStated scope

expanding shipbuilding capacity

workforcedeveloping the workforceStated scope

developing the workforce needed to support both commercial and naval programs

Source: Hanwha Philly Shipyard, Nov. 2, 2026

Sources

• hanwhaphillyshipyard.com ↗

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The appointment puts Kim in charge of a yard with defense work taking shape alongside its commercial business. In July, the yard was awarded a Missile Range Instrumentation Vessel contract for the Missile Defense Agency. TOTE Services has also selected Hanwha Defense USA (HDUSA) to construct a Medium Landing Ship there for the Navy and Marine Corps.¹

Kim brings more than 25 years of naval and commercial shipbuilding experience, including senior roles at Hanwha Ocean and its predecessor, Daewoo Shipbuilding & Marine Engineering. He succeeds David Kim, whom the company credits with helping Hanwha acquire the yard in 2024 and leading a near doubling of its workforce since then.¹

The appointment aligns with HDUSA's acquisition of majority ownership of the yard. Hyuk Kim reports directly to HDUSA Shipbuilding President Tom Anderson, a retired rear admiral who oversees all of HDUSA's U.S. shipbuilding operations.¹

France is starting a pact with its defense industry to build a national network of drone makers around the navy’s requirements, Defense News reported. Minister of the Armed Forces Catherine Vautrin announced the initiative on Nov. 3 at the Euronaval defense trade show.¹

defense industrynational ecosystem of drone makersplanned

that can quickly make equipment tailored to the navy's requirements

naval drone frameworkmine removal, hydrographic and oceanographic data collection and deep-sea explorationStated scope

areas that could benefit from the naval drone framework

Reported by Defense News

Sources

• www.defensenews.com ↗

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Also announced

• Defense News reports that French officials announced the purchase of a second ROV Deep Sea drone from LD Travocean, capable of diving to 6,000 meters.¹
• France also plans to acquire eight A18 countermine robots from Exail, multi-sensor underwater drones that find and characterize sea mines before their removal.¹
• The French Navy will buy a second unmanned combat underwater vehicle from Naval Group, following a first test vehicle, a ministry spokesman told Defense News.¹

Fincantieri and Leonardo signed a letter of intent on Nov. 3, 2026, at Euronaval in Paris to strengthen their naval joint venture, Orizzonte Sistemi Navali (OSN). Fincantieri owns 51% of the venture and Leonardo 49%.¹

Future collaborationOSN's industrial and commercial roleStated scope

strengthening OSN's industrial and commercial role and developing domestic and international market opportunities

DDX

DDX platform designed and developed by Fincantieri as system integrator; combat system designed and developed by Leonardo

Source: Leonardo joint press releases, Sept. 24 and Nov. 3, 2026. As of Nov. 3, 2026.

Sources

• www.leonardo.com ↗
• www.leonardo.com ↗

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The partners are setting out their next phase of cooperation with a destroyer contract already signed.^1–2 On Sept. 24, OSN signed a contract with OCCAR, the Organisation Conjointe de Coopération en matière d’Armement, for two DDX destroyers for the Italian Navy. The contract is worth approximately €3.7 billion, including approximately €1.3 billion in options.²

The new letter sets guiding principles for cooperation, including strengthening OSN's industrial and commercial role and developing opportunities in domestic and international markets.¹

OSN's work also includes FREMM EVO frigates under construction, Italian and international Legacy FREMM frigates, logistics support and four offshore patrol vessels.¹

Aeon Industrial told Breaking Defense it will deliver fewer than 100 developmental shoulder-fired Zeus weapons to U.S. Special Operations Command (SOCOM) under a $13.8 million low-rate initial production deal. Deliveries are planned over the next year, the outlet reported Nov. 3.¹

$13.8MLow-rate initial production deal reported by Aeon

Fewer than 100Weapons Aeon plans to deliver over the next year

Aeon says the program is focused on qualifying and delivering a production-capable system.

Reported by Breaking Defense, Nov. 3, 2026

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Aeon CEO Naweed Tahmas told the outlet the company invested its own capital to build the weapon. Aeon is pitching Zeus as a possible lower-cost alternative to legacy guided systems.¹

The company describes the system as weighing about 20 pounds, with a 30-inch-long weapon designed to be fired primarily in confined and urban environments. SOCOM did not respond to the outlet's questions about order numbers, test plans or other companies under similar contracts.¹

Tahmas said the Army and other Department of War partners had conducted extensive development and live-fire testing with Zeus. He also said Aeon had received additional contracts to integrate the weapon onto unmanned surface vessels and for counter-drone applications.¹

Former Army Secretary Dan Driscoll will join OpenAI as Senior Counselor for National Security Modernization, a newly created role focused on advising on how advanced artificial intelligence can strengthen national and cyber security.¹

U.S. alliesnational and cyber securityStated scope

advise on how advanced AI can strengthen national and cyber security, with a particular focus on working with U.S. allies to advance its responsible use

internal OpenAI teamsoperational needsStated scope

He will also help internal OpenAI teams understand the operational needs of global national security institutions.

Source: OpenAI

Sources

• openai.com ↗

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He will work with OpenAI’s senior leadership and external partners on that advice, with a particular focus on working with U.S. allies to advance responsible AI use.¹

As Army secretary, Driscoll oversaw the service’s operations, modernization and resources. OpenAI credits him with efforts to accelerate technology fielding and reform acquisition.¹ Federal News Network reported on Oct. 23 that he had resigned from the Army post.²

Saab unveiled its own artificial intelligence agents on Nov. 3 after flying them on a Gripen E fighter. The company says an agent autonomously controlled the aircraft in beyond-visual-range combat scenarios during the flight trials.²

Saab says agents, training environments and tools were developed within Saab, giving full control over operation and verification

Saab says agents can support the pilot in the cockpit or operate alongside pilots in its own unmanned air platform

Source: Saab press release, 3 November 2026

Sources

• www.saab.com ↗

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The agents, training environments and supporting development tools were developed within Saab. The company says that gives it full control over the agents' operation, verification and continued development.² Breaking Defense reported that Gripen flight tests in 2025 used Helsing's Centaur AI tool.¹

Saab is also a founding partner in Sferical AI, a Swedish sovereign AI initiative providing large-scale computing capacity for AI development.² Breaking Defense reported that Peter Nilsson, head of Advanced Programs at Saab's aeronautics business area, said that without Sferical AI, Saab would have to use Google or Amazon. He said that could leave Saab without full control of its data.¹

Hypersonica announced a €100 million Series B on Nov. 2, co-led by Lightspeed and General Catalyst. The company says the money will accelerate development of its deep-strike systems, increase testing cadence and expand operations across Europe.¹

Series Bincrease testing cadenceplanned

The company says the Series B will accelerate development of deep-strike systems, increase testing cadence

hypersonic deep-strike systemsby 2029planned

Hypersonica aims to develop hypersonic deep-strike systems by 2029.

Hypersonica

Sources

• www.hypersonica.com ↗

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The larger round is meant to fund work toward capabilities beyond the speed and range reported in February's flight.^{1, 3} Hypersonica aims to develop hypersonic deep-strike systems by 2029.¹

Existing investors Plural, 201 Ventures and SPRIND, Germany's Federal Agency for Breakthrough Innovation, participated in the new round.¹ The Series B is more than four times the €23.3 million Series A announced in February.^1–2

In February, Hypersonica conducted its first hypersonic test flight at Andøya Space in Norway.^{1, 3} The company says the prototype reached speeds above Mach 6 over a range exceeding 300 kilometers.¹

Virtualitics’ renewed and expanded Air Force contract makes its Automated Master Storage Planning (A-MSP) software available Air Force-wide, the company announced Nov. 3.¹

The expanded contract adds command overview dashboards for MAJCOM leaders

The expanded contract adds enterprise-level planning and analysis of future storage requirements and inventory growth

Source: Virtualitics release via PR Newswire, Nov. 3, 2026

Sources

• www.prnewswire.com ↗

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The expansion adds Command Overview Dashboards showing leaders storage utilization, capacity and constraints across installations. It also adds enterprise-level analysis of future storage requirements and inventory growth, extending the software’s role in planning how much storage the force needs.¹

A-MSP was developed to replace planning with spreadsheets, graph paper and hand calculations, according to Virtualitics. The company says it has been used across seven of the service’s commands and hundreds of users. It says the software reduces planning time by 70%.¹

The software was first deployed within Air Force Global Strike Command.¹ Its use elsewhere predates this expansion: Virtualitics said in October 2025 that A-MSP had been beta-tested across multiple commands.²

Air & Space Forces Magazine reported in November 2025 that the software was developed and beta-tested under a Small Business Innovation Research contract. The magazine reported that Virtualitics had received a one-year sole-source renewal of its phase III award and declined to disclose the value.³ The Nov. 3, 2026 announcement gives no contract vehicle, value or period of performance for the latest renewal.¹

The Navy is asking industry for rough-order-of-magnitude pricing for a planned 24-month design phase for its next-generation submarine rescue system.^1–2

Design phase24-monthplanned

The program plans for a 24-month design phase ending in the strict Critical Design Review (CDR) pivot point.

Critical Design Review gatetwo design vendors to one build vendorcontingent

RFI posits that at the Critical Design Review gate the program could move from two design vendors to one build vendor

The notice is market research and does not commit the government to a solicitation or award

Source: U.S. Navy, NextGen Submarine Rescue System request for information and RFI questions. As of Nov. 3, 2026.

Sources

• sam.gov ↗
• sam.gov ↗

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The request for information (RFI) describes a hypothetical down-select from two design vendors to one build vendor at critical design review. The planned design phase would end at that review.²

The notice was posted Nov. 3.¹ Responses are due by 3 p.m. Eastern on Nov. 16.¹

For production, the RFI envisions a contract under the Federal Acquisition Regulation for three to four operational systems.²

The RFI also asks how to enable an award earlier than September 2027 without compromising proposal quality or technical safety. It asks how to achieve initial operational capability earlier than September 2033.²