Airbus scraps Wingman combat drone, Breaking Defense reports

Germany’s Ministry of Defence has formally notified Boeing it will not directly procure the MQ-28 Ghost Bat drone wingman, Breaking Defense reported Oct. 16, citing a company spokesperson.¹

Germanytarget of 2029planned

that timeline now looks to be in doubt

aircraft testsstarting in 2027planned

Politico stated that Berlin will wait until the early 2030s for the capability to arrive, with aircraft tests starting in 2027.

The tests are a chance for other competitors and Boeing to fight to be selected for the CCA acquisition.

Reported by Breaking Defense, citing Politico for test timing and capability arrival. As of Oct. 16, 2026.

Sources

• breakingdefense.com ↗

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Germany’s 2029 target for fielding collaborative combat aircraft (CCA) now looks in doubt, according to Breaking Defense. The outlet cited Politico’s reporting that Berlin will wait until the early 2030s for the capability.¹

The ministry declined to discuss potential procurement projects in its response to Breaking Defense, citing procurement and public contracting law and the requirement that parliament address such matters first. Boeing deferred questions about the reason to the ministry, Breaking Defense reported.¹

Boeing Australia and Rheinmetall unveiled an MQ-28 at the Berlin Air Show on June 10, hoping to fly it for the German air force, Breaking Defense reported. Rheinmetall CEO Armin Papperger told the outlet then that government negotiations were continuing. If Germany wanted the aircraft by 2029, he said, he expected the final stage of contract negotiations would have to begin by the following year at the latest.²

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