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Industry · Space intelligence

BlackSky's capital spending outpaces operating cash in record revenue quarter

Third-quarter operating cash fell short of capital spending by about $11.8 million. BlackSky raised its full-year revenue outlook.

BlackSky reported record third-quarter revenue of $42.8 million on Nov. 5. Revenue rose 29% from the second quarter.1 Adjusted EBITDA, a non-GAAP measure, rose to $12.8 million from $4.7 million over the same period.1–2

BlackSky raised full-year 2026 outlook to revenue of $140-150 million

full year revenue

prior outlook (reaffirmed Aug. 6, 2026)between $130 million and $150 millionplanned

The Company expects full year revenue between $130 million and $150 million

full-year 2026 outlookbetween $140 million and $150 millionplanned

The Company now expects revenue to be between $140 million and $150 million

Source: BlackSky second- and third-quarter 2026 results releases, SEC. As of Nov. 5, 2026.

Sources
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Operating cash covered only part of the quarter's capital spending.1 The six- and nine-month cash flow statements imply third-quarter operating cash inflow of about $3.6 million, against $15.4 million in capital expenditures.1–2 In the first six months, operating activities used $5.9 million.2

Cash, cash equivalents, restricted cash and short-term investments totaled $231.1 million at Sept. 30.1 That was down $13.0 million from June 30.1–2 BlackSky had raised $150 million through its at-the-market equity program in the second quarter.2

In its second-quarter filing, BlackSky said it expected cash, short-term investments and operating cash to cover working capital and capital spending needs for the foreseeable future.4

BlackSky raised the lower end of its 2026 revenue outlook.1–2 It now expects $140 million to $150 million. It maintained its capital expenditure forecast at $50 million to $60 million.1

Also announced

BlackSky reported its selection as exclusive provider of very-high resolution optical satellites for an initial 50-satellite constellation. The constellation falls under a $1 billion investment through a consortium including France and the UAE.1

Reported quarterly capital spending totals $46.6 million through September. That leaves $3.4 million to $13.4 million for the fourth quarter within the annual outlook, if the quarterly figures and outlook use the same definition.1 BlackSky said in its second-quarter filing that it can manage the timing of much of its capital spending, including the design, build and launch of satellites under development.4

Sources (4)
  1. BlackSky third-quarter 2026 results release (8-K Exhibit 99, Nov. 5, 2026) www.sec.gov
  2. BlackSky second-quarter 2026 results release (Aug. 6, 2026) www.sec.gov
  3. BlackSky first-quarter 2026 results release (May 7, 2026) www.sec.gov
  4. BlackSky Form 10-Q for the quarter ended June 30, 2026 www.sec.gov
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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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