The business of defense, November 7

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

The Army assessed the FD-1 drone interceptor at Ustka Training Area in Poland. Operation Audacious Fury ran Nov. 2–6, 2026. The 5th Battalion, 4th Air Defense Artillery Regiment’s Tactics, Integration and Employment Battery led the internal assessment.¹

theater divisional air defense battalion02–06 November 2026actual

conducted an internal assessment of the FD-1 Interceptor at Ustka Training Area, Poland

Tactics, Integration and Employment Batterywill be trained trainersplanned

TIE Battery soldiers will be trained trainers passing training and certification to other units under U.S. Army Europe and Africa

Source: U.S. Army, DVIDS. As of Nov. 6, 2026.

Sources

• www.dvidshub.net ↗

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The battalion is working toward a training method that other units can use. Staff Sgt. Felix Aguilar, a platoon sergeant with the battery, said the unit sought to develop tactics and a training and certification system for soldiers unfamiliar with flying first-person view drones.¹

The exercise sought cost-effective, lower-tier kinetic magazine depth against Group 1–3 and massed uncrewed aircraft threats. Battalion commander Lt. Col. John Verwiel said the unit could use many systems against massed drone threats while staying on the right side of the cost curve. He said the aim was to avoid using high-end munitions ineffectively.¹

Mountain Horse Solutions, a Global Ordnance company, produces the interceptor. On Oct. 12, it announced a second order from the Army’s Global Tactical Edge Acquisition Directorate. Issued Oct. 8 under an Other Transaction Agreement, the award followed an initial award in the spring.² The Army’s account of the assessment gives no intercept results or unit cost, and Mountain Horse’s announcement gives neither the order quantity nor its value.^1–2

The Defense Information Systems Agency (DISA) is seeking a commercial, cloud-hosted identity and access management prototype to modernize the Department of War’s legacy identity infrastructure.¹

modernize legacy identity infrastructuremodular, cloud-hostedplanned

This effort will modernize legacy identity infrastructure with a modular, cloud-hosted commercial off-the-shelf/software-as-a-service solution operating across IL5 and IL6 environments.

The prototype must address the Federated Identity Provider, Automated Account Provisioning, Master Entitlement Record, and Federation Hub core capabilities.

Response deadline is Nov. 30, 2026, 5:00 p.m. America/Chicago (Monday)

Source: SAM.gov. As of Nov. 7, 2026.

Sources

• sam.gov ↗

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DISA is seeking the capability through a prototype Other Transaction opportunity linked to its competitive Commercial Solutions Opening.^1–3

The Next Generation Enterprise Identity, Credential, and Access Management (E-ICAM) effort calls for a modular commercial off-the-shelf or software-as-a-service solution. The solution would operate across Impact Level 5 (IL5) and Impact Level 6 (IL6) environments. The prototype must address four core capabilities: Federated Identity Provider, Automated Account Provisioning, Master Entitlement Record and Federation Hub.¹

Responses to the Area of Interest are due Nov. 30 at 5 p.m. Central.¹

Space Force Brig. Gen. Robert J. Schreiner assumed duties as National Reconnaissance Office (NRO) deputy director and Space Force Element commander on Nov. 6, 2026.^1–2

NRO deputy directordesign, acquisition, launch and operationsplanned

Schreiner will assist the director in managing the NRO’s strategic and tactical operations, including the design, acquisition, launch and operations of the nation’s intelligence, surveillance, and reconnaissance capabilities.

Space Force Element commandermilitary personnel assigned to NROplanned

he will lead the military personnel assigned to NRO, manage associated service resources, and serve as the senior advisor to the NRO director on all military matters.

Source: National Reconnaissance Office, November 6, 2026

Sources

• www.nro.gov ↗

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Schreiner returns to an agency where he commanded NRO Delta 20 and Aerospace Data Facility-Colorado from August 2021 to July 2024.³ His career includes acquisition management and systems engineering assignments, alongside space operations. Before taking the deputy post, he commanded U.S. Space Forces Northern.¹

He succeeds Space Force Maj. Gen. Christopher S. Povak, who has been selected for appointment to lieutenant general and assignment as deputy chief of space operations for operations at Space Force headquarters.¹ NRO Director L. Roger Mason Jr. said Povak served more than four years as deputy.¹