The business of defense, November 10

TransDigm's fiscal 2026 net interest expense increased $436 million, absorbing most of the year's $646 million operating income gain. Net income increased 2% to $2,108 million. The company attributed the limited net income growth partly to higher selling and administrative expenses and higher interest expense.¹

Fourth-quarter net income fell 4%, primarily because of interest on a larger gross debt balance and higher tax expense, according to TransDigm.¹

Organic sales growth for the year was 11%, or 13% excluding non-aerospace sales. The full-year EBITDA As Defined margin, a non-GAAP measure, fell to 52.7% from 53.9%. Chief Executive Officer Mike Lisman said the margin included approximately two percentage points of dilution from recent acquisitions.¹

For fiscal 2027, TransDigm forecasts sales growth of 14% at the midpoint. It anticipates sales of $11,950 million to $12,150 million.¹

Lisman put the year's acquisition spending at approximately $4.4 billion and share repurchases at approximately $2.8 billion. Acquisitions included Prince & Izant, which serves aerospace and defense among other markets, and twelve bolt-ons.¹

Project Omega announced Nov. 9 that it raised $80 million in Series A financing led by B Capital. The round included noa VC, 645 Ventures and existing investors.¹

The company plans to use the money to advance X Series technology and manufacturing and begin construction of a nuclear fuel recycling facility. The funding will also support a pilot facility for domestic isotope recovery and feedstock production.¹

Omega has launched the X Series, modular expeditionary power systems that integrate battery storage and generators. The company says their control system will allow solar and wind power initially, with isotope power to follow in the future.¹

Its long-duration power development includes radiovoltaic systems, which convert radioisotope decay directly into electricity. Omega says the technology will provide persistent power for equipment including sensors, autonomous systems and undersea platforms where recharging, battery replacement or human access is difficult or impossible.¹

The company says its recycling process recovers isotopes such as strontium-90. It also reports demonstrating stable electrical current from strontium-90 at Pacific Northwest National Laboratory and further developing radioisotope power systems through the Defense Advanced Research Projects Agency's Rads to Watts program. Omega says it advanced its recycling technology with Idaho National Laboratory through the Advanced Research Projects Agency-Energy's CURIE program.¹

The Department of War’s Office of Strategic Capital (OSC) announced a $150 million conditional loan commitment with Rocket Lab USA, the principal operating subsidiary of Rocket Lab Corporation. The proposed financing would support efforts to increase the reusable Neutron rocket’s flight rate beyond first launch.¹

OSC said the loan would support faster vehicle delivery and processing, along with an expanded fleet of maritime vessels with additional equipment for Neutron recovery and transport. It would also enable manufacturing upgrades to increase production of composite structures and engines, and support infrastructure to reduce turnaround between launches once Neutron makes its operational debut.¹

Neutron is designed to deliver payloads of approximately 13,000 kilograms to low Earth orbit. OSC said the rocket would provide the U.S. government with a new medium-lift launch platform.¹

The commitment remains conditional: Rocket Lab must satisfy financial, legal, technical, investment, due diligence and other requirements before financial close.¹

Primordial Labs announced an $18 million Series A on Nov. 10 to expand the business behind Anura, its natural language command and control platform for military systems. Ballistic Ventures led the round, with existing investors Squadra Ventures and Lockheed Martin Ventures participating.¹

Primordial plans to use the funding to expand its engineering, product and growth teams and deliver Anura across Department of War programs already under contract.¹

The company says it is delivering licenses for small uncrewed aircraft systems to multiple Army and special operations units and sells them through the Army's UAS Marketplace. Two Small Business Innovation Research Phase III awards extend that work. The 2026 awards cover Army rotary-wing aircrews and the Air Force's MQ-9 ground control station.¹

Ground vehicles are another avenue for expansion. Primordial announced a master teaming agreement with General Dynamics Land Systems (GDLS) on Oct. 7 to bring Anura to ground combat vehicles across the GDLS portfolio, including the Abrams tank.¹

Embraer's Defense & Security revenue reached $341 million in the third quarter of 2026. The company attributes the year-over-year growth to stronger KC-390 revenue recognition tied to higher volumes, customer mix and product stage.¹

That recognition follows the percentage-of-completion method. Aircraft handovers are a separate measure: during the quarter, Embraer delivered one KC-390 Millennium and two A-29 Super Tucano aircraft.¹

The unit's third-quarter adjusted EBIT margin rose to 15.7% from 12.9% a year earlier. Its backlog ended the quarter up 56% year over year.¹

The Army will continue its Enhanced Army Global Logistics Enterprise (EAGLE) installation logistics program as EAGLE 3.0. A Nov. 9, 2026, announcement excludes those requirements from LOGCAP VI and any future LOGCAP program.¹

For installation logistics contractors, the decision keeps EAGLE work in a dedicated program with acquisition terms still to come.^1–2 The decision removes EAGLE from the consolidation outlined in the Army’s July 24 request for information.^{1, 3} That plan called for the Logistics Civil Augmentation Program (LOGCAP) VI to combine legacy LOGCAP, Army Pre-Positioned Stock and EAGLE programs into a unified global logistics enterprise.³

The Army projects EAGLE 3.0 as the primary contracting program for non-inherently governmental logistical support service functions at specified Army organizations inside and outside the continental United States. Those organizations include Army Field Support Brigades, Army Field Support Battalions, Logistics Readiness Centers and supporting activities.²

Army Contracting Command–Rock Island issued the announcement in coordination with Army Sustainment Command. The Army anticipates an enterprise vehicle under North American Industry Classification System code 561210, Facilities Support Services, while the scope and acquisition strategy remain under development.²

Rochefort Asset Management announced financing for INTALUS Inc. on Nov. 10, 2026, to fund U.S. facilities and machinery for processing metal components. Rochefort says the financing will support hot isostatic pressing and Targeted Phase Infusion systems.¹

Rochefort ties the financing to what it describes as a bottleneck in the defense industrial base: limited domestic hot isostatic pressing capacity. The firm says thousands of American companies rely on foreign providers to densify their parts.¹

Hot isostatic pressing uses heat and pressure to close internal voids and reduce defects in metal parts. INTALUS' Targeted Phase Infusion systems infuse selected areas of components with its patented ceramic-metal technology, which Rochefort says is intended to improve resistance to heat, wear and corrosion.¹

The announcement discloses neither the financing amount nor whether it is equity or debt, and names no sites for the planned facilities and no government customer or contract.¹

Ukraine's Verkhovna Rada adopted draft law No. 13255 in first reading, as a basis. The parliament announced the vote Nov. 9, 2026. The bill would amend Article 3 of the Law “On the Armed Forces of Ukraine” to add Space Forces as a new branch.¹

The Navy is exploring supplemental or secondary capacity to perform service life modification (SLM) on Super Hornets and Growlers starting in fiscal 2029. Naval Air Systems Command posted the request for information on Nov. 10 on behalf of the aircraft program office.¹

Boeing and Fleet Readiness Center Southwest currently perform the work through a public-private partnership. The responses will inform whether the Navy adds a qualified source or retains its current arrangement as part of its acquisition strategy through 2038.¹

The Navy seeks operational facilities and capabilities, excluding conceptual or developmental proposals requiring substantial new construction, extensive infrastructure development or years of implementation before becoming operational.¹

The program office anticipates a maximum induction profile of up to 47 aircraft annually across the industrial base. Allocation among sources may vary with fleet requirements, aircraft availability, demonstrated performance, schedule and available capacity.¹

The work includes installing structural technical directives and advanced capability modifications such as Block III upgrade kits. Firms able to handle only part of the work or a limited annual quantity can respond, and the Navy encourages potential teaming arrangements.¹

The inquiry also asks firms to identify throughput constraints, including workforce, facilities, supply chain, engineering support and tooling. This is market research, with no commitment to award a contract or reimburse response costs.¹

The Defense Information Systems Agency (DISA) is seeking sources for a new single-award contract to support its services platforms and analytical and business intelligence capabilities. The sources-sought notice was posted Nov. 10, 2026.¹

The proposed All-Domain Adaptive Platforms and Technologies Support (ADAPTS) contract would use an indefinite-delivery/indefinite-quantity structure. Task orders would cover sustained operations, continuous software integration, platform-as-a-service engineering and unified operational visibility. That work would span the DISA Connect customer access portal, ServiceNow, Salesforce, Workday and Palantir.¹

Responses are due Nov. 30, 2026.¹ The cutoff is 4 p.m. Eastern.¹ The notice lists no set-aside and identifies Fort George G. Meade, Maryland, as the place of performance. It gives no estimated contract value or period of performance and names no incumbent or predecessor contract.¹

BAE Systems has delivered all Lot 8 radio-frequency sensors for the Long-Range Anti-Ship Missile (LRASM) to Lockheed Martin, the company announced Nov. 10.¹

BAE is under contract to deliver LRASM sensors through 2028. The company expects LRASM, initially a low-volume production program, to scale significantly in 2026 and beyond.¹

France has awarded Airbus Defence and Space and Thales Alenia Space the IRIS contract to replace its military imaging satellites.^1–2 The Directorate General of Armament (DGA) notified the companies on Nov. 5 and announced the award on Nov. 9.¹

Work under the contract is scheduled to run until the end of the 2030s. Airbus, the lead contractor, puts its value at more than €1.5 billion for the entire consortium. That covers the design, manufacture and testing of two satellites, control and user ground segments, and in-orbit operations and maintenance.²

Airbus will provide both satellite platforms and a substantial share of the first satellite’s payload, and will be responsible for the ground segment. Thales Alenia Space will develop the second satellite’s next-generation payload, provide critical elements of the first payload and contribute to the ground segment.² Neither company’s share of the contract value is disclosed in the DGA or Airbus announcements.^1–2

Subcontractors include Lynred, Pyxalis, Sodern, Safran Reosc and Air Liquide Advanced Technologies.¹

The DGA plans for the two IRIS satellites to replace the three CSO satellites of the MUSIS system by 2035, with the first entering service around 2033.¹ Defense News reported, citing a Thales statement, that the first IRIS satellite will replace CSO-1 and CSO-2.³

Israel Weapon Industries (IWI) and Dutch defense company Artillerie Inrichtingen Armaments (AIA) plan a factory in the Netherlands to manufacture and assemble the ARAD 5 rifle and NEGEV UX. The companies announced the planned cooperation on Nov. 9, 2026.¹

IWI would provide the underlying technology, product expertise and manufacturing know-how; AIA would establish the Dutch operation and the infrastructure to deliver and support the products.¹

AIA develops and manufactures ammunition, weapon systems and counter-drone products, including remotely controlled weapon stations.¹

U.S. Special Operations Command is seeking suppliers for a helmet-mounted first-person-view display that would give dismounted special operations forces tactical information and unmanned system control with certified ballistic protection. The current version of the notice was posted Nov. 9, 2026.¹

SOCOM is asking vendors how they would manage development through prototype deliveries. Vendors are also asked to confirm their ability to react to technology or supply chain shifts to avoid impacts on development and enable future production scaling. The sources-sought notice is market research, not a solicitation, and participation does not guarantee a future contract award.¹

The effort aims to develop a display module with a 50-degree field of view and head tracking while maintaining compatibility with existing soldier systems and helmets. Vendors are asked about experience integrating real-time tactical data, targeting information and drone video and control in day, night and all-weather contested environments.¹

SOCOM also asks for feedback on contract type and structure, listing length, phases, a single award, firm-fixed-price or cost-plus-fixed-fee terms and an other transaction agreement. Responses are due Dec. 1, 2026. Submissions must reach the Vulcan portal by 3:00 Eastern.¹

The Department of War removed WuXi AppTec Co., Ltd. from its Section 1260H list of Chinese military companies operating in the United States, in a notice published Nov. 10, 2026.^1–2

The notice ties the removal to an Aug. 7 court order granting WuXi AppTec’s motion for a preliminary injunction. It describes the injunction as barring the department from enforcing, implementing or otherwise giving effect to the company’s designation.²

The decision removes WuXi AppTec from the list published June 10, 2026.² The removal notice is dated Nov. 5 and states no separate effective date.^1–2

The Navy cancelled its Multi-Mission AUTEC (Atlantic Undersea Test and Evaluation Center) Range Vessel solicitation in full in a Nov. 9 notice, following the Nov. 2 proposal deadline.^{1, 3} It is no longer accepting proposals under solicitation N00024-26-R-2232.¹

For vessel owners and conversion yards, this procurement opportunity has closed.¹ The full and open competition, posted Aug. 12, sought an offshore supply vessel to be converted into the range vessel, with associated supplies and services.^1–2

In a February 2025 request for information, Naval Sea Systems Command sought information on offshore supply vessels for AUTEC. It sought information on vessels with a nominal length overall of 190–220 feet. That request listed conversion work including installation of working deck sockets, a deck crane and heavyweight torpedo tubes/hold.³