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30 Oct 25. L3Harris Technologies Reports Strong Third Quarter 2025 Results, Increases 2025 Guidance.
L3Harris Technologies (NYSE: LHX) reports third quarter 2025 results.
Highlights*
• Orders of $6.7bn; book-to-bill of 1.2x
• Revenue of $5.7bn, up 7% versus prior year, and 10% organically
• Operating margin of 11.0%; Adjusted segment operating margin of 15.9%
• Diluted EPS of $2.46; Non-GAAP diluted EPS of $2.70, up 10% versus prior year
• 2025 guidance increased on strong performance and higher expectations
“We delivered another strong quarter, with robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution as drivers of profitable growth. We are driving sustained performance, marking our eighth consecutive quarter of year-over-year adjusted segment operating margin expansion, and advancing our strategic priorities in support of our customers’ missions. With increasing demand, a record pipeline, and timely investments made ahead of the curve in growth areas like space and munitions, we are on track to achieve our 2026 Financial Framework and positioned to deliver long-term profitable growth,” said Christopher Kubasik, Chair and CEO, L3Harris.
Kubasik added, “The defense industry is entering a new era defined by urgency, speed, and mission focus. L3Harris is leading the way, delivering resilient, rapidly deployable solutions at an accelerated pace to meet evolving mission needs. We are executing with focus and capturing new opportunities both domestically and abroad, such as the $2.2 bn Korea Airborne Early Warning & Control award received just after quarter end.”
*Organic revenue, adjusted segment operating margin and non-GAAP diluted EPS are non-GAAP financial measures defined on page 16.SUMMARY FINANCIAL RESULTS*
Revenue: Third quarter revenue increased 7%, 10% organically, reflecting growth across all segments, primarily from higher volumes, including new program ramps and increased international deliveries.
Operating Margin:
GAAP Operating Margin: Third quarter increased 160 bps to 11.0% primarily driven by the absence of business divestiture-related losses, lower amortization of acquisition-related intangibles, and lower LHX NeXt implementation costs.
Adjusted Segment Operating Margin: Third quarter increased 10 bps to 15.9% primarily driven by improved program performance and LHX NeXt driven cost savings across all segments, partially offset by impacts from higher margin Commercial Aviation Solutions (CAS) divestiture.
Diluted EPS:
GAAP Diluted EPS: Third quarter increased 17% to $2.46 driven by higher operating income and lower interest expense from decreased average outstanding short-term debt balances during third quarter 2025, partially offset by a higher effective tax rate.
Non-GAAP Diluted EPS and Pension Adjusted Non-GAAP Diluted EPS: Third quarter increased 10% to $2.70 and 15% to $2.36, respectively, from higher adjusted segment operating income and lower interest expense from decreased average outstanding short-term debt balances during third quarter 2025, partially offset by a higher effective tax rate.
Cash Flow:
Cash From Operations and Adjusted Free Cash Flow: Third quarter decreased 30% to $546 m and 38% to $449 m, respectively, primarily due to temporary customer delays in payment. We remain confident in achieving our 2025 cash flow guidance assuming the government shutdown is resolved, with the strongest cash generation of the year expected in the fourth quarter.
SEGMENT RESULTS*
Communication Systems
Revenue: Third quarter revenue increased 6% primarily driven by increased international deliveries for software-defined resilient communications and data-link equipment, as well as Next Generation Jammer program ramp, our flagship Electronic Warfare tactical jamming pod.
Operating Margin: Third quarter operating margin increased 10 bps to 26.1%, primarily due to LHX NeXt driven cost savings, partially offset by unfavorable mix associated with lower volume of proprietary waveform license sales.
Integrated Mission Systems
Revenue: Third quarter revenue increased 6%. Excluding the impact of the divestiture of our CAS business, organic revenue increased 17% primarily due to multiple ISR classified programs ramping.
Operating Margin: Third quarter operating margin decreased 70 bps to 12.0% primarily due to the divestiture of our CAS business, partially offset by favorable performance.
*Organic revenue is a non-GAAP financial measure defined on page 16.Space and Airborne Systems
Revenue: Third quarter revenue increased 7%, primarily from increased FAA volume in our Mission Networks business and higher volume in our Airborne Combat Systems business, partially offset by lower classified program volume in our Intel and Cyber business.
Operating Margin: Third quarter operating margin increased 50 bps to 12.1%, primarily due to improved program performance on classified development programs in our Space Systems business, monetization of legacy end-of-life assets aligned with our transformation and value creation priorities, and LHX NeXt driven cost savings, partially offset by unfavorable mix.
Aerojet Rocketdyne
Revenue: Third quarter revenue increased 13%. Excluding the impact of the divestiture of our AOT business, organic revenue increased 15% from increased production volumes across key missile, munitions, and space programs, as well as new program ramps.
Operating Margin: Third quarter operating margin increased 130 bps to 12.7%, primarily due improved performance and LHX NeXt driven cost savings.
(Source: BUSINESS WIRE)
29 Oct 25. Leonardo DRS Announces Financial Results for Third Quarter 2025.
• Revenue: $960m, up 18% year-over-year
• Net Earnings: $72m, up 26% year-over-year
• Adjusted EBITDA: $117m, up 17% year-over-year
• Diluted EPS: $0.26, up 24% year-over-year
• Adjusted Diluted EPS: $0.29, up 21% year-over-year
• Bookings: $1.3bn (book-to-bill ratio of 1.4x)
• Backlog: $8.9bn, up 8% year-over-year
• Revises 2025 guidance for revenue and Adjusted Diluted EPS
• Dividend: Company declares $0.09 cash dividend per share to be paid on December 2, 2025
Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the third quarter 2025, which ended September 30, 2025.
CEO Commentary
“Broad-based customer demand was evident in our exceptional bookings and organic revenue growth in the third quarter. Our year-to-date performance puts us on a solid path to deliver double-digit revenue growth and to execute against our financial commitments for 2025. We are making steady progress on strengthening Germanium supply and remain focused on disciplined program execution throughout the business,” said Bill Lynn, Chairman and CEO of Leonardo DRS.
Summary
The company delivered 18% revenue growth in the third quarter 2025. The impressive year-over-year revenue increase was primarily driven by counter UAS, electric power and propulsion, naval network computing and advanced infrared sensing programs.
Adjusted EBITDA growth was spurred on by increased volume and higher profitability on electric power and propulsion programs, namely Columbia Class. However, Adjusted EBITDA margin declined slightly year-over-year as the tailwinds from higher volume and improved Columbia Class program profitability were offset by increased investment in research and development, less favorable mix and less efficient program execution.
Healthy year-over-year growth was evident across bottom-line metrics (net earnings, Adjusted Net Earnings, diluted EPS and Adjusted Diluted EPS) and primarily propelled by higher operational-driven profitability as well as a marginally lower net interest expense.
Cash Flow
Net cash flow provided by operating activities was $107 m for the third quarter. The company’s free cash flow generation was $77m in the quarter. Both operating and free cash flow generation were greater than the third quarter 2024 due to higher net profitability and a more favorable working capital position. The strong third quarter cash flow performance builds on a pattern of improved year-over-year linearity.
Dividends, Stock Repurchases and Strategic Activity
During the third quarter, the company paid dividends to shareholders totaling approximately $24m or $0.09 per common share. DRS today announced that its Board of Directors declared a cash dividend of $0.09 per common share payable on December 2, 2025, to shareholders of record on November 18, 2025. Additionally, the company repurchased 247,558 shares of its common stock for approximately $10m in the third quarter.
In the third quarter, the company made a $15 m investment in Hoverfly Technologies (“Hoverfly”), which designs, develops and manufactures power-tethered unmanned aerial systems and related products. As a result of this incremental investment, DRS increased its stake in Hoverfly to approximately 25%.
Balance Sheet
At quarter end, the balance sheet had $309 m of cash and $194 m of outstanding borrowings under the company’s credit facility, which provides the company with sufficient financial capacity to deploy capital for growth and return capital to shareholders, while maintaining a healthy balance sheet.
Bookings and Backlog
The company secured $1.3bn in new funded bookings in the third quarter. Robust customer demand was evident throughout the business but was most prominent for counter UAS, advanced infrared sensing, naval network computing and electric power and propulsion technologies. Total backlog reached a new record and increased year-over-year by 8% to $8.9bn.
Segment Results
Advanced Sensing and Computing (“ASC”) Segment
Customer demand for the company’s differentiated technology offerings in advanced infrared sensing, naval network computing and airborne sensing bolstered ASC quarterly bookings. Revenue growth in the segment was driven by naval network computing, advanced infrared sensing and tactical radar programs. Quarterly Adjusted EBITDA remained consistent, however, year-over-year margin decreased due to higher internal research and development investment and less favorable program mix.
Integrated Mission Systems (“IMS”) Segment
Robust counter UAS systems demand along with steady electric power and propulsion orders drove third quarter IMS segment bookings. Strong performance across the segment translated into remarkable revenue growth in the third quarter. Adjusted EBITDA growth and margin expansion was primarily caused by a combination of increased volume across the segment and improved electric power and propulsion program profitability.
(Source: BUSINESS WIRE)
29 Oct 25. REX Shares (“REX”), a leading innovator in alternative ETFs, today announced the launch of the REX Drone ETF (Ticker: DRNZ), the first Drone pureplay ETF focused on the global drone and unmanned aerial vehicle (UAV) economy. The REX Drone ETF provides investors with targeted exposure to companies driving growth in both defense and commercial drone applications. Unlike traditional aerospace or defense ETFs, this fund offers a dedicated focus on drones and UAVs, capturing the rapidly expanding use cases that span military reconnaissance, commercial delivery, agriculture, infrastructure inspection, and AI-enabled industrial automation.
“Drones are no longer just a defense story—they’re transforming logistics, agriculture, and industry at large,” said Greg King, Founder and CEO at REX. “This ETF is designed to give investors authentic, targeted exposure to a technology that’s reshaping how we move goods, monitor infrastructure, and think about automation.”
The ETF is based on the VettaFi Drone Index (VDRONE), which tracks global companies that derive a significant portion of revenues from drone-related businesses. The index allocates primarily to pureplay companies earning at least half of their revenue from drones or enabling technologies and to diversified defense and aerospace firms with established UAV programs.
According to industry projections, the global drone market is expected to more than double in size over the next decade, as adoption accelerates across both public and private sectors. The REX Drone ETF offers investors an early opportunity to access this growth through a diversified basket of global drone innovators.
The fund will be listed on Nasdaq under ticker symbol DRNZ.
About REX
REX Financial is a leading provider of innovative exchange-traded products (ETPs), specializing in alternative strategy ETFs and ETNs. We have introduced strategies including the first U.S.-listed Solana ETF with on-chain staking rewards (REX-Osprey SSK); the first 2x leveraged ETFs tied to Nvidia, Tesla, MicroStrategy, and spot Bitcoin (T-REX); and a suite of option-based covered call ETFs, ranging from traditional approaches to single-stock strategies that balance weekly distributions with uncapped upside. (Source: BUSINESS WIRE)
30 Oct 25. Patria Group’s Interim Report for 1 January – 30 September 2025. Patria’s net sales and operating profit grew strongly in the third quarter, order stock continued to grow.
The third quarter of 2025
Patria’s net sales and operating profit increased strongly in the third quarter of 2025. Patria’s net sales in the third quarter were EUR 248.3m, representing a 53.1% increase compared to the same period in 2024. Net sales grew across all of Patria’s business areas during the third quarter. The Group’s cumulative net sales for 2025 were EUR 669.2 m, an increase of 24.4% compared to the previous year. The Group’s operating profit (EBIT) also developed positively, rising to EUR 48.2m.
At the end of the third quarter of 2025, Patria’s order stock stood at EUR 2.6bn, which is all time high. In the third quarter, Denmark ordered 129 Patria 6×6 vehicles as part of the CAVS programme. Two more countries also joined the CAVS programme during the third quarter: the United Kingdom and Norway, bringing the total number of member countries to seven. The comparation period from the beginning of last year included a significant order from Sweden for 321 CAVS vehicles.
Interest in Patria’s products and services has further increased as defence budgets have grown. In September, Patria unveiled the Patria TRACKX tracked vehicle at the DSEI UK event in London. It is designed to operate effortlessly even in more demanding environments. The new tracked vehicle has attracted interest, and it will be ready for serial production in 2027.
Patria has increased investments to respond to growing demand and to develop its offerings for enhanced customer value and competitiveness. The company has kicked off a comprehensive internal development programme, playing a pivotal role in achieving our growth and profitability ambitions for the upcoming years.
A significant portion of operational efforts have been directed toward increasing production capacity to meet the growing demand for armoured vehicles and improve the productivity of operations. Patria’s new operating model, based on three key business areas – Protected Mobility, Defence and Weapon Systems and Sustainment Solutions – came into effect on 1 June, 2025. The implementation of the new operating model continued smoothly during the third quarter.
Millog had a positive impact on the Group’s net sales and operating profit, while Nammo had a positive impact on operating profit during the first half of 2025.
Key events during the third quarter
• In September, the first Patria AMV XP 8×8 armoured vehicle was delivered to the Japan Ground Self-Defense Force as part of Japan’s WAPC programme for 8×8 wheeled personnel carriers, with Japan Steel Works acting as the supplier.
• The United Kingdom and Norway joined the CAVS vehicle programme and signed the Technical Arrangement agreement in September. These newly joined countries are now the sixth and seventh members of the programme, following Finland, Latvia, Sweden, Germany, and Denmark.
• In September, Patria and Babcock International Group signed a cooperation agreement for the manufacturing of Patria 6×6 vehicles under the CAVS programme in the United Kingdom.
• Patria delivered the first CAVS vehicles to Denmark in September, following the July order of 129 Patria 6×6 vehicles.
• Patria completed the acquisition of ILIAS Solutions on September 1, 2025.
• In August, Patria signed an agreement to supply composite component assemblies for the new Airbus A350F aircraft.
Outlook
Demand for Patria’s products and services continues to grow. Growth is further boosted by the increase in defence budgets in European NATO countries in accordance with the decisions at the NATO Summit 2025 in the Hague.
Net sales growth is expected to be strong in 2025, supported by an increased order stock. Most of the growth is expected to be generated by the armoured vehicle business. The outlook for the other business areas is also positive.
The ramp-up of the armoured vehicle production is progressing, although it has been more time-consuming than anticipated. The operations will have full focus on securing customer deliveries and speeding-up capacity increase to meet the accelerating growth in demand.
The impact of the geopolitical situation and general economic uncertainty on long-term development in the operating environment is difficult to evaluate. These factors could potentially have significant direct and indirect impacts on the demand and Patria’s operations.
30 Oct 25. KBR Reports Third Quarter Fiscal 2025 Results
Third Quarter Fiscal 2025 Highlights
(All comparisons against the third quarter fiscal 2024 unless noted.)
• Revenues of $1.9 bn
• Net income attributable to KBR (including discontinued operations) of $115m; Adjusted EBITDA2 of $240 m, up 10% with an Adjusted EBITDA2 margin of 12.4%
• Diluted EPS (including discontinued operations) of $0.90; Adjusted EPS2 of $1.02, up 21%
• Bookings and options1 of $4.2bn with 1.4x book-to-bill1
Third Quarter YTD 2025 Highlights
(All comparisons against the third quarter YTD fiscal 2024 unless noted.)
• Revenues of $5.9bn, up 5%
• Net income attributable to KBR (including discontinued operations) of $304 m; Adjusted EBITDA2 of $730 m, up 14% with an Adjusted EBITDA2 margin of 12.4%
• Diluted EPS (including discontinued operations) of $2.33; Adjusted EPS2 of $2.93, up 20%
• Bookings and options1 of $9.1 bn with 1.1x book-to-bill1
Revising Fiscal Year 2025 Guidance
• Revising previously provided outlook for the pace of awards across both segments and the resolution of bids won under protest, which will not be resolved during the U.S. Government shutdown.
KBR, Inc. (NYSE: KBR) today announced its third quarter fiscal 2025 results.
“Despite revenue headwinds, KBR achieved year on year double digit Adjusted EBITDA growth, strong cash conversion and maintained operational momentum with a strong book to bill. Our diverse portfolio, prudent cost management and focus on value-add for our customers delivered enhanced margins in line with our strategy,” said Stuart Bradie, Chairman, President & CEO.
Mr. Bradie added, “Our focus on operational, mission-critical priorities, combined with 60% of Adjusted EBITDA coming from non-U.S. government customers, positions us to maintain stability during a temporary government shutdown.”
1 As used throughout this release, book-to-bill and bookings and options exclude long-term UK PFIs and the Plaquemines LNG project.
2 As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Operating cash conversion are non-GAAP financial measures. All non-GAAP financial measures reflect results from continuing operations. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.
Third Quarter Fiscal 2025 Consolidated Results Review
(All comparisons against the third quarter fiscal 2024 unless noted.)
Revenues were $1.9 bn, down 0% or $6 m, due to the slower pace of awards in the first half of the year across both segments and EUCOM reductions in Readiness & Sustainment, partially offset by growth in Defense & Intel both in the U.S. and internationally.
Operating income was $191 m, up 10% or $18 m, primarily due to increases in Equity in earnings of unconsolidated affiliates due to strong project execution on an LNG project, partially offset by decreases in gross profit and increases in Selling, general and administrative expenses.
Net income attributable to KBR (including loss from discontinued operations) was $115 m, up 15% or $15 m, primarily due to increases in Operating income noted above.
Net income attributable to KBR from continuing operations was $116 m, up 16% or 16 m, in line with Net income attributable to KBR (including loss from discontinued operations) noted above.
Diluted earnings per share attributable to KBR (including loss from discontinued operations) were $0.90, up 20% or $0.15, in line with increased Net income attributable to KBR (including loss from discontinued operations) noted above and lower diluted weighted average common shares outstanding due to open market share repurchases.
Diluted earnings per share from continuing operations were $0.91, up 21% or $0.16, in line with Diluted earnings per share attributable to KBR (including loss from discontinued operations) noted above.
Adjusted EBITDA2 was $240 m, up 10% or $21m, primarily due to the increase in Operating income noted above. Adjusted EBITDA2 margin was 12.4%, up from the prior year due to strong operating performance in the current year period.
Adjusted earnings per share2 were $1.02, up 21% or $0.18, due to the increase in Adjusted EBITDA2 noted above and lower adjusted weighted average common shares outstanding due to open market share repurchases.
Backlog and options as of the quarter end totaled $23.4bn. Book-to-bill1 was 1.4x for the quarter.
Third Quarter Fiscal 2025 Segment Results Review
(All comparisons against the third quarter fiscal 2024 unless noted.)
Mission Technology Solutions (MTS)
Revenues were $1,406m, flat to the prior year, due to growth in Defense & Intel, offset by EUCOM reductions in Readiness & Sustainment and NASA funding restrictions in Science & Space.
Operating income was $114m, flat to the prior year, in line with Revenues noted above. Operating income margin was 8.1%.
Adjusted EBITDA2 was $143m, up 1% or $2m, in line with Operating income noted above. Adjusted EBITDA2 margin was 10.2%, in line with the prior year period.
Backlog and options as of the quarter end totaled $19.7 bn. Book-to-bill1 was 1.4x for the quarter.
The following new business awards were announced:
• Awarded a $2.5 bn ceiling value, base period NASA contract to support astronaut health, occupational health, and research that could help mitigate health risks for future human spaceflight missions
• Awarded three cost-plus-fixed-fee task order contracts by the Air Force Research Laboratory (AFRL) under the Innovative Cyber/Infrastructure Threat Assessment Environment (INCITE) Common Operating Picture for Event Response Situation Awareness (COPERS) contract
• Secured a $99m contract to advance the U.S. Space Force Design Implementation for Collaborative Environment (DICE)
Sustainable Technology Solutions (STS)
Revenues were $525m, down 1% or $6m, driven by delays in new awards.
Operating income was $118m, up 13% or $14m, primarily due to increases in Equity in earnings of unconsolidated affiliates due to strong project execution on an LNG project, partially offset by increases in Selling, general and administrative expenses. Operating income margin was 22.5%.
Adjusted EBITDA2 was $123m, up 13% or $14m, primarily due to higher Operating income noted above. Adjusted EBITDA2 margin was 23.4%, up from the prior year due to strong operating performance in the current year period.
Backlog as of the quarter end totaled $3.7 bn. Book-to-bill1 was 1.2x for the quarter.
The following new business awards were announced:
• Secured a two-year renewal of EPCM contract with Basra Oil Company for the Majnoon oil field in Iraq
• Awarded a program management consultancy contract by TAQA Transmission
• Awarded a FEED contract for Heavy Oil Program by Kuwait Oil Company
• Awarded a FEED contract for Abadi Onshore LNG project in Indonesia
Balance Sheet, Cash Flow, and Capital Deployment
Liquidity as of October 3, 2025, totaled approximately $1.1bn, comprising $605 m in borrowing capacity under the revolving credit facility and $539m cash and cash equivalents. Net leverage ratio as of October 3, 2025, was 2.2x.
Operating cash flows from continuing operations for the quarter were $198m, up 29% or $45m, with Operating cash conversion2 of 152% due to DSO reductions in both segments.
During the third quarter, KBR returned $122 m in capital to shareholders, consisting of $100m in share repurchases (including withhold to cover shares) and $22 m in regular dividends.
30 Oct 25. Kongsberg third-quarter orders rise, boosted by higher military spending in Europe. Norwegian aerospace and defence company Kongsberg Gruppen reported a higher order intake for the third quarter on Thursday, citing an increase in missles and air defence deliveries, reflecting Europe’s rising military spending.
Kongsberg, which has customers in defence, aerospace, maritime, energy and fishing industries, said its quarterly orders rose 30% from a year earlier to 16.89 bn Norwegian crowns ($1.68 bn), mainly driven by the defence and aerospace business.
“Order intake remains robust from both defence and civilian customers,” chief executive Geir Haoy said in a statement.($1 = 10.0431 Norwegian crowns) (Source: Reuters)
30 Oct 25. Norway’s Kongsberg Gruppen to spin off maritime business in IPO.
• Summary
• Kongsberg Gruppen to split into two companies
• Arms maker unit to keep current stock market listing
• Will list civilian-focused maritime business in IPO
Norwegian defence contractor Kongsberg Gruppen (KOG.OL) maker of the Joint Strike Missile air defence system, said on Thursday it planned to spin off its civilian-focused Kongsberg Maritime business in an initial public offering on the Oslo Bourse.
Synergies between the business areas have diminished over time, and the spin-off will create two focused companies, each positioned to seize global growth opportunities within their respective markets, Kongsberg Gruppen said in a statement. (Source: Reuters)
29 Oct 25. Airbus reports Nine-Month (9m) 2025 results
• 507 commercial aircraft delivered
• Revenues €47.4bn; EBIT Adjusted € 4.1bn
• EBIT (reported) €3.4bn; EPS (reported) € 3.34
• Free cash flow before customer financing € -0.9bn
• 2025 guidance maintained, now including the impact of currently applicable tariffs
Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for the nine months ended 30 September 2025.
“Our nine-month results reflect the level of commercial aircraft deliveries and a solid performance in the Defence and Space and Helicopters businesses,” said Guillaume Faury, Airbus Chief Executive Officer. “Deliveries remain backloaded amid a complex and dynamic operating environment. Meanwhile, we continue to expand our industrial capacity to support the commercial aircraft ramp-up. In space, we are making progress in the consolidation of our activities together with Leonardo and Thales to create a new European leader in that market. We maintain our 2025 guidance, which now includes the impact of currently applicable tariffs.”
Gross commercial aircraft orders totalled 610 (9m 2024: 667 aircraft) with net orders of 514 aircraft after cancellations (9m 2024: 648 aircraft). The order backlog amounted to 8,665 commercial aircraft at the end of September 2025. Airbus Helicopters registered net orders totalling 306 units (9m 2024: 308 units), which were well spread across the product range. Order intake by value at Airbus Defence and Space totalled € 6.8 bn (9m 2024: € 11.0bn).
Consolidated revenues increased 7% year-on-year to € 47.4bn (9m 2024: € 44.5bn). A total of 507 commercial aircraft were delivered (9m 2024: 497 aircraft), comprising 62 A220s, 392 A320 Family, 20 A330s and 33 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 3% to € 33.9bn, mainly reflecting the higher number of deliveries and growth in services. Airbus Helicopters’ revenues increased by 16% to € 5.7 bn, reflecting a solid performance from programmes and growth in services. Helicopter deliveries totalled 218 units (9m 2024: 190 units). Revenues at Airbus Defence and Space increased 17% year-on-year to € 8.9bn, driven by higher volumes across all its business lines.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled € 4,146m (9m 2024: € 2,798m). 9m 2024 included charges recorded in the Space Systems business totalling € 989 m.
EBIT Adjusted related to Airbus’ commercial aircraft activities totalled € 3,270m (9m 2024: € 3,028m), mainly reflecting a more favourable hedge rate and lower R&D expenses while the increase of deliveries embeds an unfavourable mix.
The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. On the A220, the current balance between supply and demand has led to an adjustment of the ramp-up trajectory, with the Company now targeting to reach rate 12 in 2026. The A330 programme is currently stabilising at a monthly production rate of 4 aircraft and, as previously communicated, is targeting rate 5 in 2029 to meet customer demand. The Company continues to target rate 12 for the A350 in 2028.
Airbus Helicopters’ EBIT Adjusted increased to €495 m (9m 2024: € 420m), reflecting the growth in services and higher deliveries.
EBIT Adjusted at Airbus Defence and Space totalled € 420 m (9m 2024: €-661m), supported by higher volumes and improved profitability in line with the Division’s mid-term trajectory.
On the A400M programme, the Company is engaged in positive and forward-looking discussions with the launch nations and OCCAR. This was notably marked by the agreement reached in June with OCCAR to advance seven deliveries for France and Spain and to further increase the visibility on the programme’s production. In light of uncertainties regarding the level of aircraft orders, Airbus continues to assess the potential impact on the programme’s manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable.
Consolidated self-financed R&D expenses totalled € 2,145m (9m 2024: €2,351m).
Consolidated EBIT (reported) was €3,365 m (9m 2024: € 2,690m), including net Adjustments of € -781m.
These Adjustments comprised:
• €-577 m related to the dollar working capital mismatch and balance sheet revaluation, of which €-186m were in Q3. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
• €-105 m related to the Airbus Defence and Space workforce adaptation plan recorded in Q1;
• €-88 m related to Spirit AeroSystems work packages stabilisation costs, of which € -31m were in Q3;
• €-11 m of other costs including compliance and M&A, of which € +23m were in Q3.
The financial result was €374m (9m 2024: €-92m), mainly reflecting the revaluation of certain equity investments and revaluation of financial instruments, partially offset by the evolution of the US dollar. Consolidated net income(1) was € 2,641 m (9m 2024: € 1,808 m) with consolidated reported earnings per share of € 3.34 (9m 2024: €2.29).
Consolidated free cash flow before customer financing was € -914m (9m 2024: €-845m), reflecting the inventory build-up that supports fourth quarter deliveries, and the production ramp-up. Consolidated free cash flow totalled €-778 m (9m 2024: €-877 m). The gross cash position stood at € 21.3bn at the end of September 2025 (year-end 2024: €26.9bn), with a consolidated net cash position of €7.0 bn (year-end 2024: €11.8 bn), also reflecting the 2024 dividend payment and the weakening dollar environment.
Outlook
As the basis for its 2025 guidance, the Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services. The Company’s 2025 guidance now includes the impact of currently applicable tariffs. The guidance also includes the impact of the integration of certain Spirit AeroSystems work packages based on preliminary estimates and an assumed closing in the fourth quarter of 2025.
On that basis, the Company targets to achieve in 2025:
• Around 820 commercial aircraft deliveries;
• EBIT Adjusted of around €7.0bn;
• Free Cash Flow before Customer Financing of around €4.5bn.
The anticipated impact of the integration of certain Spirit AeroSystems work packages on the Company’s guidance remains broadly in line with previous estimates.
Post-closing event
On 23 October 2025, Airbus, Leonardo and Thales announced the signature of a Memorandum of Understanding aimed at combining their respective space activities into a new company. By joining forces, the companies aim to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration and national security. This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programmes. It could be operational in 2027, subject to regulatory approvals and satisfaction of other closing conditions.
28 Oct 25. ATI Announces Third Quarter 2025 Results.
Continued year-over-year sales growth driven by aerospace & defense
Record aerospace & defense sales of $793m, representing 70% of Q 3 2025 sales
Strong margin performance in HPMC and AA&S segments
Raising full year ranges for adjusted earnings and cash flow guidance
Third Quarter 2025 GAAP Financial Results
• Sales of $1.13 bn, up 7% year-over-year, driven by a 21% aerospace & defense increase
• Net income attributable to ATI of $110m, up 33% year-over-year
• Earnings per share of $0.78 compared to $0.57 per share in the third quarter 2024
Third Quarter 2025 Non-GAAP Financial Information*
• Adjusted net income attributable to ATI* of $119 m, up 39% year-over-year
• Adjusted earnings per share* of $0.85, compared to $0.60 per share in the third quarter 2024
• Adjusted EBITDA* of $225 m, an increase of 21% year-over-year
• Adjusted EBITDA* as a percentage of sales of 20.0%, compared to 17.7% in the third quarter 2024
Guidance
GAAP earnings per share for the third quarter 2025 were $0.78 and adjusted earnings per share* were $0.85. Net income attributable to ATI was $110.0m and ATI adjusted EBITDA* was $225.1 m, or 20.0% of sales. Third quarter 2025 adjusted results exclude pre-tax charges of $12.9m for special items and a $1.1m gain on the sale of a non-core business previously reported in the HPMC segment. The after-tax impact of these special items was a charge of $9.4m, or $0.07 per share.
Second quarter 2025 adjusted results exclude pre-tax charges of $7.4m for special items. The after-tax impact of these special items was a charge of $5.7m, or $0.04 per share. Third quarter 2024 adjusted results exclude pre-tax charges of $4.3 m for special items. The after-tax impact of these special items was a charge of $3.2m, or $0.03 per share. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.
“We exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow performance. We continue to see positive demand signals in our core markets, as our customers ramp to achieve their growth targets. We are well-positioned to grow our defense-related business through an expanding mix of highly differentiated products critical to the U.S. and our allies,” said Kimberly A. Fields, President and CEO. “Our outstanding performance, contractual positions and steady demand give us the confidence to raise the full-year ranges of our adjusted earnings and cash flow guidance.
“We continue to drive efficiencies in working capital with the goal of maximizing free cash flow,” said Fields. “Our year-to-date operating cash flow of $299m reflects an improvement of $273 m compared to last year. This performance enabled us to support our growth while continuing to return capital to shareholders. During the third quarter, we repurchased $150m of our stock, bringing our total 2025 share repurchases to $470 m.” said Fields.
Operating Results by Segment
High Performance Materials & Components (HPMC)
• HPMC’s third quarter 2025 sales decreased $5.9m, or 1%, compared to second quarter 2025, primarily due to a forging contract renewal that changed from a materials purchase structure to a conversion services structure, reducing third quarter revenue by $10 m. Aerospace & defense sales represented 92% of total HPMC sales in both the third and second quarters of 2025.
• Third quarter 2025 sales improved 9% compared to third quarter 2024, including a negative impact of $9 m due to the first quarter 2025 disposition of certain non-core operations in Europe and $10 m due to the forging contract renewal noted above. Aerospace & defense sales increased 17% on a year-over-year basis due to strong demand for commercial jet engine and defense products, which was partially offset by lower sales to the medical and specialty energy markets.
• HPMC third quarter 2025 segment EBITDA* was $145.8m, or 24.2% of sales. The sequential increase in margins was primarily due to favorable sales mix and pricing of specialty alloys. Also, second quarter 2025 margin benefited from the recognition of $4.4m of previously deferred employee retention credits.
• HPMC third quarter 2024 segment EBITDA* was $123.2m, or 22.3% of sales, which included a benefit of $2.9 m for the recognition of previously deferred employee retention credits.
Advanced Alloys & Solutions (AA&S)
• AA&S third quarter 2025 sales decreased $9m, or 2%, compared to the second quarter 2025, primarily due to lower sales of industrial and specialty energy products. These decreases were partially offset by higher sales in the aerospace & defense sale markets due to increased demand for both commercial aerospace and defense products. Aerospace & defense sales were 46% of total AA&S sales in the third quarter of 2025.
• Third quarter 2025 sales increased $23.8m, or 5%, compared to the prior year quarter, primarily due to a 34% increase in aerospace & defense sales. This increase was partially offset by lower sales of industrial and specialty energy products.
• AA&S third quarter 2025 segment EBITDA* was $90.4m, or 17.3% of sales. The sequential increase in margins was primarily due to improved sales mix and pricing of exotic alloys. Second quarter 2025 margin benefited from the recognition of $2.6m of previously deferred employee retention credits.
• AA&S third quarter 2024 segment EBITDA* was $73.6m, or 14.8% of sales, which included a benefit of $1.9 m for the recognition of previously deferred employee retention credits.
Corporate Items and Cash
• Restructuring and other charges:
• Third quarter 2025: $12.9m includes pre-tax charges consisting of $7.2m of start-up and transaction-related costs, $3.6 m of transformation-related costs, and $2.5m of losses on the sale of customer accounts receivable, partially offset by credits of $0.4 m due to a reduction in severance-related reserves for our previous European restructuring.
• Second quarter 2025: $7.4m includes pre-tax charges consisting of $7.1m of start-up and transaction-related costs and $1.6 m of losses on the sale of customer accounts receivable, partially offset by credits of $1.3m due to a reduction in severance-related reserves for a previous restructuring in our AA&S segment.
• Third quarter 2024: $4.3m includes pre-tax charges primarily for start-up and transaction-related costs.
• Third quarter 2025 includes a $1.1m gain from the sale of a non-core business previously reported in the HPMC segment.
• Corporate expenses in the third quarter 2025 were $15.6 m, compared to $15.4 m in the second quarter 2025, and $13.4m in the prior year quarter. The increase compared to third quarter 2024 was primarily due to higher incentive compensation costs.
• Closed operations and other income/expense was income of $4.5 m in the third quarter 2025 compared to income of $2.4m in the second quarter 2025, and income of $2.3m in the prior year quarter. Third quarter 2025 included a $10.5m gain from the sale of oil & gas rights. Second quarter 2025 benefited from foreign exchange gains of $1.8 m and a favorable bankruptcy settlement related to an insurance claim of $1.1m. Third quarter 2024 included a $3.7m gain from the sale of oil & gas rights.
• Third quarter 2025 results included a $31.0 m income tax provision, or an effective rate of 21.4%, which was slightly lower than the second quarter 2025 effective tax rate of 22.0%. Third quarter 2024 results include a $28.3m income tax provision, or an effective tax rate of 24.6%.
• Cash provided by operating activities was $230 m and $299 m for the third quarter and year-to-date 2025 periods, respectively. Capital expenditures for the third quarter 2025 were $63m.
• Managed working capital as a percent of annualized sales was 36.4% at the end of third quarter 2025, which decreased slightly from 36.5% at the end of second quarter 2025.
• In the third quarter 2025, the Company repurchased $150 m of its common stock at an average price per share of $76.07, retiring approximately 2.0 m shares. As of the end of the third quarter 2025, total share repurchase authorization remaining was $120m.
•(Source: PR Newswire)
29 Oct 25. IFS, the leading provider of Industrial AI software, today announced its FY2025 Year-to-Date (YTD) financial results, demonstrating sustained profitable growth, as the world’s largest industrial enterprises move from AI experimentation to deployment across their most critical operations.
Q3 FY2025 YTD Financial Highlights
• Annual Recurring Revenue (ARR): +22% YoY
• Cloud Revenue: +31% YoY
• Recurring Revenue: +20% YoY, now representing 82% of total revenue
Unlike many AI projects that are yet to achieve real impact, IFS.ai is delivering meaningful and measurable outcomes for customers. This is why many of the world’s largest industrial companies are choosing IFS.ai, including: Arcelor Mittal, Boralex, Callaway, Collins Aerospace, Dixstone, Hitachi Energy, Japan Airlines, OFI, TotalEnergies and Westinghouse. These customers are increasing their investments in IFS, driving growth in recurring revenue, deal sizes, and customer expansion.
Why Enterprise Leaders Are Choosing IFS: Industrial AI Delivering in the Real World
IFS’s Industrial AI capabilities are purpose-built for the operational complexity of industries that manufacture goods, maintain critical assets, and manage service-intensive operations. This domain expertise, combined with cutting-edge AI innovation, enables IFS to deliver outcomes that traditional vendors cannot match.
• IFS.ai, embedded across IFS solutions, delivers industry-specific intelligence that orchestrates operational complexity, optimises real-time decision-making, and transforms efficiency at scale; contextual insights that generic AI simply cannot provide.
• Nexus Black, IFS’s AI innovation accelerator, is already delivering breakthrough AI products and measurable customer results within weeks. Forward-deployed engineers turn customer challenges into AI solutions. IFS is differentiated as these AI solutions are productised at unprecedented speed and scale.
• IFS Loops agentic Digital Workers autonomously manage complex workflows that previously required extensive manual intervention, operating seamlessly across any enterprise data source, be it IFS or any other vendor. Early deployments are demonstrating significant efficiency gains and faster decision-making.
• IFS’s Q3 acquisition of 7Bridges adds advanced AI-driven supply chain, logistics, and transportation optimisation capabilities, further extending IFS’s Industrial AI leadership.
Mark Moffat, CEO of IFS, commented: “Our 22% ARR growth and increase in average deal size is driven by our AI investments and reflects a clear market shift: the world’s largest industrial enterprises are done experimenting with AI: they’re deploying it at scale, and they’re choosing IFS to co-innovate with them.
“They’re choosing us because Industrial AI purpose-built for their operations delivers outcomes they can measure and scale. That’s only possible because of our deep industry expertise that has enabled IFS to stand out in asset and service management. That proven value drives expansion. As they see returns, they invest more, and that dynamic is accelerating.”
Matthias Heiden, CFO of IFS, said: “These results demonstrate disciplined execution. Our recurring revenue base at 82% of total revenue provides strong visibility and funds continued innovation. As customers realise measurable returns, they’re making larger commitments and expanding faster, strengthening both our business model and competitive position.”
Momentum Accelerating Into 2026
IFS’s ability to create customer impact continues expanding through strategic partnerships and relentless innovation. The company’s thriving global partner ecosystem played a crucial role in enabling continued scaling and deal size growth throughout FY2025 YTD.
On November 13 in New York, IFS will host Industrial X Unleashed, uniting AI leaders including Anthropic, Boston Dynamics, Microsoft, PwC, and Siemens to showcase breakthrough Industrial AI applications. The event will feature live demonstrations of how AI, large language models, robotics, and enterprise software are transforming operations across the world’s most critical industries.
Highlights
• Appointed Kriti Sharma as CEO of Nexus Black to lead next generation AI innovation
• Acquired 7Bridges to transform supply chains with Industrial AI
• Established partnership with Climatiq to integrate real-time sustainability data into IFS Cloud
• Acquired TheLoops: first agentic AI workforce for mission-critical industries
• Named Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer for Cloud ERP
28 Oct 25. Mirion Announces Third Quarter 2025 Financial Results and Updates Full Year Guidance.
• Revenue for the third quarter increased 7.9% to $223.1m, compared to $206.8m in the same period in 2024.
• GAAP net income was $3.1m in the third quarter, compared to a GAAP net loss of $14.0m in the same period in 2024; a 122% improvement. Adjusted EBITDA was $52.4m in the third quarter, a 14.7% increase from $45.7m in the same period in 2024.
• GAAP net earnings per share in the third quarter was $0.01, compared to a GAAP net loss per share of $0.07 in the same period in 2024. Adjusted earnings per share for the quarter was $0.12, compared to $0.08 in the same period in 2024.
• The company reaffirmed 2025 guidance for total Revenue growth, Organic Revenue growth, Adjusted EBITDA, and Adjusted EPS guidance while revising Adjusted Free Cash Flow for the fiscal year ending December 31, 2025, including estimated tariff impacts based on today’s levels, net of mitigating actions and updated fourth quarter foreign exchange rates.
Mirion (“we” or the “company”) (NYSE: MIR), a global provider of radiation detection, measurement, analysis, and monitoring solutions to the nuclear, medical, defense, and research end markets, today announced results for the third quarter ended September 30, 2025.
“Mirion posted another strong quarter supported by the continued momentum in the nuclear power end-market,” commented Mirion’s Chairman and Chief Executive Officer Thomas Logan. “All key financial metrics grew in the quarter, keeping us on-track for our 2025 guidance.”
Logan continued, “We also delivered on our stated goal to broaden our exposure to favorable market tailwinds in nuclear power. In September, we announced an agreement to acquire Paragon Energy Solutions to augment our U.S. nuclear power presence with additional products, software and services. When the deal closes, it is expected to add an energetic, growing business to our nuclear portfolio. Together, with the Certrec acquisition that closed in July, our nuclear power-based revenue is expected to be approximately 45% of total revenue.”
Update on Large Opportunity Pipeline
Mirion was awarded an approximately $10m small modular reactor new build order in the third quarter 2025. Subsequently, in October 2025, Mirion was awarded an approximately $55 m order for the Asia installed base. These orders are part of the previously communicated $350 m large opportunity pipeline. Currently, there remains $285 m of previously communicated orders to be awarded. This includes $175 m of orders expected to be awarded in 2025 and $110 m of orders now expected to be awarded in 2026, due to timing.
2025 Guidance
Commenting on Mirion’s full year 2025 guidance, Logan said, “We are raising the lower end of our adjusted Free Cash Flow guidance range while reaffirming the remaining financial metrics. We are well-positioned today to deliver on our full year targets and look forward to sharing 2026 expectations in February.”
Mirion has provided the following guidance for the fiscal year ending December 31, 2025.
• Revenue growth of approximately 7.0% – 9.0%; includes a foreign exchange rate tailwind of approximately 180 basis points using a fourth quarter Euro-to-USD exchange rate of 1.16 and acquisitions-related benefit (Certrec and Oncospace) of approximately 100 basis points.
• Organic Revenue growth of approximately 4.5% – 6.0%.
• Adjusted EBITDA of approximately $223m – $233m; Adjusted EBITDA margin of approximately 24.0% – 25.0%.
• Adjusted Free Cash Flow of approximately $100m – $115m (previously $95m – $115 m); Adjusted Free Cash Flow Conversion of approximately 45% – 49% of Adjusted EBITDA (previously 43% – 49%).
• Adjusted EPS of approximately $0.48 – $0.52 per share.
Additional modeling and guidance assumptions are included in the appendix of the earnings presentation on the Company’s investor relations page. Our 2025 guidance does not include any impact from the announced Paragon acquisition.
The Company’s guidance contains forward-looking statements and actual results may differ materially as a result of known and unknown uncertainties and risks, including those set forth below under the heading “Forward-Looking Statements.” In addition, forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in projecting and quantifying the various adjusting items necessary for such reconciliations, such as stock-based compensation expense, amortization and depreciation expense, merger and acquisition activity and purchase accounting adjustments, that have not yet occurred, are out of Mirion’s control, or cannot be reasonably predicted. Accordingly, reconciliations of our guidance for organic revenue growth, adjusted EBITDA, adjusted free cash flow, and adjusted EPS are not available without unreasonable effort. (Source: BUSINESS WIRE)
29 Oct 25. Lockheed Martin (NYSE: LMT) today announced a $50m investment in Saildrone, a global leader in maritime autonomous systems. This strategic collaboration will deliver commercially available unmanned surface vehicles (USV) equipped with lethal, combat-proven defense technology. The companies will collaborate with a goal of delivering integrations, including on-water, live fire demonstrations, in 2026.
Why it Matters
This commercial relationship marries the world’s most sophisticated and trusted defense technology with the most capable and operationally tested USV technology. This combination will be key to realizing the U.S. Navy’s USV vision for critical missions such as fleet defense, undersea surveillance, reconnaissance, and attack. Work will begin immediately, applying an open architecture approach along with secure command and control capability to integrate Lockheed Martin’s JAGM Quad Launcher (JQL) system onto the Saildrone Surveyor platform.
Larger Saildrone vehicles are already in development to support significantly larger payloads and capabilities to include the Lockheed Martin Mk70 VLS launcher and thin line towed arrays.
Expert Perspectives
Stephanie C. Hill, president, Rotary and Mission Systems, Lockheed Martin: “Lockheed Martin and Saildrone are leading the way to answer President Trump’s call for the defense industry to act differently and leverage the strength of all of industry for our national defense. Together, we are combining the most sophisticated commercial and defense technologies to deliver a lethal naval solution at speed and scale. The nation needs this capability to maintain dominance over our adversaries, and we will deliver it.”
Richard Jenkins, founder and CEO, Saildrone: “For the last 10 years we have focused on evolving the reliability, endurance and autonomy of the Saildrone platform, which has been demonstrated in over 2 m nautical miles of active customer missions. With our technology proven, de-risked and mission ready, now is the right time to augment Saildrone USVs with sophisticated payloads to meet warfighter needs. This collaboration will give Saildrone the tools we need to transform the capabilities of our platforms, to include electronic warfare, anti-submarine warfare, sophisticated surveillance and reconnaissance, as well as deploying kinetic effects, all seamlessly integrated with Lockheed Martin’s trusted command, control and fire control systems.”
Additional Information
Fast Fielding of Commercial Technology for Defense: Saildrone USVs have been accomplishing complex maritime missions in the remote ocean since 2013. First deployed by the U.S. Navy in 2021, they are currently operational today, working 24/7/365 alongside American Sailors in combat theaters around the world. This commercial relationship will harness Saildrone’s decade-plus of commercial expertise to quickly field new defense applications. Saildrone will maintain all shipbuilding responsibilities and Lockheed Martin will serve as lead mission integrator.
Investing Ahead of Need and Accelerating Capability: Lockheed Martin is investing in Saildrone to accelerate and de-risk deployment of urgently needed defense technologies. The investment will establish a collaborative relationship between Lockheed Martin and Saildrone systems integration teams to accelerate manufacture of new larger platforms and integrate Lockheed Martin payloads onto a variety of platforms. Lockheed Martin is also investing in its existing products to facilitate fully autonomous operations.
Ready Now: The companies are focusing on integrating ready-now, proven capabilities with Saildrone USVs to get unmatched lethality into the hands of warfighters as soon as possible.
Powering Economic Growth: Developing these transformational USVs will create jobs at Austal USA on the coast of the Gulf of America, where Saildrone’s larger systems are produced. However, this work is shipyard-agnostic; as we scale, it has the potential to power economic growth at all of America’s shipyards and across the wider maritime and defense industrial bases.
28 Oct 25. Italy’s Leonardo to sell 9.4% Avio stake to participate in capital hike. Italy’s aerospace and defence group Leonardo (LDOF.MI), said on Tuesday it was selling a 9.4% stake in rocket maker Avio (AVI.MI)through an accelerated bookbuilding to institutional investors.
Leonardo, which will maintain a 19% holding, said it would use the proceeds from the sale of about 2.6m Avio shares to subscribe to the rocket maker’s planned capital increase.
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Avio’s shareholders, including Leonardo, approved a 400m-euro capital hike plan last week to finance expanded manufacturing capacity at a time of robust opportunities in the global space and defence industries. Intesa Sanpaolo, Jefferies and Morgan Stanley are acting as joint global coordinators and joint bookrunners in the accelerated bookbuilding. ($1 = 0.8575 euros) (Source: Reuters)
27 Oct 25. Voyager Technologies [NYSE: VOYG] acquired ExoTerra Resource, a leading developer of cutting-edge electric propulsion systems.
“We bridge innovation with industrial scale, turning technologies into capabilities that fill gaps and actually move missions forward,” said Dylan Taylor, Chairman and CEO of Voyager. “We’re amplifying our collective mission capability with ExoTerra, accelerating delivery across defense and commercial markets. As freedom of maneuver becomes central to space control and deterrence, it’s imperative that reliable propulsion systems are built, tested and qualified right here in the United States.”
ExoTerra’s proprietary technology delivers precise maneuvering, extended lifetimes and high efficiency delta-V – essential for spacecraft across national defense architecture layers that must be able to reposition, avoid threats and sustain mission advantage.
“We’ve spent years developing efficient, compact and reliable electric propulsion systems, and joining forces with Voyager allows us to enhance and deliver these systems at scale,” said Mike VanWoerkom, CEO of ExoTerra. “Together, we’ll manufacture flight-proven propulsion technologies that fortify the nation’s ability to manufacture and field spacecraft with speed, resilience and cost efficiency.”
ExoTerra’s Halo thruster technology is proven aboard DARPA Blackjack ACES spacecraft and the company recently supplied York Space Systems with 21 propulsion modules for the Space Development Agency Transport Layer. The company also has contracts with commercial companies and organizations such as NASA. Combining ExoTerra’s capabilities with its deep portfolio of mission-critical technologies, Voyager is well positioned for strategic initiatives such as Golden Dome.
About Voyager Technologies:
Voyager Technologies is a defense and space technology company committed to advancing and delivering transformative, mission-critical solutions. By tackling the most complex challenges, Voyager aims to unlock new frontiers for human progress, fortify national security, and protect critical assets from ground to space. For more information visit: voyagertechnologies.com (Source: BUSINESS WIRE)
27 Oct 25. VSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of aviation aftermarket distribution and repair services, announced today results for the third quarter 2025.
THIRD QUARTER 2025 RESULTS(1)
(As compared to the Third Quarter 2024)
• Total Revenues of $282.9m increased 38.9%
• GAAP Net Income of $3.6m decreased 58.9%
• GAAP EPS (Diluted) of $0.17 decreased 63.8%
• Adjusted EBITDA(2) of $47.4m increased 58.4%
• Adjusted Net Income(2) of $20.5m increased 110.5%
• Adjusted EPS (Diluted)(2) of $0.99 increased 86.8%
1 From continuing operations
2 Non-GAAP measure. See additional information at the end of this release regarding non-GAAP financial measures
MANAGEMENT COMMENTARY
“VSE delivered another quarter of record performance, reflecting the strength of our aviation aftermarket platform and disciplined execution of our 2025 operating plan,” said John Cuomo, President and Chief Executive Officer of VSE Corporation. “Our team continues to deliver on our strategic objectives, integrating recent acquisitions, capturing synergies, advancing OEM-licensed manufacturing, expanding MRO capabilities, and growing our organic pipeline. We were also pleased to announce a number of new business awards with key OEM distribution and MRO partners, supporting our continued organic growth in 2026 and beyond.”
Mr. Cuomo continued, “Our third quarter performance underscores the strength of our diversified aviation platform and the dedication of our employees worldwide. We are executing with discipline, driving operational efficiencies, and positioning VSE for sustained long-term growth and margin expansion.”
“VSE’s record third-quarter financial performance reflects strong execution across both our operational and strategic priorities,” said Adam Cohn, Chief Financial Officer of VSE Corporation. “During the quarter, we continued to strengthen our balance sheet and enhance cash generation through disciplined working-capital management. We are pleased to report that our adjusted net leverage ratio was approximately 2.0x at quarter-end. Based on our strong year-to-date results and our outlook for the remainder of 2025, we are raising our full-year revenue and Adjusted EBITDA margin guidance.”
PROGRAM AWARDS
• AMETEK Sensors and Fluid Management Systems (SFMS) and Hughes Treitler Renewals: Kellstrom Aerospace, a VSE Aviation company, extended its exclusive global distribution agreements for both AMETEK SFMS and Hughes Treitler product lines, including sensors and controls line replaceable units and piece parts, oil coolers, and heat exchangers.
• Eaton Used Serviceable Material Distribution Program: VSE Aviation expanded its strategic collaboration with Eaton to include a new distribution program for used serviceable material, complementing the existing hydraulic systems repair collaboration.
• Bridgestone Aircraft Tire Distribution Agreement: VSE Aviation was awarded a global distribution agreement from Bridgestone Aircraft Tire, providing access to new and retread tire programs supporting Boeing, Airbus, and regional aircraft operators.
• Defense MRO Expansion with V2X, Inc.: VSE Aviation signed a new long-term agreement to provide repair and overhaul services for engine fuel control units powering the U.S. Navy’s TH-73 Thrasher helicopter fleet, expanding the Company’s defense sustainment support.
• LuminUltra Partnership: VSE Aviation partnered with LuminUltra to distribute BugCount® Fuel, an innovative microbial fuel contamination testing solution for the aerospace market across North America.
THIRD QUARTER SEGMENT RESULTS
VSE Aviation segment revenue increased 38.9% year-over-year to a record $282.9 m in the third quarter of 2025 driven by strong execution of new and existing distribution programs, expanded MRO capacity, the addition of new product lines and repair capabilities, and contributions from recent acquisitions, all supported by solid end-market demand.
Aviation distribution revenue increased 48.7%, while MRO revenue grew 25.3% year-over-year. Segment operating income was $38.2m, compared to $25.4m in the prior-year period. Segment Adjusted EBITDA increased 51.2% to a record $50.4 m, representing a 17.8% margin, an improvement of approximately 140 basis points year-over-year. Margin expansion was driven by a higher mix of proprietary and higher-value aftermarket products and repair work, increased in-sourcing, sales from the OEM-licensed manufacturing program, and the earlier than expected realization of synergies from recent acquisitions.
FINANCIAL RESOURCES AND LIQUIDITY
The Company generated $24.1 m of operating cash flow and $18.0m of free cash flow in the third quarter of 2025, representing an improvement of approximately $14 m and $14 m, respectively, versus the third quarter 2024, and improvement of approximately $76m and $79m, respectively, year-to-date compared to the same period in the prior year. As of September 30, 2025, the Company had $347m in cash and unused commitment availability under its $400 m revolving credit facility maturing in 2030. As of September 30, 2025, VSE had total net debt outstanding of $347 m. Adjusted net leverage ratio was approximately 2.0x as of the end of the third quarter.
GUIDANCE
VSE is increasing full-year 2025 revenue and Adjusted EBITDA margin guidance:
• Full-year 2025 revenue growth is expected to be 38% to 40%, raised from prior guidance of 35 to 40%.
• Aviation segment Adjusted EBITDA margin is expected to be between 17.0% to 17.25%, raised from prior guidance of 16.5% to 17%.
• Guidance assumes current market conditions and no significant changes in tariff or macroeconomic environment. (Source: BUSINESS WIRE)
27 Oct 25. Are defence stocks too high? War has become good business again. As the invasion grinds on in Ukraine and a fragile peace stutters in Gaza, and as tensions harden between China and the West, global defence companies are enjoying a boom not seen since the Cold War.
Governments are rearming at pace, investors are piling in, and arms stocks are among the world’s best performers. What was once a niche, politically fraught sector has become a growth story in mainstream portfolios. The boom rests on an uncomfortable truth: fear and uncertainty now fuel the markets.
It’s not surprising, then, that global arms-makers have enjoyed a remarkable rally (Berckman et al, 2024). In 2025, aerospace and defence indices rose by around 45% worldwide and 70% in Europe, far outpacing broader markets. Italy’s Leonardo and France’s Thales nearly doubled (Morningstar, 2025; Reuters, 2025), and BAE Systems gained about 50% (Reuters, 2025) as Western governments poured money into tanks, missiles and drones.
As Germany increases its commitment to military modernisation, Rheinmetall is expected to be one of the main beneficiaries. The government has endorsed a fiscal adjustment allowing defence expenditures beyond 1% of GDP to be excluded from national debt constraints, effectively granting greater flexibility for future military funding (EPRS, 2025; Muharremi, 2025).
Across the Atlantic, American giants also hit new highs, with RTX up 37% (Raytheon Technologies Corporation, 2025) and Northrop Grumman spiking 23% (Morningstar, 2025; Stone and Shetti, 2025).
It’s certainly fat cat domain in the global arms trade. What lies behind the surge is a record $2.44 trillion in global military spending (SIPRI, 2025). Some 2.3% of world GDP is being poured into weapons that kill. With that embarrassment of riches comes a rush to develop high-tech weaponry such as drones, artificial intelligence systems and cyber tools (Calogero, 2025; IISS, 2025).
It looks like a bonanza, but many investors now wonder whether the good times are already priced in. And valuations have reached eye-watering levels.
European defence suppliers now trade at about thirty times forward earnings (Menuet et al., 2025), roughly double their five-year average and a trade comparable to tech titans such as Microsoft and Nvidia (Proud, 2025). Globally, the MSCI World Aerospace & Defence index stands near forty-one times trailing profits, versus twenty-four for the overall MSCI World index (MSCI, 2025). In India, some defence firms command multiples of sixty. Such figures imply extraordinary profit growth (Kumar et al., 2025). Citi analysts estimate that certain firms would need to quadruple or even quintuple earnings over the next decade to justify their prices. This far beyond any official defence-budget forecasts.
Much of the expected expansion, in other words, is already baked in.
To sustain these valuations, profits would need to grow by nearly 20% a year. Any shortfall—whether from delayed contracts, cost overruns or reduced orders—could prompt sharp selloffs. Some fund managers already argue that the “defence boom” is fully reflected in share prices (Murphy, 2025). Recent pullbacks following news of possible ceasefires hint at profit-taking and reveal how quickly sentiment can shift. Adding to this dynamic, defence companies are actively expanding through acquisitions to strengthen high-tech capabilities. For instance, Lockheed Martin bought Amentum’s Rapid Solutions business, Redwire acquired Edge Autonomy, and Serco integrated Northrop Grumman’s mission software unit. While these deals may support growth, they also highlight the risk that current valuations assume flawless execution (Focus Investment Banking, 2025).
The bullish case remains clear: global instability is driving a rearmament cycle not seen in decades. The United States is sharply increasing drone and missile budgets. Europe, jolted by Russia’s invasion of Ukraine, is rearming at speed (EPRS, 2025). In 2024, the military spending in Europe saw an increase of 17% (Ahlander, 2025).
Defence spending across Europe is forecast to expand at an average annual rate of about 6.8% between 2024 and 2035: significantly faster than the increases expected in the US (1.7%), Russia (3.2%) or China (3.1%) (Muharremi, 2025). Berlin may even loosen its debt rules to fund defence, while the EU has floated an €800 bn plan (European Council, 2025). NATO members are pledging between two and three-and-a-half percent of GDP for the military, with a long term commitment set at 5% by 2035 (NATO, 2025), a major step up. Wars in Ukraine and the Middle East have spurred demand for everything from fighter jets to microchips, and investors see a multi-year wave of spending on software-driven systems and cyber-warfare tools.
Yet the risks are equally clear. Current prices assume a flawless continuation of this momentum. Any budget delays, political shifts, or bouts of peace-time fatigue could puncture those expectations. Weapons programmes are prone to overruns and setbacks, while export controls and scrutiny of “war profiteering” can limit margins. Valuations leave little room for error, and even a brief easing of tensions could sap enthusiasm. This vulnerability is in line with broader market trends: as Goldman Sachs (2025) notes, highly valued stocks are vulnerable to any setbacks in earning or growth. In this regard, in August 2025, companies such as Rheinmetall, Leonardo, and Renk fell 5-8% after talks of a possible Ukraine ceasefire (Proud, 2025), despite no agreements being made. These stocks trade at high prices, reflecting strong profit expectations, which makes them very sensitive to news.
For now, defence budgets remain high and the Ukraine invasion show little sign of ending, whilst the Middle-East continues its multi-decade of being on the edge. All of this is terrible, but provides those who invest in such stuff a solid floor for earnings. But these stocks now rely on near-perfect execution and a world that stays perpetually on edge. If either falters, prices could tumble.
For cautious (or, some may say, moral) investors, today’s lofty valuations warrant scepticism: much of the boom may already be baked hard in the price. (Source: Google/https://aoav.org.uk/)
22 Oct 25. Wrap Technologies forms US federal subsidiary. Wrap Technologies, Inc. has formed Wrap Federal, LLC, a wholly-owned subsidiary of the company dedicated to supporting US federal government clients.
As part of its federal strategy, Wrap Federal aims to collaborate with established prime contractors and contracting mechanisms to potentially streamline current contracting pathways and speed up access to programmes within the homeland security and defence departments.
Building on Wrap’s proprietary entanglement and deployment technologies, the company offers a counter-uncrewed aerial system designed to down aerial threats with a non-lethal payload. The company has also developed a drone as a first responder interdiction system.
Wrap Federal is expected to be structured with the systems, clearances and governance necessary to support Defense Contract Audit Authority contracts. (Source: www.unmannedairspace.info)
27 Oct 25. FN Browning Group has made a circa £13m capital investment in its UK subsidiary FN UK. This investment shows the commitment FN Browning Group have in the UK business and the importance of retaining a manufacturing facility in the UK.
Following the UK MOD announcement of the contract they placed with FN UK for the Mid-Life Improvement of the .50 Cal Heavy Machine Gun at DSEI, Julien Compère, CEO of FN Browning Group, announced the capital investment.
This thirteen-m-pound investment shows FN’s determination to stand by the UK MOD, not only to meet their needs in small arms, but also to strengthen the UK’s security of supply and strategic autonomy
As the only company manufacturing assault rifles and machine guns in the country, FN UK regards the British Armed Forces as more than just a partner: they are the reason the company exists.
Julien Compère, CEO of FN Browning Group, commented: ‘The HMG contract is more than a contract, it is a mutual commitment: a commitment to operational excellence, a commitment to long-term collaboration, and a commitment to the British defence ecosystem. This investment is a consequence of the trust the UK MOD are placing in us.’
Michelle Cantoni, CEO of FN UK, commented: ‘This large capital investment secures jobs in the UK as well as allowing us to plan for our long-term future. FN UK is here to stay, to grow and to continue serving those who serve.’
2025 marks the 50th anniversary of FN UK. This investment is strengthening our relationship with the British Armed Forces, which is precisely why this company was created in 1975. FN UK will be here in years to come, supporting major programmes such as Grayburn, the Army’s rifle replacement programme, along with the MOD’s HMG Mid-Life Improvement programme.
As a reliable industrial partner, FN can assure you of our commitment to supporting the British Army and, as the FN purpose states: “To empower those who serve, defend and protect us with the most dependable defence and security solutions.”
22 Oct 25. Hughes expands with the strategic acquisition of Anderson Connectivity. Hughes Network Systems, LLC (HUGHES), an EchoStar company (Nasdaq: SATS),has acquired Anderson Connectivity, a leading aerospace innovator in design, engineering, and manufacturing services based in Melbourne, Florida.
This acquisition significantly expands Hughes capabilities, adding key technology and engineering talent and product solutions while positioning the company for accelerated growth in the global aviation, space, and defense markets.
As part of the acquisition, Hughes welcomes Brian Anderson, founder of Anderson Connectivity, who will join as Vice President, Aviation Technology & Innovation Officer. Hughes will also take over Anderson Connectivity’s Melbourne, Florida, facility, which will become a cornerstone of aviation innovation and rapid product development for Hughes and EchoStar.
Our Aviation and Defense business units at Hughes continue to excel,” said Hamid Akhavan, president and CEO, EchoStar. “EchoStar is investing in a robust future and is proud to add Anderson Connectivity to augment our already strong foundation.”
Brian Anderson is a visionary in aerospace technology, and his team brings unmatched expertise and capabilities,” said Paul Gaske, Chief Operating Officer, Hughes. “This acquisition allows us to accelerate our innovation, global support, and deliver even greater value to our aviation customers while supporting the strong growth of our Defense and Space businesses.” (Source: Satnews)
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Ultra-high precision, modularity and speed to defeat dynamic targets
OpenWorks is a provider of modular autonomous vision systems that deliver ultra-high performance real-time detection, identification and tracking of highly dynamic aerial threats at long range.
Our specialist capability lies in our dynamic positioners, EO/IR optical units, approach to sensor fusion and common interface that enables the integration of third-party detectors, classifiers, interceptors and effectors. Artificial intelligence modules work seamlessly with primary detectors and C2 to provide comprehensive detection, identification, tracking and slewing-to-cue against complex backgrounds and foregrounds.
OpenWorks is internationally and operationally proven across C-UAS and Air Defence.
Vision Pace
Designed to enhance dynamic multi-threat engagement, Vision Pace offers microradian precision targeting to kinetic defeat chains, marking a step-change for layered air defence. The development is intended to provide capability to expeditionary force protection, GBAD, SHORAD, M-SHORAD across land and naval domains.
Vision Flex
Vision Flex provides the highest performance surveillance, tracking and classification capability available, for use on static, mobile and un-crewed systems. Vision Flex cameras are highly configurable and can be used with built-in twin-AI modules of third Party classifiers and trackers.
Vision Flex is easy to integrate through standard interfaces and has a range of plug-and-play optical modules and upgrades to allow it to be configured easily to suit each mission or site.
Vision Guard
Vision Guard is a highly configurable, autonomous, portable and deployable platform that provides automated alerts with AI detection and classification.
It can be configured with combinations of active and/or passive sensors to suit the mission. Detections and alerts are streamed out to a handheld tablet or other systems via the standard interface, SAPIENT, Asterisk etc.
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