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20 Mar 25. James Fisher’s turnaround plan delivers. A significant debt reduction and refinancing have put the marine services group on a firmer footing

* Net debt falls to 1.4 times Ebitda

* Weak margins in defence division

Two years into its turnaround plan, James Fisher and Sons (FSJ) has a lot to show for the effort. The marine services group has returned to profit, but perhaps the biggest reassurance for investors is that the company’s auditor has removed its previous warning about its ability to stay afloat. This was largely thanks to the refinancing of its revolving credit facility on more flexible terms. The company also sold two non-core assets, RMSpumptools and Martek Holdings, helping to slash net debt from £149.8m to £56.1mn. That brought its leverage ratio down to a much healthier 1.4 times Ebitda, compared with 2.7 times a year earlier. Refinancing charges were slashed from £12.2m in 2023 to £3.5m and are expected to be even lower this year. This helped the company swing from a £39.9m loss to £11.9mn pre-tax profit. Excluding disposals and closures, operating profits were up 31 per cent to £22mn, with margins improving by 70 basis points to 6.7 per cent. Underlying revenues were up for the year, with a solid showing from the energy division offsetting weak demand for liquid natural gas ship-to-ship transfers. Defence orders were strong, but margins and returns on capital employed (ROCE) are still weak at 2.4 and 3.5 per cent, respectively. With the shares up by a third in the year to date, investors have already been rewarded for James Fisher’s progress. A stronger balance sheet has stabilised the business, and a global focus on defence spending could provide further support. The lack of a dividend is disappointing, but we’d argue the recovery still has room to run. Hold. Last IC view: Hold, 353p, 10 Sep 2024. (Source: Investors Chronicle)

20 Mar 25. Milkor strengthens naval business with new partnerships. As it expands its vessel range, Milkor continues to strengthen its naval business and has signed multiple agreements to this effect. At the IDEX exhibition in late February, Milkor and electro-optical solutions provider HGH signed a memorandum of understanding (MoU) to expand their partnership in unmanned and autonomous surface vessels as well as maritime surveillance. HGH designs, develops, assembles and sells electro-optics systems for industrial, civil, defence and security applications. The MoU will allow for deeper co-operation on the development of unmanned technology, especially autonomous collision regulations (COLREGS) using HGH’s SPYNEL-M series of cameras. Additionally, it will allow for better integration of SPYNEL cameras with Milkor vessels, allowing HGH and Milkor to provide increased capability to end users, HGH said.

“We are working with Milkor to find the best ways to leverage our respective areas of expertise. In particular, the potential for increased autonomy of USVs is exciting,” said HGH CEO Vincent Leboucher.

“HGH’s line of SPYNEL cameras provides a unique 3600 infrared sensor, opening up unique possibilities for users of our vessels, especially when it comes to unmanned systems. We look forward to deepening our co-operation with HGH,” Milkor UAE CEO Julian Coetzee said.

Also at IDEX 2025, Milkor and electro-optical, infrared, and night vision (EO/IR/NV) specialist Starlight Italia signed a MoU to expand their partnership in the maritime domain.

Starlight Italia is a private owned company, based in Italy, focusing on production of EO/IR/NV systems for intelligence, surveillance, search and rescue missions for land and maritime applications.

The purpose of the MoU is to streamline co-operation between the two companies, simplify system integration, and offer the best possible solutions to clients around the world, according to Starlight Italia.

“We work closely with system integrators such as Milkor to ensure our night vision systems provide maximum value to the end user. We look forward to a productive partnership with Milkor in future,” Starlight Italia EMEA Sales Director Giovanna Iafrate said.

“Milkor aims to deliver capabilities rather than simply products. Starlight Italia’s low light imaging systems provide an important part of delivering that capability to maritime security forces around the world. We appreciate the support Starlight Italia has provided in the past, and we look forward to an even closer relationship after the signing of this MoU,” said Coetzee.

Milkor used the IDEX and NAVDEX 2025 exhibitions in Abu Dhabi last month to unveil new products, including its new 30-metre Interceptor vessel. Key features include a top speed of 55 knots and an integrated flight deck designed for operating a vertical takeoff and landing (VTOL) unmanned aerial vehicle (UAV) with 3.5-meter wingspan, complete with control station and maintenance facility. Up to three UAVs can be accommodated on board. The vessel can also accept a deployable 3.4 metre rigid-hulled inflatable boat and two aft deck heavy weapon stations.

This new offering adds to Milkor’s existing naval capability, with the company already having designed and produced the smaller 12 metre Milkor IPC (Inshore Patrol Craft) which is primarily aimed at near shore patrols, coast guard, and policing operations. Milkor is further expanding its naval offerings with systems such as the Arsenal, Commander, and Ripper, all of which are sub-35-metre vessels aimed at bringing speed and awareness to inshore naval operations. The Ripper range of rigid inflatable boats come in several models, including the Ripper 600, the smallest in the series, followed by the Ripper 900 (with seating for six), Ripper 1200 (with seating for up to 20), and Ripper 1500 (with an enclosed cabin as well as external seating). Milkor’s new 16.5-metre Commander high-speed and long-range patrol craft is the final stages of qualification testing and set to launch in the first half of 2025. Development of the Commander started in 2023. The aluminium monohull design has a full load displacement of 20 tonnes. Maximum speed is 45 knots and cruising speed 35 knots for a range of 500 nautical miles. (Source: https://www.defenceweb.co.za/)

20 Mar 25. South Korea’s Hanwha Aerospace plans $2.5bn capital raise for foreign and home expansion. South Korea’s largest defence firm Hanwha Aerospace Co Ltd said on Thursday it plans an equity capital increase worth 3.6trn won ($2.5bn) to build up overseas and domestic production to meet growing international demand. Hanwha “plans to secure strategic overseas production bases in Europe, the Middle East, Australia and the United States, where mid- to long-term defence demand is expected to grow”, the firm said in a statement. (Source: Google/Reuters)

19 Mar 25. British defence suppliers ‘dangerously reliant’ on foreign banks. Big four lenders helped arrange just a quarter of UK’s military funding. British arms manufacturers are “dangerously reliant” on foreign banks, a former defence secretary has warned. Lloyds, Barclays, HSBC and NatWest, the UK’s big four lenders, helped arrange just $13bn (£10bn) of $51bn in debt funding raised for the British defence sector over the past decade, data from Dealogic show. By comparison, US and European banks raised $17bn and $11bn respectively, while Canadian and Asian banks accounted for $4.5bn and $4.7bn. Former Conservative defence secretary Grant Shapps criticised Britain’s lenders for falling behind global peers in backing UK weapons makers.

He said: “UK banks are failing to back our own defence sector, leaving us dangerously reliant on foreign institutions.

“As defence secretary and since, I’ve raised this issue time and again. It is both unpatriotic and short-sighted for our financial institutions to shirk their role in safeguarding Britain’s security and sovereignty.

“I’m calling on the bank chiefs to step up and recognise that investing in our defence industry isn’t just good business – it’s a national imperative.”

The findings will alarm policymakers amid growing calls for the UK defence sector to become more self-sufficient after Donald Trump, the US president, vowed to stop subsidising Europe’s military. Although Sir Keir Starmer has pledged to boost defence spending, a large cohort of Labour MPs have demanded that the financial sector does more to support Britain’s Armed Forces. An open letter coordinated by Labour’s Alex Baker and Luke Charters last month, signed by more than 100 MPs and peers, demanded pension funds invest more of their clients’ money in the weapons industry. (Source: Daily Telegraph)

19 Mar 25. Filtronic hands more warrants to SpaceX. Filtronic (FTC) is to award more warrants to Elon Musk’s SpaceX in return for more orders for its E-band amplifiers. The new deal builds on an agreement signed in April last year under which SpaceX was granted warrants offering the right to buy up to 10 per cent of Filtronic shares – five per cent once a certain level of E-band amplifier orders were placed, plus a further five per cent based on orders for amplifiers at other frequency bands. The new agreement grants warrants to subscribe for a further five per cent of shares based on increased orders for E-band amplifiers, which are used by SpaceX in its Starlink constellation. Filtronic’s chief executive Nat Edington said the new agreement “demonstrates the value of our technology to one of the world’s most innovative technology companies”. House broker Cavendish raised revenue guidance for Filtronic’s 2026 financial year (which begins in June) by 7 per cent but kept adjusted cash profit forecasts flat due to the need to ramp up spending to hire more engineers. Filtronic’s shares rose by 4 per cent in early trading. They have trebled in value over the past 12 months. (Source: Investors Chronicle)

19 Mar 25. Neros Raises $35m Series A to Accelerate American Drone Manufacturing. Neros, in front of an audience of 800 DoD decision makers and industry leaders, announced a $35m Series A funding round led by Vy Capital US on March 17. This comes on the heels of major announcements by the company around supply chain certification from the Defense Innovation Unit and a multim dollar contract from the International Drone Coalition. In addition to the fresh lead investor, Neros gained commitments from new and existing partners, with Sequoia Capital, Interlagos, D3, and Keller Rinaudo Cliffton (CEO, Zipline) participating. This capital will go directly to the large-scale production effort the company is now undertaking, as well as development of next-generation defense systems. The funding was spurred by the rapid progress the company has made since being founded in mid-2023 and will play a critical role in Neros’ goal to be an American drone company that competes with China on scale and technology. Neros will be continuing to manufacture increasing quantities of its first two products, Archer and Crossbow, a long range FPV drone and ground control station. Additionally, Neros is rapidly expanding its engineering team to vertically integrate cutting-edge technology that will underlie all of its future products.

“Neros represents a pivotal force in re-establishing America’s defense supply chain, addressing a critical need in an era where global security demands self-reliance and innovation. Their unique vertically integrated platform allows them to control every aspect of production, ensuring quality, cost efficiency, and scalability while eliminating dependence on foreign components — a strategic advantage that’s long overdue. With combat-proven products like the Archer FPV drone, already making an impact on battlefields like Ukraine, Neros is setting a new standard for American defense technology. Soren and Olaf are two of the strongest founders I’ve ever met — relentless, visionary, and deeply committed. America is fortunate to have this team executing a mission that’s not just about building drones, but about securing our nation’s future.” – John Hering, Co-Founder and Partner at Vy Capital US.

The West Has a Drone Problem

For three years, the world has watched as Russia’s war on Ukraine has redefined what a modern arsenal must be. Both sides have heavily relied on consumer-grade components from China to build unprecedented numbers of inexpensive drones. Understanding the risk of reliance, both sides have pushed to manufacture these components domestically, and now these efforts are reaching large scale. However, copying designs and having the ability to produce components domestically still leaves vulnerabilities in the supply chain. Simply replicating existing designs will not be sufficient to secure a strategic advantage for the West.

“FPV drones, which stem from hobbyists and drone racing, are heavily based on open source designs and software. This is the reason they win the cost-to-performance ratio.” Said Neros CEO and Co-Founder Soren Monroe-Anderson. “However, much of the underlying technology is built on chips, modules, and core IP from China, which means it isn’t enough to just recreate existing components. We have to build new systems that are better suited for the needs of the modern battlefield, and can be produced entirely from an allied supply chain.”

The alternative and more common approach to building drones in America is to source defense-grade components like sensors and radios from existing suppliers. Although leading to impressive specifications on paper, the fundamental problem with this approach is scale and cost. The market has become saturated with expensive unmanned systems that all have similar capabilities and are unable to scale to large quantities. For the most part, this type of drone built by American brand-names has been discarded in Ukraine and replaced with homegrown solutions.

Return to American Manufacturing Excellence

Historically, America’s manufacturing strength was exemplified by consumer electronics giants like RCA, Zenith, and Motorola. However, during the 1980s and ’90s, widespread offshoring to countries with cheaper labor and streamlined supply chains depleted America’s domestic manufacturing infrastructure and expertise. Today, critical drone components — including advanced electronics, motors, optics, and sensors — remain heavily dependent on foreign suppliers, particularly in China, creating significant cost and scalability challenges. This structural gap has left U.S. drone manufacturers struggling to match the scale, cost-efficiency, and speed of global competitors. Neros was explicitly founded to reverse this dynamic, establishing a new paradigm for American drone production. Leveraging vertical integration and powerful consumer technology, Neros has already scaled production to over 1,000 drones per month and has sights set on only making systems that can be made in 10,000s — unprecedented within the United States.

“When the War in Ukraine started, the two technologies that were immediately highlighted as novel and game changing were Starlink and FPV drones. With FPV drones, it was clear that China had a headstart and a scale advantage. Soren and Olaf had deep FPV domain expertise and a clear vision for how to manufacture drones at scale with an American supply chain.”

Said Shaun Maguire, Partner at Sequoia Capital who led Neros’ Seed funding round.

Central to Neros’s mission is delivering breakthrough performance at significantly reduced costs — systems that are orders of magnitude more efficient and effective compared to traditional defense platforms. The company’s flagship FPV drone, Archer, embodies this ethos by providing comparable precision and mission capability to traditional defense solutions like artillery systems or anti-tank missiles at a dramatically lower cost per unit. Archer’s recent recognition under the Department of Defense’s BlueUAS initiative and the Army’s upcoming PBAS program — expected to become the first large-scale procurement by the U.S. DoD of FPV drones — underscore the Pentagon’s growing commitment to affordable, scalable, and mass-deployable drone technology.

Neros is developing practical autonomy as a core element of its roadmap, progressively integrating features that improve the effectiveness of the operator without getting in the way. Rather than isolated laboratory development, Neros’s development cycle is based on enhancements to real-world systems and feedback directly from the end-users. Ultimately, Neros envisions fully autonomous drone swarms — intelligent, coordinated systems capable of dramatically reshaping defense and security operations.

Achieving these ambitious goals requires world-class talent, and Neros is rapidly expanding its team with engineers and operational experts across autonomy, robotics, hardware design, manufacturing processes, and software engineering.

“We are looking for people from all backgrounds who want to take on extreme ownership and help solve one of the most critical problems with the defense industry. The scope and depth of problems at Neros is very large and daunting. I’m looking for the rare ones who are excited by this.” said Soren. (Source: UAS VISION)

18 Mar 25. Europe’s top missile maker MBDA boosts output 33% amid record orders. MBDA, Europe’s largest missile maker, boosted production and deliveries by 33% in 2024, as demand from European governments for air defense and battlefield munitions lifted orders to a record. The maker of Aster air-defense interceptors, the SCALP-EG/Storm Shadow cruise missile and Exocet anti-ship weapon expects missile production to double this year from the 2023 level, Chief Executive Officer Éric Béranger said at a press conference here on Monday. MBDA orders have surged since Russia’s invasion of Ukraine in 2022, with European countries spending bns to strengthen their air defenses as well as help Ukraine. The company may stand to gain further over concerns whether the U.S. is a reliable supplier of weapons for Europe, as President Donald Trump threatens to withhold NATO security guarantees, increasingly aligns with Russia and talks of annexing Canada and Greenland, an autonomous territory of Denmark.

“This is a little bit a moment of truth for Europe,” Béranger said. “We have all the technological capabilities that we need, we have the brains, which means that it is really a matter of what we want to do in Europe, what position we want to reach. This is the reason why the moment is absolutely historic.”

MBDA is the only Western company besides American firms capable of producing “the full range of complex weapons,” Béranger said. The company makes short, medium and long-range air-defense missiles, cruise missiles, anti-ship missiles and anti-tank munitions, and is developing a hypersonic interceptor. The company is a pan-European joint venture between Airbus, the U.K.’s BAE Systems and Italy’s Leonardo, and is based in a suburb southwest of Paris. Local units in the U.K., France, Germany and Italy allow governments there to shield some national defense interests from the group. MBDA’s orders jumped to a record €13.8bn (US$15bn) last year from €9.9bn in 2023, and compared to €5.1bn in 2021, before Russia invaded Ukraine. Meanwhile, sales rose to €4.9bn from €4.5bn a year earlier. The order backlog end-December reached €37bn, the highest ever, from €28bn at the end of 2023. The war in Ukraine and attacks by Houthi rebels on ships in the Red Sea since 2023 have raised the profile of MBDA products, several of which now carry the “combat proven” tag.

Béranger mentioned the downing of a Sukhoi fighter jet by Ukraine using a French-Italian SAMP/T system with Aster missiles, and Ukraine’s use of SCALP/Storm Shadow. French and British warships have used Aster to down anti-ship ballistic missiles in the Red Sea, and the CEO said the Italian Navy has also used the interceptor there.

“In 2024 you may have seen that the MBDA products were used in a number of theaters and were used in a very reliable way,” Béranger said.

Denmark last week shortlisted SAMP/T for a planned purchase of air defense systems, in competition with the U.S. Patriot system, to cover the high end of the threat spectrum. For the lower end, MBDA’s VL MICA system is facing off with Kongsberg’s NASAMS, the IRIS-T SLM from Diehl Defense, and the U.S. IFPC. France, Italy and the U.K. last week confirmed an order for an additional 218 Aster missiles, including the Aster 30 B1 variant for the three countries’ navies and French and Italian SAMP/T systems, and the shorter-range Aster 15 for the French Navy. That follows a French-Italian order in December 2022 for 700 Aster missiles. Béranger said with regards to buying European or non-European, the priority should be to keep the design authority in-house. That’s what allowed MBDA to adapt Storm Shadow and SCALP missiles to Ukrainian Sukhoi aircraft within only a few weeks, he explained. (Source: Defense News)

18 Mar 14. Frontgrade Technologies, a leading provider of high-reliability electronic solutions for space and national security missions, today announced its acquisition of IDSI, LLC, the Defense Solutions division of Crescend Technologies, LLC. This strategic acquisition aims to bolster Frontgrade’s Radio Frequency (RF) amplifier offerings, particularly to the aerospace and defense markets. Based in York, Pennsylvania, IDSI specializes in designing, developing, and manufacturing SWaP-C solid state, high-power RF amplifiers and amplifier-based subsystems. The division’s products cover frequency bands from HF to SHF and support various Department of Defense tactical missions, including Electronic Warfare, Communications, and Tactical Data Link.

“The acquisition of Crescend’s Defense Solutions division into Frontgrade represents a significant advancement in our mission to provide our customers with cutting-edge RF solutions,” said Mitch Stevison, Chief Executive Officer at Frontgrade Technologies. “The IDSI team’s expertise in high-power RF amplifiers – chiefly their focus on SWaP-C considerations and embedded intelligence – complements our existing portfolio of RF solid state amplifiers and strengthens our ability to deliver a broader range of reliable, innovative products to the aerospace and defense sectors.”

“Joining forces with Frontgrade Technologies is an exciting milestone for our business,” said Mason Carter, President of IDSI. “This acquisition allows us to leverage Frontgrade’s extensive resources and industry presence to further our commitment to innovation, deliver our unique value proposition to a growing base of customers, and solve next generation requirements.”

The acquisition of Crescend’s Defense Solutions division underscores Frontgrade’s commitment to strategically grow its product portfolio and deliver comprehensive solutions to its customers. By expanding its high-power RF amplifier technology offerings, Frontgrade is taking action to enhance its capabilities and address the complex and evolving challenges faced by the aerospace and defense industries.

About Frontgrade Technologies

Frontgrade Technologies is a leading provider of high-reliability, radiation-assured solutions for defense, intelligence, commercial, and civil applications. With over 60 years of space flight heritage, Frontgrade offers a complementary and integrated suite of mission-critical electronics, including rad-hard and rad-tolerant components, mission processing subsystems, custom ASICs, motion control systems, waveguides, antennas, and power management solutions. For more information, visit www.frontgrade.com.

About Crescend Technologies

Crescend Technologies, LLC, founded in 1979 as a leader in high-power amplifiers for the Public Safety market, has evolved into a pioneering force in solid-state microwave energy solutions. Leveraging decades of engineering expertise, Crescend empowers industrial sectors to replace outdated systems with innovative solid-state microwave technology designed to increase throughput, minimize downtime, and enhance sustainability. At Crescend Technologies, we are not just advancing technology; we are driving the future of industrial innovation with a steadfast commitment to efficiency, sustainability, and operational excellence. For more information, visit www.crescendrf.com. (Source: BUSINESS WIRE)

18 Mar 14. T2S Solutions (“T2S”), a founder-led, mission-driven provider of advanced technologies supporting U.S. defense, intelligence, and national security missions, today announced the acquisition of Blue Marble Communications (“Blue Marble”), a founder-led provider of space-qualified communications and computing technologies. Blue Marble has established itself as a critical player in the sector as demand increases for high-performance satellite and spaceflight technologies. The company’s portfolio – including onboard processors, optical terminals, network routers, RF modems and transceivers, and edge processors – supports the next generation of satellite constellations, enabling more resilient and efficient data processing in space; all of which are in high demand from clients operating in U.S. National Security and global Commercial Space markets. With this acquisition, T2S, backed by Madison Dearborn Partners (“MDP”), a leading private equity investment firm based in Chicago, advances its strategy to build a differentiated provider of mission-critical technologies at scale. Together, T2S and Blue Marble will serve the growing space sector while expanding capabilities in Joint All-Domain Command and Control (JADC2), Positioning, Navigation & Timing (PNT), Cybersecurity, and Lunar, addressing key needs in both government and commercial markets.

Expanding Blue Marble’s Resources, Scale, and Innovation

For Blue Marble, this partnership provides the opportunity to build on its success through additional resources, expanding production capacity, and increasing investment in research and development. With T2S and MDP’s support, the company will enhance its ability to scale manufacturing, accelerate product development, and deliver complete payload solutions to its customers.

“In T2S and MDP we found the ideal partners that understand both our technology and our mission,” said Neal Nicholson, Founder and CEO of Blue Marble. “This announcement is a testament to all our incredible Blue Marble team has accomplished. We have produced industry-leading, high-performance solutions, bringing outsized value to government and commercial customers. Now, with additional investment and infrastructure, we look forward to bringing even more capabilities to our customers at a greater scale and ultimately strengthen our ability to develop and evolve technology that promotes a global community.”

Founded in 2017 and located in San Diego, CA, Blue Marble brings meaningful expertise in designing and manufacturing high-performance, cost-effective, scalable space-qualified high-speed data, RF, and optical communications systems. Blue Marble also has deep market penetration and a strong program pipeline with customers across the National Security Space sector alongside the International and Commercial LEO and MEO satellite markets. Blue Marble’s differentiated strengths align with the increasing demand for high-speed, secure data transfer and computing in both national security and commercial space markets. As organizations seek more interoperable and durable communications architectures, Blue Marble will benefit from the operational support and customer insight of T2S to continue delivering vital solutions for its global client base.

Advancing T2S’ Vision for a Next-Generation Security and Space Technology Provider

The addition of Blue Marble is a significant step in T2S’ strategy of expanding its presence as a market-leading provider of innovative solutions in space and other mission-critical domains. Following MDP’s strategic investment in T2S in November 2023, the company has been focused on broadening its technology offerings to support a wide range of critical defense and intelligence operations. These initiatives have led to sustained growth, including the tripling of the company’s EBITDA. This acquisition also builds on other recent strategic moves by T2S, including the acquisition of Flexitech Aerospace in 2024, further expanding its role in space-based technologies.

“Blue Marble brings a strong track record of innovation in space communications, and its products are highly relevant to the evolving needs of both government and commercial customers,” said Tim Gay, Co-Founder and CEO of T2S. “The company’s stellar reputation, strong company culture, and unique customer relationships make it an optimal partner as we continue to advance our vision to push the boundaries of space missions. We look forward to working with Blue Marble and MDP to help Blue Marble continue to scale its operations and bring even more advanced technologies to market. I also want to thank Matt Norton, Brandon Levitan and the rest of the MDP team for their amazing support and guidance over the past 18 months. This transaction and our execution on our growth-oriented investment thesis would not be possible without their partnership.”

Kroll Securities, LLC served as financial advisor to Blue Marble Communications and Procopio, Cory, Hargreaves & Savitch LLP provided legal counsel. Jefferies LLC served as financial advisor to T2S and Alston & Bird LLP and Crowell & Moring LLP provided legal counsel.

About T2S Solutions

T2S Solutions is an innovative, agile, mission-focused product and solutions provider specializing in Rapid Prototyping and Experimentation, Systems Development, Integration, Test and Sustainment for the U.S. Department of Defense, Mission Partners and the U.S. Intelligence Community, Industry Partners, and other U.S. Government Agencies. Its domain expertise spans Space, High Altitude, Positioning, Navigation, and Timing (PNT), AI / ML, C5ISR, Chemical Biological Radiological Nuclear (CBRN) Detection, and Electronic Warfare (EW). T2S has 250 employees and is headquartered in Belcamp, MD, near Aberdeen Proving Ground, with a large integration facility in Huntsville, AL that serves as the Tactical Space Layer Integration Lab. Madison Dearborn Partners, LLC (“MDP”) invested in T2S in 2023. Learn more at www.t2s-solutions.com.

About Blue Marble Communications

Blue Marble Communications designs and manufactures space-qualified edge processors and communications components and subsystems operating over RF, microwave, millimeter wave and free-space optical spectrums. Our products incorporate advanced regenerative processing and high-speed data networking capabilities enabling hundreds of gigabits of data to be routed amongst multiple satellites as well as land, sea and airborne platforms. Blue Marble Communications is an employee-owned corporation headquartered in San Diego, CA. Learn more at https://www.bluemarblecomms.com/. (Source: BUSINESS WIRE)

18 Mar 25. Austal takeover: Hanwha secures additional 9.9% shares in WA shipbuilder. Deputy Prime Minister and Minister for Defence Richard Marles MP, announced the commencement of production of the AS9 Huntsman self-propelled howitzer capability at an event held by Hanwha Defence Australia. South Korea business conglomerate Hanwha Group has acquired a 9.9 per cent shareholding in Austal as the group seeks to become a long-term strategic partner with Austal in developing Australia’s defence industry capability. Hanwha has applied for Australian Foreign Investment Review Board (FIRB) approval to increase its shareholding in Austal to 19.9 per cent. Hanwha intends to make a meaningful contribution to Austal and Australia’s defence industry by bringing its extensive manufacturing and operational experience to maximise the opportunities in front of the company. Hanwha global defence chief executive officer and president Michael Coulter said Hanwha believes in the long-term opportunity in partnering with Austal.

“As a strategic shareholder there will be a great opportunity for us to add significant value to Austal’s business, including in global defence and shipbuilding, supporting investment in Australia’s local manufacturing industry and capacity,” Coulter said.

“Hanwha’s position as a global leader in smart shipbuilding will provide Austal access to capital, international relationships and operational and technical expertise which can accelerate the development of Austal’s business and in turn, enhance Australia’s sovereign defence capability, at a time when this capability is more important than ever.

“Hanwha’s global defence strategy prioritises growing local, sovereign presence through investment and partnerships, as exemplified by our investment in land capability in Geelong and elsewhere around the world. We believe strongly that we can replicate that success with Austal, investing in sovereign capabilities both in Australia and with its global operations.”

Hanwha has significant interests in Australia after establishing Hanwha Defence Australia in 2019 and operating a Hanwha Armoured Vehicle Centre of Excellence (H-ACE) in Geelong. H-ACE is responsible for the production of the AS9 self-propelled howitzer and the AS10 armoured ammunition resupply vehicle on behalf of the Australian Army. Coulter said Hanwha would engage with Austal about board representation shortly.

“Ultimately, we believe a Hanwha position on the board will allow for the future value of Austal to be maximised for all stakeholders by fully aligning interests.”

In addition to its 9.9 per cent shareholding, Hanwha has a 9.9 per cent economic interest in relation to Austal via a cash-settled total return swap arrangement. Hanwha is also party to a cash-settled equity collar transaction in relation to Austal. Subject to the terms of the agreements, this economic interest in Austal hedges Hanwha’s exposure to future movements in Austal’s share price. (Source: Defence Connect)

18 Mar 25. Safran offers remedies to win EU approval for Collins deal. French engine and aircraft equipment maker Safran (SAF.PA) has offered remedies in an attempt to secure EU antitrust approval for its $1.8 bn bid for Collins Aerospace’s flight controls business, an update on the European Commission website showed on Monday. The EU competition enforcer, which did not provide details in line with its policy, extended its decision deadline on Safran’s bid for the U.S. company to April 4 from March 21. It is now expected to seek feedback from rivals and customers before deciding whether to accept the concession, demand more or open a four-month long investigation. (Source: Reuters)

17 Mar 25. Qinetiq shares drop 20% on UK and US defence delays. Group takes £140m charge on US business and cites ‘geopolitical uncertainty’ among factors for lower-than-expected revenue and profits. The UK defence sector represents around 50 per cent of group revenue, UK intelligence about 25 per cent and global solutions — which is predominantly its US sector — about 25 per cent. The defence company QinetiQ has warned that full-year revenue and profits will be lower than expected after a £140m impairment charge on its American business and cut its sales outlook. Shares in the group fell 20 per cent when it said in an unscheduled trading update that tough near-term trading conditions in its third quarter had persisted.

“This has affected short-cycle work in our UK intelligence and US sectors resulting in further delays to a number of contract awards. In addition, recent geopolitical uncertainty has impacted our usual fourth quarter weighting to higher margin product sales from the US,” the company said.

Organic revenue growth for the year to the end of March has been cut to around 2 per cent with an underlying margin of 10 per cent, including £25m to £30m of one-off charges. For 2026, the company has guided to sales growth of between 3 per cent and 5 per cent at margins of 11 per cent and 12 per cent. QinetiQ has also announced an extension to the current share buyback programme of up to £200m over the next two years. The company said it had reviewed its US operations and was preparing to restructure them. As a result, it has taken a £140m goodwill impairment charge on the business.

Qinetiq said: “In addition, against the backdrop of challenging US market conditions and as part of our year-end balance sheet review process, we have identified a number of one-off, largely non-cash charges and provisions primarily relating to inventory and cost recovery in our legacy US operations.”

Analysts at Jefferies estimated that consensus for QinetiQ earnings in its 2025 financial year will drop by around 20 per cent on its update. The FTSE 250 company expects organic revenue growth of around 2 per cent, having previously guided to 7 per cent growth. Profit margins will be lower than expected. Qinetiq was created in 2001 when the Ministry of Defence split its Defence Evaluation and Research Agency (Dera) in two. It was floated on the London Stock Exchange in February 2006, when the Carlyle Group sold its stake in the company. The UK defence sector represents around 50 per cent of group revenue, UK intelligence about 25 per cent and global solutions — which is predominantly its US sector — about 25 per cent. Over the past year, geopolitical tensions in Ukraine and the Middle East have bolstered shares in defence stocks. More recently, the sector has been boosted by expectations of increased defence spending in Britain and the European Union after President Trump indicated the region needed to do more to defend itself and not rely on the US. Shares in Qinetiq fell 105p to 420p. (Source: The Times)

17 Mar 25. MBDA a model more relevant than ever.

* European collaboration through MBDA has allowed nations access to decisive sovereign capabilities.

* MBDA has ramped-up production.

* In a rapidly changing world, MBDA is standing by its customer nations and armed forces to deliver on their needs.

MBDA CEO Eric Béranger reaffirmed the European group’s role as a leading global provider of complex weapons. At his annual press conference on March 17 2025 from Paris, France, Eric Béranger explained MBDA’s capacity to answer and exceed the production ramp-up necessary to face demand in the current geopolitical context. In a rapidly changing world, MBDA continues to demonstrate its commitment to cooperation and innovation at the service of nations’ sovereignty, with expanded production capabilities and strategic partnerships. Altogether reinforcing European defense readiness.

MBDA remains the only European group offering a comprehensive portfolio of sovereign capabilities. These ensure that European nations have freedom of action and provide operational superiority. Recent deployments by armed forces have testified that MBDA’s systems have again been combat proven in real-world operations. For example, ASTER by French, UK and Italian navies in the Red Sea or VL MICA for security at the Paris Olympics.

Eric Béranger, CEO of MBDA, said: “As geopolitical uncertainties grow, MBDA stands as a pillar of the defence of Europe, ensuring that nations have the tools, autonomy, and industrial strength to safeguard their interests. By fostering cooperation, accelerating production, and pioneering new defense technologies, MBDA is not just responding to today’s challenges but also contributing to the future of European security.

MBDA actively supports European Union defence initiatives, NATO collaboration, and cross-border cooperation. The company has reinforced partnerships across Europe to expand joint capabilities. These include new agreements with Poland and Sweden. There is an urgent need for increased defence capabilities and MBDA has taken decisive actions to ramp up production. In 2024, missile output increased by 33% compared to 2023, and by 2025, the group will have doubled production compared to 2023. Key initiatives driving this acceleration includes continuing to invest €2.4bn over the next five years (2025-2029) and a significant recruitment drive, with 2,500 new hires in 2024 and a target of 2,600 more in 2025. Beyond tackling today’s production challenges, MBDA continues its efforts to adapt to potential mass challenges, while remaining focused on the future of defence, developing next-generation solutions. Some of its key areas of innovation include the future of Deep-strike – with FC/ASW, a flagship of cooperation, hypersonic and counter-hypersonic capabilities – with AQUILA, AI-driven and digital defence systems – with the recent launch of NEODE Systems, as well as mass-oriented solutions, including drone swarms, lasers, and remotely-controlled ammunitions, inspired by lessons learned from recent conflicts.

Figures at a glance:

* Total revenues in 2024 were €4.9bn

* Order intake at a new record total of €13.8bn

* Backlog reaching €37bn

* Investment of €2.4bn over the 2025-2029 period

* Expected hiring of 2,600 new people in 2025

17 Mar 25. MTI Wireless Edge – a smart play on climate change and defence spending.

Simon Thompson: Modestly rated tech group has a robust order book and offers scope for earnings upgrades.

Flat annual pre-tax profit of $4.8m on revenue of $45.6mn
Net cash of $6mn
Robust order book
Potential for earnings upgrades

Annual results from Israel-based technology group MTI Wireless Edge (MWE: 60.5p) highlight the benefit of having a diversified revenue stream as strong performances from antenna and water control management activities offset a profit shortfall in distribution services.

The antenna business is a one-stop shop for the sale of ‘off the shelf’ flat and parabolic antennas. It also supplies custom-developed antenna solutions to a range of commercial and military customers. In 2024, divisional operating profit increased 55 per cent to $1.3m (£1.0m) on 16 per cent higher revenue of $14.1m, reflecting a sharp increase in demand for 5G backhaul antenna solutions (to support mobile phone operators as they roll out their 5G networks) and rising demand for military antennas.

E-band 5G backhaul antenna and military antenna activities together accounted for 70 per cent of antenna revenue and are expected to experience the strongest growth in the future. Moreover, conflicts in the Middle East have triggered a need to restock antennas used during these conflicts, and a requirement to maintain higher stock levels.

Increased global defence spending by governments creates a positive market environment for MTI, one reason why analysts at Shore Capital forecast 21 per cent growth in this year’s operating profit from the antenna division. It should also help drive an improved performance from the group’s MTI Summit division. The unit represents 40 international suppliers of radio frequency/microwave components and sells these products as well as turnkey solutions (fixed and mobile communication, telemetry and signal intelligence systems) to Israeli customers.

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