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See Feature: US Defense Majors Maintain Forecasts Despite Tariffs

By Julian Nettlefold

 

24 Apr 25. WisdomTree’s Europe Defence ETF surges past $1bn in a month. The WisdomTree Europe Defence UCITS ETF (WDEF), launched on 11 March 2025, has surpassed $1bn AUM within its first month of trading. This achievement underscores the strong investor conviction in Europe’s long-term defence transformation and also highlights the ETF’s unique positioning in the market as the only ETF focused exclusively on European defence companies.

Adrià Beso, Head of Distribution, Europe at WisdomTree, commented: “Investors are turning towards dedicated European defence ETFs to gain targeted exposure to a sector supported by long-term government spending and strategic autonomy initiatives. Crossing the $1 billion mark within the first month speaks volumes about the conviction investors have in Europe’s long-term defence transformation.”

WisdomTree Europe Defence UCITS ETF was designed to offer precise exposure to the European companies driving this shift. The early AUM momentum reflects a strong alignment between policy, investor interest, and market opportunity.

Transparency and thematic purity

The ETF delivers transparency and thematic purity, ensuring the strategy provides targeted access to the companies best positioned to benefit from structural shifts in European defence spending and strategic autonomy. At the same time, the ETF helps channel investment into the region’s defence sector without compromising on responsible investing principles. The index tracked by WDEF, the WisdomTree Europe Defence UCITS Index, seeks to exclude companies that are involved in controversial weapons banned by international law, such as cluster munitions, antipersonnel landmines, biological and chemical weapons, as well as depleted uranium weapons and white phosphorus weapons. The index additionally excludes companies that violate international norms and standards, such as United Nations and OECD guidelines or are subject to UN, EU or US sanctions.

Beso added: “When investing in defence-themed ETFs, it’s essential to look beyond the product name and examine the underlying holdings and regions. This helps investors understand the true nature of their exposure, such as whether it’s focused entirely on European companies driving long-term strategic shifts in European defence, or simply a global exposure. This approach can also help investors understand if any companies are in countries subject to sanctions.” (Source: https://www.thearmchairtrader.com/)

 

25 Apr 25. Patria transitions to a new operating model starting 1 June 2025 – change negotiations concluded. Patria refined in March 2025 its growth strategy to respond more effectively to significantly increasing demand and a constantly changing operating environment. As a result, the company has decided to transition to a new operating model starting from 1 June 2025. The change negotiations related to the development of the operating model have been concluded in good faith between personnel groups and Patria. Patria has decided to focus its operations on three key business areas with profit responsibility:

  • Protected Mobility: responsible for new vehicle sales, as well as their offering and deliveries.
  • Defence and Weapon Systems: responsible for, among other things, weapon systems, air surveillance-related products, and drones, as well as their sales, offering, and deliveries.
  • Sustainment Solutions: responsible for, among other things, lifecycle support and software products as well as their sales, offering, and deliveries. In addition, it is responsible for the strategic partnership with the Finnish Defence Forces and Patria’s public authority business.

The key strategic drivers include the substantial increase in defence spending on a national and EU level, the strong increase in the demand for defence solutions and equipment, the importance of territorial and the Arctic region’s defence and the development of Europe’s defence through Finland’s and Sweden’s NATO membership.   Patria’s new organisation and appointments will be announced in phases. The new Group Management Team has now been appointed and will begin in its composition on 1 June 2025. The following people on the Group Management Team will report to Patria’s President and CEO, Esa Rautalinko:

  • Executive Vice President, Protected Mobility, Jussi Järvinen
  • Executive Vice President, Defence and Weapon Systems, Mikko Leino
  • Executive Vice President, Sustainment Solutions, Pekka Ruutu
  • Executive Vice President, Sales and Marketing, Chief Program Officer, F-35, Petri Hepola
  • Chief Financial Officer Päivi Lindqvist
  • Chief Human Resources Officer Leena Orpo
  • Chief Legal Officer Ara Haikarainen
  • Executive Vice President, Strategic Programs, Kari Renko

Change negotiations concluded

The change negotiations related to the development of the operating model began on 17 March 2025, and involved approximately 1,600 people. As a result of the negotiations, the changes are expected to affect approximately 400 people. Each of these individuals will be offered a job role. Personnel reductions were not the goal of the negotiations, and the change enables many new interesting tasks and growth opportunities for Patria employees. The reductions could be possible if the person does not want to accept a new job role. Patria anticipates that its headcount will grow significantly also this year. The changes may have an impact on some individual job roles in Patria’s operations outside Finland. For these the matter has been handled in accordance with local legal requirements in each country.

“I want to thank all personnel at Patria for the very constructive, good-spirited, and quickly implemented change negotiations. Now we can fully focus on the implementation of the new operating model and the execution of our strategy. The rapid change in our operating environment provides a huge opportunity for us to grow, and we must be even more efficient in responding to it,” says Patria’s President and CEO, Esa Rautalinko.

 

25 Apr 25. Saab posts narrow beat, repeats upbeat guidance.

  • Summary
  • Companies
  • Saab first quarter operating profit 1.45 bln SEK vs forecast 1.42 bn
  • Affirms outlook for sharply higher sales and profit this year
  • CEO says confident on prospects despite tariff uncertainty
  • Order bookings rise 4% yr/yr in Q1

Swedish defence material maker Saab on Friday reported first-quarter operating profit just above market expectations and stood by guidance for sharply higher sales and earnings this year on the back of surging military spending. The company said in a statement that its operating earnings rose to 1.45bn Swedish crowns ($150.6m) from a year-ago 1.19bn crowns, narrowly topping a mean forecast of 1.42bn crowns seen in an LSEG compilation of analyst forecasts. The maker of military equipment ranging from missiles and advanced electronics to submarines and the Gripen fighter jet repeated its full-year outlook for sales to grow 12%-16% organically with operating profit to rise even more. Saab is riding a defence spending boom brought on by Russia’s invasion of Ukraine and related worries over security in Europe, its main market and home to well over half its sales. Shares in the company, which competes with giants such as U.S. Lockheed Martin, France’s Dassault Aviation and Britain’s BAE Systems have risen nearly 80% since the start of the year, adding to gains in previous years. But the tariff turmoil triggered by U.S. President Donald Trump has raised uncertainty about supply chains and broader economic activity, a concern also for Saab, though it only generates roughly a tenth of its sales in North America.

“Ongoing geopolitical tensions and uncertainty surrounding tariffs present challenges and make it difficult to predict the future,” Saab CEO Micael Johansson said in a statement. “Despite these uncertainties, we remain confident in our company’s future and reiterate our outlook for 2025.”

Saab, which also sells civilian products to customers such as Airbus and Boeing, said order bookings rose 4% in the quarter with its backlog of orders growing to 189n crowns from 158bn a year ago. ($1 = 9.6264 Swedish crowns) (Source: Reuters)

 

25 Apr 25. Saab Q1 results 2025: Growing in a dynamic market reality

Saab presents the results for January-March 2025.

“We had a solid start to the year with sales growth across all business areas and delivered Saab’s strongest first quarter to date. Fully committed to contributing to the European defence build-up, we will continue to develop in line with our growth plans and capture market opportunities by focusing on customer deliveries and investing in capacity to meet the high demand,” says Micael Johansson, President and CEO, Saab.

Key highlights Q1 2025

  • Order intake for the first quarter increased to SEK 19,144m (18,495), driven by small and medium-sized orders.
  • Sales in the quarter amounted to SEK 15,792m (14,185), which corresponded to an organic sales growth of 11% (24).
  • EBITDA increased to SEK 2,140m (1,819) with an EBITDA margin improvement to 13.6% (12.8) in the quarter.
  • EBIT increased 22% and amounted to SEK 1,454m (1,191), corresponding to an EBIT margin of 9.2% (8.4).
  • Net income increased to SEK 1,277m (784) and earnings per share amounted to SEK 2.35 (1.43), an increase of 64%.
  • Operational cash flow improved and amounted to SEK -14m (-1,998), driven by strong cash flow in Dynamics, offset by increased investments and timing of customer payments.
  • Net liquidity position at the end of the period was SEK 2,196m compared to SEK 2,211m at year-end 2024.

The AGM 2025 decided on a dividend of SEK 2.00 (1.60) per share for the financial year 2024.

 

25 Apr 25. France’s Safran says revenues rise 17% in first quarter, confirms targets. French jet engine maker Safran on Friday reported a stronger-than-expected rise in first-quarter revenues and said it was confident of hitting full-year targets, excluding any tariff impact. Safran, which also makes landing gear, brakes and cabin interiors, said revenues rose 16.7% to 7.257bn euros ($8.2bn), led by its propulsion unit rising 19% and featuring stronger growth in all units compared to market forecasts. On a like-for-like basis, revenues rose 13.9%. Analysts were on average expecting revenues of 7.049bn euros, according to a consensus compiled by the company. Safran said it is studying ways to soften the impact of tariffs but that it was premature to quantify it. Core civil and defence businesses continue to show “robust momentum,” CEO Olivier Andries said in a statement. Safran co-produces LEAP jet engines for narrow-body Boeing and Airbus jetliners with GE Aerospace through their CFM International venture, the world’s largest engine maker by units sold. Deliveries of the engines have been hit by supply chain problems. Safran confirmed a forecast of LEAP deliveries up 15% to 20% this year, following a 13% drop in the first quarter. ($1 = 0.8825 euros) (Source: Reuters)

 

24 Apr 25. Pennant International – A strategic review means these shares could double in value. The Company trades at a 33 per cent discount to peers even though it now focuses on higher-margin business.

  • 2025 revenue falls 11 per cent to £13.8m
  • Adjusted operating profit down a third to £1.2m
  • Property disposals to slash net debt
  • Earnings recovery forecast

Pennant International (PEN:27.5p) has completed a strategic repositioning to become a high-margin software pure-play and services company with a high recurring revenue base. Pennant provides software to equipment manufacturers and governments, and supplies training products to a global client base, the majority of which work in the world’s defence ecosystem. Its training systems business, which designs and builds hardware, software and virtual training solutions for maintainers and operators of aircraft, ships and land systems, has been streamlined. The restructuring has sliced £2m off annual overheads, mainly by reducing headcount last year. Surplus property has been sold off, too, realising net proceeds of £2m to strengthen the balance sheet after the financial year-end. Two further freehold properties at the company’s Staverton site in Gloucestershire are being marketed for sale and could realise net proceeds of more than £0.5m. Importantly, there has been recent positive news flow on contract awards. Subject to agreeing terms with the UK Ministry of Defence on a £4.9m contract to deliver a comprehensive technology upgrade to the RAF’s GenFly training systems, Pennant should commence work in the third quarter of 2025. Zeus Capital estimates that the contract will generate £0.8mn of revenue in the second half of this year, a further £2m in 2026 and the balance in the 2027 and 2028 financial years. Alongside growth in the software and services reporting segment, the proportion of recurring or repeatable revenue could increase to 80 per cent of the mix in 2026, up from 69 per cent in 2024. It’s also higher-margin, so provides a tailwind to profits. Including the GenFly contract, Pennant’s current order book covers 70 per cent of Zeus’ 2025 revenue estimate of £12.5m. Although that’s below last year’s result (£13.8m), by moving up the value chain Pennant is targeting more profitable contracts. This explains why analysts expect current-year adjusted operating profit (pre-amortisation charges) to increase 12.5 per cent to £1.35m. Margin expansion is more pronounced in 2026 as analysts at Zeus predict 58 per cent growth in adjusted operating profit to £2.1m on £1.9m higher revenue of £14.4m. Factoring in the asset disposals, net debt of £2.3m should be reduced to £0.15m by the year-end and Pennant could have net cash of £0.8m by the end of 2026. Assuming the board hits these estimates, the company is rated on 5.5 times 2026 cash profit estimates of £2.6m to enterprise valuation, representing a 33 per cent ratings discount to UK small-cap data and productivity software peers covered by brokerage Cavendish. Both Zeus Capital and Cavendish’s target prices (57p and 64p, respectively) are more than double the current share price, highlighting re-rating potential. The shares are not without risk, but Pennant has turned a corner. Growth prospects are underpinned by a geopolitical backdrop that supports higher defence spending by governments and the strategic investment in its high-margin Auxilium software suite. Specifically, the software provides customers in defence and other sectors with a toolset to manage, model and utilise vast amounts of complex equipment data. The directors report “buoyant bid activity” and are confident of hitting market expectations. So, having rated the shares a hold at the interim results (‘Pennant trades at 50% discount as it repositions as a software business, 23 September 2024), it’s time for an upgrade. Rockwood Strategic (RKW:246.5p), a top-performing small companies investment trust led by highly regarded fund manager Richard Staveley, certainly sees the recovery potential, having accumulated a 13.6 per cent stake. Buy. (Source: Investors Chronicle)

 

23 Apr 25. Certo Aerospace Raises £3m to Accelerate UK Flight Trials of Large Uncrewed Helicopters. CAPSTONE VTOL UAS aims to replace manned helicopters for defense and humanitarian mission. Certo Aerospace Ltd, a British aerospace company based in Somerset, has announced the successful raise of over £3m in new capital through an equity placement. The company will use the funds to accelerate the development and testing of large uncrewed air systems (UAS), designed to reduce risk-to-life in defense missions and expand the role of drones in humanitarian and disaster relief operations. Certo’s flagship aircraft, the CAPSTONE Vertical Take Off and Landing (VTOL) drone, is the largest drone currently flying regular missions in the United Kingdom. The drone uses a coaxial rotor system with two contra-rotating 5-meter blades and no tail rotor. This design improves energy efficiency and maximizes lift by eliminating the tail rotor, which typically uses up to 20% of a helicopter’s energy. With a range of 300 miles and a flight endurance of up to eight hours, CAPSTONE can carry 300 kilograms in combined payload and fuel—matching its own dry weight. These capabilities place it among the most advanced VTOL aircraft in its weight category under UK Civil Aviation Authority (CAA) GROUP 3 regulations, which includes drones with a maximum take-off weight of 600 kilograms.

Flight Trials and Government Engagement

The CAPSTONE UAV is currently undergoing flight trials with multiple government agencies across southwest England. Testing takes place at several former military airfields, including sites previously operated by the Royal Navy, Royal Air Force, and the Army. The drone is designed to launch from both land and sea platforms, filling a gap between small multi-rotor drones and manned helicopters in terms of range and payload.

Strong Investment Backing and Global Interest

The latest equity raise exceeded expectations, reflecting growing investor confidence in the platform. “At our pre-deal valuation of £16m, we’re delighted that our original target amount was significantly oversubscribed,” said Certo’s Managing Director Justin Tooth. “This allowed us to expand the raise so that we can now further accelerate the UK flight trials of our 600kg VTOL CAPSTONE UAS and we are delighted to be showcasing two of our flying prototypes at the Future Lab exhibition at Goodwood Festival of Speed.” (Source: Google/https://dronelife.com/)

 

24 Apr 25. LM to Acquire Amentum’s Rapid Solutions Business. Strategic Acquisition Reinforces Lockheed Martin’s Commitment to Delivering Innovative Defense Tech. Lockheed Martin [NYSE: LMT] today announced the signing of a definitive agreement to acquire the Rapid Solutions business of Amentum, an engineering and technology solutions company. Rapid Solutions has proven experience as a multi-domain provider of key technologies, including airborne and space Intelligence, Surveillance and Reconnaissance (ISR), advanced communications, and tactical systems to meet the nation’s most critical security challenges. Its portfolio complements Lockheed Martin’s reputation for rapidly advancing capabilities and investment in strengthening the defense industrial base.

“This acquisition of the Rapid Solutions business within Amentum, a respected organization for both its technology and talent, will enhance how we deliver essential capabilities to our customers’ critical missions,” said Tahllee Baynard, vice president of Ignite at Lockheed Martin. “Together, Rapid Solutions’ Electronically Steered Array and Lockheed Martin’s demonstrated production capability and discipline as a prime integrator will provide the industry with a strong cost and value proposition to foster competition and help us support national security missions.”

With the addition of Amentum’s Rapid Solutions team, Lockheed Martin is staying true to its commitment to deliver customers seamless, integrated solutions with an increased sense of urgency. Its focus on driving continuous innovation across the defense industrial base is a priority, as the business looks to support and lead national security initiatives including Golden Dome for America. (Source: ASD Network)

 

24 Apr 25. Kitron: Q1 2025 – Strong start to the year. Kitron today reported first-quarter results characterised by continued momentum in the Defence & Aerospace market sector and a growing order backlog. Kitron’s revenue for the first quarter was EUR 164.6m. This compares with EUR 160.6 m in the fourth quarter last year and EUR 173.9m in the first quarter a year ago. The best-performing market sector was Defence/Aerospace, with strong growth both sequentially and year-on-year. The order backlog ended at EUR 524.6m, compared to EUR 445.0m a year ago. This is a substantial increase from the preceding quarter and the fourth quarter in a row with a growing order backlog. Operating profit (EBIT) was EUR 12.5m, compared to EUR 11.8m in the fourth quarter last year and EUR 10.6m in the first quarter a year ago. Profitability expressed as EBIT margin was 7.6 per cent, compared to 7.3 per cent in the fourth quarter last year and 6.1 per cent in the first quarter last year.

Peter Nilsson, Kitron’s CEO, comments: “We delivered a strong start to 2025, driven by significant growth in Defence & Aerospace, contributing to an 11 per cent sequential rise in our order backlog. Key strategic orders totaling EUR 76 m from customers such as Kongsberg Defence & Aerospace and Thales strengthen our industry partnerships. Five of our strategically positioned sites have significant Defence & Aerospace experience, enabling rapid scalability as demand increases, with an additional EU site currently being accredited. Despite global tariff uncertainties and cautious short-term market dynamics, our flexible operational strategy positions us confidently for continued growth.”

Profit after tax amounted to EUR 7.6m, compared to 6.5m in the same quarter the previous year. This corresponds to earnings per share of EUR 0.04, up from EUR 0.03 last year.

Outlook

For 2025, Kitron expects revenues to be between EUR 640 and 710m. Operating profit (EBIT) is expected to be between EUR 47 and 65m. This is unchanged from the lifted outlook published on 2 April.

Kitron is a leading Scandinavian electronics manufacturing services company for the Connectivity, Electrification, Industry, Medical devices and Defence/Aerospace sectors. The group has operations located in Norway, Sweden, Denmark, Lithuania, Germany, Poland, the Czech Republic, India, Malaysia, China and the United States. Kitron has about 2 400 employees, and revenues were EUR 647m in 2024.

www.kitron.com

 

23 Apr 25. Amphenol Reports Record First Quarter 2025 Results.

First Quarter 2025 Highlights:

  • Record Sales of $4.8bn, up 48% in U.S. dollars and 33% organically compared to the first quarter of 2024
  • GAAP Diluted EPS of $0.58, up 32% compared to prior year
  • Record Adjusted Diluted EPS of $0.63, up 58% compared to prior year
  • GAAP and Record Adjusted Operating Margin of 21.3% and 23.5%, respectively
  • Operating and Free Cash Flow of $765m and $580m, respectively
  • Completed two acquisitions: LifeSync and CommScope’s OWN and DAS businesses

Corporation (NYSE: APH) today reported record first quarter 2025 results.

“We are pleased to have closed the first quarter of 2025 with record sales and Adjusted Diluted EPS, both significantly exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 48%, driven by excellent organic growth in the IT datacom market as well as robust organic growth in the mobile devices, defense and communications networks markets, together with contributions from the Company’s acquisition program. In the first quarter, we once again realized strong profitability with Adjusted Operating Margin reaching a record 23.5%. We are extremely proud of the Company’s outstanding performance.”

During the first quarter of 2025, the Company continued to deploy its financial strength in a variety of ways to increase shareholder value. During the first quarter, the Company purchased 2.7 m shares of its common stock for $180.9 m and paid dividends of $200 m, resulting in total capital returned to shareholders of approximately $380 m.

Amphenol remains focused on expanding its growth opportunities through a deep commitment to developing enabling technologies for customers across our served end markets, an ongoing strategy of market and geographic diversification as well as an active and successful acquisition program. To that end and as previously announced during the quarter, the Company is excited to have closed the acquisitions of LifeSync as well as CommScope’s OWN and DAS businesses, which we now refer to as Andrew. Given the better than expected performance of the Andrew business thus far, Amphenol now expects the acquisition to be approximately $0.09 accretive to the Company’s 2025 Adjusted Diluted EPS, versus our initial expectation of $0.06.

Second Quarter 2025 Outlook

While we have been successful at capitalizing on many opportunities for growth, the current economic and geopolitical environment remains uncertain. Assuming the continuation of current market conditions as well as constant exchange rates, for the second quarter of 2025, Amphenol expects sales to be in the range of $4.90bn to $5.00 bn, representing a 36% to 39% increase over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.64 to $0.66, representing a 45% to 50% increase from the second quarter of 2024.

Mr. Norwitt continued, “I am very pleased with the Company’s outstanding first quarter 2025 results. The revolution in electronics continues to accelerate, with new innovations creating exciting growth opportunities for Amphenol across each of our diversified end markets. In turn, we have expanded our range of high-technology interconnect products, both through our organic innovation efforts as well as through our successful acquisition program. This expanded technology position coupled with our unique entrepreneurial culture has strengthened our competitive advantage. Our ongoing drive to leverage that competitive advantage and thereby create sustained financial strength has established an excellent base for the Company’s future performance. I am confident in the ability of our outstanding and expanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders.” (Source: BUSINESS WIRE)

 

23 Apr 25. CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government customers, announced results today for its fiscal third quarter ended March 31, 2025.

Revenues of $2.2bn, up 11.8% YoY

Net income of $111.9m and diluted EPS of $5.00

Adjusted net income of $139.3 m and adjusted diluted EPS of $6.23, up 8.5% YoY

EBITDA of $253.5m and EBITDA margin of 11.7%, up 40 bps YoY

Contract awards of $2.5bn and a book-to-bill of 1.2x

“Our third quarter results are a continuation of the exceptional performance that CACI has been reliably delivering. Our double-digit revenue growth, increased profitability, strong cash flow, and growing backlog underscore our successful strategy, differentiated software-based approach, and superior execution for our customers,” said John Mengucci, CACI President and Chief Executive Officer. “Continuing our flexible and opportunistic approach to capital deployment, we executed an open market share repurchase program just one quarter after closing on two strategic acquisitions. With the strong performance of our business, we are again able to raise our fiscal year 2025 guidance, are on track to achieve our three-year financial targets, and remain well positioned to provide long-term value for our customers and our shareholders.”

Third Quarter Results

Revenues in the third quarter of fiscal year 2025 increased 11.8 percent year-over-year, driven by 5.6 percent organic growth, as well as acquisitions completed in the last twelve months. The increase in income from operations was driven by higher revenues and gross profit. Diluted earnings per share reflects increases in intangible amortization and interest expense, and a higher tax provision, partially offset by higher income from operations and share repurchases. Growth in adjusted diluted earnings per share was driven by higher income from operations and share repurchases, partially offset by higher interest expense and a higher tax provision. The increase in cash from operations, excluding MARPA, was driven primarily by effective working capital management.

Third Quarter Contract Awards

Contract awards in the third quarter totaled $2.5bn, with more than 60 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

  • CACI was awarded a seven-year task order valued at up to $434m to provide digital financial management solutions to an intelligence community customer. CACI’s software-defined systems and functional knowledge will help modernize this customer’s outdated legacy technology, unlock value, and overcome regulatory bottlenecks with secure, reliable, and compliant systems that drive digital transformation, increase efficiency, and ensure clean audits.
  • CACI was awarded a contract modification valued at nearly $400 m to continue procurement, training, and fielding for a mission-essential system built by CACI using commercial software-based technology. This proven, mature solution puts advanced signals intelligence (SIGINT) and electronic warfare (EW) capabilities directly in the hands of warfighters operating in high-risk, contested environments. With this latest award, CACI’s total contract value has increased to approximately $500 m.
  • CACI was awarded a five-year task order valued at up to $158 m to provide advanced expertise to help a Department of Defense (DoD) customer meet its production, modernization, and sustainment goals.
  • CACI was awarded additional work to procure enhancements to a currently fielded EW system. The $143m firm-fixed-price delivery order represents a new phase of work that will bring additional functionality and improvements to this DoD customer.
  • CACI was awarded a 12-month contract modification worth more than $120m to continue modernizing and defending cyber networks that protect and advance critical C5ISR capabilities. With this latest award, CACI’s total contract value has increased to nearly $615m.
  • CACI was awarded a contract valued at up to $93 m to provide spectrum superiority expertise to a customer within the intelligence community.
  • CACI was awarded a five-year task order valued at up to $66m to continue supporting the U.S. Navy’s Naval Sea Systems Command (NAVSEA) and the Naval Surface Warfare Center (NSWC) Carderock Division. CACI, powered by technology and data-driven insights, ensures the Navy can address both pressing and evolving needs — including ship collision response, submarine control and maneuvering simulations, and the development of autonomous ships and systems.
  • CACI was awarded a five-year task order valued at up to $54m to continue supporting the U.S. Army Product Manager Ground Sensors (PM GS). CACI will provide current and future operational capability and efficiency throughout the life cycle of critical ground sensors, including night vision, electro-optics, and thermal systems used by warfighters at home and abroad. This work is vital in protecting our soldiers with cutting-edge software-defined solutions that enhance their situational awareness and combat effectiveness.

Total backlog as of March 31, 2025 was $31.4bn compared with $28.6bn a year ago, an increase of 9.8 percent. Funded backlog as of March 31, 2025 was $4.2bn compared with $3.2bn a year ago, an increase of 31.3 percent.

Additional Highlights

  • CACI was awarded a prestigious bronze Edison Award™ for CrossBeam®, a fully integrated, compact, and robust free space optical system designed for low-cost, high-volume manufacturing. CACI is a leader at rapidly prototyping and leveraging commercial practices to iterate software-defined developments, enhancements, and deployments in real time. Our award-winning innovations are also a direct result of our foresight to invest ahead of customer need by dedicating resources to emerging, cutting-edge capabilities that pioneer how we protect our nation’s assets and interests from ground to sea to space. The Edison Awards recognize the world’s top innovations, products, services, and business leaders, honoring the most exemplary technology and innovation. This is CACI’s fourth Edison Award.
  • CACI entered into a five-year Cooperative Research and Development Agreement with the United States Military Academy (USMA) at West Point to collaboratively advance (EW) technologies to support future U.S. Army missions. CACI aims to strengthen the pipeline of future SIGINT and EW operators while also improving relationships with future customers and partners to support ongoing national security mission objectives. West Point will provide input as a leader in military innovation and education. Through this effort, CACI, working jointly with the USMA, will continue to drive innovation, expand technical impact, and deliver mission-critical solutions to support national defense.
  • Fortune recognized CACI as a World’s Most Admired Company for 2025, marking the company’s eighth consecutive year on the list and its 14th overall appearance. CACI achieved impressive results in Fortune’s survey and was acknowledged for its innovation, long-term investment, financial soundness, and the quality of the company’s expertise and technology.
  • For the fifth consecutive year, CACI was named a Top Workplace USA by employee engagement technology partner Energage, LLC. This latest accolade is a testament to the company’s strong culture and legacy, which spans more than 60 years. CACI earned this designation after receiving specific recognition and praise from respondents for its impressive leadership, workplace environment, integrity, and opportunities, all of which exceed industry benchmarks. (Source: BUSINESS WIRE)

 

24 Apr 25. Denel is in crisis – Gigaba. Denel is a shadow of its former self and if it fails, it will paralyse South Africa’s entire defence ecosystem, Chairperson of the Joint Standing Committee on Defence (JSCD), Malusi Gigaba, has warned. Speaking during a justice and security cluster media briefing in Parliament on Thursday 10 April, Gigaba devoted significant attention to the state of Denel, the state-owned defence manufacturer which has experienced years of financial turmoil. Once a cornerstone of the country’s defence capability and a major employer, Denel has been hollowed out and is struggling to fulfil its strategic role in the defence value chain, he said.

“Denel remains a shadow of its former self. Government interventions must now begin to show measurable results,” said Gigaba. “If Denel fails, it paralyses the entire defence ecosystem.”

He pointed specifically to the long-stalled Project Hoefyster, launched in May 2007 to replace ageing SA Army Ratel infantry fighting vehicles, which remains incomplete. The lack of progress, coupled with deteriorating air and maritime defence capabilities, including limited availability of platforms such as the Rooivalk attack helicopter and Gripen fighter jets, has raised serious concerns about the SANDF’s ability to defend South Africa’s territorial integrity. Gigaba also highlighted the critical role of Denel in the availability of serviceable prime mission equipment – he said the success of the defence force’s turnaround strategy hinges on Denel’s recovery, as it is the original equipment manufacturer (OEM) for aircraft like the Oryx and Rooivalk, and the committee intends to keep a close watch on the implementation of Denel’s rejuvenation plan.

Gigaba’s comments came days after Chris Hattingh, Democratic Alliance (DA) Spokesperson on Defence & Military Veterans urged for an overhaul of Denel. “Denel must urgently adopt a sustainable funding model that drives operational efficiency and restores stakeholder confidence. To achieve this, the Department of Defence and National Treasury must prioritise robust oversight of Denel’s turnaround strategy, ensuring effective implementation,” he urged.

Denel was the responsibility of the then Department of Public Enterprises until its dissolution post South Africa’s national and provincial elections in June last year. Effective 1 April 2025, Denel falls under the Ministry of Defence and Military Veterans. Although Denel is suffering from liquidity constraints, operational inefficiencies, and a shrinking market share, the company says it is pursuing R36 bn in order opportunities.

Defence industry potential

In the face of global increases in defence spending, particularly among countries reacting to shifting geopolitical dynamics, Gigaba sees potential for South Africa’s defence industry to expand its footprint in global markets. He welcomed reports of steady growth in defence exports and stressed the need for continued facilitation by the National Conventional Arms Control Committee (NCACC). The Committee’s 2023 annual report showed a massive rise in South African defence exports, which totalled R7.1bn for that calendar year, up from R4.6bn in 2022. The Joint Standing Committee on Defence said it has been encouraged by reports that the NCACC is now meeting weekly to expedite the processing of export applications. Gigaba noted that a digitised system could help further reduce bottlenecks and improve industry competitiveness.

“Exports can stimulate economic growth. But to truly unlock this potential, we must also increase domestic defence spending, which will in turn sustain local manufacturing and technological innovation,” he said. (Source: https://www.defenceweb.co.za/)

 

24 Apr 25. Thales posts higher quarterly revenue, maintains 2025 targets. French defence, aerospace and cyber group Thales reaffirmed full-year forecasts on Thursday after posting stronger-than-expected first-quarter revenue, though new orders dropped compared with major arms deals recorded a year earlier. The company, whose portfolio spans fighter radars to seat-back screens for airlines, said it was looking at ways of softening the impact of tariffs, which had so far had no direct impact on its goals for higher sales and profitability in 2025. Thales posted quarterly sales of 4.96bn euros ($5.62bn), up 9.9% from the first quarter of 2024 on a like-for-like basis. New orders fell by a steeper-than-expected 27% to 3.78bn euros, however, with defence falling short of analyst forecasts. Thales said the same quarter of 2024 had been bumped up by major contracts including part of an order from Indonesia for France’s Rafale fighter jets, for which Thales builds radar. Analysts had on average been expecting quarterly sales of 4.80 bn euros and an order intake of 4.86bn euros, according to a company-compiled consensus. (Source: Reuters)

 

23 Apr 25. UK: Alleged divestment will highly likely prompt further disruptive pro-Palestine activism. On 22 April, the radical pro-Palestine Palestine Action (PA) activist group claimed that a company it targeted in March has cut ties to Israeli defence manufacturer Elbit Systems as a result of activism. According to PA, the metal components manufacturer Dean Group International cut ties with Elbit Systems less than three weeks after PA activists occupied the rooftop of a Dean Group site in Greater Manchester county and poured paint inside. The company was targeted for supplying parts to a company owned by Elbit Systems. While we cannot confirm the veracity of the claim, we assess that small and medium-sized companies targeted by PA will likely consider cutting ties with Elbit Systems. We also assess that divestments are likely to incentivise further activism spanning the defence, finance and university sectors. PA is currently carrying out a sustained campaign of vandalism targeting the insurance company Allianz, which we assess will likely remain on trend in the coming weeks. (Source: Sibylline)

 

22 Apr 25. Littlejohn Capital, LLC (“Littlejohn Capital”) today announced the acquisition of 3P Processing, a provider of metal processing and finishing solutions to the aerospace industry. Based in Wichita, KS, 3P Processing delivers one-stop surface metal processing and finishing solutions for aluminum, titanium, and steel components. The company’s specialized services include masking, prime, & topcoat, chemical processing, non-destructive testing, shot peening, and other ancillary services. 3P is a critical provider to the aerospace sector supporting the commercial, business aviation and defense sectors. 3P Processing maintains multiple NADCAP certifications, as well as over 20 OEM approvals from companies including Boeing, Gulfstream, Lockheed Martin, Sikorsky, Cessna, and Raytheon Technologies, among others.

Terry Karst, Chief Executive Officer of 3P Processing, said, “For over 50 years, 3P Processing’s comprehensive in-house metal finishing solutions have helped the aerospace industry streamline complex capabilities to reduce lead times while maintaining unparalleled quality. We look forward to working with the Littlejohn team to implement the already identified multiple opportunities that will broaden market coverage and continue to grow the business.”

Angus C. Littlejohn III, President of Littlejohn Capital, said: “Customers rely on 3P Processing for their difficult-to-accomplish processing challenges due to the company’s comprehensive list of approvals and certifications and focus on lead times. 3P boasts best-in class quality metrics which has propelled it to a market leading position and embedded, long-term customer relationships. We look forward to working with Terry and his experienced management team to continue investment that will further scale the business.”

Baker Hostetler served as Littlejohn Capital’s legal counsel. KAL Capital served as financial advisor to 3P Processing.

About 3P Processing

Founded in 1974, 3P is a full-service provider of several metal finishing, testing and inspection processes for the aerospace and defense industries. 3P is a trusted partner providing solutions for the world’s largest aerospace OEM suppliers and operates out of its Wichita, Kansas facility. The company services aluminum, titanium and steel aerostructure components with non-destructive testing, masking, painting, chemical processing and anodizing processes. For more information, visit www.3pprocessing.com.

About Littlejohn Capital

Littlejohn Capital is the family office of Angus C. Littlejohn Jr., co-founder of Littlejohn & Co., where he currently serves as Chairman Emeritus. Founded in 2013, Littlejohn Capital seeks to make control investments in small to mid-sized private companies that are undergoing strategic, operational or generational transition. For more information, visit www.littlejohncapital.com. (Source: PR Newswire)

 

23 Apr 25. UK’s Babcock forecasts 17% profit jump in fiscal 2025 on broad-based strength. British engineering company Babcock (BAB.L) said on Wednesday it expects fiscal 2025 operating profit to jump 17% to 363m pounds ($483.2m), comfortably beating market estimates, driven by strong performance across its divisions. The group, which maintains Britain’s naval fleet, builds new warships and makes weapon-handling systems, has struck a confident tone in recent months as geopolitical uncertainty drives demand for its defence equipment and services. Babcock reported a contracted backlog of 10.1 bn pounds as of March 31, up from 9.5bn pounds on September 30, 2024. The company’s projected operating profit for fiscal 2025 beats the market consensus of 346.8m pounds, based on a poll of 11 analysts by Vuma Financial. ($1 = 0.7514 pounds)(Source: Reuters)

 

23 Apr 25. Babcock International Group PLC (“Babcock” or “the Group”) provides a positive update on trading for the financial year ending 31 March 2025.

FY25 financial performance

Full year performance was strong, driven by the continuation of the positive trends seen in the third quarter across the Group. Based on unaudited, draft management accounts for FY25, subject to detailed review by the Audit Committee and the external audit process, we expect the FY25 results to be:

  • Revenue of £4.83bn, driven by organic growth at constant currency of 11%, with a continuation of the strong growth noted at the third quarter update in February, particularly in Nuclear and Marine
  • Underlying operating profit of £363m, a 17% increase yoy (1)
  • Underlying operating margin of 7.5% (FY24: 7.0% (2)), with all four sectors performing well in the fourth quarter, including a c.£5m one-off benefit in Marine
  • Underlying operating cash conversion of c.80%, boosted by working capital timing
  • Underlying free cash flow of £153m, despite an additional accelerated pension deficit repair contribution of £40m (see below)
  • Net debt including leases reduced to £373m at 31 March 2025 (FY24: £435m), or £101m excluding leases (FY24: £211m)

Continued strong business momentum

The Group’s contracted backlog was £10.1bn as at 31 March 2025, up from £9.5bn at HY25, providing a strong platform for sustained growth. During the fourth quarter, we announced two key multi-year contracts:

In January, we were awarded a new contract (Mentor 2) for the provision and support of military air training solutions for the French Air and Space Force and the French Navy, worth up to c.€800m (3). This represents a significant expansion of our military activity in France.

In March, we secured a sole-source five-year extension to our military land equipment support contract worth around £1.0bn, on terms that will result in better outcomes for all stakeholders. Through the course of the extension we will deliver improved readiness, regeneration and asset management services underpinned by extensive engineering and supply chain expertise, to maximise the availability of critical army equipment. This contract cements our position as strategic partner to the British Army, thereby setting the foundation for the army modernisation programme in the coming decades.

Pensions further de-risked

We continue to strengthen the Group’s balance sheet. In the second half of the year we further de-risked the Group’s pension schemes. Following completion of the triennial valuation of the Rosyth Royal Dockyard Pension Scheme (RRDPS), one of the Group’s three principal schemes, the Company and trustees have jointly agreed a long-term funding arrangement (LTFA) for the scheme. Within the last 12 months, the Company has finalised LTFA’s with all the three main pension schemes and, as part of this has contributed an additional £40 m deficit repair lump sum in FY25. As a result, we expect annual deficit repair payments to reduce from around £40m per annum to around £20 m per annum for the next six years.

Babcock Chief Executive David Lockwood said: “In an uncertain world, we continue to see momentum across the business. This has driven strong performance in all four of our divisions in the fourth quarter, resulting in full year underlying operating profit ahead of expectations. Our experience, know-how and application of technology play a critical role in ensuring that our customers are ready to respond to ever-changing global threats.”

FY25 reporting date

Further details and the outlook for FY26 will be provided on publication of our FY25 preliminary results, which we expect will be on 25 June 2025.

Civil nuclear teach-in event

We will be hosting a teach-in for analysts and investors on our civil nuclear business on 20 May at the London Stock Exchange. The event will also be webcast and available on the Investor Relations website. Registration details to follow.

(1) Compared to FY24 underlying operating profit of £311m, which excludes the loss on Type 31 of £90m and a profit on property disposal of £17m.

(2) FY24 underlying operating margin was 7.0% excluding the loss on Type 31 and profit on property disposal.

(3) Approximately £310m has been recorded in the contract backlog for the Mentor 2 contract.

 

22 Apr 25. Boeing [NYSE: BA] has entered into a definitive agreement to sell portions of its Digital Aviation Solutions business, including its Jeppesen, ForeFlight, AerData and OzRunways assets, to Thoma Bravo, a leading software investment firm. This all-cash transaction is valued at $10.55bn. Boeing will retain core digital capabilities that harness both aircraft and fleet-specific data to provide commercial and defense customers with fleet maintenance, diagnostics and repair services. This digital expertise will continue to provide predictive and prognostic maintenance insights.

“This transaction is an important component of our strategy to focus on core businesses, supplement the balance sheet and prioritize the investment grade credit rating,” said Kelly Ortberg, Boeing president and chief executive officer. “This enables all parts of the digital portfolio to focus on their strengths,” said Chris Raymond, president and chief executive officer of Boeing Global Services. “Our commitment to meeting our customers’ needs is unwavering as we move forward with our core products and services to support their fleets. We are proud to be investing in such an important technology platform in the broader aerospace and defense industry,” said Holden Spaht, a Managing Partner at Thoma Bravo. “With a heritage dating back to the 1930s, Jeppesen has been at the forefront of technological innovation for nearly a century. We are excited to build on this track record and power its next phase of growth. The business has been through an impressive growth transformation in recent years and has strong momentum,” said Scott Crabill, a Managing Partner at Thoma Bravo. “Thoma Bravo has a long track record of backing leading technology companies in partnership with existing management. We look forward to supporting the company’s standalone growth objectives through strategic investments, operational best practices and a shared commitment to innovation and long-term value creation.”

Approximately 3,900 employees around the globe work in Boeing’s Digital Aviation Solutions organization, which includes elements of the business remaining within Boeing and those included in the sale. Boeing is working with Thoma Bravo to help ensure as seamless of a transition as possible for employees while continuing to meet the needs of customers in accordance with all obligations. The transaction is expected to close by the end of 2025 and is subject to regulatory approval and customary closing conditions.

Citi is acting as exclusive financial advisor to Boeing, and Mayer Brown LLP is acting as outside counsel. Kirkland & Ellis LLP is acting as legal counsel to Thoma Bravo.

About Boeing

A leading global aerospace company and top U.S. exporter, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. Our U.S. and global workforce and supplier base drive innovation, economic opportunity, sustainability and community impact. Boeing is committed to fostering a culture based on our core values of safety, quality and integrity.

About Thoma Bravo

Thoma Bravo is one of the largest software-focused investors in the world, with over US$179bn in assets under management as of December 31, 2024. Through its private equity, growth equity and credit strategies, the firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging Thoma Bravo’s deep sector knowledge and strategic and operational expertise, the firm collaborates with its portfolio companies to implement operating best practices and drive growth initiatives. Over the past 20+ years, the firm has acquired or invested in approximately 520 companies representing approximately US$275 bn in enterprise value (including control and non-control investments). The firm has offices in Chicago, Dallas, London, Miami, New York and San Francisco. For more information, visit Thoma Bravo’s website at thomabravo.com.

 

21 Apr 25. Switzerland’s Cicor wins approval to buy parts of France’s Eolane. Swiss electronics company Cicor (CICN.S) said on Friday its offer to buy parts of France’s Eolane Group has been accepted by the Paris Commercial Court, boosting its presence in France. In a statement, Cicor said the deal would strengthen its market position in the aerospace and defence sector and be completed on April 22. Integration and rebranding of the Eolane assets would begin immediately thereafter, it said. Under the acquisition, Cicor is integrating five engineering and production sites in France and two more sites in Morocco into its electronic manufacturing services business. The statement did not disclose the value of the acquisition but said it would add about 890 employees and 125m Swiss francs ($153m) of profitable sales. The Swiss firm said it would also create significant synergy potential. The move brings Cicor significantly closer to its target of achieving sales of over 1bn francs by 2028, with a presence in all major European markets, the firm said. ($1 = 0.8169 Swiss franc) (Source: Reuters)

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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).

For more information visit www.tcibr.com and www.enterprisecontrol.co.uk

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