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13 Feb 26. Eutelsat (ETL.PA), on Friday reported better-than-expected revenue, bolstered by efforts from France to advance plans for a European competitor to Elon Musk’s Starlink, which are boosting the satellite operator as it pivots to focus on internet services. Revenue for the first half of its financial year reached 592m euros ($702m), surpassing analysts’ average forecast of 581m euros Though it remained loss-making, the company reduced operating losses by 85%. Eutelsat also slashed net debt by more than half after the French state, now its top shareholder, led a 1.5bn euro rescue last year to stabilise a balance sheet shaken by a declining video business and rising borrowing costs. France sees Eutelsat as Europe’s only viable challenger to Starlink, given its ownership of OneWeb, the only other active satellite network in the low Earth orbit (LEO). Those satellites, folded into the group in the 2023 merger with London‑based OneWeb, are used by governments and militaries and have become strategic assets for national security. The bet is starting to show early signs of traction even as high costs persist. Eutelsat said OneWeb’s revenue jumped almost 60% and made up about a fifth of group sales, partly offsetting a steady decline of legacy broadcasting. Still, it must replace ageing OneWeb satellites and has secured a state‑backed loan of 1 bn euros to buy 340 new Airbus spacecraft. The company is looking at projects to provide at some point satellite-to-smartphone internet services, also known as direct-to-device, CEO Jean-Francois Fallacher said in a post-earnings call with reporters. Asked about a request from France’s foreign ministry to explore sending terminals to Iran after authorities imposed an internet blackout last month, Fallacher said Eutelsat would support the Iranian people as much as it could. Eutelsat also cancelled a satellite order from Thales Alenia Space, saving more than 100 m euros in capital spending. The company said it would now proceed with refinancing its bonds, after last year’s cash call triggered upgrades from credit rating agencies. Shares of Eutelsat were up 6.6% by 0836 GMT, bringing their gains to around 33% this year. ($1 = 0.8427 euros) (Source: Reuters)

 

13 Feb 26. Stark Defence took on new funding from investors a few weeks ago, increasing the overall value of the German startup firm and drone maker to more than 1 bn euros ($1.2 bn), Manager Magazin reported on Friday. Without specifying its sources, the magazine said Peter Thiel’s Founders Fund contributed a “double-digit” m euro amount, while European investors also took part in the funding round. Stark did not immediately respond to a request for comment. Manager Magazin said the company declined to comment. Documents seen by Reuters showed on Tuesday that the German government plans to order strike drones worth 536 m euros from Stark and from Helsing, another German defence contractor. ($1 = 0.8434 euros) (Source: Reuters)

 

12 Feb 26. Quantum Systems, the global powerhouse of unmanned systems, today announced a new financing package supported by the European Investment Bank (EIB) and leading European commercial banks, including Commerzbank, Deutsche Bank and KfW. The package is designed to support the company’s continued growth and industrial scaling in Europe and was presented at a joint press conference at Quantum Systems’ headquarters in Gilching, ahead of the Munich Security Conference. The financing reflects recent, targeted adjustments to ESG frameworks, enabling European banking to support security-relevant technologies more effectively. It sends a clear signal that technological resilience, security, and European sovereignty require not only innovation but also access to appropriate capital. The agreement underscores the growing recognition that critical security infrastructure must be financed within Europe to ensure long-term independence and stability. Today’s €70m loan marks the EIB’s second investment in Quantum Systems, following its €10 m investment in June 2021, underscoring the bank’s sustained commitment to the company. Together with Commerzbank, Deutsche Bank and KfW, the long-term debt financing totals €150m.

“This financing is a strong vote of confidence in our company, technology, and our vision,” said Jonas Jarosch. “It enables us to scale responsibly while remaining firmly anchored in Europe. Security and technological sovereignty start with the ability to invest long-term in critical capabilities.”

“Drones and aerial intelligence are already indispensable for Europe’s security – from defending Ukraine to protecting critical infrastructure and borders. With this EUR 70 m financing, the EIB is backing a European technology champion in Germany and showing how public and private finance can scale up Europe’s defence capabilities and better protect our citizens,” said Nadia Calviño, President of the European Investment Bank.

“As a banking partner, we are delighted with the successful development of Quantum Systems, which we have been supporting since its early growth phase as its principal bank and also as its first lender,” said Michael Kotzbauer, Deputy Chairman of the Board of Managing Directors of Commerzbank AG. “This financing package sends a strong signal about Europe’s ability to develop and scale security relevant technologies with its own capital. At Deutsche Bank, we are committed to supporting companies like Quantum Systems as they expand critical capabilities responsibly – strengthening Europe’s industrial base and technological sovereignty for the long term,” said Michael Diederich, Global Co-Head of Corporate Banking at Deutsche Bank.

“Through its Venture Tech Growth Financing program, KfW is backing Quantum Systems’ continued growth in Europe. By providing targeted growth capital – including equity via KfW Capital and debt – we are strengthening Europe’s technological resilience and contributing to security-relevant capabilities that are developed, financed, and anchored in Europe. This commitment is an essential building block for Europe’s sovereignty and its ability to act independently in a changing security environment,” said Melanie Kehr, Member of the Executive Board of KfW.

The financing package will support Quantum Systems’ ongoing investments in technology, industrial capacity, and organizational growth, while reinforcing its commitment to European security, resilience, and long-term value creation.

 

12 Feb 26. Kitron today reported record quarterly revenue and operating profit, driven by accelerating demand in the Defence/Aerospace market sector. An all-time high order backlog also provides strong visibility for 2026. Kitron’s revenue for the fourth quarter was EUR 233.8m, an increase of 46 per cent from 160.6 m in the same quarter last year. The Defence/Aerospace market sector continued to show particularly strong growth. Fourth-quarter operating profit (EBIT) was EUR 22.5m, compared with 11.8m in the same quarter last year. Profitability expressed as EBIT margin was 9.6 per cent, compared with 7.3 per cent in the same quarter last year. This is in line with the strategic target of maintaining an EBIT margin above 9 per cent. The order backlog ended at an all-time high of EUR 709.3m, an increase of 50 per cent compared with last year and 19 per cent compared with the third quarter of 2025.

Peter Nilsson, Kitron’s CEO, comments: “In the fourth quarter, we delivered a step-up in revenue and margins, generated solid cash flow, and ended the year with a record order backlog. We also continued to strengthen our industrial platform through capacity expansions and the acquisition of DeltaNordic. With a high-quality backlog, a disciplined cash culture, and a flexible multi-regional platform, Kitron is well-positioned for the next growth phase.”

Profit after tax amounted to EUR 17.2m, compared with 4.9m in the same quarter of the previous year. This corresponds to earnings per share of EUR 0.08, up from 0.02 last year. For the full year 2025, earnings per share were EUR 0.22, up from 0.14 in 2024.

Dividend

The board proposes an ordinary dividend of NOK 0.70 per share (NOK 0.35).

Outlook

Kitron is raising its outlook for 2026. Due to increased demand within defence and data center expansion, Kitron now expects revenue to be between EUR 900 and 1050m. Operating profit (EBIT) is expected to be between EUR 84 and 108m. The previous outlook was for revenue between EUR 855 and 943m, with an operating profit (EBIT) between EUR 77 and 93m. (Source: Yahoo!)

 

12 Feb 26. Rotron, a UK-based advanced defence technology company, has entered into a strategic agreement under which it will be acquired by Ondas Inc. (Nasdaq: ONDS), enabling the next phase of Rotron’s growth as a global provider of long-range autonomous defence systems. The transaction represents a major milestone in Rotron’s evolution and is expected to significantly strengthen its ability to deliver scalable, mission-critical unmanned and autonomous capabilities to defence and security customers across the UK, NATO and allied markets. Upon completion, Rotron will join Ondas Autonomous Systems, integrating its long-range unmanned aerial vehicles, autonomous strike platforms and proprietary propulsion technologies into a broader system-of-systems architecture designed for modern contested operational environments. Founded in the UK and operating at the intersection of propulsion, autonomy and platform design, Rotron has built a strong reputation for delivering high-performance, attritable unmanned systems optimised for range, manufacturability and operational resilience. The acquisition will position Rotron to meet growing global demand for cost-effective autonomous technologies that reduce risk to personnel while enabling extended reach and persistence in high-threat environments. Rotron’s portfolio includes long-endurance dual-use vertical take-off and landing systems and next-generation uncrewed combat aerial vehicles designed for precision autonomous engagement. Flagship platforms such as the Talon multi-role VTOL series and the Defendor one-way autonomous attack system reflect Rotron’s vertically integrated approach to platform design. Talon incorporates a proprietary three-bladed rotor head system optimised for endurance, stability and manufacturability, while Defendor is powered by Rotron’s proprietary engines and fan-drive systems, delivering tightly integrated performance tailored to demanding defence missions.

Gilo Cardozo, Founder and Chief Technology Officer of Rotron, said: “This marks a defining moment in Rotron’s journey and our vision for the future of unmanned systems. By combining our propulsion-led engineering, aerial platforms and rapid industrialisation capability with Ondas’ autonomous systems architecture and global reach, we will gain the scale and network to deliver more capability, faster, for allied defence customers worldwide. Rotron’s mission, team and engineering culture remain unchanged—this partnership will enable us to accelerate innovation and expand our impact for the UK and its allies.”

Operating within the UK defence ecosystem, Rotron brings an established presence in UK and allied markets, alongside strong relationships across Ministry of Defence and NATO environments. Its vertically integrated model supports rapid prototyping through to full industrialisation, enabling sovereign capability to be fielded at pace and scale.

Mark Green, Global Head of Corporate Development and Mergers and Acquisitions at Ondas Inc., said: “Rotron brings elite engineering talent, advanced propulsion technology and mission-specific platforms that are expected to significantly expand our defence solutions portfolio. The business establishes a vital footprint within the UK and NATO ecosystems and directly supports our strategy to deliver integrated, long-range autonomous systems for modern military operations.”

Following completion of the transaction, Rotron will continue to operate from the UK, retaining its engineering, manufacturing and programme delivery teams. The business will maintain its focus on supporting existing customers and partners while benefiting from increased investment, global reach and access to a broader autonomous systems portfolio within Ondas Autonomous Systems.

 

11 Feb 26. NUBURU, Inc. (NYSE American: BURU), a dual-use Defense & Security platform company focused on non-kinetic effects, directed-energy technologies, and software-orchestrated defense systems, today announced that it has established a strategic equity position in Heckler & Koch AG (“H&K”), one of the world’s most recognized manufacturers of small arms and kinetic defense systems serving NATO and allied forces. The investment represents a deliberate step in NUBURU’s strategy to position its non-kinetic technologies alongside globally deployed kinetic platforms within modern, multi-domain defense architectures.

Strategic Industrial Alignment Within the Global Defense Ecosystem

NUBURU is engaged in senior-level strategic dialogue with H&K to explore how its directed-energy and optical countermeasure technologies — including laser-based sensor denial systems and software-orchestrated defense effects — may complement established kinetic platforms in evolving operational environments.

Modern defense theaters increasingly require layered architectures integrating:

• Kinetic force projection,
• Electronic warfare,
• Directed-energy capabilities,
• Counter-UAS and counter-ISR systems, and
• Software-driven operational resilience.

NUBURU believes non-kinetic technologies will play an expanding role in addressing asymmetric threats and low-cost unmanned system proliferation, where scalable “soft-kill” effects can provide operational and economic advantages. This initiative reflects the continued execution of NUBURU’s transformation into a vertically integrated Defense & Security platform.

Potential Path Toward Broader Industrial Cooperation

Subject to continued technical, operational, and regulatory alignment, NUBURU and H&K may evaluate opportunities for expanded industrial engagement. Any future cooperation would aim to combine:

• H&K’s globally deployed defense platforms and multi-decade manufacturing heritage, with
• NUBURU’s scalable non-kinetic technologies designed to enhance layered defense architectures, mission adaptability, and cost efficiency.

NUBURU may assess deeper strategic alignment over time, subject to customary corporate and regulatory approvals.

Strengthening NUBURU’s Defense & Security Hub

The H&K investment reinforces NUBURU’s expanding defense ecosystem, which includes:

• Tekne S.p.A. – specialized defense vehicles and electronic systems;
• Orbit S.r.l. – mission-critical operational resilience software;
• Lyocon S.r.l. – advanced laser engineering and photonics.

Together, these capabilities position NUBURU to integrate hardware, software, and non-kinetic technologies into next-generation defense solutions. As global defense budgets expand and military doctrine evolves toward layered deterrence strategies, the integration of directed-energy and optical countermeasure technologies is increasingly viewed as a critical complement to traditional systems.

Management Commentary

“This investment reflects disciplined strategic positioning within the global defense industrial base,” said Alessandro Zamboni, Executive Chairman and Co-CEO of NUBURU. “We are executing a long-term Defense & Security platform strategy designed to integrate non-kinetic technologies into modern operational architectures.”

Dario Barisoni, Co-CEO of NUBURU and CEO of Nuburu Defense, added: “The battlefield is evolving. Layered defense systems increasingly require scalable, precise, and cost-efficient non-kinetic capabilities. Our engagement with H&K reflects our commitment to advancing this convergence.”

Transaction Structure

The investment was completed pursuant to a privately negotiated securities purchase agreement. Consideration was satisfied through the issuance of a subordinated convertible note. Additional details regarding the transaction are available in NUBURU’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. (Source: BUSINESS WIRE)

 

11 Feb 26. LightPath Technologies, Inc. (NASDAQ: LPTH) (“LightPath,” the “Company,” “we,” or “our”), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced financial results for its fiscal second quarter ended December 31, 2025.

Financial Summary:

* Inclusive of $7.6m change in fair value of acquisition liabilities related to the G5 acquisition.

** Reconciliation of this non-GAAP financial measure is provided below.

Second Quarter Fiscal 2026 & Subsequent Highlights:

• Secured a $9.6m purchase order for cooled infrared (“IR”) cameras from an existing defense customer, with deliveries expected throughout calendar year 2026, further validating the strategic value of the G5 acquisition.
• Acquired the assets of Amorphous Materials, Inc. (“AMI”) in January 2026, an industrial manufacturer with complementary Chalcogenide glass melting technologies for large diameter optics.
• Received a $4.8m purchase order from an existing customer related to the supply of advanced IR camera systems for public safety applications for delivery in the Company’s 2026 fiscal year.
• Appointed former Luminar manufacturing executive Israel Piergiovanni as Vice President of Manufacturing to scale production across LightPath’s domestic and international footprint.
• Appointed defense industry executive Mark Caylor, former President of Northrop Grumman’s Mission Systems Sector, to the Board of Directors bringing extensive defense industry expertise as LightPath evolves into a mission-critical optics supplier of choice to allied militaries.
• Fortified balance sheet with a $60 m public offering of common stock in December 2025, with net proceeds supporting working capital, strategic investments, acquisitions and general corporate purposes.

Management Commentary

Sam Rubin, Chief Executive Officer of LightPath, said: “The second quarter of 2026 was underscored by our accelerating revenue growth on strong orders, and the recent acquisition of Amorphous Materials. Ongoing order momentum and the addition of G5 Infrared LLC’s (“G5”) sales of cameras and modules drove a 120% revenue improvement to a record $16.4m for the quarter. Our $97.8 m order backlog as of the end of the second quarter is demonstrating our position as a leading pure-play provider of high value optical and imaging systems.

“Our strategy continues to be validated not only by our sales growth, but the increasing focus by the U.S. government and Department of War to eliminate reliance on certain optical components, including optical systems or strategies from certain foreign nations. The recent passage of the Fiscal Year 2026 National Defense Authorization Act (NDAA) directed the US Department of War to develop and implement a strategy by January 1, 2030, to eliminate reliance on optical glass and optical systems sourced from certain foreign nations. These restrictions extend beyond finished systems to include critical materials such as optical glass, making supply chain transparency and material provenance increasingly central to defense and aerospace program compliance. Our optical assemblies, infrared cameras, and thermal imaging systems have already been designed, manufactured, and delivered in alignment with NDAA requirements. Faced with growing supply chain risks and increased defense spending in the U.S. and Europe, we believe we are positioned as a trusted supplier for mission-critical defense applications.

“We further reinforced our domestic glass manufacturing capabilities with the recent acquisition of the assets of AMI, a U.S. based manufacturer of complementary chalcogenide glass technologies. This acquisition added incremental glass melting technology, which melts high-grade glass as large diameter plates, critical for large optics, and in particular for advanced defense and space programs. The acquisition also added glass melting capacity and a second, NDAA compliant manufacturing location for BlackDiamond glass. The acquisition further solidifies our transition from a pure component provider to a truly vertically integrated provider of subsystems and solutions for IR imaging.

“As we progress into calendar year 2026 we remain highly focused on further growing our robust $97.8 m order backlog, converting our prospective customer pipeline into orders, and scaling deliveries. We continue to intentionally shift away from Germanium optics, expanding the adoption of our proprietary BlackDiamond™ glass across critical defense markets, while continuing to move up the value chain into fully integrated IR camera systems. G5’s high-end cooled infrared camera product line and several established programs of record continue to contribute to revenue growth. As we combine our growing camera portfolio with AMI’s highly complementary large-diameter glass capabilities, we believe that we will create a robust offering of IR materials and optics in the industry today, all of which we expect will be compliant with the latest NDAA requirement for U.S. produced glass and optics. Taken together, we believe we are well positioned to execute on our growth strategy to deliver sustainable revenue growth and value to our shareholders.”

Second Quarter Fiscal 2026 Financial Results

Revenue for the second quarter of fiscal 2026 increased 120% to $16.4 m, as compared to $7.4 m in the same quarter of the prior fiscal year. Revenue was split amongst the Company’s product groups in the second quarter of fiscal 2026 and the same quarter of the prior fiscal year as follows:

Product Group Revenue

Gross profit increased 212% to $6.0m, or 37% of total revenues, in the second quarter of 2026, as compared to $1.9m, or 26% of total revenues, in the same year-ago quarter. The increase in gross margin as a percentage of revenue is primarily driven by the increase in revenue from assemblies and modules, which generally have higher margins. Gross margin on engineering services was also more favorable in the second quarter of fiscal 2026 due to a non-recurring engineering project for a defense customer. In addition, gross margins for infrared components have improved due to a more favorable mix, and the resolution of certain manufacturing yield issues that negatively impacted the second quarter of fiscal 2025. Operating expenses for the second quarter of fiscal 2026 includes the fair value adjustment of $7.6m related to the G5 earnout liability, which will continue to be adjusted through operating expenses until it is paid out. Excluding this amount, operating expenses increased $2.6 m, or 60%, to $7.1m for the second quarter of fiscal 2026, as compared to $4.4m in the same year-ago quarter. The increase was primarily due to the integration of G5 following its acquisition earlier this year, as well as increased sales and marketing spend to promote new products. Our SG&A personnel costs have also increased due to filling certain vacant executive roles and accruing for incentive compensation plans for employees. Net loss in the second quarter of fiscal 2026 totaled $9.4m, or $0.20 per basic and diluted share, as compared to $2.6m, or $0.07 per basic and diluted share, in the same year-ago quarter. The year-over-year increase in net loss for the second quarter of fiscal 2026 was primarily attributable to the change in fair value of acquisition liabilities for the earnout related to the acquisition of G5. Adjusted EBITDA* for the second quarter of fiscal 2026 was $0.6 m, as compared to an adjusted EBITDA loss of $1.3 m for the same year-ago quarter. The increase was primarily attributable to the increase in gross profit, driven by higher sales, partially offset by increased SG&A and new product development costs. (Source: PR Newswire)

 

11 Feb 26. Curtiss-Wright Corporation (NYSE: CW) reports financial results for the fourth quarter and full-year ended December 31, 2025.

Fourth Quarter 2025 Highlights:

• Reported sales of $947m, up 15%, operating income of $182 m, operating margin of 19.2%, and diluted earnings per share (EPS) of $3.69;
• Adjusted operating income of $187m, up 14%;
• Adjusted operating margin of 19.7%;
• Adjusted diluted EPS of $3.79, up 16%;
• Free cash flow (FCF) of $315m, generating 224% FCF conversion;
• Total share repurchases of $140m; and
• New orders of $1.1 bn, up 18%, generating a book-to-bill of 1.2x.

Full-Year 2025 Highlights:

• Reported sales of $3.5bn, up 12%, operating income of $634m, operating margin of 18.1%, and diluted EPS of $12.87;
• Adjusted operating income of $651m, up 19%;
• Adjusted operating margin of 18.6%, up 110 basis points;
• Adjusted diluted EPS of $13.23, up 21%;
• FCF of $554 m, generating 111% FCF conversion;
• Total share repurchases of $465m;
• New orders of $4.1bn, up 10%, reflecting solid demand in our Aerospace & Defense (A&D) and Commercial markets, and book-to-bill of 1.2x; and
• Backlog of $4.1bn, up 18%.

“Curtiss-Wright concluded a record-setting year with a strong fourth quarter financial performance that was highlighted by double-digit organic sales growth, adjusted operating margin of 19.7%, mid-teens growth in adjusted diluted EPS, and record quarterly free cash flow generation,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.

“Our full-year 2025 performance reflected the continued momentum that we are generating under our Pivot to Growth strategy. We delivered record-high sales and operating income, 110 basis points in operating margin expansion, and 21% growth in adjusted diluted EPS, as we maintained our commitment to operational excellence and targeted investments across the portfolio. In addition, we achieved record free cash flow of $554 m, which reflected our overall growth in profitability and the team’s relentless focus on reducing working capital. We also experienced strong demand across our A&D and Commercial Nuclear markets, which enabled the team to drive record new orders of $4.1 bn, providing continued confidence in our future top-line growth.”

“Looking ahead, our strong backlog entering the year, combined with the alignment of our technologies to favorable secular growth trends, underpins our expectation to deliver total organic sales growth of 6% to 8% and another strong operational performance in 2026. Additionally, we anticipate operating margin expansion of 30 to 60 basis points to a range of 18.9% to 19.2%, diluted EPS growth of 11% to 15%, and strong free cash flow generation, while continuing to increase both R&D and capital investments. This outlook reinforces our confidence in achieving the three-year financial targets that we communicated at our 2024 Investor Day and in our ability to drive long-term shareholder value.”

Fourth Quarter 2025 Operating Results

Reconciliations of Reported to Adjusted operating results are available in the Appendix.

• Sales of $947m increased 15% compared with the prior year;
• Total A&D market sales increased 16%, while total Commercial market sales increased 13%;
• In our A&D markets, we experienced mid-teens growth in our defense markets, driven by an acceleration of revenues in ground and naval defense, higher sales of international arresting systems equipment in aerospace defense, and strong OEM sales growth in the commercial aerospace market;
• In our Commercial markets, strong growth in the power & process market reflected the contribution from our prior-year acquisition, higher organic sales of commercial nuclear solutions and strong growth in industrial valve sales in the process market, while sales in the general industrial market were essentially flat; and
• Adjusted operating income of $187m increased 14%, while Adjusted operating margin of 19.7% was essentially flat compared with the prior-year period, as favorable overhead absorption on higher revenues in all three segments and the benefits of the Company’s ongoing operational excellence initiatives were offset by unfavorable mix in both the Aerospace & Industrial and Naval & Power segments.

Fourth Quarter 2025 Segment Performance

Aerospace & Industrial

• Sales of $262m, up $11m, or 5%;
• Growth in our defense markets was principally driven by higher sales of electromechanical actuation equipment in the ground defense market;
• Commercial aerospace market revenue growth reflected higher OEM sales of sensors products and surface treatment services on both narrowbody and widebody platforms;
• General industrial market revenue was essentially flat, as the benefit of higher sales of industrial vehicle products serving off-highway vehicle platforms was offset by lower sales to global on-highway industrial vehicle manufacturers; and
• Adjusted operating income was $53 m, down 2%, while Adjusted operating margin decreased 120 basis points to 20.1%, as unfavorable mix was partially offset by favorable absorption on higher revenues.

Defense Electronics

• Sales of $267m, up $40 m, or 17%;
• Aerospace defense market revenues were essentially flat, as increased sales of embedded computing and flight test instrumentation equipment to various international customers was offset by the timing of revenues on various domestic fighter jet and UAV programs;
• Ground defense market revenues were ahead of our expectations, principally driven by the timing of embedded computing and tactical battlefield communications equipment sales supporting various domestic programs;
• Commercial aerospace market revenue growth reflected increased demand and higher sales of flight data recorder and avionics technology to OEM customers; and
• Adjusted operating income was $69 m, up 25% from the prior year period, while Adjusted operating margin increased 160 basis points to 25.9%, primarily due to favorable absorption on higher revenues and the benefits of the Company’s operational excellence initiatives, partially offset by higher investment in research and development.

Naval & Power

• Sales of $417m, up $71m, or 21%;
• Revenue growth in the naval defense market was driven by the timing of production on the Columbia-class and Virginia-class submarine programs, in addition to higher sales of aftermarket fleet services;
• Higher revenue in the aerospace defense market reflected the timing of sales of arresting systems equipment principally supporting various international customers;
• Higher power & process market revenues mainly reflected the contribution from our I&C Solutions acquisition, as well as higher organic sales of commercial nuclear solutions supporting the development of next-generation advanced reactors and higher industrial valve sales in the process market; and
• Adjusted operating income was $75m, up 13% from the prior year period, while Adjusted operating margin decreased 120 basis points to 17.9%, as favorable absorption on higher revenues was partially offset by unfavorable mix of products and higher investment in research and development.

Free Cash Flow

Free cash flow of $315 m increased $37m, primarily due to higher cash earnings and improved working capital; and

• Capital expenditures increased approximately $14 m compared with the prior-year period, primarily due to higher growth investments within the Naval & Power segment.

New Orders and Backlog

• New orders of $1.1bn increased 18% in the fourth quarter, principally reflecting strong demand in our commercial nuclear and naval defense markets;
• Full-year 2025 new orders of $4.1 bn increased 10% and generated an overall book-to-bill of approximately 1.2x, reflecting solid demand within our A&D markets, as well as strong growth for commercial nuclear products within our Commercial markets; and
• Backlog of $4.1bn increased 18% from December 31, 2024.

Share Repurchase and Dividends

• During the fourth quarter, the Company repurchased approximately 250,000 shares of its common stock for approximately $140m;
• During full-year 2025, the Company repurchased approximately 934,000 shares for $465 m; and
• The Company also declared a quarterly dividend of $0.24 a share.

 

09 Feb 26. Kongsberg Maritime listing set for April after demerger approval. Incoming CEO Lisa Edvardsen Haugan presented Kongsberg Maritime to investors and analysts at an event in Oslo on 6 February 2026. Kongsberg Gruppen (Kongsberg) has confirmed that it will separate Kongsberg Maritime into an independent publicly traded company, following approval at an extraordinary general meeting on 22 January 2026. The company expects to list Kongsberg Maritime on Euronext Oslo Børs in April 2026. The upcoming listing follows an announcement made by Kongsberg Gruppen in October last year regarding its intention to divide operations into two separate companies, each targeting different market areas. In preparation for the demerger and stock market debut, incoming CEO of Kongsberg Maritime, Lisa Edvardsen Haugan, met with investors and analysts last week in Oslo to outline the company’s position.

Edvardsen Haugan said: “As we soon become independent, we bring with us 200 years of company history — both from Kongsberg Gruppen and through maritime heritage from the companies that today make up our global group, with more than 8,000 employees in 35 countries. Our systems and solutions are installed on one third of the global fleet — on more than 30,000 vessels worldwide. At Kongsberg Maritime, we are ready to take the next step and stand on our own. We are uniquely positioned to take part in the value creation ahead in the global maritime sector. We have the people, the expertise, and the innovative capacity needed to solve the technological challenges the maritime industry will face in the years to come.”

Kongsberg Maritime acts as a technology partner to companies in the maritime sector, which is responsible for transporting more than 80% of goods worldwide and continues to play a central role as ocean activities expand.

Lisa Edvardsen Haugan stated that the company sees growth opportunities in the naval sector, noting that Kongsberg Maritime has delivered over 20 vessel designs and equipped more than 1,000 naval vessels.

“Kongsberg Maritime has seen solid growth for several years. We have a strong order backlog — now at NOK 28 bn — and it continues to grow year by year,” Edvardsen Haugan added. (Source: naval-technology.com)

 

10 Feb 26. By Light Professional IT Services LLC (By Light), a leading provider of Modeling & Simulation and Cyber products and solutions and a portfolio company of Sagewind Capital LLC (Sagewind), today announced that it has acquired Dignitas Technologies (Dignitas), a leading provider of Modeling, Simulation, & Training (MS&T) products and solutions. Financial terms of the transaction were not announced. Headquartered in Orlando, Florida, Dignitas is dedicated to understanding customer MS&T needs and providing specialized, architecture-centric, agile solutions to meet those challenges. The Company specializes in system and software analysis, design, development, testing, and fielding of mission rehearsal applications. Dignitas delivers products and services supporting U.S. Army, Navy, Air Force and Marine Corps customers across the F35 program, Advanced Computer-Based Training Systems (ACTS II), Next Generation Constructive (NGC) and many others.

“The acquisition of Dignitas strategically broadens By Light’s existing capabilities within modeling & simulation and virtual training,” said Bob Donahue, Founder and CEO of By Light. “Dignitas expands our product and solutions offering in the critical areas of cyber training, virtual cyber effects and live, virtual and constructive training in multi-echelon simulations across the DoD. We’re excited to add these capabilities into By Light’s synthetic training ecosystem.”

Elizabeth Burch, CEO of Dignitas Technologies, offered, “We are excited to join By Light, who supports the mission and warfighter the same as we do. Our companies have been working together for years as partners, and this just solidifies our relationship and brings greater capabilities to our customers and opportunities for our employees. By Light is a perfect fit for us as we move into our next exciting chapter of growth.”

STS Advisors and Shuffield Lowman advised Dignitas on the Transaction.

Goodwin Proctor and Morrison Foerster advised By Light on the Transaction.

About Dignitas

Dignitas Technologies is dedicated to understanding customer MS&T needs and providing specialized, architecture-centric, agile solutions. The Company specializes in system and software analysis, design, development, testing, and fielding of MS&T and mission rehearsal applications. For more information, see https://www.dignitastechnologies.com/.

About By Light

By Light, headquartered in Mclean, VA, is a leading supplier of products and services to Defense, National Security and Global Markets in the areas of Modeling & Simulation and Cyber. The Company delivers the Army’s Synthetic Training Environment (STE), Reconfigurable Virtual Collective Trainer (RVCT) along with High Fidelity Flight Trainers for the UH-60, CH47, CH-53, CV-22 and many others. For the latest on By Light’s portfolio of Products and Solutions, visit https://bylight.com/.(Source: PR Newswire)

 

09 Feb 26. Amentum Holdings, Inc. (“Amentum” or the “Company”) (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the first quarter ended January 2, 2026, and reaffirmed its outlook for fiscal year 2026.

“Amentum’s first-quarter results reflect solid operational performance and continued progress on our strategic objectives,” said Amentum Chief Executive Officer John Heller. “Robust bookings across our accelerating growth markets reinforce the strength of our strategy that focuses on the high-demand mission areas of global nuclear energy, space systems and technologies, and critical digital infrastructure. As a result, we remain well positioned to deliver on our fiscal year 2026 targets.”

Non-GAAP Results

Adjusted EBITDA of $263 m reflects Adjusted EBITDA Margins of 8.1%, up from 7.7% in the prior year quarter, due to strong operational performance. Adjusted Net Income and Adjusted Diluted Earnings Per Share increased primarily as a result of lower interest expense.

Digital Solutions revenues increased 4% year-over-year driven by the ramp-up of new contract awards in our critical digital infrastructure and space systems and technologies accelerating growth markets, partially offset by the fiscal year 2025 divestiture of Rapid Solutions. Adjusted EBITDA increased 3% year-over-year due to the higher revenue volume.

Global Engineering Solutions revenues decreased 11% year-over-year due to contract transitions from consolidated to unconsolidated joint ventures, a fiscal year 2025 divestiture, and impacts from the government shutdown; partially offset by growth on existing programs and the ramp up of new contract awards. Adjusted EBITDA decreased 1% year-over-year as a result of the lower revenue volume, partially offset by strong operational performance.

Cash Flow Summary

In the first quarter, Amentum used $136m of net cash from operating activities which included an additional pay cycle compared to the prior year quarter and was impacted by short-term collections timing as a result of the government shutdown and holiday closures. Net cash used in investing activities of $33m included $27m in net contributions to equity method investments and $6m in capital expenditures. Net cash used in financing activities of $20m consisted primarily of $9m in principal payments on our Term Loan and $9 m of distributions to non-controlling interests. As of January 2, 2026, Amentum had $247m in cash and cash equivalents and $4.0bn of gross debt.

Backlog and Contract Awards

As of January 2, 2026, the Company had total backlog of $47.2bn, compared with $45.2 bn as of December 27, 2024, an annual increase of 4% driven by $16.3bn in net bookings and a 1.1x book-to-bill. Funded backlog as of January 2, 2026 was $6.9bn.

Notable Q1 Fiscal Year 2026 Highlights

• Rolls-Royce Small Modular Reactors (SMR) – Rolls-Royce selected Amentum as its global program delivery partner for SMRs including the first deployments in the UK and Czech Republic. Under this collaborative agreement, Amentum will be responsible for engineering and design support, end-to-end integration, oversight and governance, construction management, and execution of SMR deployment.
• Électricité de France (EDF) Nuclear Power Contracts – EDF awarded Amentum a ten-year $730 m professional services contract to support development and life extension of the UK’s new and existing power stations. Under this framework, Amentum will deliver licensing, design and construction, and modeling and analysis capabilities.
• Dutch Ministry of Climate Policy and Green Growth (KGG) – KGG awarded an Amentum-led consortium an up to five-year contract for $207m to provide program management and technical solutions for a nuclear build program in the Netherlands. Amentum will bring expertise in leading large nuclear programs, including project management, technology selection, design and engineering, and commercial procurement strategies.
• U.S. Air Force Remotely Piloted Aircraft (RPA) – The U.S. Air Force Combat Command awarded Amentum an unmanned sustainment, modernization, and training contract, a six-year single-award IDIQ with a ceiling value of up to $995 m, to deliver specialized solutions in the U.S. and globally to reinforce readiness and training capabilities.
• Department of Information Systems (DISA) Compute As-a-Service Contract – DISA awarded Amentum a five-year $120 m contract to deliver scalable, on-demand, computing power. Under this unique outcome-based contract, Amentum will provision and maintain all hardware, software, licensing, and operational services.
• Foreign Military Customer Air and Surface Surveillance and Control – A foreign military customer awarded Amentum a $270 m, three-year contract to provide advanced air and surface surveillance solutions.
• Missile Defense Agency (MDA) SHIELD Contract – The MDA awarded Amentum a position on the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) multiple award IDIQ contract with a ceiling value of $151 bn. The contract spans a wide range of mission areas and will accelerate the delivery of advanced capabilities, enhancing speed, agility and resilience while providing continuous layered protection across multiple threat environments. (Source: BUSINESS WIRE)

 

09 Feb 26. AECOM (NYSE:ACM), the trusted global infrastructure leader, today reported first quarter fiscal 2026 results. Consistent with the decision to retain the Construction Management business, reported financial results include the Construction Management business as a continuing operation.

“We outperformed our expectations on every key financial metric in the quarter and raised our full year guidance as a result,” said Troy Rudd, AECOM’s chairman and chief executive officer. “Importantly, backlog increased by 9%, highlighted by a 1.5 book-to-burn ratio that featured some of the largest and most iconic projects in the world. Our successes are built on the foundation of having the number one-ranked franchises in each of our end markets, technical leadership, infrastructure domain expertise, and trusted client relationships. Our investments in the Advisory and Program Management businesses, as well as in technology and AI enable us to scale these attributes, expand our addressable market, deliver even greater value to clients, and build an even stronger and more durable moat – all of which underscore our confidence in achieving our financial objectives.”

“Across our markets, clients are increasingly turning to us to deliver their biggest and most critical infrastructure projects and programs,” said Lara Poloni, AECOM’s president. “From our selection as a preferred bidder on Scottish Water’s new multi-bn-dollar investment program to our selection as Delivery Partner to the Games Independent Infrastructure and Coordination Authority for the Brisbane 2032 Olympic and Paralympic Games, we consistently win what matters through our unrivaled competitive advantages. These advantages are enhanced by our AI and technology investments, which have been instrumental in key wins and favorable commercial model discussions with clients. Our teams are energized by these investments and by the opportunity to redefine how infrastructure is delivered.”

“Our strong performance, record backlog and increased guidance demonstrate we are creating significant competitive differentiation in the market,” said Gaurav Kapoor, AECOM’s chief financial and operations officer. “Year after year we have expanded our productivity, which is evident in the persistent NSR and profit per employee growth we have delivered for the past six years. Importantly, through the investments we are making, the opportunity for this trend to continue has never been greater. We operate with a strong balance sheet, including no debt maturities for several years, and an attractive cost of capital. As a result, we continued to execute on our returns-based capital allocation policy in the quarter, which included returning more than $340 m to shareholders.”

First Quarter Highlights:

• Reflecting as reported GAAP performance from continuing operations, first quarter revenue declined 5% to $3.8bn, operating income declined 7% to $222 m, net income declined 21% to $140 m and diluted earnings per share declined 20% to $1.06.
• Net service revenue2 increased 2%; net service revenue increased by 5% after adjusting for fewer working days compared to the prior year first quarter, highlighted by 9% growth in the Americas segment.
• The segment adjusted1 operating margin4 and the adjusted1 EBITDA margin6 increased to 16.4% by 100 basis points and 80 basis points, respectively.

o Our margins include the investments in the Company’s AI and technology teams and capabilities, in growing its Advisory teams, and in record business development.

• Adjusted1 EBITDA5 increased by 6% and adjusted1 EPS decreased by 2%.

o Adjusting for the lower tax rate in the prior year period, adjusted EPS increased by 8%.

• Total backlog8 increased by 9% to a record high, highlighted by a 1.5 book-to-burn9 ratio.

o The Company delivered a 21st consecutive quarter with a book-to-burn ratio in excess of 1.0.

o The Americas design business had a 1.0 book-to-burn ratio despite the unprecedented 43-day U.S. federal government shutdown that resulted in award delays.

o The pipeline of opportunities increased by double digits to a new record, including growth in both the Americas and International segments, with the fastest growth in the earlier stages of the pipeline demonstrating strong long-term demand trends.

Cash Flow, Capital Allocation and Raised Repurchase Authorization

• Free cash flow7 was $42 m and the Company returned more than $340 m to shareholders through repurchases and dividends in the quarter.
• After the quarter ended, the Board of Directors approved an increase to the share repurchase authorization to $1 bn.

o Since the initiation of its repurchase program in September 2020, the Company has returned nearly $3.4 bn of capital to shareholders through repurchases and dividends.

• The Company maintains a strong balance sheet with net leverage10 of 1.0x.

Fiscal 2026 and Long-Term Financial Guidance

• The Company raised its fiscal 2026 earnings guidance, which reflects the outperformance delivered in the design business in the first quarter, the benefits of our capital allocation strategy, a lower than previously expected tax rate, and a record backlog and pipeline across the enterprise, which creates strong full year visibility.
• As a result, the Company’s guidance, which includes the Construction Management business, now includes expectations for:

o Adjusted1 EPS of between $5.85 and $6.05, as compared to $5.65 to $5.85 previously.

o Adjusted1 EBITDA5 of between $1,270 m and $1,305 m, as compared to $1,265 m and $1,305 m previously.

o Organic NSR2 growth of 6% to 8%, which excludes the expected approximately 200 basis point impact of fewer working days in fiscal 2026.

o A segment adjusted operating margin4 of 16.8% and an adjusted EBITDA6 margin of 17.0%, which are materially consistent with prior expectations.

o Free cash flow7 of approximately $400 m.

o An average fully diluted share count of 131 m, which does not include any potential future benefits from capital allocation actions not yet taken, including potential repurchases.

o An adjusted effective tax rate of approximately 20 – 22%, as compared to 22 – 23% previously.

• In addition, the Company reiterated its long-term financial targets, which includes its expectation to deliver a 20%+ margin exit rate by fiscal 2028 and to grow adjusted1 EPS at a 15%+ CAGR from fiscal 2026 to fiscal 2029.
• See the Regulation G Information tables at the end of this release for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

Business Segments

Americas

Revenue in the first quarter was $3.0 bn, a 4% decrease from the prior year due to a reduction in pass-through revenue. Net service revenue2 in the first quarter was $1.1 bn, a 9% increase from the prior year when adjusted for the impact of fewer working days in the period, or 6% on an as reported basis at constant currency. Growth was strong in both the U.S. and Canada.

Operating income increased 9% over the prior year to $214 m and on an adjusted1 basis increased 13% to $222 m. The adjusted operating margin on net service revenue increased by 120 basis points over the prior year to 19.9%, a new first quarter high. This performance reflects the benefits of strong growth and a continued focus on driving operating efficiencies across the business.

Backlog in the Americas segment grew 3% to a new record high, driven by a 1.0 book-to-burn ratio9. The Americas design business had a 1.0 book-to-burn ratio despite award delays resulting from the unprecedented and now resolved 43-day U.S. federal government shutdown during the quarter.

International

Revenue in the first quarter was $854 m, a 5% decrease from the prior year. Net service revenue2 was $736m, which was materially unchanged with the prior year when adjusted for the impact of fewer working days in the period, or a 3% decrease on an as reported basis at constant currency.

Operating income decreased by 6% over the prior year to $76 m and on an adjusted1 basis was effectively unchanged at $81m. The adjusted operating margin on net service revenue increased by 20 basis points to 11.0%, which reflected a combination of strong execution, operational efficiencies, and a focus on high returning markets and clients.

Backlog in the International segment grew 25% to a new record high, driven by a 2.3 book-to-burn ratio9 and included substantial wins in each of the Company’s International regions.

Construction Management Strategic Alternatives Update

AECOM has completed the comprehensive review of strategic alternatives for its Construction Management business. The Company has concluded that it will continue to own and operate the business and believes it is exceptionally well positioned for the future.

The Construction Management business is an industry leader with a strong backlog and pipeline, great teams of professionals, and is widely recognized by its clients for its track record of delivering the largest and most iconic projects in its markets. (Source: BUSINESS WIRE)

 

09 Feb 26. XTI Aerospace, Inc. (Nasdaq: XTIA) (“XTI Aerospace,” “XTI,” or the “Company”) an aerospace technology company focused on building and scaling its Drone Nerds, LLC (“Drone Nerds”) subsidiary, a drone platform serving enterprise and government customers, on Thurs., Feb. 5, 2026, described its operating leverage, expanding customer base and commitment to near-term value creation during its Shareholder Town Hall.

“For the first time, we are providing full-year revenue guidance, reflecting the increased visibility we now have into our pipeline and customer demand from long-term and emerging relationships,” said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. “We expect full-year 2026 revenue to exceed $160m representing approximately 30% growth.”

The Town Hall highlighted the Company’s successful transformation into a scaled enterprise drone and unmanned aircraft systems (“UAS”) platform, following the acquisition of Drone Nerds in November 2025, and reinforced management’s focus on disciplined execution and profitability.

“Our message to shareholders was clear: XTI’s transformation has established a strong foundation for disciplined execution,” said Pomeroy. “We believe this is one of the most comprehensive enterprise drone platforms globally – certainly in the United States. We are seeing robust revenue momentum, cost discipline and benefits from strong regulatory tailwinds.”

Key Strategic Highlights from the Town Hall Included:

• Scaled revenue base with visible growth:

XTI outlined an executable path to a targeted $160 m+ in revenue in fiscal year 2026, driven by enterprise adoption, services expansion and regulatory-driven demand for compliant drone solutions. XTI’s Drone Nerds subsidiary generated more than $110 m in revenue in 2024.

• Operating discipline and profitability focus:

XTI expects to achieve positive monthly cash flow approaching $2 m by the end of 2026, reflecting improved cost structure, operating leverage and portfolio focus.

• Leadership in drone solutions aligned with National Defense Authorization Act (“NDAA”)-compliant standards:

Proactively capitalizing on favorable regulatory trends to strengthen our leadership position in drone solutions, including U.S.-based and NDAA-compliant offerings, serving as a trusted partner to enterprise, government and defense-adjacent customers.

• Multi-pronged growth strategy:

Growth diversification across enterprise drone verticals, complemented by high-value solutions, services, training and lifecycle support is increasing customer stickiness and strengthening margins.

• Expansion into federal and military markets:

Commercial-Off-The-Shelf (“COTS”) drone platform and meaningful operating scale create a natural bridge into federal and military applications, amid accelerating demand for trusted drone capabilities accelerating.

A replay of the Shareholder Town Hall is available on the “Investors” section of the Company’s website under the “IR News & Events” tab.

XTI also announced the launch of its redesigned corporate website, xtiaerospace.com, which reflects the Company’s sharpened strategic focus and expanding enterprise drone platform. The updated site highlights XTI’s drone and UAS capabilities, market leadership and growth initiatives.

About XTI Aerospace, Inc.

XTI Aerospace, Inc. (Nasdaq: XTIA) is an aerospace technology company focused on the advancement of vertical flight. Through its Drone Nerds business, acquired in November 2025, XTI is a premier provider of unmanned aircraft systems (“UAS”), solutions, services and hardware. Through its XTI Aircraft business, the Company is engaged in the development of advanced vertical takeoff and landing (“VTOL”) aircraft with the range and speed of planes and the take-off and landing capability of helicopters.

(Source: PR Newswire)

 

09 Feb 26. Novaria Group (“Novaria”), a portfolio company of Arcline Investment Management, today announced its acquisition of Plasma Ruggedized Solutions (“PRS”), a leading provider of high-reliability conformal coatings for sensitive electronics serving defense, medical, and advanced industrial applications. PRS specializes in parylene coating, potting, and encapsulation solutions that protect electronics operating in harsh and demanding environments where performance and reliability are paramount. The acquisition further expands Novaria’s capabilities in advanced surface protection technologies for mission-critical electronics.

“The acquisition of PRS is a strong strategic fit for Novaria,” said Bryan Perkins, CEO of Novaria. “PRS’s deep expertise in plasma technologies and material sciences enhances our capabilities in a highly technical and growing segment of the aerospace and defense market, while reinforcing our commitment to quality, reliability, and customer-focused solutions.”

“We are excited to open a new chapter in Plasma Ruggedized Solutions’ history as part of Novaria,” said Jim Stameson, CEO of PRS. “Joining Novaria allows us to strengthen our operations and better support our customers’ needs.”

Alderman & Company served as the financial advisor to PRS on the transaction.

About Plasma Ruggedized Solutions

Plasma Ruggedized Solutions is a leading provider of high-reliability conformal coatings for sensitive electronics serving defense, medical, and advanced industrial applications. PRS is known for its engineering expertise, quality, and decades of manufacturing experience. For more information, visit www.plasmarugged.com.

About Novaria Group

Headquartered in Fort Worth, TX, Novaria Group is a leading provider of niche engineered components and specialty processes that serve the aerospace and defense industries. With a mission to improve the aerospace supply chain, Novaria is dedicated to delivering exceptional customer service and quality to its customers. Novaria’s range of products and capabilities position it as a trusted partner to over 3,000 customers. For more information on Novaria’s business units, please visit www.novariagroup.com. (Source: BUSINESS WIRE)

 

06 Feb 26. Shipbuilding drives HII’s revenue and income gains for 2025. HII forecasts medium-term revenue growth targets of around 6% for both overall company revenue and shipbuilding revenue. HII has reported revenues of $12.5bn for the full year 2025 (FY25), reflecting an 8.2% increase over 2024, with growth observed in all business segments. During the year, revenues at Ingalls Shipbuilding and Newport News Shipbuilding (NNS) increased 11.2% and 9.0%, respectively. HII recorded a 14% increase in shipbuilding throughput in 2025. Mission Technologies business generated $3.0bn in revenue for the year, an increase of $107m or 3.6% from the prior fiscal. HII operating income for the fiscal ended 31 December 2025 rose to $657m, up from $535m in 2024, and the operating margin increased to 5.3% from 4.6%. The company’s diluted earnings per share amounted to $15.39 in FY25, up from $13.96 in FY24. In the fourth quarter of 2025, HII reported revenues of $3.5bn, compared to $3.0bn in the same period of the previous year. Ingalls Shipbuilding posted revenues of $889m over the quarter, driven by higher volumes in amphibious assault ships and surface combatants, and NNS’ quarterly revenues were $1.9bn, due mainly to higher volumes in submarines and aircraft carriers.

HII president and CEO Chris Kastner said: “We made solid progress on our operational initiatives in 2025 and enter 2026 with strong momentum. With more than 40 ships at Ingalls and Newport News in active construction or modernisation, our focus in 2026 is clear: We must build on this momentum, and continue to increase our shipbuilding throughput. The US Navy and all of our defence customers need our ships and technologies now more than ever and we are committed to delivering for our customer and the nation.”

Looking ahead, HII has outlined its financial expectations that include medium-term revenue growth targets of around 6% for both overall company revenue and shipbuilding revenue, with Mission Technologies expected to grow by approximately 5%. For the full year 2026, the company anticipates shipbuilding revenues between $9.7bn and $9.9bn with an operating margin forecasted between 5.5% and 6.5%. Mission Technologies revenue is expected to range between $3.0bn and $3.2bn with a segment operating margin around 5% and an EBITDA margin between 8.4% and 8.6%. Recently, NNS completed builder’s sea trials for the John F Kennedy (CVN 79), the second vessel in the Gerald R Ford-class series of nuclear-powered aircraft carriers. (Source: naval-technology.com)

 

06 Feb 26. Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries, today reported financial results for its third quarter for the fiscal year ending March 31, 2026 (“fiscal 2026”). Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “Our third quarter results reflect continued strong, disciplined execution across the organization as we progress through the back half of fiscal 2026. Revenue growth and profitability were driven by solid performance across our end markets and supported by a record backlog, which provides meaningful visibility into future demand. Activity in our Defense market remains robust, while the Energy & Process and Space markets continue to perform in line with our expectations.”

Mr. Malone continued, “As we move through the remainder of the fiscal year, we remain focused on disciplined execution, operational efficiency, and advancing strategic initiatives that strengthen our competitive position. We continue to invest in automation, advanced testing, and new technical capabilities that enhance productivity and support margin expansion. In addition, the recent acquisition of FlackTek in January 2026 meaningfully expands our technology portfolio and further positions Graham to deliver differentiated, mission-critical solutions to our core end markets.”

1 Adjusted net income per diluted share, Adjusted EBITDA, and Adjusted EBITDA margin are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures.

2 Orders, backlog, and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.

EBITDA, and adjusted EBITDA margin, which are non-GAAP measures, help in the understanding of its operating performance. See attached tables and other information provided at the end of this press release for important disclosures regarding Graham’s use of these non-GAAP measures.

Quarterly net sales of $56.7m increased 21%, or $9.7m over the prior year reflecting our diversified revenue base. Sales to the Defense market contributed $8.3 m to growth primarily due to the timing of project milestones, new programs, and growth in existing programs. Sales to the Energy & Process market increased $2.1m or 13% over the prior year driven by Aftermarket sales, as well as continued momentum in our New Energy markets and in particular small modular reactors (“SMRs”). Aftermarket sales to the Energy & Process and Defense markets totaled $10.8 m for the quarter, 11% above the prior year. See supplemental data for a further breakdown of sales by market and region.

Gross profit for the quarter increased $1.8m, or 15%, to $13.5m compared to the prior-year period of $11.7m. As a percentage of sales, gross profit margin decreased 100 basis points to 23.8%, compared to the third quarter of fiscal 2025. This decrease in gross profit margin reflects the mix of sales during the third quarter of fiscal 2026, and a higher level of material receipts which carry lower profit margins. Additionally, the third quarter and the first nine months of fiscal 2025 gross profit benefited $0.3 m and $1.5m, respectively, from a grant received in the prior year from the BlueForge Alliance to reimburse the Company for the cost of its defense welder training programs in Batavia, which did not repeat in fiscal year 2026. For the first nine months of fiscal 2026, we estimate the impact of tariffs on our consolidated financial statements to be approximately $1.0m compared to the prior year and was immaterial for the third quarter of fiscal 2026. For the full fiscal 2026, we now expect the potential impact of tariffs to be between an incremental $1.0 to $1.5m compared to the prior year.

Selling, general and administrative expense (“SG&A”), including intangible amortization, totaled $10.6 m, an increase of $0.9 m compared with the prior year due to the investments being made in operations, employees, and technology, higher acquisition and integration costs due to the Xdot and FlackTek acquisitions, as well as higher performance-based compensation due to Graham’s increased profitability, which was partially offset by a reversal of bad debt reserves. As a percentage of sales, SG&A, including amortization of 18.6%, decreased 200 basis points compared to the prior year period, reflecting the higher level of sales during the quarter, as well as our continued financial discipline.

Cash Management and Balance Sheet

Cash provided by operating activities totaled $4.8 m for the quarter ended December 31, 2025. As of December 31, 2025, cash and cash equivalents were $22.3m.

Capital expenditures, net for the third quarter fiscal 2026 were $2.2m, focused on capacity expansion, increasing capabilities, and productivity improvements.

The Company had no debt outstanding as of December 31, 2025, with $43.0m available on its revolving credit facility after taking into account outstanding letters of credit.

Orders, Backlog, and Book-to-Bill Ratio

Orders for the third quarter of fiscal 2026 were $71.7m. This increase was primarily in the Defense and Space markets, which continue to exhibit strong tail-winds. Energy & Process orders were consistent with prior year levels, as strong demand in New Energy offset weaker Aftermarket orders. Total Aftermarket orders for the third quarter of fiscal 2026 decreased $5.2m to $8.0 m from the record levels of the prior year.

Note that our orders tend to be lumpy given the nature of our business (i.e. large capital projects) and in particular, orders to the Defense industry, which span multiple years and can be significantly larger in size.

Backlog at quarter end was a record $515.6 m, a 34% increase over the prior-year period, driven by strong bookings including contributions from Xdot of $0.5 m, primarily in the Defense and Space markets. For the quarter, the Company achieved a book-to bill ratio of 1.3x. Approximately 35% to 40% of orders currently in backlog are expected to be converted to sales in the next twelve months, another 25% to 30% are expected to convert to sales within one to two years, and the remaining beyond two years. Approximately 85% of our backlog as of December 31, 2025, was to the Defense industry, which provides stability and visibility to our business.

FlackTek Acquisition

On January 23, 2026, subsequent to the end of the third quarter, Graham acquired FlackTek Manufacturing, LLC and FlackTek Sales, LLC (collectively, “FlackTek”). The acquisition establishes advanced mixing and materials processing as a third core technology platform for Graham, complementing its existing vacuum, heat transfer, and turbomachinery capabilities and further aligning with the Company’s Defense, Energy & Process, and Space end markets.

Under the terms of the transaction, Graham acquired 100% of the equity of FlackTek for a purchase price of $35.0 m, comprised of 85% cash and 15% using 75,818 shares of Graham’s common stock, along with the potential to earn an additional $25 m in future performance-based cash earnouts over four years beginning in fiscal year 2027, based upon achieving progressively increasing adjusted EBITDA performance targets. The base purchase price represents approximately 12x FlackTek’s projected adjusted EBITDA for 2026. The transaction was funded through a combination of cash on-hand and borrowings under the Company’s revolving credit facility.

In connection with the acquisition, Graham amended its revolving credit agreement with Wells Fargo Bank, National Association, increasing the borrowing limit from $50 m to $80 m. Following the closing of the transaction, the Company’s pro forma leverage ratio is approximately 1.2x. (Source: BUSINESS WIRE)

 

06 Feb 26. Pentagon poised to curb some defense contractors’ payouts under Trump order.

• Summary
• Trump’s order links payouts to weapons delivery schedules
• Contractors face restrictions on buybacks, dividends if underperforming
• Legal advice sought due to potential impact on bns in payouts

Defense contractors are bracing for the Pentagon to release, as soon as Friday, a list of companies who would be subject to potential restrictions on stock buybacks and dividend payments, nearly a month after President Donald Trump signed an executive order linking shareholder payouts to weapons delivery schedules.

The list, which industry executives say has been shrouded in secrecy, will identify contractors the Pentagon deems to be underperforming on contracts while distributing profits to shareholders, according to three people familiar with the matter.

Questions remain about whether subcontractors will be named and how broadly the Pentagon will define “defense contractor”. The term could potentially sweep in commercial companies with limited Pentagon work.

Trump’s Jan. 7 executive order, titled “Prioritizing the Warfighter in Defense Contracting,” gave Defense Secretary Pete Hegseth 30 days to identify contractors who are “underperforming on their contracts, not investing their own capital into necessary production capacity, not sufficiently prioritizing United States Government contracts, or whose production speed is insufficient.”

“Defense contractors have been notified and made aware that today marks the start of an extended review period in which we will make noncompliance determinations,” Chief Pentagon Spokesman Sean Parnell said in a statement. “We are engaged in detailed negotiations with many companies and going into great depth to analyze their performance.” (Source: Reuters)

 

10 Feb 26. Australian laser maker Electro Optic Systems (EOS.AX) said on Tuesday it was concerned U.S. short seller Grizzly Research may have acted unlawfully by publishing a report on the company last week that triggered a sharp fall in its share price. On Friday, Grizzly Research released a report that called EOS’s $80m contract with an unnamed South Korean customer “intentionally misleading and utterly unrealistic”. EOS shares fell 16% that day, with the company having to place the stock on a trading halt. (Source: Reuters)

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Ultra-high precision, modularity and speed to defeat dynamic targets

OpenWorks is a provider of modular autonomous vision systems that deliver ultra-high performance real-time detection, identification and tracking of highly dynamic aerial threats at long range.

Our specialist capability lies in our dynamic positioners, EO/IR optical units, approach to sensor fusion and common interface that enables the integration of third-party detectors, classifiers, interceptors and effectors. Artificial intelligence modules work seamlessly with primary detectors and C2 to provide comprehensive detection, identification, tracking and slewing-to-cue against complex backgrounds and foregrounds.

OpenWorks is internationally and operationally proven across C-UAS and Air Defence.

Vision Pace

Designed to enhance dynamic multi-threat engagement, Vision Pace offers microradian precision targeting to kinetic defeat chains, marking a step-change for layered air defence. The development is intended to provide capability to expeditionary force protection, GBAD, SHORAD, M-SHORAD across land and naval domains.

Vision Flex

Vision Flex provides the highest performance surveillance, tracking and classification capability available, for use on static, mobile and un-crewed systems. Vision Flex cameras are highly configurable and can be used with built-in twin-AI modules of third Party classifiers and trackers.

Vision Flex is easy to integrate through standard interfaces and has a range of plug-and-play optical modules and upgrades to allow it to be configured easily to suit each mission or site.

Vision Guard

Vision Guard is a highly configurable, autonomous, portable and deployable platform that provides automated alerts with AI detection and classification.

It can be configured with combinations of active and/or passive sensors to suit the mission. Detections and alerts are streamed out to a handheld tablet or other systems via the standard interface, SAPIENT, Asterisk etc.

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