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19 Dec 24. RTX aims to boost India headcount by 14% in 3 years, execs say. U.S. aerospace and defence giant RTX Corp plans to hire 1,000 more people to its 7,000-strong workforce in India by 2027, its top executives told Reuters, as it looks for more engineers and data scientists to power its global operations. The jobs will be added across RTX’s units, including around 300 engineers for aircraft engine maker Pratt & Whitney over the next 12-18 months, and 700 at the aerospace supplier Collins Aerospace over the next 3 years. Global aerospace and defence firms such as Airbus Rolls-Royce Holdings (RR.L) and Lockheed Martin also have technology and engineering operations in India. These units are known as global capability centres (GCCs) and support the companies in their daily operations, and research and development, among others. “India, from an RTX perspective, is not a low-cost destination. It is our talent hub. We have around 150 global roles, running their teams sitting out of India. Our biggest export is our talent,” said Collins Aerospace Vice President of Engineering Savyasachi Srinivas on Tuesday. (Source: Reuters)
19 Dec 24. Secretary of State Hilary Benn welcomes Harland and Wolff deal. Navantia UK agrees commercial deal to purchase Harland & Wolff. Secretary of State for Northern Ireland Hilary Benn has welcomed Navantia UK’s agreement to purchase all four Harland and Wolff shipyards, including its Belfast facility. The deal has secured 1,000 UK jobs and ensured the delivery of the Fleet Solid Support Programme to build three Royal Navy ships. In Belfast, around 500 jobs will be protected by the deal. The deal supports delivery of the UK Government’s Plan for Change, safeguarding national security while raising living standards across the UK with good, skilled, productive jobs which foster economic growth.
The Secretary of State said: “This investment is great news for Belfast, for the Northern Ireland economy and, above all, for Harland and Wolff’s hugely skilled shipbuilding workforce. Harland and Wolff is an iconic, internationally-renowned company with a long and proud history. I am delighted that, with this deal, it will now have a bright future ahead.” (Source: https://www.gov.uk/)
17 Dec 24. Titanic shipbuilder Harland & Wolff to be saved by Spanish rival. Rescue deal worth £70 m for the historic shipyard is expected to secure more than 1,000 jobs across four sites. The historic shipbuilder that built the Titanic is on the cusp of being rescued by a Spanish state-owned rival in a £70 m deal expected to safeguard more than 1,000 British jobs. The board of Navantia is set to sign off on the rescue deal for Harland & Wolff, backed by the British government, in the coming days following several months of negotiations. As part of the deal the Spanish company will take over Harland & Wolff’s four sites in the UK, located in Belfast, Methil, Arnish in Scotland and Appledore in north Devon. Navantia will pay £70m for Harland & Wolff’s assets and is also set to agree improved terms on a contract to build three support ships for the Royal Navy. The Spanish shipbuilder is understood to have agreed to retain Harland & Wolff’s existing workforce for a set period of time, securing more than 1,000 jobs across the four shipyards, according to Sky News, which first reported the agreement. The rescue comes after months of uncertainty and financial problems for the historic shipbuilder, best known for building the Titanic. Harland & Wolff fell into administration in September after a review found it had no long-term funding available to support continuing costs. (Source: The Times)
18 Dec 24. GMB Union, the union for shipbuilders, has responded to a deal to save Harland and Wolff. GMB Union has reacted to the takeover of Harland and Wolff by Spanish firm Navantia, announced today [Thursday] .
Matt Roberts, GMB National Officer, said: “Today’s announcement is a hugely positive step for retaining UK sovereign manufacturing. But despite all four yards remaining open, GMB remains cautious. Without a steady drum beat of work these yards will continue to struggle GMB will continue the fight to ensure that does not happen.”
Matt Roberts, GMB National Officer, said: “This is good news for UK sovereign capability and capacity in renewables and shipbuilding, but challenges remain. GMB campaigned long and hard for all four Harland and Wolff yards to be included in any sale – so the fact they have all been saved, with the promise of all jobs retained and new jobs created is very welcome. However without proper investment into local skills and facilities at all four yards, and the onshoring of orders, the doom loop will be in danger of coming back. GMB will hold both Navantia and the Government’s feet to the fire to ensure promises are kept.”
18 Dec 24. ICEYE, the global leader in synthetic aperture radar (SAR) satellite operations for high-fidelity Earth Observation, persistent monitoring, and natural catastrophe solutions, today announced that it has closed a $65m extension of the company’s earlier growth funding round of $93m, announced in April 2024. The funding round extension included participation from funds managed by Solidium Oy, BlackRock, Seraphim, Plio Limited, and Christo Georgiev. The financing consists of a mix of debt and equity instruments and will increase investment in further developing ICEYE’s leading SAR satellite constellation, its intelligence, surveillance, and reconnaissance (ISR) platform, and related systems. The extension brings the total amount raised in 2024 to $158m. In total, ICEYE has raised over $500m to date. ICEYE has achieved considerable growth during the past years and the investment announced today enables ICEYE to continue expanding its ISR capabilities to serve a global customer base while further cementing its market-leading position in the new space ecosystem.
Susan Repo, CFO at ICEYE, said: “ICEYE has experienced unwavering momentum over the past few years. This extension of our growth funding round further bolsters ICEYE’s investment in its capabilities and enables us to respond even better to the growing demand for space-based technology in the global defense and ISR markets.”
Reima Rytsölä, CEO at Solidium, said: “Extending the growth funding to support ICEYE growth is well in line with our investment strategy. Our view is that ICEYE continues to have strong potential to grow to a nationally significant company and foster a completely new technology cluster in Finland.”
17 Dec 24. Thyssenkrupp pursuing spin-off for marine division. Thyssenkrupp (TKAG.DE) is pursuing a spin-off as the main option for divesting its defence business, a spokesperson said on Tuesday after a German newspaper reported several suitors had made offers for the unit. Carlyle (CG.O) and German state-lender KfW (KFW.UL) had been poised to take a majority stake in Thyssenkrupp Marine Systems (TKMS) but the U.S. investor dropped out in October, leaving Thyssenkrupp to pursue alternatives.
“Following the exit of Carlyle, we are sticking to our chosen path of making Thyssenkrupp Marine Systems independent. To this end, we are primarily preparing a spin-off of TKMS,” said a spokesperson when asked about a report in Handelsblatt.
Citing sources familiar with the process, the business daily reported that Thyssenkrupp had received several bids for its Marine Systems division, including from Rheinmetall (RHMG.DE) Luerssen and the German government. (Source: Reuters)
17 Dec 24. Filtronic – Strong Results Incoming? Although the shares of SpaceX supplier Filtronic have quadrupled in 2024, Mark Watson-Mitchell sees them rising a lot further, the shares now 76p, have broker Targets of 92p, he sees them even higher. Yesterday morning Filtronic (LON:FTC) announced its Trading Update for the six months to end-November, declaring that its Final Results for the year to end-May 2025 are now likely to exceed previous market expectations.
In response the group’s shares closed at 76p, up 5p on the day, a 7% rise following the new guidance.
The Business
The Sedgefield, Durham-based group is a designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets.
The group has been winning various contracts from SpaceX, for whom it is now a supplier of its E-band Solid State Power Amplifiers.
This year it has signed a major 5-year Strategic Partnership with SpaceX, a market leader in low earth orbit space communications, for the supply of Cerus solid state power amplifier products at multiple frequency bands.
It has also won contracts with the European Space Agency, BAE Maritime Services and Qinetiq, as well as continuing business with the UK Defence Science and Technology Laboratory.
17 Dec 24. Embraer (NYSE: ERJ/B3: EMBR3) proudly announces its new office (“Embraer Defense Europe”) focused on defense and security activities in Lisbon, Portugal, which will be linked to the Portuguese subsidiary entity of the Embraer group. With the opening of the office, the company marks a strategic milestone for its expansion in Europe, reinforcing Embraer’s commitment to strengthening its presence in the region, focusing on innovative defense and security solutions for NATO (North Atlantic Treaty Organisation) member countries and the European Union (EU). Embraer Defense Europe will meet all necessary NATO and EU requirements. It will serve as the spearhead of Embraer’s defense initiatives in Europe, with a dedicated team of highly qualified professionals specialized in program management, support, and engineering, to provide state-of-the-art solutions tailored to the needs of European armed forces and NATO partners.
“The subsidiary in Portugal is proof of Embraer’s long-term vision for Europe,” said Bosco da Costa Junior, President & CEO of Embraer Defense & Security. “We are committed to deepening our relationships with European and NATO partners, offering the most advanced and efficient capabilities to meet each customer’s operational needs.”
Several European countries already have Embraer’s support to modernize their operational capabilities with the C-390 Millennium multi-mission aircraft and the A-29N Super Tucano advanced training and light attack aircraft, including Portugal, Austria, Czech Republic, Hungary and Holland. The most recent countries to choose Embraer’s modern defense solutions are Sweden and Slovakia, which will join the C-390 Millennium program.
16 Dec 24. Amentum Reports Fiscal Year 2024 Results and Affirms its Fiscal Year 2025 Guidance.
Strong finish to Fiscal Year 2024 including a successful public market debut
GAAP Revenues of $8.4bn, 7% growth; GAAP Net Loss of $82m
Pro Forma Revenues of $13.9bn, 4% growth
Pro Forma Net Income of $32m; Pro Forma Adjusted EBITDA of $1,052m, up 7%
Amentum affirms its Fiscal Year 2025 Capital Markets Day financial guidance
Amentum Holdings, Inc. (“Amentum” or the “Company”) (NYSE: AMTM), a leading advanced engineering and technology company, today announced results for the fiscal year ended September 27, 2024, and affirmed its outlook for fiscal year 2025.
“We reported strong results for fiscal year 2024, delivering top-line and bottom-line growth,” commented Amentum Chief Executive Officer John Heller. “2024 was a significant year in our Company’s history, culminating in the merger of Amentum with Jacobs’ Critical Mission Solutions and Cyber & Intelligence businesses to create one of the strongest advanced engineering and technology companies in the industry. Today, over two months since the merger, we continue to be excited about the combined strength of these two historic businesses. We have transformed Amentum into a larger, more diversified company with broader customer reach and capabilities to deliver greater value to the world’s most complex challenges. In fiscal year 2025 we already see positive momentum and are confident in our outlook.”
GAAP revenues, which exclude Jacobs’ Critical Mission Solutions and Cyber & Intelligence (CMS) businesses, increased 7% year-over-year driven by new contract awards and growth on existing programs. GAAP operating income increased primarily as a result of a non-cash impairment charge that was recognized during fiscal year 2023. Operating income also benefited from reduced intangible amortization expense and the higher revenue volume. GAAP net loss and diluted loss per share improved year-over-year due to the higher operating income and a gain on the acquisition of a controlling interest, partially offset by higher interest expense and a loss on extinguishment of debt.
Pro Forma and Non-GAAP Results
Pro forma revenues, which include the results of CMS prepared in accordance with the requirements of Article 11 of Regulation S-X, increased 4% year-over-year driven by new contract awards and growth on existing programs partially offset by the expected ramp-down of other historical programs. Pro Forma Adjusted EBITDA increased 7% year-over-year primarily due to the higher revenue volume and improved operating performance. Pro Forma Adjusted Net Income and Adjusted Diluted Earnings Per Share increased due to the higher operating income partially offset by increased tax expense.
Backlog and Contract Awards
As of September 27, 2024, the Company had a total backlog of $45.0bn, compared with $26.8bn a year ago, an increase of $18.2bn primarily due the addition of backlog from CMS. Funded backlog as of September 27, 2024 was $7.6bn.
Notable Fiscal Year 2024 Awards
- U.S. Department of Energy (DOE) Hanford Integrated Tank Disposition Contract (HITDC) – The U.S DOE awarded HITDC, a ten-year $45 bn single-award indefinite delivery indefinite quantity contract, to Hanford Tank Waste Operations & Closure, LLC, a joint venture partnership which includes Amentum that will bring the most advanced environmental capabilities to safely clean up the Hanford Site near Richland, Washington.
- U.S. Naval Sea Systems Command (NAVSEA) Lifecycle and Engineering Solutions – The NAVSEA International Fleet Support Program Office awarded Amentum a five-year $592m contract to deliver life-cycle support, system upgrades, systems integration support, training, and other technical solutions to eligible allied international naval forces.
- U.K. Ministry of Defence (MOD) Hypersonic Technologies and Capability Development Framework (HTCDF) – Amentum secured a position across all lots on the HTCDF framework, which is valued at up to $1.25bn (£1bn) over seven years, and was established to accelerate development of a sovereign UK Hypersonic Capability, while bolstering AUKUS collaboration with Australia and the United States.
- U.S. Army Fixed Wing Aircraft Fleet Maintenance and Modernization – The U.S. Army’s Program Executive Office – Aviation, Fixed Wing Project Office awarded Amentum a six-year $946m contract to provide complete system maintenance and modernization solutions for the U.S. Army’s government-owned fixed wing transport aircraft fleet.
- Information Analysis Center Multiple-Award Contract (IAC-MAC) Research, Development, Test, and Evaluation (RDT&E) Solutions – Amentum was awarded multiple five-year task orders under IAC-MAC totaling over $350 m to deliver critical research and development capabilities in areas such as microelectronics, electronic warfare, and Intelligence, Surveillance, and Reconnaissance systems.
- U.K. and Australia Awards – Amentum was awarded contracts valued over $1bn in fiscal year 2024 to support the U.K. and Australian governments by providing solutions on pressing challenges, from energy transition and environmental remediation to cybersecurity and digital modernization.
- Commercial Awards – Amentum was awarded contracts valued at over $1 bn in fiscal year 2024 to support a variety of Fortune 500 customers in critical areas including: advanced product research and development; design, deployment and optimization of 5G networks, critical infrastructure management, and development of clean energy solutions.
(Source: BUSINESS WIRE)
17 Dec 24. Chemring, the FTSE 250 listed business specialising in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets has announced its results for the year ended 31 October 2024. The business reported a record order book of £1,062m as it continues to play a vital role amidst a once in a generation shift in defence posture, driving growth over the next decade at least. In an environment of heightened geopolitical tension and increasing defence spending, Chemring has seen an unprecedented level of demand for its products. In response to increased demand, over the year Chemring was awarded £90m of grant funding support from Norway and the European Commission to increase the capacity of its Norwegian site, which produces energetics used in munitions.
The Board’s expectations for 2025 are unchanged, expecting a similar H2 weighting in FY2025.
Michael Ord, Group Chief Executive, commented: “2024 was another year of positive performance for Chemring as we continued to see heightened activity and progress across the Group amidst growing demand for our products and services. Our teams delivered on expectations despite the operational headwinds that we experienced in the first half of the year. Changing customer spending priorities in the face of increased global uncertainty and competition have resulted in the order book being at its highest level in Chemring’s history, giving us a strong and sustainable platform for future growth. The outlook for global defence markets is increasingly robust, with strong growth expected over the next decade. This growing visibility gives us the confidence to continue to invest for the future, balancing near-term performance with longer-term growth and value creation. Chemring is well placed to deliver on its many opportunities and we maintain our ambition to increase the Group’s annual revenue to c.£1bn by 2030.”
17 Dec 24. British defence specialist Chemring fell sharply as problems at a US factory knocked its margins and overshadowed a record high order book and forecasts of a decade of growth from increased defence spending. (Source: FT.com)
17 Dec 24. Chemring orders hit all-time high. The defence company sees record orders, but investors felt downbeat about the results. Defence companies have been in a sweet spot ever since Russia’s invasion of Ukraine highlighted the urgent need for NATO countries to undertake a rearmament programme after years of relative neglect. This backdrop meant that reported full-year results for defence company Chemring (CHG) were actually very good, with the company meeting or exceeding consensus forecasts, though this was hard to discern from the surprisingly negative market reaction on results day. Instead, investors chose to focus on currency headwinds and production problems at its plant in Tennessee – the defence industry is currently full of bottlenecks that need to be cleared before volume production can resume in earnest. For instance, global shortages of propellant are a problem for Chemring and all other contractors. However, it seems well on the way to addressing those problems. The company won £90m of grant funding to expand its site on Norway. Meanwhile, management has increased investment in its planned capacity expansion in the Energetics division from £120mn to £200m. In total, the company spent £70m on capital expenditure during the year to support its projects. Unfortunately, looking at capital outlay during the year meant the market ignored the record £1.03bn order book, which is up by an underlying 16 per cent on this point last year; it is now at the highest level in the company’s history. Indeed, Chemring can afford the luxury of knowing that a large proportion of its revenues are already now in the bag; the order book already covers 77 per cent of expected revenues for 2025, with coverage for individual segments such as Countermeasures up at 97 per cent. Demand for working capital was clearly a factor in investor nervousness, though this is a problem associated with success, rather than an indication of trouble ahead. Despite the demands on its capital budget, and the impact of rising inventory as Chemring stocks up to fulfil growing orders, working capital as a percentage of revenue was stable during the year at 17 per cent, with cash conversion of 102 per cent. There was also clear evidence that its government partners are more prepared to front the cash for expansion projects and to give future financial certainty by locking in longer contract times. The results were positive, and the shares are hardly priced for perfection at forward consensus earnings of just PE 15. The market may be wary of Chemring for past operational missteps, but current share price weakness is an opportunity. Buy. Last IC view: Buy, 388p, 4 Jun 2024. (Source: Investors Chronicle)
16 Dec 24. Lockheed Martin has announced the formation of Astris AI, a subsidiary focused on enabling the adoption of artificial intelligence (AI) solutions across the U.S. defense industrial base and commercial industry sectors that have high assurance requirements. Lockheed Martin has made significant investments in developing an industry-leading MLOps software capability, a generative AI platform tailored to high-assurance end users and building a robust team of AI experts. Through Astris AI, these resources are now available externally, creating the opportunity for the defense industrial base and commercial companies to develop and deploy secure, resilient and scalable AI solutions.
Embracing the Future: Astris AI Provides Access to Lockheed Martin’s Proven AI/ML Platforms
Astris AI’s solutions are positioned to address the rapid pace of technological advancements, costs and scaling challenges that organizations face in developing reliable, high assurance AI solutions. The foundational tools available through Astris AI include Lockheed Martin’s proven AI Factory Machine Learning Operations (MLOps) and generative AI software platforms, built with the security and compliance required for entities operating in highly regulated environments. With an open-architecture approach, these platforms offer technology and cost advantages through modularity, providing adaptable and resilient AI built to keep customers ahead of the continuously evolving technology environment.
Expert AI Engineering and Consulting Solutions: Astris AI’s Agile Approach to Secure AI Deployment
Astris AI also delivers end-to-end AI consultative engineering services, including MLOps and generative AI strategy, implementation, training and scaled model development and deployment, that will empower organizations to own and maintain their AI tools, data and solutions.
With the soaring global demand for AI specialists exceeding the available workforce, companies face strong barriers to entry to developing and deploying AI solutions at scale. Astris AI mitigates those challenges by leveraging Lockheed Martin’s talented team of AI engineers who provide domain expertise, technology and consulting solutions.
Steering Innovation: A Team of AI Pioneers
The infrastructure and experience of Lockheed Martin’s AI Factory ecosystem will serve as the backbone of the solutions being offered through Astris AI. The team of Lockheed Martin AI Center engineers supporting Astris AI is led by Mike Baylor, chief digital and AI officer, and Greg Forrest, director of AI Foundations.
“I’m proud to see the Lockheed Martin AI Center (LAIC) contributing to Astris AI’s goal of developing secure and scalable AI solutions,” said Forrest. “Lockheed Martin has made significant strides in AI/ML, and we’re excited to apply these advancements to support our customers and help strengthen the defense industrial base.”
Astris AI is led by Chief Revenue Officer Donna O’Donnell, a seasoned leader with extensive experience in AI/ML and automation, who is poised to drive the company’s growth. Previously, O’Donnell served as global vice president of AI and intelligent automation sales at Xerox, where she oversaw automation sales operations globally, delivering solutions in intelligent automation, robotic process automation, generative AI, intelligent document processing and machine learning. Prior to her time at Xerox, she held leadership roles at other leading technology firms, driving innovation and empowering teams.
“Astris AI is perfectly positioned to deliver AI/MLOps solutions across industries,” said O’Donnell. “By combining Lockheed Martin’s expertise with Astris AI’s agile approach, we’re enabling organizations to navigate the complexities of the rapidly evolving technology landscape with high assurance AI solutions that deliver secure and reliable interactions, compliance and responsible decision-making.”
The formation of Astris AI underscores Lockheed Martin’s commitment to advancing 21st Century Security®, strengthening the defense industrial base and national security, while also demonstrating its leadership in integrating commercial technologies to help keep customers ahead of the growing threat environment.
About Astris AI
Astris AI, a subsidiary of Lockheed Martin, is committed to enabling the adoption of AI solutions across the U.S. defense industrial base and other industries seeking high assurance solutions. Astris AI provides customers access to foundational AI tools, processes and talent to enable the deployment of secure AI solutions at scale, ensuring they stay ahead of rapid technological advancements. Astris AI is the latest addition to the Lockheed Martin Evolve portfolio, an organization that creates and scales new commercial and non-traditional businesses to bolster the defense industrial base. Visit AstrisAI.com to learn more.
Please follow Astris AI on LinkedIn for the latest announcements and news across the company.
11 Dec 24. The Israeli Ministry of Defense has significantly increased its investment in small companies and start-ups, pouring in approximately $168m over an 11-month period — five times more than the year before.
“The deepening cooperation between DDR&D [Directorate of Defense, Research & Development] and Israeli startups increases local manufacturing independence and strengthens the Israeli economy,” the ministry said in a statement, adding that it has worked with 86 Israeli startups and small companies over the last year, in addition to another 200 firms with whom DDR&D already worked.
Such a focus on startups and small firms was evident here at the Defense Tech Summit, held at Tel Aviv University last week. Over two days the auditorium was often overflowing, where officials perused the latest innovations from the Israeli tech scene — including several that focused on topics of keen interest since the war with Hamas began last October, like counter-drone systems, medical tech and artificial intelligence.
“Israeli defense tech is at an unprecedented time of growth, due to a sharp rise in global demand and defense spending as well as battle-proven momentum. We see a need for technology in many areas related to global security, in order to drive digitalization, automation and efficiency,” Ilana Sherrington, Director of Global Partnerships for an organization called Startup Nation Central, told Breaking Defense. “The number of new startups is on the rise, as well as more companies developing dual use applications — and investment is following this. With top talent and deep tech expertise, Israel is a natural hub for solutions in this area.”
The defense ministry’s focus on this subject was clear from the long list of officials who spoke, including presentations by Eyal Zamir, the Director General of the Israel Ministry of Defense; Daniel Gold, the head of Israel’s DDR&D; Avi Berger, the head of the space office at DDR&D; and Moshe Patel, the head of Israel’s Missile Defense Organization.
“We are constantly examining how to intercept drones with other drones and take down enemy drones using nets. During the war, we worked with dozens of startups in the field. We created a methodology for integrating a startup in the field — something the world is still trying to figure out,” Gold said.
On the second day of the summit, several smaller Israeli companies presented their technologies. The counter-drone firm Regulus, for example, discussed how recent conflicts around the world have illustrated the need for counter measures against various types of unmanned systems.
Spear, which makes cannister-launched loitering munitions, also discussed its vision for using multiple loitering munitions to observe and strike targets. The trend with unmanned systems and also the need to counter them has progressed to smaller munitions and also smaller systems that can be put on vehicles. Israel’s experience in places such as Gaza and Lebanon have illustrated the need not only for drones that can be easily deployed, but also the need to be able to defend against a wide variety of drones.
Another trend in the presentations was an emphasis on medical technologies that can help in the field. For instance Xmetix showed off its “smart tourniquet.” This was designed to be deployed easily enabling the tourniquet to be placed on an arm or leg by putting it on, then pulling a pin and pressing a button.
The summit also included a discussion of a recent “hackathon” where dozens of teams had competed to solve several challenges identified during the war. One of the issues was making a system that could help carry stretchers over complex terrain. Another system addressed the need to help constrict blood flow in a wound that is not on an extremity, meaning in the neck or some other critical area, so that wounded do not bleed out.
Elsewhere, Sequoia Capital Global Partner Shaun Maguire said he sees sensors and AI as an area ripe for growth.
“Looking to the future, I expect we’ll see enormous sensors for various uses, and Israel can lead this field. Israel is also powerful in the quantum field,” he said. “I don’t think Israel missed the AI train, and the race is still ongoing. On the contrary, Israel is among the leaders in the field, and Israeli companies are among the most successful companies in the sector.”
Zamir, from the ministry, also highlighted AI’s increasing role.
“It is a revolution that brings new knowledge to every aspect of life, including defense capabilities. Whoever adapts first gets a massive advantage. If you are not all in technology, you will fall behind. This may sound visionary, but the future battlefield will allow swarms of mixed combat units – men and unmanned systems fighting together or fully autonomous units operating as one, capable of making their own decisions.” (Source: glstrade.com/Breaking Defense.com)
16 Dec 24. Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today announced that it has entered into a definitive agreement to acquire Forgital Group (“Forgital” or the “Company”), a leading manufacturer of advanced forged and machine-finished components for aerospace and industrial end markets, from global investment firm Carlyle (NASDAQ: CG).
Forgital, founded in 1873, specializes in forged and laminated metallic rolled rings, with technologically advanced manufacturing capabilities across a broad portfolio of materials, including titanium, nickel-based alloys, aluminum, and steel. The Company serves a diverse range of end markets, including aerospace, defense, space, power generation, and oil & gas, and offers vertical integration across the entire forged components value chain, from process engineering to assembly, final machining, and testing. Forgital has a global workforce with an operational footprint across Europe and North America spanning nine facilities in Italy, France, and the United States.
Conor Sutherland, Managing Director at Stonepeak, said: “Forgital is an integral link in the global aerospace supply chain, and a trusted partner to leading aerospace manufacturers and industrial customers. We have high conviction in long-term aerospace end market demand and believe Forgital is positioned to benefit from these tailwinds. We admire Forgital’s strong business model, manufacturing excellence and distinguished reputation among its customers for quality and reliability. We are thrilled to make this investment and partner with Forgital’s dedicated management team and talented workforce to support Forgital’s continued success.”
Meddah Hadjar, CEO of Forgital, said: “I would like to thank the Carlyle team for their invaluable support, expertise and guidance over the last few years, which have been a significant period of change and development for Forgital. Stonepeak represents an ideal partner for the next stage of Forgital’s growth, bringing deep experience, global relationships, and operational expertise within sectors and businesses that are mission-critical to the supply chain. We are excited to leverage these resources to support our customers, and to partner with Conor and the rest of the Stonepeak team as we continue to develop Forgital’s manufacturing excellence and global capabilities.”
Marco De Benedetti, Chairman of Italy at Carlyle, said: “We are pleased to have supported Forgital through such a transformative period for the business. As a result of the investment, partnership, and the team’s sector expertise, we believe Forgital is well-placed to capitalise from long-term growth in its key end markets of aerospace & defence and industrial applications, and I have no doubt the business will continue to build upon its strong position today as a European leader in specialised forged products.”
The transaction is expected to close in the second quarter of 2025 and is subject to the satisfaction of customary regulatory approvals.
Simpson Thacher & Bartlett LLP, Legance – Avvocati Associati, Hogan Lovells International LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Stonepeak. J.P. Morgan Securities Plc served as financial advisor to Carlyle. Latham & Watkins LLP served as legal counsel to Carlyle.
About Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $70 bn of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its target sectors, which include digital infrastructure, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, and Abu Dhabi. For more information, please visit www.stonepeak.com.
About Forgital
Forgital is a leading, vertically integrated Group focused on the manufacturing of seamless rolled rings in rectangular or profiled sections, as well as assembled fan modules, covering the largest range of sizes. Forgital specializes in forging rolled rings, with technologically advanced capabilities across a broad range of materials, including titanium, nickel and cobalt alloys, carbon steel, alloy steel, stainless steel and aluminium. Forgital’s Compact Supply Chain simplifies the production process of its customers through an integrated system of technologies and services which encompasses all the steps of the project: from the pre-processing to the post-processing phase (including finishing, welding and macroetching).
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $447 bn of assets under management as of September 30, 2024, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,300 people in 29 offices across four continents. Further information is available at www.carlyle.com.
16 Dec 24. Honeywell explores separation of aerospace business. US industrial conglomerate Honeywell is exploring a separation of its aerospace business. (Source: FT.com)
16 Dec 24. Ricardo has announced the conditional sale of its defence business, which makes integrated vehicle parts for the US army, to Proteus Enterprises and Gladstone Investment Corporation for $85m. Ricardo is also buying 85 per cent of Australian infrastructure advisory firm E3 Advisory for about A$101.4m (£51m), with completion conditional on the sale of Ricardo Defense. It expects to buy the remaining 15 per cent of E3 by January 2028. (Source: The Times)
15 Dec 24. Israel Aerospace ready for IPO, awaits government approval, CEO says. State-run Israel Aerospace Industries (ISRAI.UL) is ready for an initial public offering in Tel Aviv but awaits the go-ahead from the government, IAI chief executive Boaz Levy said on Sunday. A ministerial privatisation committee in November 2020 had approved a plan where Israel could sell up to 49% of IAI, the country’s largest defence firm, on the Tel Aviv Stock Exchange, bringing in bns of shekels.
“We are moving towards an IPO,” Levy said at an investor conference at the TASE. “In the past year our business results have continued IAI’s growth trend. We are currently experiencing phenomenal performance.”
He said that according to the government’s decision that has already been approved, there will be an IPO of a minority stake in IAI as soon as the finance and defence ministries “reach a decision that it is time to do it.” (Source: Google/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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