A&D Weekly News & Transactions - Week 4

Industry Headline News

Airbus CEO Warns of Escalating Geopolitical and Trade Risks Impacting Operations
Jan. 25, 2026 - Airbus CEO Guillaume Faury cautioned in an internal letter that the company must brace for “unprecedented” geopolitical risks after 2025 saw “significant” logistical and financial damage from U.S. protectionism and U.S.–China trade tensions that disrupted supplies and components critical to Airbus jets assembled in China. He highlighted ongoing challenges with engine deliveries from Pratt & Whitney and CFM, urged greater rigor after the company’s largest-ever software recall and fuselage panel issues, and noted strong results in 2025 alongside progress in restructuring Defence and Space and Helicopters divisions. Faury underscored the need to build financial resilience ahead of future competition, including development of an A320 successor into the 2030s. (Yahoo Finance)

Pentagon Grapples With “Golden Dome” Missile Defense Costs and Industrial Challenges
Jan. 25, 2026 - The Pentagon is being pushed to reckon with the economics of President Trump’s ambitious Golden Dome missile defense initiative, emphasizing that effective deterrence depends on cost, scalable production, and industrial execution rather than just advanced technology. The proposed multi-layered system, envisioned to counter ballistic, hypersonic and cruise missiles with space-based interceptors and sensors, has projected price tags ranging from about $175 billion to potentially much higher over decades, raising questions about affordability and industrial capacity as planners move toward detailed architectures. Defense officials are assessing how to balance strategic goals with realistic production rates and budgets as the Office of Golden Dome for America continues development ahead of targeted deployment timelines. (SpaceNews)

U.S. Commerce-Backed Foreign Contracts Surge to $244 Billion in 2025 Driven by Boeing Orders
Jan. 23, 2026 - U.S. companies secured $244 billion in foreign government procurement contracts in 2025 with assistance from the U.S. Commerce Department’s International Trade Administration, nearly triple the $87 billion total in 2024, driven by a sharp rebound in Boeing jetliner orders to 1,075 aircraft from 377 the prior year. Boeing and GE Aerospace deals accounted for roughly $215 billion of the total, including a record $96 billion agreement with Qatar Airways for up to 210 widebody jets and a $50 billion deal with Korean Air Lines, with the contracts estimated to support about 844,000 U.S. jobs. Additional gains came from defense ($10 billion), energy ($7 billion), and technology ($3.4 billion), although much of the revenue will be recognized over time as aircraft are delivered. (Reuters)

Legacy Defense Primes Face Break-Up Pressure as Industry “New Order” Emerges
Jan. 23, 2026 - Analysts and investors are increasingly discussing breaking up major legacy U.S. defense primes such as Lockheed Martin, Boeing, General Dynamics and RTX to boost valuations and better align with evolving defense demand and market dynamics, potentially creating specialized companies focused on missiles, space and other segments. The trend follows recent moves by L3Harris Technologies and Honeywell International to divest units, and is driven by a Pentagon and Wall Street desire to rebuild the defense “middle market” after decades of consolidation, while also addressing production agility and supply chain responsiveness. Discussion includes proposals such as splitting Lockheed into separate aeronautics, missiles and space businesses to capitalize on opportunities like the Golden Dome and replenish stockpiles post-Ukraine conflict. (Aviation Week Network)

Honeywell Names CFO and Key Business Unit Leaders for Aerospace Ahead of 2026 Spin-Off
Jan. 22, 2026 - Honeywell announced that Josh Jepsen will join Honeywell Aerospace as chief financial officer effective Feb. 23, and Bob Buddecke, Dave Marinick, and Rich DeGraff will lead the Electronic Solutions, Engines & Power Systems, and Control Systems business units, respectively, reporting to President and CEO Jim Currier as the unit prepares to become an independent publicly traded company. The leadership team is part of the aerospace division’s standalone strategy, positioning it as one of the largest pure-play aerospace and defense suppliers with over $15 billion in 2024 sales, on track for a second half of 2026 spin-off. The company will be headquartered in Phoenix, Arizona, and is expected to trade on Nasdaq under the ticker “HONA” once separated. (Honeywell)

Anduril to Invest $1 Billion in New Long Beach Campus to Expand Defense Tech Operations
Jan. 22, 2026 - Anduril Industries announced a $1 billion investment to build a new 1.18 million-square-foot campus at Douglas Park near Long Beach Airport in Southern California to develop advanced defense systems including drones, missiles, robotic submarines, and autonomous aircraft. The project is expected to create about 5,500 jobs with design, R&D, and prototype manufacturing facilities, with construction beginning mid-2025 and the first building opening by the end of 2027. The expansion cements Long Beach’s role in aerospace resurgence alongside firms like Rocket Lab and Vast and leverages the region’s deep pool of aerospace talent. (Los Angeles Times)

Boeing Moves to Activate North Line With 737-8s and 737-9s Ahead of MAX-10 Certification
Jan. 20, 2026 - Boeing is planning to begin production on its new North Line at the Everett, Washington facility by mid-2026, initially assembling 737-8 and 737-9 aircraft to build workforce experience and ease certification processes ahead of introducing the long-delayed 737 MAX-10 there. The North Line, Boeing’s first 737 production line outside Renton in over 50 years, still requires FAA approval, and Boeing hopes gaining authorization to build 737-8/9 on it will help smooth future certification and production scale-up for the MAX-10 once it is approved. Boeing aims to begin production as early as May or June, with a formal FAA request potentially as soon as March, while managing workforce transitions and targeting higher production rates through expanded facilities. (Leeham News and Analysis)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Spectrum Thermal Processing Bodycote	$8.0	-	-	Cranston, RI	Machined & Cast Parts
2	Schüschke JAMCO [Bain Capital]	-	-	-	Kirchentellinsfurt, Germany	Aircraft Interiors
3	EZAir [Safran] Embraer	-	-	-	Chihuahua, Mexico	Aircraft Interiors
4	Outpost Mission Services Washington Harbour	-	-	-	Portsmouth, NH	Specialty Defense Systems and Services
5	Amorphous Materials LightPath Technologies	$10.0	3.3x	-	Garland, TX	Machined & Cast Parts
6	RKF Engineering Auria Space [Enlightenment Capital]	-	-	-	Bethesda, MD	Satellite, Satellite Services & Space Systems
7	Kythera Space Solutions Auria Space [Enlightenment Capital]	-	-	-	Bethesda, MD	Satellite, Satellite Services & Space Systems
8	John H Northrop & Associates Newly Established Platform [Falfurrias Capital]	-	-	-	Clifton, VA	Engineering and Project Management
9	Coherent Technical Services Newly Established Platform [Falfurrias Capital]	-	-	-	Hollywood, MD	Engineering and Project Management
10	EXPANSIA Group Newly Established Platform [Falfurrias Capital]	-	-	-	Nashua, NH	Government Services, IT Services and Software
11	Echeverria Mecadaq [CAPZA]	-	-	-	St Jean De Luz, France	Machined & Cast Parts
12	Paul Lopez Mecadaq [CAPZA]	-	-	-	Tarnos, France	Machined & Cast Parts
13	Halvik Tetra Tech	-	-	-	Vienna, VA	Government Services, IT Services and Software
14	Advantaged Solutions Hui Huliau	-	-	-	Washington D.C., na	Government Services, IT Services and Software
15	Harper Engineering Loar Group	$250.0	-	-	Renton, WA	Components & Subsystems
16	C&F Millier Corvero Group [Ansor]	-	-	-	Bristol, United Kingdom	Machined & Cast Parts

No.	Target Descriptions
1	Spectrum Thermal Processing provides specialized heat treatment and thermal processing services for aerospace and industrial metal components with critical performance requirements. The company supports customers with tightly controlled processes, metallurgical expertise, and certifications required for high-reliability flight and defense applications.
2	Schüschke designs and manufactures aircraft interior components and assemblies including galleys, monuments, panels, and cabin structures for commercial and business aviation platforms. The company supports interior completion programs through in-house engineering, composite fabrication, and certification-ready production.
3	EZ Air designs and manufactures FAA-certified aircraft interior components including seating systems, cabin panels, trim, and upholstery kits primarily for business and regional aircraft. The company supports interior retrofit and completion programs with in-house engineering, fabrication, certification support, and installation-ready solutions tailored to operator and completion center requirements.
4	Outpost Mission Services is a provider of full-spectrum radome and antenna field services for private sector and U.S, federal government aerospace, defense, and telecommunications markets. The company specializes in installation, maintenance, inspection, repair, and turnkey project management solutions for a wide range of operational environments.
5	AMI is a manufacturer of optical grade Chalcogenide glass structures for private sector and U.S. federal government aerospace and defense markets. The company is capable of casting up to 10,000 lbs. of glass per year. AMI's glass has been used in multiple programs of record including the Joint Strike Fighter Electro-Optical Targeting System program and the Arrowhead sensor suite program for the Apache helicopter.
6	RKF is a provider of satellite communications (SATCOM) engineering and spectrum management solutions for private sector and U.S. federal government aerospace and defense markets. The company supports the expansion of satellite and terrestrial network connectivity and management in an increasingly complex spectrum and orbital domain.
7	Kythera is a provider of a proprietary software suite focused on the autonomous management of next-generation software-defined satellite payloads. Kythera's software suite, including the Kythera Operating System ("KOS"), serves as the intelligence layer for modern space networks in the public and private space economy, allowing operators to autonomously manage in-orbit SATCOM and spectrum resources.
8	JHNA is a provider of technical engineering solutions for private sector and U.S. federal government defense markets. JHNA specializes in early-phase capability development, joint force integration, and acquisition lifecycle support across C4ISR, ground systems, and emerging technology portfolios.
9	CTSi is a provider of focused on specialized engineering, professional, scientific and technical solutions for private sector and U.S. federal government aerospace and defense markets. Areas of expertise include design, system test and evaluation, PNT expertises, systems engineering, technical management, training courses, and fabrication services. The company's Fabrication Facility performs prototype machining, electro mechanical assembly, composite, and circuit board design and assembly.
10	EXPANSIA is a provider of technology focused professional services for private sector and U.S. federal government markets. The company's capabilities include IT & cloud technology solutions, additive manufacturing, technology transformation, lean, agile & DevOps, and consulting & coaching.
11	Echeverria manufactures precision machined parts for aerospace OEMs and Tier One suppliers, supporting airframe and mechanical system applications. The company focuses on repeatable production, material traceability, and compliance with stringent aerospace quality standards.
12	Paul Lopez specializes in sheet metal fabrication and formed metal components for aerospace and industrial customers. The company supports production programs through forming, welding, and assembly capabilities aligned with demanding quality and delivery requirements.
13	Halvik is a provider of end-to-end software and management solutions to private sector and U.S. federal government markets. The company's services include logistics, digital services, advanced analytics, artificial intelligence & machine learning, cybersecurity, and management consulting.
14	Advantaged Solutions is a provider of management and technology consulting solutions for private sector and U.S. federal government defense and healthcare markets. The company specializes in finance and logistics systems modernization, enterprise resource planning, cloud implementation, and supply chain management.
15	Harper Engineering is a manufacturer of mechanically engineered latching and securing mechanisms for private sector and U.S. federal government aerospace markets. The company specializes in panel fasteners, seat track fittings, and door latching systems.
16	C&F Millier manufactures complex machined components for aerospace and defense applications requiring tight tolerances and advanced materials. The company supports structural and mechanical systems through multi-axis CNC machining, special process management, and rigorous quality control.