A&D Weekly News & Transactions - Week 6

Industry Headline News

Anduril Industries Founder Says U.S. Can Spend Billions Less on Defense
Feb. 6, 2026 - Anduril Industries founder, Palmer Luckey, argues that the U.S. defense budget could be reduced by billions by shifting focus to more efficient, technology-driven solutions. He advocates for AI-powered systems and autonomous weapons over traditional military hardware, pointing to the success of Anduril's innovations. Luckey also suggests that existing defense programs could be overhauled to save money while improving national security. (CNBC)

India to Purchase Boeing Aircrafts in $80 Billion U.S. Trade Deal
Feb. 6, 2026 - India has agreed to purchase Boeing aircrafts in a landmark $80 billion trade deal, strengthening its ties with the U.S. and boosting its aviation sector. The deal, which includes both passenger and cargo planes, is set to increase Boeing’s presence in the Indian market, while providing significant job creation in both countries. The agreement is seen as a key move in deepening the U.S.-India economic and defense relationship. (CNBC)

Pratt & Whitney Engine Supply Concerns Threaten Airbus Output Goals
Feb. 4, 2026 - Airbus may struggle to meet its production targets due to delays in Pratt & Whitney’s engine supply, which is affecting its ability to deliver aircraft on schedule. Sources report that Pratt & Whitney is facing manufacturing challenges, leading to a backlog that could disrupt Airbus’s planned output. The issue may cause delays in aircraft deliveries, with both companies under pressure to resolve the situation amid high demand for new planes. (Reuters)

Raytheon to Increase Missile Production in Major Pentagon Deals
Feb. 4, 2026 - Raytheon will ramp up missile production following new Pentagon contracts aimed at enhancing U.S. defense capabilities. The deals, worth billions of dollars, focus on increasing the supply of advanced air defense and precision strike systems, with Raytheon set to deliver more weapons to meet growing global demand. These contracts are part of the U.S. military’s broader strategy to strengthen its arsenal amid rising geopolitical tensions. (Defense News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Knexus Research DC Capital	-	-	-	Vienna, VA	Government Services, IT Services and Software
2	Rotron Aerospace Ondas	-	-	-	Shaftesbury, United Kingdom	Unmanned Vehicles
3	Facet Filtration Donaldson	$820.0	7.6x	20.0x	Almere, Netherlands	Components & Subsystems
4	Bcubed Engineering Auria Space [Enlightenment Capital]	-	-	-	Warrenton, VA	Sensors & C4ISR
5	PavCon Trive Capital	-	-	-	Latrobe, PA	Government Services, IT Services and Software
6	SVM Machining PMGC	$2.3	0.7x	-	Newark, CA	Machined & Cast Parts
7	General Tool, Magna Machine Aeron Defense [Ventus Industrial, GenNx360 Capital, Admiralty Partners]	-	-	-	Cincinnati, OH	Machined & Cast Parts
8	Vigor Marine [Lone Star Funds] Antin Infrastructure	-	-	-	Portland, OR	Navy/Maritime
9	Intrack Radar Technologies Qualis [Bluestone Investment]	-	-	-	Colorado Springs, CO	Government Services, IT Services and Software
10	Tektonux Qualis [Bluestone Investment]	-	-	-	Madison, AL	Government Services, IT Services and Software
11	HABCO Industries Cook Inlet Region	-	-	-	Glastonbury, CT	MRO & Logistics
12	SDM Belrise	-	-	-	Lille, France	Machined & Cast Parts
13	Apira Technologies Woven Solutions [Falfurrias Capital]	-	-	-	Edmonds, WA	Government Services, IT Services and Software
14	Richland Industries [Military Systems Group] Advanced Industrial Services [Cemtrex]	$5.5	0.6x	-	Pulaski, TN	Machined & Cast Parts
15	GAT Airline Ground Support [Atlantic Street] PrimeFlight [Sterling Group]	-	-	-	Atlanta, GA	MRO & Logistics
16	Hexagon Masterworks [Hexagon] SpaceX	$15.0	-	-	Westminster, MD	Composites

No.	Target Descriptions
1	Knexus is a provider of artificial intelligence-based research and development solutions for private sector and U.S. federal government civilian and defense markets. Knexus has expertise in classical and deep learning as well as advanced AI approaches such as goal reasoning, hierarchical temporal planning, reinforcement learning and large language models.
2	Rotron is a developer of advanced unmanned aerial systems and long-range autonomous platforms for extended-reach operations and autonomous strike missions in private sector and international government aerospace and defense markets. The company's portfolio includes long-endurance dual-use vertical take-off and landing (VTOL) systems and next-generation uncrewed combat aerial vehicles (UCAVs) designed forprecision autonomous engagement and extended operational reach.
3	Facet Filtration designs and manufactures advanced filtration and separation solutions used in aviation fuel, industrial fluids, and process applications. The company supports aircraft operators and industrial customers with filtration systems and replacement elements that ensure fluid purity, equipment protection, and reliable operational performance.
4	Bcubed is a provider of end-to-end command, control, and communications (C3) systems which enable resilient, integrated operations across space, ground, and tactical environments for private sector and U.S. federal government defense and special operations markets. The company specializes in digital ground systems, cloud native command and control platforms, software defined satellite communications, machine learning development, open source software (OSS), and commercial off-the-shelf (COTS) technologies.
5	PavCon is a provider of AI-enabled predictive analytics and decision-support solutions for private sector and U.S. federal government markets. The company's solutions improve readiness, operational efficiency, and resource optimization across high-priority defense modernization and mission-readiness initiatives, generating measurable cost savings and enabling more informed decision-making in complex operational environments.
6	SVM Machining manufactures precision machined components and assemblies for aerospace, defense, and industrial customers requiring tight tolerances and advanced materials expertise. The company supports complex programs through multi-axis CNC machining, inspection, and repeatable production aligned with stringent quality standards.
7	General Tool and Magna are collectively manufacturers of turnkey large functional assemblies and mission-critical components for private sector and U.S. federal government aerospace and defense markets. The companies' products have been utilized in a broad range of key platforms such as Columbia-class and Virginia-class submarines, Ford-class aircraft carriers, Arleigh Burke-class destroyers, the F-35 fighter jet, LTAMDS and Patriot missile defense systems, and the LRSO nuclear deterrent.
8	Vigor is a provider of shipbuilding, ship repair and other industrial services. The company builds fishing vessels, barges and ferries and others. Vigor provides repair of U.S. Navy aircraft carriers and U.S. Coast Guard icebreakers and can modernize fishing vessels, workboats and more.
9	IRT is a developer of algorithms, software applications, radar, and electro-optical systems in support of SDA and warfighter missions. The company provides hardware prototyping, advanced modeling and simulation, cutting-edge algorithm development, and engineering services, supported by proprietary software that tracks orbital objects and analyzes spacecraft behavior.
10	Tektonux is a developer of AI-enabled UX/UI software for complex command-and-control systems. The company's proprietary development framework accelerates the delivery of video game interfaces, commercial information systems and emerging AI concepts to mission-critical users and platforms.
11	HABCO is a designer and manufacturer of support and test equipment for private sector and U.S. federal government aerospace, defense, and maritime markets. The company specializes in engine and airframe sustainment products, FAA Part 145 accessory repair services, and asset management solutions. HABCO maintains key partnerships with Boeing, Sikorsky, Pratt and Whitney, and Engine Alliance.
12	SDM manufactures precision sheet metal, fabricated assemblies, and engineered components for automotive, aerospace, and industrial customers. The company supports high-volume production through vertically integrated manufacturing, tooling, and supply chain capabilities tailored to global OEM programs.
13	Apira is a provider of computer vision, AI/ML solutions for private sector and U.S. federal government aerospace and defense markets. The company specializes in the development of SaaS products and bespoke technical expertise for sensitive cyber and information operations missions.
14	Richland is a provider of contract manufacturing and industrial based services for private sector and U.S. federal government aerospace, defense, and healthcare markets. Richland specializes in custom fabrication, industrial services, precision machining, cutting, grinding and polishing services.
15	GAT Airline Ground Support provides outsourced ground handling services for commercial airlines across domestic and international airports. The company supports airline operations with ramp handling, passenger services, cargo handling, and deicing to enable efficient aircraft turnaround and airport operations.
16	Hexagon Masterworks manufactures high-pressure composite storage cylinders and related structures used in aerospace and space launch applications. The subsidiary focuses on advanced composite pressure vessel technology supporting spacecraft, launch vehicles, and other high-performance aerospace systems.