A&D Weekly News & Transactions - Week 38

Industry Headline News

BAE Systems Wins $818M U.S. Army Contract for More AMPV Armored Vehicles, Lifting M113 Replacement Orders Near $3.3B
Sept. 20, 2026 - BAE Systems received an approximately $818 million U.S. Army contract for another production batch of Armored Multi-Purpose Vehicles (AMPVs), bringing the program’s total orders to nearly $3.3 billion. The Army did not disclose the number of vehicles, but deliveries are scheduled to be completed by May 31, 2030, with production at BAE Systems’ facility in York, Pennsylvania. The AMPV is designed to replace the Army’s aging M113 fleet and includes variants for general-purpose, medical, command and mortar-carrier missions. (Defence Industry Europe)

Musk’s Long-Time Backer is Giving SpaceX Stock to its Investors
Sept. 16, 2026 - Valor Equity Partners, founded by Antonio Gracias, transferred 8.5% of its SpaceX holdings directly to its limited partner investors instead of selling the shares and distributing cash. The stake is estimated to be worth about $8.5 billion, while Valor will retain more than 460 million SpaceX shares after the transfer. The transaction could provide tax benefits to investors and avoid placing a large block of SpaceX shares on the market. (TechCrunch)

Boeing CEO Says Increasing 737 MAX Output is Taking Longer Than Expected, Shares Slide
Sept. 16, 2026 - Boeing CEO Kelly Ortberg said it is taking longer than expected to stabilize 737 MAX production at 47 aircraft per month, with wing production constraints delaying the increase to 52 jets per month planned for 2027. Boeing is also facing delays in increasing 787 production to 10 aircraft per month due to engine shortages and certification issues, which could result in about $2 billion in 2026 free cash flow instead of the $3 billion upper end of its guidance. Ortberg also lowered expectations for a large new Chinese aircraft order next week, while Boeing expects the 737-10 to receive certification soon. (Reuters)

Boeing Close To Salvaging Deal For 150 Turkish Airlines 737 MAXs After CFM Engine Dispute
Sept. 16, 2026 - Boeing is nearing a final agreement with Turkish Airlines for 150 737 MAX aircraft after a dispute over CFM engine maintenance, pricing and long-term repair costs delayed the order. The aircraft are part of a larger 2025 agreement that also includes up to 75 Boeing 787 Dreamliners and are intended to support Turkish Airlines’ planned fleet expansion. Turkish Airlines has sought greater involvement in maintaining the LEAP-1B engines through a higher-tier maintenance facility, but the status of that arrangement remains unresolved. (Simple Flying)

Korean Air Finalizes Record-Breaking 103 Boeing 777X, 787, 737-10 Aircraft Order
Sept. 15, 2026 - Korean Air finalized a $44.6 billion order for 103 Boeing aircraft, its largest aircraft order to date, as it prepares to integrate its fleet following its merger with Asiana Airlines. The order includes 20 Boeing 777-9s, 25 787-10s, 50 737 MAX 10s and eight 777-8F freighters, expanding the airline’s passenger and cargo capacity. The deal will increase Korean Air’s widebody fleet by 46% and nearly double its narrowbody fleet while replacing older aircraft with newer-generation models. (Simple Flying)

Rheinmetall Receives New Order to Manufacture Tens of Thousands of 155-mm Artillery Shells by 2027
Sept. 15, 2026 - Rheinmetall received an order from an unnamed customer for 155-mm artillery ammunition, with the quantity reportedly in the tens of thousands and the contract valued at the low hundreds of millions of euros. Production has already begun, with the company planning to complete the order in 2027 as it continues expanding its ammunition manufacturing capacity. Rheinmetall plans to reach annual production capacity of 1.5 million artillery rounds by 2030, supported by new and expanded facilities in Germany and other countries. (Defense Express)

Boeing Wins $13.4B KC-46 Air Force Contract Amid Defense Awards
Sept. 14, 2026 - The U.S. Air Force increased Boeing’s KC-46 contract ceiling by $13.4 billion to $19.1 billion to support additional foreign military sales to Japan, Israel and future partners, with work expected through 2035. AeroVironment subsidiary BlueHalo received a $99.83 million contract for the Leveraged Orbital Battlespace Optimization program, covering research into space domain awareness, orbital warfare, communications and command-and-control capabilities. Northrop Grumman also received nearly $20 million for nonstandard ammunition procurement and an $18.83 million contract modification to produce B-2 Spirit bomber components. (Investor's Business Daily)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	The Bellwether Group Rajant	-	-	-	Pasadena, MD	Cybersecurity, Intelligence Services and Homeland Defense
2	Gate Technologies Ondas	$390.0	6.0x	-	Shoham, Israel	Defense Electronics
3	Chief Avionics Becklin Holdings	-	-	-	Grants Pass, OR	MRO & Logistics
4	JCM Engineering BTX Precision [L Squared Capital]	-	-	-	Ontario, CA	Machined & Cast Parts
5	Bletchley Robotics T4 Robotics	-	-	-	Vancouver, Canada	Unmanned Vehicles
6	Ratel Robotics Swarmer	$224.0	-	-	Kyiv, Ukraine	Unmanned Vehicles

No.	Target Descriptions
1	Bellwether is a developer of tactical edge computing, secure communications, cyber, AI/ML, and mission engineering solutions for private sector and U.S. federal government critical infrastructure and intelligence markets. The company combines custom hardware and software development with operator-informed engineering for contested, disconnected, degraded, and intermittent environments.
2	Gate Technologies is a developer of electronic safe-and-arm device (ESAD) and electronic fuzing technology for private sector and international defense and aerospace markets. The company develops LEEFI initiation technology-enabled compact, configurable, fully electronic safety, arming, and initiation systems for missiles, rockets, UAVs, loitering munitions, gravity-release weapons, and other precision-strike platforms.
3	Chief Avionics is an FAA-certified avionics repair station providing aircraft avionics sales, installation, upgrades, and maintenance services for general aviation customers. The company specializes in navigation, communications, cockpit systems, and other advanced aircraft electronics, complemented by over-the-counter product sales.
4	JCM Engineering manufactures large-format precision machined components and assemblies for aerospace, defense, commercial, and space applications. The company specializes in complex multi-axis machining of large structural parts, supported by extensive CNC capacity and aerospace quality certifications.
5	Bletchley Robotics develops layered autonomous defense systems focused on AI-commanded interception and survivability solutions for aerial and ground threats. The company is developing the LADI-Hornet interceptor drone for counter-UAS missions, with additional autonomous ground and point-defense systems planned.
6	Ratel Robotics designs and manufactures unmanned ground vehicles for defense applications, including platforms used for logistics, casualty evacuation, reconnaissance, demining, strike, and drone launch missions. The company is also expanding into aerial systems and autonomy technologies to build an integrated ecosystem of unmanned battlefield platforms.