A&D Weekly News & Transactions - Week 2

Industry Headline News

Blue Origin’s Gain Is Boeing and Lockheed Martin’s Loss
Jan. 11, 2026 - Blue Origin scored a major strategic win as United Launch Alliance (the Boeing BA and Lockheed LMT joint venture) President & CEO Tory Bruno resigned, bolstering Blue Origin’s position after its New Glenn successes and highlighting competitive pressures on traditional defense aerospace players; ULA, long dominated by Boeing and Lockheed Martin, has struggled with high costs and delays against rivals like SpaceX and Blue Origin. The leadership change underscores shifting industry dynamics as Blue Origin gains talent and momentum while ULA faces uncertain prospects. Analysts see this as a broader sign that legacy aerospace contractors may continue losing ground in launch contracts and executive talent to newer space firms. (Yahoo Finance)

Alaska Airlines Places Record Order for 105 Boeing 737-10s and 5 Dreamliners
Jan. 7, 2026 - Alaska Airlines announced its largest-ever aircraft order with Boeing, committing to purchase 105 Boeing 737-10 jets (with options for 35 more) and five Boeing 787 Dreamliners to modernize and expand its fleet and support international growth. The deal extends delivery slots through the 2030s, strengthens Alaska’s long-term partnership with Boeing, and underscores confidence in Boeing’s production as the 737-10 awaits FAA certification expected in 2026. Alaska’s strategy aims to expand domestic and long-haul routes using fuel-efficient aircraft and enhance its competitive position in global markets. (CNBC)

Trump Threatens to Cancel Raytheon (RTX) Defense Contracts Over Buybacks and Investment
Jan. 7, 2026 - President Trump warned that Raytheon’s parent company, RTX, could lose U.S. government defense contracts unless it halts stock buybacks and dividends, increases investment in production capacity, and speeds up delivery of weapons systems, calling the company the “least responsive” to Pentagon needs in a Truth Social post. The remarks are part of a broader push by the administration to force defense contractors to prioritize military readiness over shareholder returns, including calls to cap executive pay and reinvest in manufacturing infrastructure. Trump’s comments came as he signaled plans for a $1.5 trillion defense budget for fiscal 2027, fueling volatility in defense stocks and underscoring growing tensions between the White House and major defense firms. (Axios)

US Air Force Awards Boeing $2B Contract to Begin B-52 Engine Upgrades
Jan. 6, 2026 - The U.S. Air Force awarded Boeing a more than $2 billion contract under the Commercial Engine Replacement Program to begin replacing engines on its B-52H Stratofortress bombers, starting with modifying and testing two aircraft using Rolls-Royce F130 engines and related systems. The effort is part of a broader plan to extend the service life of all 76 B-52s into the 2050s and potentially the 2060s, setting the stage for a comprehensive modernization that could redesignate the fleet as the B-52J with upgraded radar, avionics, and other systems. The modernized bombers are expected to operate alongside at least 100 Northrop Grumman B-21 Raiders as the Air Force strengthens its long-range strike capabilities. (Defense News)

US Defense Department, Lockheed to Triple Interceptor Missile Production
Jan. 6, 2026 - The Pentagon reached an agreement with Lockheed Martin to significantly ramp up production of the PAC-3 Missile Segment Enhancement interceptor, increasing annual output from about 600 to more than 2,000 missiles under a seven-year framework deal to meet rising global demand for air and missile defense systems. The production surge is intended to support U.S. forces as well as allies and partners, reflecting heightened demand for Patriot system interceptors amid growing security threats worldwide. The deal supports the Pentagon’s broader push for longer-term contracts that encourage industry investment in manufacturing capacity and strengthen defense supply chains. (Defense News)

Congress Pushes Back on Trump’s NASA Budget Cuts, Proposes $24.4B for Fiscal 2026
Jan. 6, 2026 - In a bipartisan rebuke to President Trump’s proposed deep cuts that would have reduced NASA’s 2026 funding to about $18.8 billion, Congress advanced a plan to allocate $24.4 billion to the space agency, preserving substantial support for science and research programs. The proposal includes about $7.25 billion for science initiatives, restores funding for missions such as Dragonfly (with $500 million) and the Nancy Grace Roman Space Telescope (with $300 million), and rejects the administration’s plan to slash or cancel dozens of missions, though it does not fund the Mars Sample Return effort. The measure still requires final approval by both chambers and the president’s signature to become law, underscoring a significant policy clash over NASA’s priorities. (Space.com)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Space Propulsion and Power Systems business of L3Harris [L3Harris] AE Industrial	$845.0	-	-	Canoga, CA	Satellite, Satellite Services & Space Systems
2	Metal Shark Magnet Defense	-	-	-	Jeanerette, LA	Navy/Maritime
3	Centil Sabel Systems Technology Solutions [Sagewind Capital]	-	-	-	Lafayette, CO	Satellite, Satellite Services & Space Systems
4	Vidterra NexTech Solutions [Clairvest Group]	-	-	-	Wilmington, NC	Government Services, IT Services and Software
5	Silver Sky Aviation The Blackhawk Group [New State Capital Partners]	-	-	-	Wasilla, AK	MRO & Logistics
6	Alliance Aviation Pan Am Flight Academy [Acorn Capital Management]	-	-	-	Miami, FL	Simulation & Training Systems
7	Seemann Composites Karman Space & Defense	$220.0	-	-	Gulfport, MS	Composites
8	Crewless Marine Acoustics Vatn Systems	-	-	-	Portsmouth, RI	Navy/Maritime
9	Micro-Tronics Arxis [Arcline]	-	-	-	Tempe, AZ	Components & Subsystems
10	Quantum Circuits D-Wave Quantum	$550.0	-	-	New Haven, CT	Defense Electronics
11	Techni-Cast Wieland-Werke	-	-	-	South Gate, CA	Machined & Cast Parts
12	Brighton Technology Group Click Bond	-	-	-	Cincinnati, OH	Test & Measurement
13	Airway Aerospace AxioAero [CORE Industrial]	-	-	-	Doral, FL	MRO & Logistics
14	GuardianUTM platform of Altitude Angel [Altitude Angel] IndraSistemas	-	-	-	Reading, United Kingdom	Government Services, IT Services and Software
15	Ntirety [Hostway] 11:11 Systems [Tiger Infrastructure]	-	-	-	Austin, TX	Government Services, IT Services and Software
16	B&B Airparts Spartan Aerospace Group [Edgewater Funds]	-	-	-	Wichita, KS	Machined & Cast Parts
17	ATG Magnet Defense	-	-	-	Pine, CO	Government Services, IT Services and Software

No.	Target Descriptions
1	The Space Propulsion and Power Systems business specializes in the design, development, and production of high performance electric, mono-propellant & bi-propellant rocket engines and systems, and launch vehicle propulsion systems to private sector, U.S. federal, and international aerospace, defense, and space exploration markets. The business supplies propulsion products to every major U.S., European and Japanese satellite manufacturer, including significant chemical and electric propulsion content on Geostar communication satellite platforms.
2	Metal Shark designs and manufactures custom welded-aluminum vessels and specialty boats for private sector and U.S. federal government defense, emergency, and law enforcement markets. Vessels developed by the company include high-performance patrol boats, pilot boats, fireboats, passenger vessels and workboats.
3	Centil is a provider of DevSecOps, CI/CD product development, and space-domain systems engineering solutions to private sector and U.S. federal government aerospace and defense markets.
4	Vidterra is a developer of edge deployed video distribution software for private sector and U.S. federal government aerospace and defense markets. Vidterra's software solutions distribute live video from any source, automating end-to-end video workflows, to transform video distribution into a seamless and efficient experience.
5	Silver Sky is a provider of MRO solutions to medium-sized corporate aircraft. The company specializes in services for the Pratt and Whitney PT-6 powered aircraft and is an authorized service center for Caravan, and Kodiak aircraft. Silver Sky operates a 5,000 square foot FAA certified maintenance hangar on Wolf Lake.
6	Alliance is a provider of Part 142 flight training services. The company offers type rating courses for the Boeing 737, 767 and 787, Airbus 320 ATR 500/600 and Embraer 145, 170/90 as well as ATP-CTP. The company is an FAA certified flight training facility.
7	Seemann Composites is a manufacturer of composite components for private sector and U.S. federal government defense markets. The company's SCRIMP (Seemann Composites Resin Infusion Molding Process) technology is based on vacuum-assisted resin transfer molding of composites.
8	Crewless Marine is a developer of advanced underwater acoustic sensing and signal processing solutions for private sector and U.S federal government defense and marine markets. The company's systems can provide autonomous detection, classification, and tracking of marine mammals, underwater noise pollution monitoring, and safety and security solutions for its customers.
9	Micro-Tronics is a provider of engineered, mission-critical elastomeric and metallic components for private sector and U.S. federal government aerospace and defense markets. The company's expertise ranges from producing thousands of intricate elastomeric diaphragm seals and assemblies to high-precision electrical discharge machined components.
10	Quantum Circuits is a developer of error-corrected superconducting gate-model quantum computing systems for private sector and U.S. federal government markets. The company's platform utilizes a Dual-Rail Qubit with built-in error detection and control flow and features a programming interface for developing new algorithms and exploring quantum in novel ways.
11	Techni-Cast is centrifugal-casting foundry providing comprehensive finishing steps such as heat treatment and precision machining. The company works with a broad range of alloys, including brass, bronze, stainless steel, and nickel-based materials.
12	BTG is a provider of surface intelligence and adhesion-measurement technology research solutions for private sector and U.S. federal government markets. The company is ISO 9001:2015 certified.
13	Airway provides maintenance, repair and overhaul (MRO) services focused on accessories, airframe, and powerplant repairs across commercial, cargo, and defence aviation markets. The company offers in-demand component repairs specialising in hydraulics, pneumatics, fuel systems, flight controls, thrust reversers, nacelles, and fixed-wing structures. The company serves a diverse range of aircraft platforms including narrowbody (Boeing 737, Airbus A320 family), wide-body (Boeing 747/767, Airbus A300/A330), and Boeing 707 military variants.
14	The GuardianUTM platform is a scalable cloud-based SaaS solution that enhances airspace management providers ability to approve or decline unmanned aircraft in their areas of operation. The platform facilitates flight planning, approval, and conflict resolution services.
15	Ntirety is a provider of managed and professional IT services for private sector and U.S. federal government markets. The company's managed services cover infrastructure, security, data, and compliance, connecting mission-critical data across highly secure, available, and resilient environments.
16	B&B Airparts produces precision aircraft components through machining, sheet metal fabrication, and complex assembly for aviation customers. The company supports aircraft production and structural part needs with full shop capabilities and cost-efficient execution tailored to quality and delivery expectations.
17	ATG is a provider of end-to-end development and integration of advanced command and control and artificial intelligence systems for private sector and U.S. federal government air, space, maritime, and surface platforms. The company's hybrid SaaS Autonomy Exchange for Interoperable Modularity (AXIOM) platform is an open-architecture autonomy stack and modular software capability suite designed to accelerate development, integration, and deployment of advanced autonomous systems and mission-oriented software across defense and multi-domain environments.