A&D Weekly News & Transactions - Week 40

Industry Headline News

Space Force Picks Two Companies to Build New ‘Space-to-Space’ Satellites by 2028
Oct. 1, 2026 - The Space Force awarded prototype contracts to Northrop Grumman and True Anomaly to develop high-resolution reconnaissance satellites capable of imaging objects in geostationary orbit more than 22,000 miles above Earth. Northrop will provide a small satellite based on its ESPASat-L spacecraft, while True Anomaly will provide its Jackal autonomous orbital vehicle and Mosaic command-and-control system under the GHOST-R program. The prototypes are expected to launch to geosynchronous orbit by 2028 and begin government-operated missions by 2029 as part of the Space Force’s broader RG-XX effort to build a larger, more agile orbital reconnaissance fleet. (Defense News)

Lockheed Martin Says Europe Supplies 25% of Each F-35 by Value, with Patria Expanding Finnish Airframe and Engine Production
Oct. 1, 2026 - Europe now produces 25% of the value of each F-35, with Finland’s Patria manufacturing forward fuselages and landing gear doors and becoming the first company outside Lockheed Martin to produce the forward fuselage. Patria is also assembling F135 engines in Finland, with production planned through 2030 before the facility transitions to maintenance, repair, overhaul and upgrades for Finland’s F-35 fleet. Patria’s current agreement covers 400 forward fuselages and landing gear door sets through 2042, while its F-35 program is expected to grow from 120 employees to more than 200 as Finland expands its role in the global F-35 supply and sustainment network. (Defence Industry Europe)

Ethiopian Airlines Agrees to Buy 10 Boeing Cargo Planes, Has Option for 8 More
Sept. 30, 2026 - Ethiopian Airlines signed an agreement to purchase 10 Boeing freighter aircraft, consisting of eight 777-8Fs and two 777Fs, with an option to buy eight additional 777-8Fs. The aircraft have a combined catalogue price of $5 billion, although the actual purchase price was not disclosed. The order will expand Ethiopian Airlines’ existing cargo fleet of 12 777Fs, three 767 freighters and four converted 737s as the airline supports plans for a $12.5 billion airport project scheduled to open its first phase in 2030. (Reuters)

Air Force Names 7 to Vie for New MMA Drone Program
Sept. 30, 2026 - The Air Force and Defense Innovation Unit selected seven companies—Anduril, Chaos Industries, General Atomics Aeronautical Systems, Grid Aero, Otto Aerospace, Shield AI and Swarm Aero—to compete to develop the Massed Modular Aircraft (MMA), a low-cost, semi-autonomous drone intended to succeed the MQ-9A Reaper. The Air Force plans to field 500 MMAs by 2032 at an estimated cost of about $10 million per airframe, with the drones designed to operate in large groups for intelligence, surveillance, reconnaissance and strike missions. The program aims to provide an affordable, attritable alternative to higher-cost aircraft, with the Pentagon seeking a prototype within a year of contract award and initial fielding as early as 2029. (Air & Space Forces Magazine)

U.S. Air Force Awards $2.38B Contract to Boeing for 22 F-15EX
Sept. 30, 2026 - The U.S. Air Force awarded Boeing a $2.38 billion contract for 22 F-15EX Eagle II aircraft under Lot 7, using 2026 budget and reconciliation funds to maintain procurement before the fiscal year deadline. The award accounts for 2025 production disruptions and inflation, and brings Boeing’s total F-15EX orders across Lots 1–7 to 120 aircraft. The F-15EX is a multirole heavy fighter designed to replace aging F-15C/D aircraft and features upgraded avionics, digital architecture and enhanced survivability capabilities. (Defense News)

U.S. Navy Selects Boeing to Build Next-Generation F/A-XX Fighter
Sept. 29, 2026 - Boeing was selected to develop the U.S. Navy’s sixth-generation F/A-XX carrier-based fighter under a $20 billion full-scale development contract covering multiple test aircraft and weapons integration. The aircraft is designed for extended range, carrier-based power projection and interoperability with manned and unmanned platforms, including Collaborative Combat Aircraft, and is expected to replace the Navy’s F/A-18E/F Super Hornets and EA-18G Growlers beginning in the 2030s. The award follows Boeing’s 2025 selection to develop the Air Force’s F-47 sixth-generation fighter, giving the company contracts for the next-generation fighter programs across both services. (Defense News)

Voyager Technologies Shares Rise 6% After Anduril Partnership Announcement
Sept. 29, 2026 - Voyager Technologies announced a strategic partnership with Anduril Industries covering the development and production of weapons systems and missile defense technologies, formalizing existing collaboration across multiple Department of Defense priority programs. Voyager is contracted to provide more than $60 million of solid rocket motors, divert and attitude control systems and other components, while the companies plan to establish a pipeline for additional programs and expand manufacturing capacity. Anduril is building a 1.18 million-square-foot production campus in Long Beach, California, while Voyager is developing its American Defense Complex in Pueblo, Colorado, which could eventually support production of 15,000–20,000 propulsion systems per month. (Yahoo Finance)

Pentagon Awards RTX’s Raytheon $26.4B Contract for AMRAAM Missiles Amid Stockpile Concerns
Sept. 29, 2026 - The Pentagon awarded RTX’s Raytheon a provisional $20.7 billion multiyear contract to accelerate production of AMRAAM missiles and replenish U.S. stockpiles depleted by conflicts in the Middle East and Ukraine. The deal follows a similar $58.6 billion Patriot interceptor contract with Lockheed Martin and is intended to encourage contractors to expand production, although Congress must still appropriate funding for the full commitment. RTX nearly doubled AMRAAM production in 2025 and plans to produce at least 1,900 missiles annually as part of the Pentagon’s broader “Arsenal of Freedom” initiative. (The Straits Times)

AAR to Buy Majority Stake in Aircraft Maintenance Firm MRO Holdings for $1.8B
Sept. 28, 2026 - AAR will acquire a 65% controlling interest in aircraft maintenance company MRO Holdings for approximately $1.8 billion, expanding its global maintenance, repair and overhaul (MRO) capacity. MRO Holdings operates facilities across the U.S., Mexico, El Salvador and Colombia, and the combined businesses are expected to service nearly 3,000 aircraft annually. AAR plans to fund the transaction with new debt, approximately $780 million in equity issued to MRO Holdings shareholders and proceeds from a PIPE offering, with closing expected in fiscal Q3 2027 pending regulatory approvals. (Reuters)

Rolls-Royce to Invest $398M in U.K. Manufacturing
Sept. 28, 2026 - Rolls-Royce will invest £300 million ($398 million) to expand and upgrade its aerospace and defense manufacturing and engineering facilities across the UK. More than £140 million will be invested in Derby for civil aerospace operations, while over £150 million will support defense facilities in Bristol, Inchinnan, Rotherham and Ansty. The investment follows more than £3 billion of UK investment since 2023 and will expand manufacturing capacity, support skilled jobs and strengthen the company’s UK supply chain. (Reuters)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	MRO Holdings AAR	$4,000.0	4.0x	14.0x	Irving, TX	MRO & Logistics
2	Forecemetrics Mark43	-	-	-	Denver, CO	Government Services, IT Services and Software
3	Omega Optical [Artemis Capital] Optikos [Artemis Capital]	-	-	-	Brattleboro, VT	Components & Subsystems
4	SoundThinking Transom Capital	$159.0	1.6x	-	Fremont, CA	Government Services, IT Services and Software
5	Spectrum Control [AEA Investors] Greenbriar Equity	$1,800.0	-	-	Fairview, PA	Defense Electronics
6	Airglas McFarlane Aviation [TransDigm]	-	-	-	Anchorage, AK	Components & Subsystems
7	Karob Instrument EMT Metals	-	-	-	Ocala, FL	Machined & Cast Parts
8	Action Manufacturing Ignium [Albion River]	-	-	-	Bristol, PA	Specialty Defense Systems and Services
9	Technology Service Corporation Falcata [Blackstone]	-	-	-	Arlington, VA	Sensors & C4ISR
10	Applied Systems Engineering Falcata [Blackstone]	-	-	-	Niceville, FL	Controls & Systems
11	Sepang Aircraft Engineering [Airbus] Malaysia Aviation Group	-	-	-	Sepang, Malaysia	MRO & Logistics
12	Aero-Mach Companies Ontic [CVC Capital]	-	-	-	Wichita, KS	MRO & Logistics
13	Precision Tool RTI Machine	-	-	-	Oil City, PA	Machined & Cast Parts
14	Popoto Modem Anduril	-	-	-	Sandwich, MA	Navy/Maritime

No.	Target Descriptions
1	MRO Holdings provides heavy airframe maintenance, modification, conversion, and technical services for commercial aircraft operators across Airbus, Boeing, Embraer, Bombardier, and McDonnell Douglas platforms. The company supports aircraft including the A320neo, 737, 757, E190 and other narrow- and wide-body fleets, with additional passenger-to-freighter conversion capabilities for 737 and 757 aircraft.
2	Forcemetrics is a developer of public-safety data and artificial intelligence software solutions for private sector and U.S. federal government markets. The company's cloud-based data analytics, search, visualization, and decision-assistance capabilities consolidate information from computer-aided dispatch (CAD), records management systems (RMS), jail management systems (JMS), social-service systems, and other public-safety databases.
3	Omega Optical is a designer and manufacturer of precision optical filters and coatings for mission-critical optical applications. The company's filter products are designed and fabricated to control the passage of light and enable a broad range of applications, including flow cytometry, fluorescence microscopy, spectroscopy, LiDAR, machine vision, and satellite imaging.
4	SoundThinking, Inc. is a provider of technology solutions for public safety applications. The company offers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals.
5	Spectrum Control designs, develops, and manufactures electronic systems and subsystems for high-reliability defense, aerospace, industrial, and commercial applications. The company's core defense market focus is developing filtering solutions for all segments of electronic warfare (EW), such as signal intelligence and gathering and radar. In the commercial market, the company concentrates on the communications market, as well as industrial sensing and manufacturing.
6	Airglas designs and manufactures aircraft landing skis, cargo and fuel pods, nose forks, and related equipment for fixed-wing, rotorcraft, and military platforms. The company specializes in rugged aircraft products designed to extend operations into snow, soft terrain, and other remote environments.
7	Karob Instrument manufactures precision machined components for aerospace and other demanding industrial applications. The company specializes in CNC turning, milling up to 5-axis, hardware installation, assembly, and specialized fulfillment across short-run and higher-volume production.
8	Action Manufacturing designs and manufactures precision ordnance, fuzing, and energetic devices for rocket, missile, artillery, mortar, and other defense applications. The company supports programs from research and development through prototype and production with vertically integrated manufacturing, assembly, and testing capabilities.
9	TSC is a developer of advanced sensors, RF electronics, precision-weapons subsystems, radar, electronic warfare systems, and airborne ISR platforms for private sector and U.S. federal government defense and special operations markets. The company supports programs spanning precision strike, air and missile defense, radar, electronic warfare, airborne ISR, maritime domain awareness, and space systems, with technical capabilities extending from advanced concept development and prototyping through production, fielding, and sustainment.
10	ASEI develops and manufactures GPS/INS navigation systems, flight-control computers, weapon-system electronics, and precision guidance technologies for private sector and U.S. federal government markets. Additionally, the company provides systems engineering, integration, testing, and software development.
11	Sepang Aircraft Engineering provides maintenance, repair, overhaul, and modification services primarily for Airbus A320 and A321 family aircraft. The company supports operators with base and line maintenance, major repairs, cabin modifications, component services, engineering support, lease returns, and AOG services.
12	Aero-Mach provides aerospace manufacturing, aircraft instrument MRO, parts distribution, and engineering support for OEMs, operators, and maintenance providers. The company specializes in low-volume aviation components, instrument and fuel system repair, static dischargers, electrical and braking parts, and sustaining engineering across commercial and military aircraft platforms.
13	RTI Machine provides precision contract manufacturing services for aerospace, defense, energy, and industrial applications, specializing in CNC machining, fabrication, welding, assembly, and large-format components. The company also manufactures its proprietary TMCO Tools line of standard and custom machining tools and supports turnkey component and subassembly production.
14	Popoto Modem designs and manufactures underwater acoustic modems and communication systems for subsea autonomous, defense, and marine applications. The company offers integrated acoustic modems, OEM board sets, and subsea recording technologies enabling resilient underwater data transmission and networking.