A&D Weekly News & Transactions - Week 25

Industry Headline News

Boeing Requests Engine Proposals for Future Single-Aisle Jet
June 21, 2025 - Boeing has issued a request for proposals to engine manufacturers for a new powerplant to equip its forthcoming single-aisle aircraft, intended to succeed the 737. The company aims to achieve a 20% improvement in fuel efficiency over current models, with a projected entry into service around 2035. This initiative aligns with Boeing's strategy to develop a new jet that offers at least 20-30% better cost performance than existing aircraft. (Simpleflying)

Raytheon Secures Nearly $1.2 Billion in U.S. Navy Air-Defense Radar Contracts
June 20, 2025 - Raytheon Technologies has been awarded two contracts totaling approximately $1.2 billion to provide AN/SPY-6(V) Air and Missile Defense Radars (AMDR) for U.S. Navy surface warships. The $646.5 million contract announced on June 6, 2025, follows a $536.8 million contract awarded on May 30, 2025, both aimed at enhancing the capabilities of Flight III Arleigh Burke-class destroyers. The AMDR offers 30 times the sensitivity of the legacy SPY-1D(V) radar, with scalable modular assemblies that can be adapted for various ship classes, including aircraft carriers and amphibious assault ships. (Military Aerospace)

Drone Manufacturers Vie for Air Supremacy with ‘Wingman’ UCAVs at Paris Air Show
June 19, 2025 - At the 55th Paris Air Show, defense contractors like Anduril and General Atomics, alongside European firms, showcased cutting edge “wingman” uncrewed combat aircraft (UCAVs) designed to operate with manned fighters, under the U.S. Air Force Collaborative Combat Aircraft (CCA) program. Anduril unveiled its 17 ft Fury (YFQ 44), slated for 2027 production backed by a $2.5 billion investment in an Ohio manufacturing facility, while General Atomics displayed its fighter like YFQ 42A. (Reuters)

Michael Guetlein Nominated to Lead Space Force's Golden Dome Missile Defense Program
June 19, 2025 - President Donald Trump has officially nominated General Michael Guetlein, Vice Chief of Space Operations for the U.S. Space Force, to serve as the direct reporting program manager for the Golden Dome initiative. This ambitious project aims to establish a global space-based missile defense system, drawing inspiration from Israel's Iron Dome, with an estimated cost of $175 billion. Guetlein, a seasoned officer with over three decades of experience in defense, engineering, and acquisition, previously commanded the Space Systems Command and has held significant roles in missile warning and counterspace programs. (ExecutiveGov)

RTX Strengthens European Defense Ties Amid Sovereignty Push
June 19, 2025 - Raytheon, under its parent company RTX, is intensifying its European presence, highlighting its 24,000-strong workforce and expanding partnerships in response to the EU's ReArm Europe initiative, which aims to bolster local defense manufacturing and reduce reliance on external suppliers. At the Paris Air Show, Raytheon announced a decade-long extension of its collaboration with Norway's Kongsberg to produce the NASAMS air-defense system, emphasizing the integration of Norwegian and European suppliers in the development of the GhostEye radar. Additionally, Raytheon signed a memorandum of understanding with Germany's Diehl Defence to co-produce the Stinger short-range anti-air missile, aiming to increase production by 50% by the end of 2026 to meet heightened demand, particularly from Ukraine. (Defense News)

Eaton to Acquire UK's Ultra PCS for US$1.55 Billion
June 18, 2025 - Eaton has signed an agreement to acquire Ultra PCS Limited from the Cobham Ultra Group in a US$1.55 billion deal aimed at boosting its aerospace offering. The acquisition aligns with Eaton's strategy to expand its presence in the aerospace sector and enhance its capabilities in power management solutions. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions. (AviTrader)

Lockheed Martin Confirms New Italian F-35 Order and Ongoing Talks with European Countries
June 18, 2025 - At the 2025 Paris Air Show, Lockheed Martin announced that Italy has expanded its F-35 procurement by 25 aircraft—15 F-35A and 10 F-35B—bringing its total order to 115 units. The company also confirmed ongoing discussions with Austria, Spain, and Portugal regarding future acquisitions, with Austria considering the F-35 as a potential replacement for its Eurofighter fleet. Additionally, Lockheed highlighted the increasing European involvement in F-35 production, noting that components are being manufactured by companies in Germany, Finland, and Belgium, and final assembly is conducted at the Cameri facility in Italy. (Defence Industry Europe)

U.S. Navy Awards $1.1B Contract to RTX for 2,500 AIM 9X Block II Missiles
June 18, 2025 - The U.S. Navy has awarded RTX’s Raytheon a $1.1 billion contract to manufacture 2,500 AIM 9X Block II air to air missiles annually, marking the largest production award to date for the program. This contract modification extends current production, adding 1,756 AIM 9X 4 Block II missiles (492 Navy, 456 Air Force, 808 FMS) and 242 AIM 9X 5 Block II+ variants for foreign military sales, along with support kits, spare parts and containers. The AIM 9X is a battle-tested, infrared tracking missile deployable from both air and ground platforms—including NASAMS—and is used by over 30 allied nations under a U.S. Navy-led joint program with the Air Force. (Zona Militar)

Embraer Secures $3.6B SkyWest Order for 60 E175 Jets Plus Defense KC 390 Gains at Paris Air Show
June 18, 2025 - Embraer announced a firm $3.6 billion deal with SkyWest Airlines for 60 E175 regional jets—with options for 50 more—strengthening its North American presence. The Brazilian manufacturer also revealed a lease agreement for 10 E195 E2 jets through South Africa’s Airlink and Azorra, while defense contracts include Lithuania selecting three KC 390 Millennium transports and Portugal adding a sixth unit plus NATO-compatible aeromedical kits. (AeroTime)

Honeywell Plans to Split into Three Public Companies by Late 2026
June 17, 2025 - Honeywell has unveiled a plan to carve itself into three standalone publicly listed entities—Aerospace Technologies, Automation, and Advanced Materials—in a move designed to sharpen strategic focus and unlock shareholder value. The Aerospace unit, generating around $15 billion in 2024, will become a pure-play aviation tech supplier; Automation, with $18 billion revenue, will concentrate on industrial and building systems; and the Advanced Materials segment, with nearly $4 billion revenue, will operate independently following its earlier announced spin off. (AINonline)

ANA Holdings Finalizes Firm Order for 24 A321neo and 3 A321XLR Jets
June 16, 2025 - ANA Holdings (ANAHD) has signed a firm agreement with Airbus for 27 aircraft—24 A321neo and three A321XLR—with the order announced during the 2025 Paris Air Show by ANAHD CEO Koji Shibata and Airbus EVP Benoît de Saint-Exupéry. The split includes 14 A321neo for ANA and 10 A321neo plus three A321XLR for its low-cost carrier Peach Aviation, making Peach the first Japanese airline to operate the long-range A321XLR, capable of flying up to 4,700 nm/8,700 km non-stop. (Airbus)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Ultra PCS [Advent International] Eaton	$1,550.0	6.5x	-	Cheltenham, United Kingdom	Components & Subsystems
2	Explosive Hazard Detection business of Chemring Group [Chemring Group] ELTA North America [IAI]	-	-	-	Charlotte, NC	Specialty Defense Systems and Services
3	ScioTeq [OpenGate Capital] Tikehau Capital	-	-	-	Kortrijk, Belgium	Defense Electronics
4	Air Transport Components [Holder Family Investments] AE Industrial	-	-	-	Gilbert, AZ	MRO & Logistics
5	N3bula Systems Raft	-	-	-	Colorado Springs, CO	Cybersecurity, Intelligence Services and Homeland Defense
6	Sonatech Kongsberg	-	-	-	Santa Barbara, CA	Navy/Maritime
7	FS Precision Tech Signicast [Ares Management]	-	-	-	Rancho Dominguez, CA	Machined & Cast Parts
8	Lauak Group Wipro Infrastructure Engineering [Wipro Enterprises]	-	-	-	Hasparren, France	Machined & Cast Parts
9	TISA Aerospace Zen Technologies	$1.4	6.7x	-	Kanpur, India	Unmanned Vehicles

No.	Target Descriptions
1	Ultra PCS is a provider of high integrity control products for aerospace, military vehicle and soldier applications. The company supports military and civil aerospace customers by providing electronic, electro-mechanical and pneumatic solutions for safety critical and high integrity applications.
2	The Explosive Haxard Detection business of Chemring Group is a provider and systems integrator of advanced point and stand-off chemical threat detection systems as well as combat proven C-IED and mine detection systems for private sector and U.S. federal government defense markets. The business provides full life-cycle product development, production, and support for multiple threat detection systems, with lifecycle support from system design through logistics support.
3	ScioTeq is a provider of avionics displays and high performance software solutions for private sector, international government, and U.S. federal government aerospace and defense markets. The company provides enhanced situational awareness solutions for naval, land army, mobile and fixed shelter based C4ISR.
4	Air Transport Components is a Federal Aviation Administration (FAA) licensed repair shop which overhauls, repairs, and evaluates components and accessories found on both commercial and military air transport aircraft. The company operates a repair station within the U.S air transport maintenance, repair, and overhaul (MRO) industry. ATC specializes in the repair and overhaul of critical aerospace components such as engine mounts, landing gear, hydraulics, airframe and structures, tracks, flight controls, electrical components, and avionics.
5	N3Bula is a developer of systems architecture, infrastructure, and platform as code (PaC) solutions to private sector and U.S. federal government defense and intelligence markets. N3Bula's solutions seamlessly connect sensors, shooters, and weapons systems across services and domains.
6	Sonatech is an undersea acoustics engineering and manufacturing company serving the private sectors and the U.S. federal government. The company is ISO 9001:2015 certified for the design and manufacture of customized sonar and navigation subsystems for U.S. Navy underwater acoustic projects and programs.
7	FS Precision Tech is a manufacturer of precision investment castings specializing in high-performance titanium and zirconium components for aerospace, defense, and industrial applications. The company offers turnkey solutions, including machining, heat treatment, and non-destructive testing, with expertise in thin-wall geometries and proprietary alloys that meet stringent industry standards.
8	Lauak Group specializes in sheet metal fabrication, precision machining, welding, composite work, piping, and structural assemblies for primary aircraft components and engine parts. The company supports major OEMs with vertically integrated production capabilities and expertise across both metallic and composite aerostructures.
9	TISA Aerospace is a developer of advanced loitering munitions and unmanned aerial vehicles (UAVs), building Indigenous systems for precision strike and long-endurance surveillance missions. The company focuses on empowering defense capabilities through in-house design, development, and production of mission‑critical UAV technology.