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A&D Weekly News & Transactions - Week 26

Industry Headline News

Army Seeks $197 Billion FY26 Budget with Transformation Plan at Center
June 27, 2025 - The U.S. Army has requested a $192 billion base budget for FY 2026, supplementing it with $5.4 billion in proposed congressional funding—bringing the total to $197.4 billion, a 7% increase over FY 2025. The plan centers on an “Army Transformation Initiative” involving major command consolidations, divesting $4.9 billion worth of legacy platforms (e.g., Humvees, Paladin IMs, Gray Eagle UAS), and redirecting funds toward modernization priorities like accelerated procurement of M-SHORAD ($729 million), LTAMDS radar ($1.3 billion), Future Long-Range Assault Aircraft ($1.2 billion), M1E3 Abrams design ($723.5 million), and an agile UAS/Counter-UAS/EW program totaling $1.7 billion. The budget also includes $1.1 billion for upgrading industrial and ammunition production facilities across key plants. (Defense News)

June 26, 2025 - The DoD has unveiled President Trump’s FY 2026 defense request at approximately $1.01 trillion—a 13.4% increase over FY 2025—comprised of $848.3 billion in discretionary funding and $113.3 billion through mandatory reconciliation. The budget allocates $197.4 billion for the Army, $292.2 billion for the Navy, $301.1 billion for the Air Force (including a 30% boost to Space Force funding totaling $40 billion), and $170.9 billion for defense-wide programs. It prioritizes missile defense (including $25 billion for Golden Dome), nuclear modernization ($60 billion), procurement of F-15EX ($3.1 billion) and the F-47 NGAD ($3.5 billion), hypersonic and conventional munitions, cyber and industrial base enhancements, while trimming F-35 purchases from 74 to 47 and canceling the E-7 Wedgetail program. (Department of Defense)

June 25, 2025 - Taiwan’s China Airlines announced a $2 billion-plus deal to expand its fleet, acquiring five Airbus A350-900 long-haul jets and eight A321neo narrow-body aircraft. Five A321neos will be purchased from Air Leasing Corporation at $240 million, while the A350-900s carry a maximum price tag of $1.965 billion—though leasing options may lower that to $1.148 billion. The airline, which already operates 15 A350-900s and is awaiting its 18th A321, is delaying retirement of older planes due to Boeing 787-9 delivery delays. (Reuters)

Boeing to Redesign 737 MAX Door-Plug After Alaska Airlines Mid-Air Blowout
June 24, 2025 - Boeing and Spirit AeroSystems will redesign the door-plug on 737 MAX aircraft with a backup retention system after the NTSB found four missing bolts led to a panel blowout on Alaska Airlines Flight 1282. The incident caused rapid decompression at 14,830 ft, injuring eight onboard, and exposed manufacturing and FAA oversight failures at Boeing's Renton plant. The redesign—with retrofit plans by 2026—will be supplemented by enhanced quality inspections, improved workforce training, and stricter FAA audits. (The Seattle Times)

Embraer Seeks to Tap into India's Aviation Growth
June 24, 2025 - Embraer is intensifying its focus on India's expanding aviation market by establishing a fully owned subsidiary in New Delhi. The company is in discussions with IndiGo and Air India regarding the potential sale of its E-2 aircraft, which can seat up to 146 passengers. Embraer aims to strengthen its presence across commercial, business, and defense aviation sectors in India. (Aviation Week)

Second ULA Atlas V Launch Boosts Amazon Kuiper to 54 Satellites
June 23, 2025 - United Launch Alliance’s Atlas V 551 rocket on its KA-02 mission successfully deployed 27 more operational satellites for Amazon’s Project Kuiper, doubling the constellation to 54 in low Earth orbit. The spacecraft were released at approximately 280 miles (450 km) altitude from Cape Canaveral's SLC-41 at 6:54 a.m. EDT, then commanded from the mission operations center in Redmond before raising to their final 630 km orbital altitude. This adds to Amazon’s hardware buildup toward its 3,236-satellite broadband constellation, fulfilling part of a multi-provider launch strategy that includes contracts with ULA, Blue Origin, Arianespace and SpaceX. (Satellite Today)

Fred Smith, FedEx Founder and Parcel Industry Pioneer, Dies at 80
June 23, 2025 - Frederick W. Smith, the visionary founder of FedEx, passed away on June 21, 2025, at the age of 80 in Memphis, Tennessee. Smith revolutionized global logistics by introducing the hub-and-spoke model for overnight delivery, launching Federal Express in 1973 with 14 jets and 389 employees. Under his leadership, FedEx grew into an $87.7 billion enterprise with the world's largest air cargo fleet, moving over $2 trillion worth of goods annually. Smith retired as CEO in 2022 but continued to influence the company as Executive Chairman until his death. (Freight Waves)
Weekly Transaction Review
No. | Parties Involved | Transaction Metrics | Location | Segment | ||
Target [Parent] Acquirer [Parent] |
Price ($M) |
Price/ Revenue |
Price/ EBITDA |
Target | Target | |
1 | Spectris Advent International |
$5,930.0 | 4.6x | 18.5x | London, United Kingdom |
Test & Measurement |
2 | Digital Global Systems Casa Del Fuego Family Office & Trust |
$5,000.0 | - | - | Tyson, VA | Government Services, IT Services and Software |
3 | Support Air Broward Aviation Services |
- | - | - | Miamisburg, OH |
MRO & Logistics |
4 | ConvergePoint Ideagen |
- | - | - | Katy, TX | Government Services, IT Services and Software |
No. | Target Descriptions |
1 | Spectris is a manufacturer of precision instrumentation, measurement and testing, and sensors for private sector and international government aerospace, defense, and power generation markets. |
2 | Digital Global Systems is a developer of AI-powered spectrum optimization solutions for private sector and U.S. federal government defense, public safety, commercial wireless, and private network markets. The company's patented technology enables real-time RF Awareness, dynamic spectrum sharing, RAN automation, and interference mitigation. |
3 | Support Air is an MRO and logistics provider specializing in the global sourcing, inventory management, and AOG support for commercial aircraft, with expertise in supplying spares for Airbus and Boeing fleets. The company offers 24/7 parts support using its own inventory and a robust industry network for rapid response to operational needs. |
4 | ConvergePoint is a provider of Microsoft 365-based regulatory compliance management solutions for mid-size private sector and U.S. federal government energy. healthcare, and manufacturing markets. The company enables customers to efficiently manage policies and procedures, contracts, conflict of interest disclosures, safety and incident tracking and investigative case management. |
Selected Janes Capital Partners A&D Experience
