MoD Awards £125M Armoured Track Contract to CDS
The UK MoD has awarded a £125 million contract to Cook Defence Systems for supplying heavy armoured vehicle tracks over two years, with a one-year extension option.
As the sole UK manufacturer and design authority, CDS was directly awarded the deal to ensure compatibility and avoid operational risks. The contract supports key British Army platforms like Challenger, Warrior, and Ajax.
Airtanker Wins £170M RAF Voyager Upgrade Contract
The UK MoD has awarded a £170M contract to Airtanker to upgrade RAF Voyager aircraft under the VOSE programme. The project will address system obsolescence and integrate secure comms systems (MIDS/JTRS) across 10–14 aircraft.
Airtanker, the only certified provider under MAOS, will handle design, installation, and support at RAF Brize Norton. The upgrade ensures continued air-to-air refuelling and strategic transport capability for the RAF.
Leonardo Wins £14.6M Merlin Upgrade Study
Leonardo has secured a £14.6M MoD contract to assess upgrades for the Royal Navy’s Merlin Mk4/4A helicopters, aiming to extend their service into the 2040s. The study, part of the OSDEP programme, will be conducted at Leonardo’s Yeovil site and will address airframe ageing and systems obsolescence.
The sole-source award reflects Leonardo’s unique technical expertise in supporting the UK’s rotary-wing capability.
Babcock Sees Strong Growth Amid Defence Demand
Babcock reported a 10% rise in revenue to £4.83bn for FY25, with underlying operating profit up 53% to £363m and margins improving to 7.5%. Driven by strong performance in its Nuclear and Land divisions, the company cut net debt to £101m and increased its annual dividend by 30% to 6.5p per share.
With a £10.4bn contract backlog and solid cash flow, Babcock also announced a £200m share buyback for FY26. CEO David Lockwood cited growing global defence investment as a key driver, positioning Babcock for continued profitable growth.
Serco Posts £2.4bn Revenue, Appoints New Chair
Serco reported £2.4bn in H1 2025 revenue, up 2%, driven by defence contracts and a 5.9% profit margin. It secured £3bn in new deals and completed its acquisition of Northrop Grumman’s MT&S unit.
Keith Williams, Chair of Halfords, will succeed John Rishton as Serco Chair in January 2026. CEO Anthony Kirby praised Rishton’s leadership and said Serco is well positioned for continued growth.
CAA, Army Align Training for Civil Aviation Careers
The UK Civil Aviation Authority and REME Aviation have signed a deal enabling military engineers to convert their skills into civil Aircraft Maintenance Licences.
The agreement aligns Army training with industry standards, easing career transitions and recognising the high-level expertise of REME personnel.
Leaders from both sides praised the move as a boost to defence-industry ties and a step toward broader career pathways, including a potential REME Aviation Reserve.
UK MoD Orders Avon Respirators for Ukraine
The UK Ministry of Defence has awarded Avon Protection a £10.2 million contract to supply FM50 respirators to support Ukrainian armed forces. The FM50, widely used by NATO forces, offers full-face protection against CBRN threats with low breathing resistance for comfort in high-risk environments.
Jos Sclater, CEO of Avon Technologies, said the deal highlights Avon’s role in UK and allied defence resilience. President Steve Elwell added that this latest order continues a long-standing trust in Avon’s protective gear and extends vital protection to Ukrainian personnel on the front line.
UK to Buy 12 F-35A Jets, Joins NATO Nuclear Mission
The UK will buy 12 F-35A fighters to join NATO’s nuclear-capable aircraft programme, reviving the RAF’s nuclear role for the first time since the Cold War.
The move supports 20,000 UK jobs and offers cost savings over the F-35B variant. The jets will carry US-owned B61 bombs under NATO’s dual-key system.
While strengthening NATO’s deterrence, the shift to a split fleet may complicate logistics and deepen reliance on US systems.
Kraken Secures NATO-Backed Funding to Expand USV Capabilities
UK firm Kraken Technology Group has secured funding from the NATO Innovation Fund, the UK’s National Security Strategic Investment Fund, and VC firm Super Angel to expand production of its modular uncrewed surface vessels (USVs).
The investment supports R&D, manufacturing, and global scaling from Kraken’s Hampshire base. Its K3 SCOUT, K4 MANTA, and K5 KRAKEN platforms enhance naval capabilities at lower cost and risk, already in use with NATO forces.
The backing reflects growing demand for scalable maritime systems amid rising global tensions and undersea threats.
Supacat & ISTEC Partner on Asia-Pacific Defence Solutions
Supacat Asia Pacific has formed a strategic alliance with UK-based ISTEC Services to enhance integrated defence solutions in the Asia-Pacific region. The partnership combines Supacat’s high-mobility vehicle expertise with ISTEC’s weapon integration capabilities for land, sea, and air platforms.
With a long-standing history supporting Supacat’s UK Jackal fleet, ISTEC now brings its proven systems to regional operations. The alliance aims to deliver more comprehensive solutions for military and security customers, expanding both companies’ reach and technical capabilities.
UK Launches 10-Year Industrial Strategy to Boost Manufacturing
The UK has launched a 10-year Industrial Strategy to double investment in advanced manufacturing and support growth in key sectors like aerospace, AI, and automotive. Backed by major business groups, the plan aims to cut energy costs, fix skills shortages, and attract global investment.
The announcement follows a UK-US trade deal removing tariffs on aerospace goods, benefiting firms like Rolls-Royce and enhancing the UK’s global competitiveness.
Edgewing to Lead Global Combat Air Programme
BAE Systems, Leonardo, and Japan’s JAIEC have launched Edgewing, a joint venture to develop the next-generation fighter under the Global Combat Air Programme (GCAP). Headquartered in the UK, Edgewing will lead design and development, aiming for service entry by 2035 and operations beyond 2070.
Marco Zoff, former Leonardo Aircraft MD, will serve as CEO. The venture marks a new standard in UK–Italy–Japan defence collaboration, strengthening supply chains and advancing sovereign air combat capabilities.
BAE Systems Opens Submarine Engineering Hub in Coventry
BAE Systems has opened a new engineering hub in Coventry to support the UK’s submarine programmes, creating 150 jobs. The site will aid development of the Astute, Dreadnought, and SSN-AUKUS classes and support in-service vessels.
Located at Ansty Park, the hub will draw on Midland’s engineering talent and work closely with the Manufacturing Technology Centre. It reflects BAE’s commitment to expanding national capability and aligns with the UK’s Strategic Defence Review.
DSEI UK 2025: Advancing Global Defence Partnership
DSEI UK 2025 will return as the UK’s leading defence and security event, uniting global industry leaders, government officials, and military stakeholders. As a key platform for the UK’s defence agenda, the event fosters international cooperation and highlights British leadership in defence innovation.
Renowned for connecting top defence organisations, DSEI enables strategic partnerships, procurement dialogue, and showcases advanced technologies. The 2025 edition will drive critical collaboration shaping the future of global defence.