BAE Systems, Kongsberg Expand Partnership into Air Domain
BAE Systems and Kongsberg have expanded their partnership to include the Air domain, following a July 2025 MoU. Building on a May agreement centred on maritime collaboration, the new deal targets joint opportunities in training, uncrewed systems, mission support, and defence R&D.
The partnership aims to enhance UK–Norway defence ties and support NATO-aligned capabilities.
UK Opens £130M Tender for Watchkeeper Replacement
The MoD has launched Project Corvus, a £130m programme to replace the Army’s Watchkeeper drones with a next-generation UAS providing 24/7 surveillance, real-time ISTAR, and operation in contested and GNSS-denied environments.
Set to start in May 2026, the five-year contract will require live flight demonstrations and is a key test of the UK’s new defence procurement process.
UK Plans Carrier-Capable Combat Drones
The Ministry of Defence is developing the next phase of its Autonomous Collaborative Platform programme, seeking stealth drones able to operate with advanced combat aircraft and from Royal Navy carriers.
The £20m effort, running to 2029, will build on the RAF’s Storm Shroud Mk1 to deliver uncrewed systems for electronic warfare, surveillance, and strike missions within the UK’s future air combat fleet.
MoD Awards £12M Fire Suppression Contract to RBSL
The UK MoD has awarded Rheinmetall BAE Systems Land a £12m contract to repair and overhaul fire suppression systems on key Army vehicles, including Challenger 2, Warrior, and Trojan.
Work at RBSL’s Telford site will maintain operational readiness and crew safety, leveraging the firm’s exclusive UK rights to the systems’ technical data.
Serco Secures 4-Year MoD Radar Support Deal
Serco has been awarded a four-year UK MoD contract to maintain BAE Systems T102, and Hensoldt MSSR 2000 I radars at Remote Radar Head Portreath, Cornwall. The deal covers maintenance of radar and air traffic systems, enhancing surveillance of the UK’s southwestern approaches.
The award expands Serco’s long-standing RAF radar support portfolio and reinforces UK and NATO air defence amid rising security threats.
Leonardo to Acquire Sweden’s Axiomatics
Leonardo will acquire Stockholm-based Axiomatics, a specialist in Zero Trust and Attribute-Based Access Control for defence, public sector, and critical infrastructure. The move, pending Swedish regulatory approval, expands Leonardo’s European cybersecurity portfolio and follows recent investments in SSH Communications Security, Canary Bit, and a partnership with Arbit.
The acquisition will strengthen Leonardo’s Global Cybersecurity Platform and support Europe’s digital autonomy.
BAE Systems Lifts 2025 Outlook After Strong H1
BAE Systems posted H1 2025 sales of £14.6bn (+11%) and underlying EBIT of £1.55bn (+13%), lifting full-year sales and profit guidance. EPS rose 12% to 34.7p, with £13.2bn in new orders and a £75.4bn backlog.
Key wins included a £1bn GCAP contract, a $1.2bn US Space Force deal, and the 500th AMPV delivery. Major investments in UK and US facilities aim to boost capacity. An interim dividend of 13.5p was declared, with 2025 sales now forecast to grow 8–10% and EBIT 9–11%.
Airbus Reports €29.6bn H1 Revenue, Reaffirms 2025 Targets
Airbus posted H1 2025 revenue of €29.6bn (+3%) and EBIT Adjusted of €2.2bn, with net income at €1.53bn. Deliveries fell to 306 aircraft due to engine supply delays, though net orders rose to 402, keeping the backlog at 8,754.
Helicopters and Defence & Space saw double-digit growth, offsetting lower commercial deliveries. Airbus maintained 2025 guidance of ~820 deliveries, €7bn EBIT Adjusted, and €4.5bn free cash flow before customer financing.
UK Invests £30M in Glasgow Tech and AI Growth
The UK Government will invest at least £30 million in the Glasgow City Region through the £500m Local Innovation Partnerships Fund to boost AI, life sciences, and advanced technology.
Starting April 2026, local authorities, businesses, and UK Research and Innovation will set priorities to drive innovation, jobs, and economic growth. Glasgow is one of three non-English regions to receive the funding, building on schemes that have already attracted £140m in private investment and created hundreds of jobs.
Element Commits to Armed Forces Covenant
Element Materials Technology has signed the UK Armed Forces Covenant, pledging support for veterans, reservists, and military families through flexible work policies, targeted training, and a supportive culture.
With 1,800 UK staff and close ties to Defence Equipment and Support, Element will launch a veterans’ policy, expand integration initiatives, and back Armed Forces charities, reinforcing its role in strengthening national defence.
WCS and ITA Partner on Aerospace Composite Repairs
Worldwide Composite Services (WCS) and Inter-Tec Aero (ITA) have teamed up to offer certified, cost-effective composite repair and modification solutions.
Combining WCS’s EASA/FAA-approved repair expertise with ITA’s Part 21J design and certification, the partnership will provide faster alternatives to OEM repairs for components such as slats, flaps, and thrust reversers.
Chess Dynamics Launches CHARM150AGX Edge Processor
Chess Dynamics has introduced the CHARM150AGX, a rugged video module powered by NVIDIA Jetson AGX Orin.
Offering twice the processing power of the CHARM100NX, it supports dual-sensor inputs, multisensory fusion, and real-time analytics for defence, surveillance, and autonomous systems.
UK Launches Defence Esports Games
The UK Ministry of Defence and British Esports Federation are launching the International Defence Esports Games (IDEG) to enhance digital, cyber, AI, and drone operation skills in the Armed Forces.
Initially open to service members and reservists, IDEG will expand to cadets, veterans, and defence industry staff, with finals set for late 2026. Backed by BAE Systems, the initiative builds on lessons from Ukraine and complements new MOD schemes to fast-track cyber specialist recruitment.
Germany’s Alpine Eagle Expands to UK
Munich-based anti-drone startup Alpine Eagle is opening a UK base and appointing former Royal Navy engineer Michael Golden as UK Head. Its airborne Sentinel system, already used by the German military, targets hostile drones from the air.
Backed by £9m in seed funding, the firm plans local manufacturing, R&D, and exports, following its role in the UK MoD’s Project Vanaheim and amid closer UK-German defence cooperation.
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