Defense Budgets & Spending News

Breaking Defense

Air Force weighs slowing B-52 retirement after California fatal crash derails radar upgrade program

A B-52 radar modernization effort tied to aging, Eisenhower-era bombers suffered a fatal setback after a crash in California. The Air Force is now considering whether to delay retirement of the B-52 fleet, signaling uncertainty around the upgrade-to-service timeline.

Breaking Defense

PACAF to rebalance exercise schedule to protect “readiness” amid heightened global commitments

U.S. Pacific Air Forces (PACAF) is reevaluating its upcoming exercise schedule to preserve readiness as the region’s responsibilities expand, including increased commitments linked to the Middle East, according to the four-star general overseeing PACAF.

CNBC

High activity

Boeing logs record $715B backlog while Air Force One VC-25B replacement costs balloon

Boeing reported a larger-than-expected Q2 loss, citing a $280 million charge tied to the troubled VC-25B Air Force One replacement. The company says it remains on track to deliver the first two modified B747-8(VC-25B) aircraft in 2028, even as it continues to pay out of pocket for cost overruns. Revenue rose to $24.6 billion, with free cash flow improving as turnaround plans gained momentum.

Breaking Defense

AIA chief Eric Fanning weighs the aerospace impact of Congress’ continuing resolution

Eric Fanning, chief of the Aerospace Industries Association, discusses how aerospace suppliers and manufacturers view Congress’ continuing resolution plans currently advancing through lawmakers. The comments focus on what a potential stopgap could mean for program stability, contracting timelines, and near-term planning for the defense and aerospace industrial base.

Aviation Week

USAF to restart B-52 radar testing after June crash; replacement test bomber targeted for end-2026 completion with AN/APQ-188

The U.S. Air Force says it remains on cost and schedule for B-52 modernization despite a June 15 crash of the first upgraded test bomber. Radar upgrade testing will resume using a second modified B-52, whose AN/APQ-188 AESA radar is being installed, with replacement-test-bomber work expected to be completed by end-2026 and late-2027 availability for the second platform.

Reuters

Nitro-Chem to expand TNT production in the UK via planned partnership with BAE Systems

Poland’s Nitro-Chem, a major supplier of trinitrotoluene (TNT) for NATO armies, has signed a letter of intent with BAE Systems to build a production plant in Britain. The Polish Defence Ministry said the move is aimed at expanding TNT manufacturing capacity for defense customers.

SpaceNews.com

Space Force awards Rocket Lab a record $266M multi-launch contract for up to 18 suborbital missile-defense missions from Alaska

The U.S. Space Force has awarded Rocket Lab a $266 million multi-launch contract for suborbital missile-defense testing under its Rocket Systems Launch Program. The deal covers 12 missions over three years, with an option for up to six additional launches, starting no earlier than late 2026 from a new launch pad at Kodiak, Alaska.

Axios

Defense deals take center stage at Farnborough industry gathering as spending focus shifts

A Farnborough-focused industry gathering underscored how defense deal activity is dominating the market picture, reflecting where budget and capital are being directed “based on the world right now and where the money’s being spent.” The emphasis signals prioritization of military programs over other aerospace segments in the current cycle.