Breaking Defense
• Valerie Insinna
RTX CEO Chris Calio said defense executives remain confident in Pentagon spending prospects despite uncertainty over the mechanics and topline of the fiscal 2027 budget. In a July earnings call, Calio cited bipartisan congressional support for increased munitions funding as lawmakers consider future allocations.
Defense Budgets & Spending
Latest source-backed stories
RTX CEO Chris Calio said defense executives remain confident in Pentagon spending prospects despite uncertainty over the mechanics and topline of the fiscal 2027 budget. In a July earnings call, Calio cited bipartisan congressional support for increased munitions funding as lawmakers consider future allocations.
Australia’s new 10-year defense technology strategy identifies the MQ-28 Ghost Bat, hypersonic weapons, high-energy lasers, artificial intelligence and quantum systems as national priorities. The plan signals where Canberra intends to concentrate defense technology development and capability investment over the coming decade.
The Government Accountability Office warns that the U.S. Air Force’s effort to modernize the B-52 Stratofortress has become a roughly $21 billion program facing cost growth and schedule risks, raising questions about execution of the bomber’s long-term upgrade plan.
Gen. Greg Gagnon, head of Space Force Combat Forces Command, said key mission areas face a serious shortage of simulators needed to train Guardians. The new $981 million procurement pool is intended to expand access to training capabilities across the service.
MTU Aero Engines CEO Johannes Bussmann cautioned that differing French and German fighter aircraft requirements could put at risk the company’s engine partnership with Safran, following the collapse of the Future Combat Air System (FCAS) program.
High activity
Farnborough coverage underscored Europe’s widening defense commitments: the UK allocated £8.6 billion to GCAP and released £8.4 billion in existing Dreadnought submarine funding, while the EU approved €3.47 billion for Ukrainian military hardware. New autonomous aircraft and sovereign-production plans highlighted the industrial implications.
High activity
Ukraine says its F-16s have destroyed more than 2,500 one-way attack drones, but repeated interceptions are wearing down the small fleet. The EU has disbursed €3.47 billion ($4 billion) to fund additional drones, air-defence missiles and Swedish-made Gripen fighter jets, amid renewed Russian missile and drone attacks that killed nine, including children. NATO is also investigating a reported Russian missile hit into Polish airspace.
High activity
Rolls-Royce says it has “effectively eliminated” aircraft-on-ground events over the first half by rolling out Trent 1000 and 7000 engine durability improvements, alongside continued transformation progress. Separately, BAE Systems raised full-year targets as defense spending booms, with CEO Charles Woodburn warning against adding GCAP partners if it slows the program.
Create a free account to see more recent Defense Budgets & Spending stories and keep bookmarks in one place.
