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U.S. Defense Buildout Advances With New Phalanx Buy, Space Laser Order and Drone-Production JV

New awards signal a pivot to scaled production with a focus on sustainment.

Varda's W-3 capsule after landing in South Australia on May 13, 2025. Photo: Varda Space Industries
Nord Drone quadcopter. Photo: Ministry of Defence of Ukraine
Uncrewed autonomous air system by Skunk Works and FalconWorks – modular and adaptable for different missions. Image: Lockheed Martin and BAE Systems
Pictured is a March, 2023 photo of a Hill AFB, Utah radome that serves as a testing ground for FPS-117 upgrades. The photo shows the radome retrofit with "new and advanced composite waterproof exterior panels," the Air Force said (Photo on Hill AFB, Utah Website)

Overview

  • The Navy awarded RTX a $205 million contract modification to continue MK 15 Phalanx CIWS procurement and upgrades, with work running through January 2029 and performed primarily in the United States.
  • AeroVironment reported a nearly $240 million order from an undisclosed customer to deploy its space long‑haul laser communications terminals on orbit following successful operational demonstrations.
  • The U.S. Air Force outlined a plan to replace 27 AN/FPS‑117 radomes across the Alaska/North Warning System due to serious panel decay, targeting a contract award next May and a first replacement at Murphy Dome in May 2027.
  • AIRO Group and Ukraine’s Nord Drone Group said they plan a joint venture to expand UAS offerings and scale manufacturing in Ukraine, with Nord reporting production of nearly 4,000 drones per month.
  • Varda Space Industries, LeoLabs and Anduril demonstrated commercial tracking of Varda’s capsule maneuvers prior to hypersonic reentry, showcasing space domain awareness and early warning capabilities.