Defense Electronics, EW & Sensors

The United States, Denmark and Greenland have reached a landmark agreement that opens the way for the US to have a long-term security role in Greenland. Kobsak Pootrakool, Senior Executive Vice President of Bangkok Bank, or BBL, posted on Facebook under the name Kobsak Pootrakool, stating that Denmark and Greenland have granted the US the rights to use Greenland as the US wants, to serve as a key strategic point for building the Golden Dome and for controlling shipping through the emerging Arctic route. President Trump announced that this agreement gives the US permanent control over security and all other necessary matters in Greenland, at no cost to the US, and that countries hostile to the US will not be able to establish military bases, station troops, or invest in sensitive businesses in Greenland without explicit written approval from the US. Kobsak stated that this agreement is eternal, with no end date, and that the US will immediately begin the process of establishing a large military force in suitable areas of Greenland. He also viewed this as significant progress within the framework of the Donroe Doctrine, under which the US seeks to control key points around its neighborhood in North and South America, following Panama, Venezuela, Colombia and Greenland, with Cuba and Brazil remaining, awaiting the October 4 election.

Mercury Systems reported fourth quarter fiscal 2026 revenues of $289.8 million, up 6.1% year on year and 9.2% above analysts' expectations, as the 14 defense contractors stocks tracked by the report collectively beat consensus revenue estimates by 4% and guided next quarter 1.1% above expectations. Chairman and CEO Bill Ballhaus said the company delivered record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow, though Mercury shares are down 18.5% since reporting and trade at $85.56. Huntington Ingalls posted the group's best quarter, with revenues of $3.42 billion, up 10.9% year on year and 8.2% above expectations, while its shares have traded sideways at $278.53. Parsons delivered the weakest quarter, with revenues of $1.58 billion, flat year on year and 1.9% below expectations, alongside full-year revenue and EBITDA guidance that missed significantly, sending its stock down 25.5% to $46.19. Northrop Grumman reported revenues of $10.88 billion, up 5.1% and 0.5% above expectations, with shares flat at $526.95, and Leidos reported revenues of $4.56 billion, up 7.2% and 2.6% above expectations, with its stock up 10.4% at $131.09. On average, defense contractors shares are down 2.9% since the latest earnings results.

The State Department approved a potential $24.3B sale of 48 Lockheed Martin F-35 Lightning II aircraft to Saudi Arabia, along with 49 Pratt & Whitney F135-PW-100 engines and related equipment, a deal that still requires congressional approval and would strengthen Saudi Arabia's air defense and interoperability with U.S. and allied forces. Separately, Bloomberg reported that the U.S. could postpone announcing new tariffs on China and other countries until after President Donald Trump meets Chinese President Xi Jinping next week; a previously planned trade report was expected to recommend a 7.5% tariff on Chinese goods, while the final rate could potentially exceed the 20% level agreed during earlier talks. Nvidia CEO Jensen Huang said the company expects to sell roughly twice as many chips next year as this year as demand for AI infrastructure expands. China's ChangXin Memory Technologies is preparing to enter the NAND flash-memory market, with Reuters reporting that CXMT plans an R&D production line at its new Beijing plant and has established a research institute in the city, broadening its focus beyond DRAM. OpenAI has hired Brian McCarthy from SpaceX as vice president of worldwide sales, Fortune reported; McCarthy joined SpaceX through its acquisition of Cursor, where he led global revenue and field operations, and previously held senior sales roles at Rubrik, ThoughtSpot, AppDynamics and Qlik.

The US State Department has approved the sale of 48 F-35 stealth fighter jets along with related equipment to Saudi Arabia, with a total value of approximately $24.3 billion. A statement said Saudi Arabia requested to purchase 48 F-35 Lightning II Joint Strike Fighter aircraft in the conventional takeoff and landing, or CTOL, variant, along with 49 Pratt & Whitney F135-PW-100 engines, of which 48 will be installed on the aircraft and one will serve as a spare engine. The statement added that the sale will increase Saudi Arabia's ability to deter current and future threats by strengthening its national defense capabilities, as well as enhancing interoperability with US forces and those of other countries in the region, including NATO member states, but will not alter the military balance in the region. It was reported that Israel is the only country in the Middle East that currently operates the F-35 fighter jet.

The Bank of England's Monetary Policy Committee voted 6-3 to keep its policy rate at 3.75% at yesterday's meeting, its sixth hold this year, even as inflation remains above the 2% target. Meanwhile, the US Federal Reserve's monetary policy committee voted unanimously 12-0 to raise short-term rates by 0.25% to a range of 3.75-4.00%. The US State Department approved the sale of 48 F-35 stealth fighter jets along with related equipment to Saudi Arabia, with a total value of about 24.3 billion US dollars. Iran's Islamic Revolutionary Guard Corps Navy disclosed that the oil tanker Trend, which flies the flag of Togo, was attacked and forced to stop after attempting to pass through the Strait of Hormuz illegally.

RTX said Wednesday that its Raytheon Australia business has completed delivery and preparation of a new air defense system for the Australian Army, declaring the National Advanced Surface-to-Air Missile System, known as NASAMS, combat-ready. The milestone marks the end of a multiyear development and integration project, with equipment delivered, connected and tested and Australian soldiers trained to operate it. Australia's version pairs locally designed radars from CEA Technologies with a Fire Distribution Centre from Norway's Kongsberg, and Raytheon's mobile launcher is mounted on the Australian-built Hawkei protected vehicle. The system can fire several Raytheon missiles, including the standard AMRAAM, the longer-range AMRAAM-ER and the AIM-9X, and is described as a short-range air defense system protecting a limited geographic area. RTX said combat use of NASAMS has contributed to international demand and that it is investing to increase production, though it disclosed no new order value, revenue forecast or additional Australian procurement tied to the announcement and did not specify how much capacity it plans to add or when it will be available.

RTX Corporation is expanding its defense communications capabilities through its subsidiary Collins Aerospace, which in 2025 was awarded a contract to deliver satellite communication systems supporting survivable communications across multiple frequency bands. Collins Aerospace also secured a role as the primary subcontractor for a U.S. Navy solution involving the engineering design and manufacturing of a Very Low Frequency communication subsystem, along with mission command, control and communications infrastructure, and is additionally supporting Advanced Extremely High Frequency and voice communications. The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 14.79% and 7.60%, respectively. RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.62X compared with the industry average of 2.28X, and over the past year RTX shares have rallied 23.5% against the industry's 11.3% decline. RTX currently has a Zacks Rank #2 (Buy).

Coda Octopus Group reported third-quarter fiscal 2026 results on September 14 that crossed a threshold the company had never reached in its public history: positive retained earnings, after years of operating at an accumulated deficit. Revenue rose 9.2% year over year to $7.7 million, and pretax income climbed 16% to $1.8 million, even as instability in the Middle East knocked down the marine technology unit that has long been the company's calling card. Defense engineering revenue jumped 68.3% to $2.7 million during the quarter, with sustainment spares orders already topping $2.4 million year to date, while marine technology sales fell 15.2% to $3.4 million and hardware revenue specifically dropped 17.8% to $2.3 million. Coda Octopus has delivered 24 DAVID systems to the US Navy to date, including 16 untethered units earlier in the year, and since the quarter closed the Navy has placed about $1.4 million in additional orders covering tethered systems and DAVID Flex adoption. Consolidated gross margin fell to 65.4% from 68.3%, defense engineering margin eased to 56.9% from 58.9%, and acoustic sensors margin dropped to 52.4% from 54.8%, while the company ended the period with $31.7 million in cash and no debt.

The US Army has awarded Northrop Grumman Corporation a $4.8 billion contract for the Common Infrared Countermeasure system, a full-rate production award scheduled to run through September 2035. The full $4.8 billion ceiling does not immediately enter backlog, and Northrop has already delivered more than 750 CIRCM shipsets, with the system accumulating over 75,000 operational flight hours on platforms such as the AH-64 Apache and CH-47 Chinook. The award adds to a rapidly expanding pipeline: Northrop secured $20 billion of net awards in Q2, including $7.6 billion for Sentinel, $4.3 billion for restricted programs, and $1 billion for F-35 work, lifting its backlog to a record $104.7 billion. Northrop raised its 2026 sales guidance to a range of $43.8 billion to $44.3 billion from a prior band of $43.5 billion to $44.0 billion, and lifted its MTM-adjusted EPS outlook to $28.60 to $29.10 from $27.40 to $27.90, while maintaining adjusted free cash flow guidance at $3.1 billion to $3.5 billion. Profitability remains the key risk: Q2 overall operating margin dropped to 10.1% from 13.8% a year ago, Defense Systems margin fell to 7.5% from 12.7% on higher costs tied to the AARGM-ER and SiAW programs, and Space Systems absorbed an unfavorable $91 million estimate-at-completion adjustment on GEM 63XL.

HawkEye 360 announced a strategic collaboration with ERA a.s. under which ERA will serve as an international processing partner for automated terrestrial and maritime radar products derived from HawkEye 360's radio frequency data. The partnership combines HawkEye 360's space-based signals intelligence, automated geolocation and advanced RF analytics with ERA's integration and mission-workflow capabilities to give defense and security customers faster access to operationally actionable information. HawkEye 360 CEO John Serafini said European defense organizations are seeking faster, more integrated ways to understand increasingly complex operating environments, and that the combination can deliver actionable information more quickly to allied warfighters and defense leaders across Europe. ERA CEO Ondřej Chlost said the cooperation is advancing to a whole new level and pointed to growing worldwide customer interest in advanced passive surveillance systems, particularly in SIGINT, and in integrating solutions already deployed in the field. ERA, a member of the OMNIPOL Group headquartered in Pardubice, Czech Republic, has more than three decades of experience and installations in over 70 countries.

HawkEye 360, Inc. and Leonardo S.p.A. announced a Memorandum of Understanding establishing a structured collaboration to integrate HawkEye 360's radio-frequency sensing capabilities into Leonardo's Telespazio and e-Geos space service solutions for European customers. Under the MoU, Leonardo will lead overall data integration and manage institutional engagement across Europe through its geospatial solutions, while HawkEye 360 will provide dedicated RF data capacity tailored to European operational needs. The first phase focuses on integrating a customized RF layer into Leonardo's global Intelligence, Surveillance, and Reconnaissance service offering, including exclusive reserved capacity for defined European areas of interest, with data delivered through Italian ground stations and EU-based cloud infrastructure to reduce latency and enhance European data sovereignty. The MoU also outlines a phased pathway for deeper collaboration, including cooperation on payload technologies such as RF localization, E/O and hyperspectral, manufacturing and hosting on respective systems, and expanded interoperability between HawkEye 360's RF analytics and Leonardo's sensing solutions. HawkEye 360 Chief Executive Officer John Serafini said the collaboration represents an important step in supporting European nations with reliable, integrated RF insights embedded within their own architectures, while Massimo Claudio Comparini, Managing Director of Leonardo's Space Division, said it strengthens Leonardo's role as a trusted European integrator of sovereign space-based intelligence.

The United Arab Emirates is reviewing its strategy for a 5-gigawatt AI data center project, an infrastructure undertaking valued at 1 billion dollars, after conflict with Iran spilled over and undermined security stability in the Persian Gulf region. The project, designed to be centralized on a 26-square-kilometer site in Abu Dhabi and intended as one of the largest technology infrastructure projects outside the United States, must urgently shift from centralization to risk diversification. The UAE government and major capital groups such as G42 are driving this strategic adjustment. Key triggers include attacks on Amazon Web Services cloud and data center infrastructure earlier this year, as well as Iran's military revealing coordinates and warning that the Stargate UAE project could become a strategic target. New protective measures under consideration include distributing data centers across multiple locations nationwide, embedding some structures underground, using natural mountain interiors, installing air defense systems and electronic jamming systems, and employing special reinforced-concrete construction materials resistant to explosive force. Meanwhile, the first phase of the project, Stargate UAE, valued at 30 billion dollars, continues under cooperation with partners from the United States, in order to preserve an advantage in accessing Nvidia's advanced AI chip technology in exchange for reducing technology ties with other major powers under global strategic conditions.

Northrop Grumman and the U.S. Air Force have fully assembled the Sentinel intercontinental ballistic missile in its operational orientation, a milestone the company says keeps the program on pace for a flight test in 2027. The vertical stacking at Vandenberg Space Force Base, part of a four-month test event known as Pathfinder, proved that all missile stages, propulsion elements, the shroud and associated components have been integrated into a single missile configuration and that the assembly process is executable on the test pad. In parallel, Northrop Grumman and the U.S. Air Force's 719th Test Squadron completed the first flight test Critical Design Review, confirming the missile's design maturity and hardware testing meet Air Force requirements for performance, safety and schedule. Amanda Davis, Northrop Grumman vice president and general manager of strategic deterrent systems, said the assembly demonstrates momentum toward test launching Sentinel in 2027 and having missiles on alert by the early 2030s. Northrop Grumman leads a nationwide team of more than 500 partners under an engineering and manufacturing development contract for the Sentinel program, which is modernizing the ground-based leg of the U.S. strategic nuclear triad and is intended to remain viable through 2075.

General Dynamics' Mission Systems business has received a $184.3 million contract from the U.S. Navy to manufacture and sustain Next Generation Electronics Attack Units, or NGEAU, and to provide future sustainment support for Advanced Capability Mission Computers. The award covers full-rate production of the NGEAU systems along with sustainment services, giving the company visibility into both near-term production and longer-term support work. The contract is expected to run through September 2032, underscoring extended demand for these capabilities as the Navy modernizes aircraft and invests in advanced technologies to counter evolving threats. General Dynamics' established presence in naval electronic systems and its role in advanced mission technologies position it to benefit from those modernization efforts across the lifecycle of the systems. Shares of General Dynamics have risen 8.8% in the past year against the industry's 10.8% decline, and the stock currently carries a Zacks Rank #3 (Hold).

Terra Drone announced on the 14th that it has developed its own flight controller for defense drones and will localize production. Following batteries, the company aims to build a system for producing the core component that serves as the drone's "brain" in Japan, moving away from overseas dependence. The controller is being developed on the premise of being installed in 300 units of a general-purpose defense drone that the company won an order for from the Acquisition, Technology & Logistics Agency in May for approximately 115 million yen and is scheduled to deliver by the end of September this year, and it is also planned to be installed in 1,767 units scheduled for delivery in March next year. According to the Ministry of Economy, Trade and Industry, about 90% of Japan's industrial drone market is made up of overseas products, with components also dependent on China, Taiwan and elsewhere, and for defense use, from the standpoints of geopolitical risk, export controls and cybersecurity, a system capable of managing and mass-producing airframes and key components domestically is essential. The company's consolidated final profit and loss for the February-July 2026 period, announced the same day, showed a loss of 680 million yen, compared with a loss of 394 million yen in the same period a year earlier, as selling, general and administrative expenses swelled due to the expansion of its defense business structure, subsidy income also decreased, and an extraordinary loss was recorded. It left unchanged its forecast of a final loss of about 1.2 billion yen for the fiscal year ending January 2027, and sales from the defense business are not factored into its full-year consolidated earnings forecast for the fiscal year ending January 2027. President Toru Tokushige said at a briefing that sales from the defense business will be "recognized from the third quarter, the August-October period, and accordingly, full-year consolidated earnings are expected to exceed the initial forecast." The company also announced the same day that it will invest through a European group company to make a Ukrainian company that handles interceptor drones a consolidated subsidiary, aiming to expand its defense business by incorporating a product lineup that intercepts the Ukrainian company's small unmanned aircraft. It also announced that it will consider commercializing a high-speed interceptor drone in anticipation of dealing with the jet-engine-equipped attack drone Shahed, and it is also considering establishing a joint venture with a Czech company that develops defense drone systems.

Everspin Technologies, a niche maker of magnetoresistive random access memory chips with a market cap of $400 million, is nearing a profitability turning point despite a net loss of $3.6 million, or $0.15 per share, in its latest quarter. The loss came even as revenue hit a record $18.7 million, up 42% year over year, dragged down by $4 million in legal fees tied to a patent infringement challenge brought by Avalanche Technology before the U.S. International Trade Commission. Those costs pushed operating expenses to $14.5 million, 66% more than the same quarter a year ago, and the company expects a similar hit in fiscal Q3, guiding to revenue of $19.5 million to $20.5 million and a net loss of $0.05 to $0.10 per share. The ITC dispute, filed Jan. 28, 2026, could drag into the second quarter of 2027, since such cases typically settle 14 to 16 months from filing. Offsetting that pressure, Everspin announced a $40 million multiyear contract from a U.S. defense program and a strategic partnership with Teledyne to accelerate adoption of its MRAM technology in aerospace and defense systems, supporting management's goal of $100 million in revenue by fiscal 2029, up from $55 million at the end of last fiscal year, a 15% compound annual growth rate.

Frequency Electronics reported record revenue of $23.5 million for the first quarter of fiscal 2027, up 70% year-over-year and 52% sequentially, sending the stock more than 24% higher in after-hours trading. The company said the results raised its confidence in meeting or beating its previously stated target of at least $150 million in annual revenue by fiscal 2029, which ends April 30, 2029. Frequency Electronics also ended the quarter with a record funded backlog of $129 million, up 82% year-over-year and 16% sequentially. Gross margin expanded to approximately 46% and operating margin surpassed 22%, and the company said it expects to remain cash-generative on an annual basis. Management said internal research and development expenses are expected to remain below 10% of revenue, though production ramp-up remains a challenge and the company has seen limited traction with new defense technology companies, with most of its success coming from the space market.

Kratos Defense & Security Solutions has received a single-award Phase 1 agreement with an initial projected ceiling of $175 million across multiple phases to develop an organic sustainment capability for the U.S. Navy's AN/SPY-1 radar systems under Project Anaconda. The program could deepen Kratos' involvement in mission-critical naval systems and create additional opportunities if later phases are awarded. Project Anaconda fits closely with Kratos' existing defense electronics and C5ISR portfolio, which includes electronic warfare, missile and radar systems, microwave electronics and air-defense technologies. The multi-phase structure could also provide Kratos with longer-term program visibility, and successful execution of the initial phase could position the company for additional work over time. The award aligns with Kratos' broader strategy of pursuing larger, higher-value national security opportunities.

General Dynamics announced Thursday that its Mission Systems business secured a $184.25M contract to manufacture Full Rate Production Next-Generation Electronics Attack Units, or NGEAU. The contract also covers NGEAU sustainment support and future sustainment support for advanced capability mission computers. Work will be performed in Bloomington, Minnesota, and is expected to be completed by September 2032. The U.S. Navy will initially obligate $40.06M, including $29.69M from fiscal 2026 aircraft procurement funds and $10.37M from fiscal 2025 funds, none of which will expire at the end of the current fiscal year. Naval Surface Warfare Center Crane is the contracting activity.

Northrop Grumman is expanding its industrial partnerships in Central and Eastern Europe as NATO members strengthen air defenses, increase weapons production and improve their ability to detect threats across multiple domains. The defense contractor announced new preliminary agreements with companies in Estonia and an expanded collaboration with Polish military-vehicle manufacturer Huta Stalowa Wola, unveiled at the MSPO International Defense Industry Exhibition in Kielce, Poland. Under the Estonian memorandums, Go Craft would provide defense-system integration and DefSecIntel would handle specialized mast fabrication and production in support of Northrop's Integrated Battle Command System, or IBCS, which is in full-rate production and already operational with the U.S. Army and Poland. The deepened Polish relationship covers technology transfers, servicing and production for the Bushmaster family of chain guns, which are installed on Poland's Rosomak armored personnel carriers and Borsuk infantry fighting vehicles and are used by the United States and 65 allied countries. Northrop also said it remains in discussions with Poland about the potential sale of its E-2D Advanced Hawkeye airborne command-and-control aircraft, and it highlighted Raid Hunter, a short-range air-defense system using guided 50-millimeter interceptors to counter drones, coordinated drone swarms and cruise missiles. The company did not disclose contract values, delivery schedules or expected financial contributions, and the memorandums do not guarantee future orders.

AeroVironment reported record first quarter fiscal 2027 revenue of $480 million, with funded backlog of $1.5 billion, adjusted EBITDA of $53 million and bookings of $683 million, and reaffirmed its full-year guidance. The company reiterated fiscal 2027 revenue guidance of between $2.125 billion and $2.225 billion, adjusted EBITDA of between $305 million and $325 million, and non-GAAP adjusted EPS between $3.02 and $3.34. Funded backlog rose 37% from the same period last year, and total funded and unfunded backlog stood at approximately $2.8 billion, with a book-to-bill ratio of 1.4x for the quarter. The Autonomous Systems segment contributed $346 million, or 72% of total company revenue, while the Space, Cyber and Directed Energy segment contributed $134.5 million, or 28%. Among the quarter's awards, AeroVironment won a nearly $465 million contract for the U.S. Army's Enduring High-Energy Laser program, described as the first ever production contract for directed energy systems in U.S. military history, and a sole-source $500 million IDIQ for its Titan RF platform under the Joint Interagency Task Force 401 Domestic Shield program, which included an initial $80 million contract tied to the Golden Dome initiative.

Brent crude spiked above $100 a barrel for the first time since late July, rallying 3 percent to $100.81, after renewed US-Iran hostilities in the Middle East stoked fears of widespread price rises and interest rate hikes. The jump dragged down stock markets, with the Dow falling 0.6 percent at the opening bell, while the S&P and Nasdaq slipped 0.3 and 0.4 percent respectively. European markets fell further, with Paris shedding 1.5 percent and Frankfurt's DAX dropping 1.6 percent. West Texas Intermediate, the main US contract, climbed to nearly $96 a barrel, and average US diesel prices hit a record $5.94 a gallon, heaping pressure on President Donald Trump ahead of midterm elections. All eyes are on US inflation data due Friday, which could cement expectations that the Federal Reserve will raise rates next week, while the European Central Bank is widely forecast to hike on Thursday. Iran launched fresh attacks on US targets, with its Revolutionary Guards saying they struck 20 US vessels near the Strait of Hormuz and declaring a new prohibited zone extending into the Arabian Sea. Away from the war, Apple is set to unveil new devices, including a foldable iPhone, at its first major event under new CEO John Ternus.

Iran's Islamic Revolutionary Guard Corps (IRGC) launched missile strikes on a base in Jordan used by the US military, and attacked 10 ships near the Strait of Hormuz on Wednesday, following the US destruction of five Iranian oil tankers on Tuesday, marking a sharp escalation in the six-month-old conflict. US Central Command (CENTCOM) said the retaliatory strikes on Iranian vessels were in response to two previous IRGC attempts to attack US warships with ballistic missiles. Meanwhile, the Jordanian government stated that its air defense systems intercepted 18 of 20 Iranian missiles, with no reports of casualties. Iran's attacks covered two US vessels and eight oil tankers in an area Iran has declared a no-go zone, pushing Brent crude oil prices close to $100 per barrel amid concerns that oil shipments through the Strait of Hormuz could face further disruption. Tensions also rose after Yemen's Houthi group attacked several cities in Saudi Arabia, injuring 73 people and causing fires at multiple oil facilities.

The United States has retaliated against Iran by destroying five oil tankers and imposing sanctions on Iran's aviation sector, amid escalating clashes in the Middle East. The US Central Command (CENTCOM) stated that US warships successfully evaded attacks with no injuries. Four ships were attacked in the Gulf of Oman: M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco. Another, the M/T Derya, was attacked near Iran's Kharg Island. On Saturday, US forces destroyed three Iranian oil tankers in response to IRGC missile attacks on US aircraft carriers and destroyers. US Secretary of State Marco Rubio said Iran will lose an oil tanker every time it attempts to attack US warships. Additionally, the US announced sanctions on Iranian airlines and dozens of companies supporting the aviation sector, including in Turkey and the UAE. The US Treasury stated it has sanctioned 36 targets supporting Iran's transport of weapons and personnel, and found at least three Boeing 777 aircraft that were diverted through the UAE and Oman. Meanwhile, Houthi attacks on four cities in southern Saudi Arabia injured 73 people, and Iran launched missile attacks on US bases in Jordan, but Jordan's air defense intercepted 18 of 20 missiles, with no fatalities.

U.S. stocks closed sharply lower on Tuesday, with the Dow Jones Industrial Average dropping 628.18 points, or 1.18%, to 52,786.07, as oil prices surged toward $100 per barrel amid U.S.-Iran tensions, fueling investor concerns about inflation and the Federal Reserve's interest rate path. The S&P 500 closed at 7,673.52, down 0.58%, and the Nasdaq Composite closed at 26,421.413, down 0.32%. Brent crude settled at $97.92 per barrel, up 2.2%, and WTI settled at $93.03 per barrel, up 2.8%, following reports of Iran attacking a U.S. warship and Houthi attacks on energy facilities in Saudi Arabia. European stocks were steady, with the STOXX 600 closing at 649.60, down 0.05%, and the FTSE 100 closing at 10,811.66, down 0.10%. Gold prices eased 0.4% to $4,385.85 per ounce, while the yen strengthened to a seven-month high of 152.89 per dollar. Investors are watching U.S. PPI and CPI data this week ahead of the Fed's September 15-16 meeting.

RTX Corporation, through its Collins Aerospace business, has secured a contract worth up to $472 million to provide engineering services for the modernization and sustainment of the U.S. Army's CH-47 Chinook fleet. The contract focuses on avionics upgrades to integrate new capabilities, address obsolete systems, and strengthen the Chinook's avionics architecture, supporting mission readiness and enabling more efficient technology incorporation. The award also promotes commonality across the Army's aviation fleet through open and reusable avionics architectures, which can be integrated across multiple aircraft to reduce complexity and improve cost and schedule efficiency. This contract underscores Collins Aerospace's long-standing relationship with the U.S. Army and positions RTX to benefit from sustained demand for advanced avionics and modernization services as the military extends the service lives of existing aircraft. RTX shares have surged 30.2% in the past year, and the company holds a Zacks Rank #2 (Buy).

Teledyne Technologies Incorporated (NYSE:TDY) raised its full-year guidance after reporting better-than-expected results, driven by accelerating organic growth, continued strength in defense, and improving demand across short-cycle industrial markets. The company highlighted strong bookings and momentum in unmanned systems, space sensing, and infrared technologies. Artisan Mid Cap Fund, which holds the stock, added to its position during the quarter following a pullback. Teledyne closed at $610.65 per share on September 4, 2026, with a market capitalization of $28.31 billion. The stock has declined 11.53% over the past month but gained 11.78% over the past 52 weeks.

Mobix Labs, Inc. has secured its initial production order for components supporting the F-16 Fighting Falcon, expanding its footprint across major U.S. fighter aircraft programs. The order, placed by a veteran-owned U.S. aerospace sustainment contractor, consists of EMI-filtered connectors manufactured at Mobix Labs' facility in Irvine, California, with initial shipments already delivered and the balance expected in the coming weeks. This F-16 order follows the company's previously announced expansion on the F-22 Raptor program, where component orders increased approximately five-fold. Mobix Labs' CEO Phil Sansone highlighted the strategic importance of adding another major fighter platform, noting that the components are made in America for mission-critical defense applications. The F-16, a cornerstone of U.S. airpower, is being sustained through service life extensions and new production, with Lockheed Martin reporting the program supports about 46,000 U.S. jobs and over 500 suppliers across 41 states.

The Saudi-led coalition supporting the internationally recognized Yemeni government said today that the latest attacks by the Houthi group represent a dangerous escalation. Major General Turki Al-Maliki, the coalition spokesman, said on X that the attacks targeted civilian areas and economic facilities in the cities of Abha, Khamis Mushait, Jazan, and Najran, resulting in 73 injuries, including women and children, and constituting a violation of Saudi sovereignty. Meanwhile, Houthi media reported that the group attacked multiple targets, including Abha International Airport, King Khalid Air Base, and facilities of Aramco, the state oil company, in Abha and Jazan. The coalition will take necessary operational measures to deter and respond to threats.