Leidos wins $127 million Army contract to extend ARTEMIS ISR mission

Leidos has won a U.S. Army contract worth up to $127 million to continue operating surveillance aircraft that gather intelligence for military commanders in Europe and other regions. The award covers the Airborne Reconnaissance and Targeting Exploitation Multi-Mission Intelligence System, or ARTEMIS, and extends operations in the U.S. European Command area through summer 2027, with two additional option years that also allow the system to support missions in other regions. Leidos has supported ARTEMIS operations since 2020, supplying the aircraft, mission systems, flight operations and support services under a contractor-owned, contractor-operated arrangement. ARTEMIS is based on a modified Bombardier Challenger 650 business jet equipped with military intelligence and sensing systems, initially deployed as a technology demonstrator and since developed into a high-altitude ISR platform capable of operating in multiple theaters. The latest award was made through the Army's Common Hardware Systems-6, or CHS-6, contract vehicle, which is used by the Army, other U.S. military branches and federal agencies to acquire command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance hardware and related services. For Leidos, the ARTEMIS award adds to its portfolio of airborne ISR, sensing and defense technology programs, areas the company has identified as part of its NorthStar 2030 growth strategy.

Motorola Solutions is scaling its recently acquired Silvus Technologies and D-Fend Solutions operations while executing across its mission-critical networks, command center software and video security businesses, Chief Operating Officer Jack Molloy said at a Truist conference. Silvus, acquired in August 2025, is expected to generate about $850 million in 2026 sales based on current capacity, with a new production line added in Culver City, California, and a Salt Lake City facility expected to begin contributing in the first quarter of 2027. Motorola Solutions also recently completed its acquisition of D-Fend Solutions, a cyber-based counter-drone vendor that was the only cyber-mitigation counter-unmanned aircraft system vendor selected in a U.S. Department of Homeland Security counter-drone grant program totaling $1.5 billion. The company reported record second-quarter orders and double-digit order growth in the first half of the year, and has guided for double-digit product growth in the second half, with 2026 expectations of 10% to 11% growth in mission-critical networks, about 11% in video security and about 15% in command center software. Molloy said rising DRAM and flash-memory prices have most affected the video business, prompting three substantial video price increases, while the company has maintained comparable gross margins and delivered 170 basis points of operating-margin expansion this year.

CACI International announced a one-year plus four option periods US$1.50 billion-ceiling Apollo award to support U.S. Central Command, alongside being selected by Vantor to provide optical imaging payloads for its planned Vantor Pulse satellite fleet. The Apollo award strengthens near-term revenue visibility and fits a pattern of federal customers consolidating critical work with fewer providers on large, multi-year frameworks, though it does not remove risks around federal budget volatility and contract timing. CACI's narrative projects $12.2 billion revenue and $727.8 million earnings by 2029, requiring 8.3% yearly revenue growth and a roughly $192 million earnings increase from $535.8 million today. Some of the most optimistic analysts already expected CACI to reach about US$12.7 billion of revenue and US$862 million of earnings before this news. The company's forecasts yield a $724.50 fair value, a 16% upside to its current price.