The Defense Budget Supercycle Nobody Saw Coming
Issued on behalf of VisionWave Holdings, Inc.
NEW YORK, Feb. 25, 2026 /CNW/ -- USA News Group News Commentary -- Global military spending reached a record $2.72 trillion in 2024, marking the steepest annual increase since the Cold War[1]. The Department of Defense has requested $3.0 billion for hypersonic weapons programs in its FY2026 budget, signaling sustained investment in next-generation strike and defense capabilities[2]. Companies positioned across this accelerating defense technology landscape include VisionWave Holdings (NASDAQ: VWAV), Kratos Defense & Security Solutions (NASDAQ: KTOS), Ondas Holdings (NASDAQ: ONDS), Parsons (NYSE: PSN), and Elbit Systems (NASDAQ: ESLT).
The CSIS estimates that a comprehensive homeland missile defense system, described under the Golden Dome framework, could require between $252 billion and $3.6 trillion over two decades[3]. The Aerospace Industries Association has called for stable investment in next-generation missile warning satellites and resilient space architectures as 2026 priorities[4].
VisionWave Holdings (NASDAQ: VWAV) has executed a definitive agreement to acquire a 51% controlling stake in C.M. Composite Materials, a certified aerospace manufacturer based in Modi'in, Israel. C.M. produces structural composite assemblies utilized in Israel's multi-layer missile defense architecture publicly known as Iron Dome and the Barak 8 long-range air defense system developed jointly by Israel Aerospace Industries and India's Defense Research and Development Organization.
For fiscal year 2025, C.M. reported approximately $17.3 million in revenue and $3.0 million in net income before tax under IFRS standards. An independent valuation prepared by BDO Consulting Group placed the company at $50 million. VisionWave will issue 250,000 shares for the majority interest, retaining an option to acquire the remaining 49%. Comprehensive due diligence spanned 64 continuous days of on-site inspections in Israel, covering aerospace-grade production lines, autoclave capabilities, and certification compliance.
"With the previously announced $10 million QSpeed™ Statement of Work and now entering into a definitive agreement to acquire majority control of a certified aerospace composite manufacturer embedded in active missile defense programs, VisionWave is building both the computational acceleration layer and the regulated manufacturing foundation," said Douglas Davis, Interim CEO & Executive Chairman of VisionWave. "We believe integrating advanced software acceleration into certified aerospace production infrastructure creates a differentiated industrial model."
The acquisition builds on VisionWave's recently entered into $10 million Statement of Work for qSpeed-Mine™, a mining acceleration platform built on the company's QuantumSpeed computational acceleration engine. Management believes integrating QSpeed™ into C.M.'s certified manufacturing environment could optimize production sequencing and reduce process-cycle bottlenecks. C.M. has also identified India as a strategic next-stage growth market as the country continues expanding its multi-layered air defense systems, including ongoing Barak 8 deployments.
The company's wholly owned subsidiary Solar Drone recently reported executive meetings in Italy advancing business development for drone cleaning solutions targeting select Middle Eastern markets, following earlier live demonstrations of the technology and a strategic distribution agreement covering commercial operations in Italy and Spain.
VisionWave also demonstrated real-world performance of SaverOne's RF-based Vulnerable Road User detection system before a major vehicle manufacturer, identifying pedestrians and cyclists in live field conditions. The company established a $7.0 million strategic exchange with SaverOne that could yield 51% fully diluted ownership, while continuing to advance its dual-market autonomous systems platform integrating QuantumSpeed™ and RF-based defense capabilities.
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In other industry developments:
Kratos Defense & Security Solutions (NASDAQ: KTOS) was awarded a contract through the Department of War's Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles. The company will leverage decades of expertise in hypersonics to analyze various missions and flight environments, establishing standard test conditions and techniques to accelerate materials development across aerothermal test facilities.
"The Kratos team is committed to advancing materials for hypersonics through testing and evaluation," said Ben Dempsey, Kratos SRE Vice President of Programs. "Our focus is on accelerating the development of systems for our warfighter. This begins with increased throughput of our nation's testing infrastructure, and by making investments in new infrastructure, like the recently awarded Project Helios."
The test methodologies developed under this program will serve as a model for the hypersonic testing community, accelerating deployment of next-generation U.S. hypersonic vehicle technologies. Kratos recently opened a new 55,000-square-foot hypersonic system manufacturing and payload integration facility in Princess Anne, Maryland, and expanded its Birmingham, Alabama operations with a new 40,000-square-foot facility to support the defense industrial base.
Ondas Holdings (NASDAQ: ONDS) secured a strategic defense contract with a governmental customer in the Asia-Pacific region through its fully owned subsidiary Airobotics. The award supports deployment of autonomous unmanned aerial capabilities for national security missions, with initial deliveries beginning this year and potential follow-on orders anticipated as deployments expand.
"Governments in the region are responding to a rapidly evolving threat environment, particularly for borders, critical infrastructure, and sensitive national assets," said Eric Brock, Chairman and CEO of Ondas Holdings. "Our autonomous platforms are purpose built for these challenges, delivering persistent protection, rapid response, and operational resilience in complex and contested environments."
The contract builds on the company's expanding presence in Asia-Pacific and aligns with its broader global strategy to scale deployments across defense, homeland security, and public safety markets. Ondas continues to invest in localized production capacity, field support, and regional partnerships to address growing international demand as an emerging defense technology prime contractor.
Parsons (NYSE: PSN) has been awarded a $125 million single-award Task Order contract over five years to support the U.S. Army Combat Capabilities Development Command Army Research Laboratory, High Performance Computing Modernization Program, and Defense Research and Engineering Network. This recompeted award continues a partnership with the DEVCOM Army Research Laboratory spanning over 20 years.
"Parsons is an agile, rapid developer of transformative solutions that strengthen the nation's security and deliver mission-ready capabilities at the speed of relevance," said Dr. David Tyler, Vice President, C5ISR Solutions for Parsons. "This award underscores Parsons' long-standing dedication to innovation and excellence in support of the U.S. Army. We are excited to leverage our experience and expertise to further empower the ARL and contribute to impactful operations, AI/ML research, and cybersecurity capabilities."
Under the initiative, Parsons will deliver critical research, development, and technical services enhancing scientific capabilities in information processing, network sciences, information assurance, and advanced computing. The company will also support infrastructure operations and comprehensive project management to ensure robust network security and reliable database management.
Elbit Systems (NASDAQ: ESLT) reported record quarterly revenues of $1.92 billion for the third quarter of 2025, reflecting 12% year-over-year growth driven by accelerating demand across European and Israeli defense markets. The company's order backlog reached a record $25.2 billion, with approximately 69% attributable to orders outside of Israel.
"These results reflect the significant contracts the Company has secured across Europe and from customers worldwide, who continue to choose Elbit Systems' advanced systems amid the ongoing global conflicts and increasing defense budgets," said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. "Our tested and proven systems contribute to substantial operational successes and achievements, and they strengthen the national security of many countries, including those in Europe, which has become a major market for the Company."
The company recently signed an international contract for a strategic solution valued at approximately $2.3 billion over eight years, reinforcing its position as a leading international defense prime contractor. Elbit Systems continues to invest in research and development across its core segments, including aerospace, C4I and cyber, ISTAR and electronic warfare, and land systems.
Article Source: https://usanewsgroup.com/2025/09/11/the-ai-defense-technology-developments-potentially-relevant-in-2025-26/
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SOURCES:
- https://markets.financialcontent.com/stocks/article/marketminute-2026-1-30-the-security-supercycle-global-defense-spending-hits-record-27-trillion-as-nations-rearm-for-a-volatile-decade
- https://www.everycrsreport.com/reports/R48860.html
- https://www.csis.org/analysis/why-golden-dome-america-case-administration-should-make
- https://www.aia-aerospace.org/news/aia-calls-for-stable-investment-commercial-integration-in-2026-space-priorities/
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