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Honeywell FM&T Spin-Off: A New Era in Aerospace and Defense

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The Significance of Honeywell FM&T and Its Spin-Off

Honeywell Federal Manufacturing & Technologies (FM&T) LLC has played a pivotal role in U.S. national security for decades. Originally established during World War II, the facility, now known as the Kansas City National Security Campus (KCNSC), has evolved into a cornerstone of the nation’s nuclear defense infrastructure. Its contributions to manufacturing non-nuclear components for the U.S. nuclear stockpile underscore its importance in maintaining global stability.

In recent years, Honeywell FM&T has faced significant changes, including workforce expansion and strategic shifts in its operations. The announcement of its spin-off from Honeywell International Inc. marks a transformative moment in its history. This decision reflects broader trends in the aerospace and defense industries, where companies are increasingly focusing on specialization to enhance efficiency and shareholder value.

The Evolution of Honeywell FM&T

Historical Background

Honeywell FM&T’s origins trace back to 1942, when it was established as a Pratt & Whitney plant dedicated to producing Double Wasp engines for World War II aircraft. In 1949, the Atomic Energy Commission commissioned the Bendix Corporation to manufacture non-nuclear components of nuclear warheads at the site. Over the decades, the facility underwent several ownership changes, becoming part of AlliedSignal in 1983 and eventually Honeywell in 1999.

Today, the Kansas City National Security Campus spans 192 acres and employs approximately 7,000 people. It is responsible for producing about 80% of the non-nuclear components for the U.S. nuclear stockpile, making it a critical asset for national security.

Recent Workforce and Operational Expansion

In 2018, Honeywell FM&T expanded its workforce by adding 450 jobs, driven by the federal government’s 20-year program to modernize the nation’s nuclear stockpile. This expansion highlights the facility’s ongoing importance and the increasing demand for its specialized manufacturing capabilities.

To address future workforce needs, Honeywell has initiated innovative recruiting efforts targeting local high school students. These programs aim to cultivate a new generation of skilled workers who can contribute to the facility’s long-term success.

“The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies and unlock significant value for shareholders and customers.” – Vimal Kapur, Honeywell CEO

The Spin-Off Announcement and Its Implications

Strategic Rationale

Honeywell International Inc. announced plans to spin off its aerospace and automation divisions, including Honeywell FM&T, as part of a broader strategy to divide the company into three independent entities. This move aims to enhance shareholder value and allow each division to pursue tailored growth strategies. The spin-off is expected to be completed in the second half of 2026, pending regulatory approvals.

The decision was influenced by activist investor Elliott Investment Management, which advocated for the breakup to unlock operational improvements and valuation upside. The aerospace and automation divisions are each estimated to be worth more than $100 billion, with the potential to significantly increase Honeywell’s share price.

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Industry Context and Global Demand

Honeywell’s spin-off mirrors similar actions by other industrial giants, such as General Electric, which recently split into three separate companies. This trend reflects a broader industry shift toward specialization and the pursuit of tailored growth strategies.

The decision is also driven by unprecedented demand in both commercial and defense aerospace sectors. For instance, Honeywell’s defense and space sales in its aerospace unit grew by 14% in the fourth quarter of 2024, highlighting robust market conditions.

Conclusion

Honeywell FM&T’s spin-off represents a significant milestone in its storied history. By becoming an independent entity, the division can focus on its core competencies and capitalize on growing demand in the aerospace and defense sectors. This move aligns with broader industry trends and positions Honeywell FM&T for continued success in the years to come.

Looking ahead, the spin-off could pave the way for further innovation and operational improvements. As the global aerospace and defense industries continue to evolve, Honeywell FM&T is well-positioned to remain a key player in ensuring national security and technological advancement.

FAQ

Question: What does Honeywell FM&T manufacture?
Answer: Honeywell FM&T produces non-nuclear mechanical, electronic, and engineered material components for the U.S. nuclear stockpile, including high-energy laser ignition systems and miniature electromechanical devices.

Question: Why is Honeywell spinning off its aerospace and automation divisions?
Answer: The spin-off aims to enhance shareholder value and allow each division to pursue tailored growth strategies, driven by unprecedented demand in the aerospace and defense sectors.

Question: When will the spin-off be completed?
Answer: The spin-off is expected to be completed in the second half of 2026, pending regulatory approvals.

Sources: BizJournals, Wikipedia

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Defense & Military

GA-ASI YFQ-42A Completes Semi-Autonomous Flight with Collins Software

GA-ASI’s YFQ-42A successfully flew semi-autonomously using Collins Aerospace software, validating the USAF’s open architecture for uncrewed combat aircraft.

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This article is based on an official press release from General Atomics Aeronautical Systems, Inc. (GA-ASI) and additional industry data.

GA-ASI YFQ-42A Completes Semi-Autonomous Flight Using Third-Party Software

General Atomics Aeronautical Systems, Inc. (GA-ASI) has announced a significant technical achievement in the development of the U.S. Air Force’s Collaborative Combat Aircraft (CCA) program. In early February 2026, the company successfully conducted a semi-autonomous flight of its YFQ-42A prototype, a critical contender for the Air Force’s future fleet of uncrewed “loyal wingmen.”

The flight, which lasted more than four hours, is particularly notable for its Software architecture. According to the company, the aircraft was controlled by “Sidekick” Collaborative Mission Autonomy software developed by Collins Aerospace, an RTX business. This integration demonstrates the viability of the Air Force’s “open architecture” strategy, where mission software from one vendor can successfully pilot an airframe built by another.

Validating the Open Architecture Vision

The primary objective of this flight test was to validate the Autonomy Government Reference Architecture (A-GRA). Historically, military aircraft have relied on proprietary software tightly coupled with the hardware, making upgrades difficult and locking the military into specific vendors. The CCA program aims to break this paradigm by decoupling the “brains” from the “body.”

During the mission, the YFQ-42A utilized the government-standard A-GRA to interface with the Collins Aerospace software. GA-ASI reports that the aircraft executed complex commands initiated by a ground operator but performed the actual flight maneuvers via onboard Automation.

David R. Alexander, President of GA-ASI, highlighted the importance of this collaboration in a statement:

“The integration of Sidekick with our YFQ-42A demonstrates our commitment to innovation and operational excellence… We are excited to collaborate with Collins to deliver enhanced autonomous mission solutions.”

Human-on-the-Loop Operations

The operational concept demonstrated during this flight is described as “human-on-the-loop.” Rather than a pilot remotely controlling the aircraft’s stick and rudder, a human operator at a Ground Station Console (GSC) issues high-level mission commands. The aircraft’s autonomy software then determines the necessary altitude, airspeed, navigation, and sensor adjustments to execute those orders.

Ryan Bunge, Vice President at Collins Aerospace, emphasized the speed at which this integration occurred:

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“The rapid integration of Sidekick onto this General Atomics platform… underscores the strength and flexibility of our open systems approach.”

Strategic Context: The Race for Collaborative Combat Aircraft

This milestone comes at a pivotal moment for the CCA program. The U.S. Air Force intends to field a fleet of at least 1,000 uncrewed aircraft to fly alongside manned fighters like the F-35 and the forthcoming Next Generation Air Dominance (NGAD) platform. The program emphasizes “affordable mass,” with target unit costs estimated between $20.5 million and $27.5 million.

GA-ASI is currently competing against Anduril Industries for the Increment 1 production contract. While Anduril’s YFQ-44A “Fury” conducted its First-Flight in October 2025, GA-ASI is leveraging its extensive history with the MQ-20 Avenger and XQ-67A sensing station to demonstrate reliability and modularity.

AirPro News Analysis

The successful integration of Collins Aerospace software onto a General Atomics airframe is a major proof point for the Department of Defense’s acquisition strategy. By proving that third-party autonomy can drive the YFQ-42A, GA-ASI effectively de-risks the program for the Air Force.

This capability prevents “vendor lock,” allowing the Air Force to upgrade tactical software, effectively the aircraft’s tactical instincts, without needing to modify the physical airframe. If the software from one vendor outperforms another in simulation, the Air Force theoretically retains the flexibility to swap “apps” on the aircraft, ensuring the fleet remains adaptable to evolving threats without the long lead times associated with traditional hardware updates.

Future Outlook and Testing

Following this successful semi-autonomous flight, the testing schedule for the CCA program is expected to accelerate throughout 2026. The Air Force’s Experimental Operations Unit (EOU) at Nellis Air Force Base is slated to conduct advanced trials, which will likely involve joint flights pairing these uncrewed systems with manned fighters to test tactical coordination.

Additionally, the U.S. Marine Corps has selected the YFQ-42A to evaluate for its own MUX TACAIR program, further expanding the potential market for GA-ASI’s platform. A production decision for the CCA Increment 1 program is expected by the end of Fiscal Year 2026.

Frequently Asked Questions

What is the YFQ-42A?
The YFQ-42A is GA-ASI’s prototype for the U.S. Air Force’s Collaborative Combat Aircraft (CCA) program. It is a stealthy, jet-powered uncrewed aircraft designed to operate alongside manned fighters.
What is A-GRA?
A-GRA stands for Autonomy Government Reference Architecture. It is a government-owned standard designed to allow software from different vendors to work on various hardware platforms, promoting competition and easier upgrades.
Who provides the software for the YFQ-42A?
While GA-ASI builds the airframe, the recent test flight utilized “Sidekick” mission autonomy software provided by Collins Aerospace (RTX), demonstrating the open architecture capability.

Sources

Photo Credit: GA-ASI

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Saudi Arabia Orders Four Leonardo C-27J Maritime Patrol Aircraft

Saudi Arabia’s Ministry of Defence contracts Leonardo for four armed C-27J Spartan maritime patrol aircraft, deliveries from 2029.

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This article is based on an official press release from Leonardo.

Saudi Arabia Orders Four Armed C-27J Maritime Patrol Aircraft

The Ministry of Defence of the Kingdom of Saudi Arabia (KSA) has signed a contract with Leonardo for four C-27J Spartan aircraft configured for maritime patrol (MPA). According to the company’s announcement on February 16, 2026, the new fleet will be operated by the Royal Saudi Naval Forces (RSNF) to enhance the nation’s maritime security and multi-domain capabilities.

Deliveries of the aircraft are scheduled to begin in 2029. This acquisition makes Saudi Arabia the 21st operator of the C-27J platform worldwide. The deal follows a previous contract signed in the summer of 2025, in which the Saudi military acquired two C-27Js configured for firefighting, cargo transport, and medical evacuation.

The agreement marks a significant technical milestone for the C-27J program. Leonardo stated that this is the first time the MPA variant has been procured with full maritime weapon system integration, allowing the aircraft to carry munitions such as anti-ship missiles and torpedoes.

Expanding Naval Capabilities

The new aircraft are intended to address a wide range of modern maritime threats. According to Leonardo, the C-27J MPA will provide the Royal Saudi Naval Forces with capabilities for Anti-Submarine Warfare (ASW) and Anti-Surface Warfare (ASuW), alongside standard Search and Rescue (SAR) and surveillance missions.

The aircraft will be based on the C-27J Spartan Next Generation platform, which features upgraded avionics and self-protection systems. Despite the specialized maritime configuration, the aircraft will retain the flexibility to perform tactical transport and airdrop missions, a core strength of the Spartan airframe.

“This significant achievement confirms the strong bond between Leonardo and the Kingdom of Saudi Arabia, increasing the number of C-27Js ordered by KSA users… It also marks the first time the C-27J MPA is procured with maritime weapon system integration capability.”

, Leonardo Press Release

Technical Specifications and Weaponization

The C-27J MPA is equipped with a dedicated mission suite centered on the Leonardo ATOS (Airborne Tactical Observation and Surveillance) system. This system manages onboard sensors to detect, identify, and track both surface and underwater targets. The aircraft also features data fusion capabilities and a communication suite designed for interoperability with other units, including Beyond Line Of Sight (BLOS) operations.

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Most notably, the Saudi variant will be the first to integrate a complete maritime weapons package. While specific munition types were not detailed in the initial release, Leonardo confirmed the aircraft will be capable of deploying:

  • Torpedoes
  • Anti-ship missiles
  • Depth charges

The modular design allows operators to reconfigure the cabin for different missions. By removing mission management consoles, the aircraft can revert to a transport configuration for troops, cargo, or medical evacuation.

AirPro News analysis

This contract represents a strategic shift for both the Royal Saudi Naval Forces and the C-27J program. For Saudi Arabia, acquiring fixed-wing assets with organic ASW and ASuW capabilities significantly extends the reach of its naval defense beyond coastal waters, reducing reliance on rotary-wing assets for long-range patrol.

For Leonardo, securing a launch customer for the armed MPA variant is a critical market validation. It positions the C-27J as a more direct competitor to other medium-tactical maritime patrol aircraft, such as the Airbus C295 MPA, by proving the platform can handle complex weapon integration alongside its established tactical airlift performance.

FAQ

When will the aircraft be delivered?
Deliveries to the Royal Saudi Naval Forces are expected to commence in 2029.

What makes this order unique?
This is the first contract for the C-27J MPA that includes the integration of maritime weapon systems, such as torpedoes and anti-ship missiles.

Does Saudi Arabia already operate the C-27J?
Yes. The Kingdom acquired two C-27J aircraft in the summer of 2025 for firefighting and utility roles.

Sources

Photo Credit: Leonardo

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Ondas Holdings Acquires Rotron Aero to Expand Kinetic Defense Portfolio

Ondas Holdings announces acquisition of UK-based Rotron Aero, adding heavy-fuel engines and loitering munitions to its defense capabilities.

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This article is based on an official press release from Ondas Holdings.

Ondas Holdings to Acquire Rotron Aero, Signaling Shift into Kinetic Defense Market

Ondas Holdings Inc. (NASDAQ: ONDS) has announced a definitive agreement to acquire Rotron Aero, a United Kingdom-based specialist in advanced rotary engines and unmanned aerial systems (UAS). The Acquisitions represents a significant strategic pivot for Ondas, expanding its portfolio from primarily surveillance and data solutions into the “kinetic” defense sector, specifically targeting the market for loitering munitions and heavy-fuel propulsion systems.

According to the company’s announcement on February 2, 2026, the transaction will be structured as a combination of cash and stock. The deal is subject to customary closing conditions, including regulatory approval under the United Kingdom’s National Security and Investment (NSI) Act, which governs the acquisition of sensitive dual-use and military technologies.

The acquisition targets Rotron Aerospace Limited, founded by Gilo Cardozo, and is distinct from the U.S.-based component manufacturer AMETEK Rotron. By integrating Rotron’s proprietary propulsion technology, Ondas aims to secure a critical supply chain for heavy-fuel engines, a key requirement for military logistics, while adding autonomous attack capabilities to its fleet.

Strategic Rationale: Vertical Integration and Lethal Capabilities

Ondas Holdings described the move as a “vertical integration” play designed to reduce dependence on third-party vendors while entering the high-demand market for precision strike capabilities. The acquisition introduces two primary assets to the Ondas ecosystem: the Defendor loitering munition and a proprietary line of heavy-fuel rotary engines.

Entering the Loitering Munition Market

The addition of the Defendor system allows Ondas to compete in the “attritable warfare” sector, low-cost, expendable unmanned systems designed for one-way missions. This moves the company beyond Intelligence, Surveillance, and Reconnaissance (ISR) into direct combat support.

“Modern conflicts demand systems that can operate at range, persist over time, and execute missions without continuous human control.”

, Eric Brock, CEO of Ondas Holdings

Securing the Supply Chain

A critical component of the deal is Rotron’s expertise in heavy-fuel engines, which run on JP-8 or Jet-A1 fuel. These fuels are standard for military logistics, making the engines highly valuable for NATO and allied defense programs. By owning the engine manufacturer, Ondas mitigates supply chain risks often associated with high-performance drone propulsion.

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About Rotron Aero

Headquartered in the United Kingdom, Rotron Aero was established in 2008 and has developed a reputation for high-power-to-weight ratio propulsion systems. The company’s technology portfolio includes:

  • Heavy-Fuel Engines: Rotary engines designed for reliability in contested environments.
  • Talon eVTOL: A vertical take-off and landing platform suitable for multi-role missions.
  • Defendor: An autonomous loitering munition system.

Gilo Cardozo, Founder of Rotron, emphasized the synergy between the two companies in the official release.

“This marks a defining moment in Rotron’s journey… By combining our propulsion-led engineering… with Ondas’ autonomous systems architecture… we will gain the scale to deliver more capability, faster.”

, Gilo Cardozo, Founder of Rotron Aero

AirPro News Analysis

From Surveillance to Strike: This acquisition places Ondas in direct competition with established defense players like AeroVironment, maker of the Switchblade, and newer disruptors like Anduril Industries. The shift to “kinetic” systems suggests Ondas is responding to the rapid evolution of drone warfare observed in recent global conflicts, where the line between reconnaissance and strike capabilities has blurred.

Regulatory Hurdles: The requirement for approval under the UK’s National Security and Investment Act is not a trivial formality. As Rotron possesses sovereign UK defense capabilities, regulators will likely scrutinize the transfer of intellectual property to a US-based holding company. However, the deal also promises to establish a stronger physical foothold for Ondas in the UK and NATO markets, potentially opening doors to Ministry of Defence programs that require local manufacturing.

Financial Context: While specific financial terms were not disclosed in the press release, market data suggests Rotron is a specialized engineering firm rather than a mass manufacturer. This indicates the acquisition is likely an “acqui-hire” and IP play intended to bolster Ondas’ technical depth rather than immediately adding massive revenue volume.

Frequently Asked Questions

What is the difference between Rotron Aero and AMETEK Rotron?
Rotron Aero (Rotron Aerospace Limited) is a UK-based company founded by Gilo Cardozo that specializes in drone engines and loitering munitions. AMETEK Rotron is a separate, US-based entity known for manufacturing cooling fans and blowers. Ondas is acquiring the UK-based Rotron Aero.

What is a “heavy-fuel” engine?
Heavy-fuel engines operate on kerosene-based fuels like JP-8 or Jet-A1, which are the standard fuels used by military aircraft and vehicles. Most commercial drones use gasoline or batteries, which creates logistical challenges in combat zones where gasoline is scarce and dangerous to transport.

When will the deal close?
The deal was announced on February 2, 2026. It is currently subject to regulatory review, including a standard assessment period under the UK NSI Act, which typically takes 30 working days but can be extended.

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Sources: Ondas Holdings Press Release

Photo Credit: Ondas

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