Defense & Military
U.S. Shifts MGUE GPS Upgrade to Gray Eagle Drones Amid B-2 Delays

Securing Military Navigation: The MGUE Shift from B-2 to Gray Eagle
In modern warfare, secure positioning and navigation systems are mission-critical assets. The U.S. military’s $6.8 billion Military GPS User Equipment (MGUE) program represents a pivotal upgrade to counter emerging electronic warfare threats. At its core lies the M-Code signal – a hardened GPS technology designed to resist jamming and spoofing attacks that could disable conventional systems.
Recent developments have reshaped this two-decade modernization effort. In late 2024, Space Force leaders made a strategic pivot, switching MGUE Increment 1’s lead aviation platform from the B-2 Spirit stealth bomber to the Army’s MQ-1C Gray Eagle drone. This decision underscores both the program’s technical complexities and the urgency to field next-gen navigation capabilities across diverse military assets.
The MGUE Imperative: Modernizing Military Navigation
First conceived in the late 1990s, MGUE addresses a critical vulnerability – traditional GPS signals’ susceptibility to disruption. The program’s centerpiece is the M-Code signal, offering 100x greater anti-jamming protection through advanced cryptography and signal structure. Over 500 military platforms across all service branches require upgrades to utilize this capability.
Increment 1 focuses on developing Application-Specific Integrated Circuit (ASIC) cards for four key platforms. While ground and maritime systems progressed relatively smoothly, aviation integration proved particularly challenging. The B-2 bomber’s complex stealth systems created unique integration hurdles, contributing to a 3-year delay in aviation card certification.
“We’ve got to finish that program,” stressed Cordell DeLaPena, Space Systems Command’s PNT lead. “M-Code isn’t optional – it’s our shield against near-peer electronic warfare capabilities.”
Platform Shift: Strategic and Logistical Drivers
The decision to substitute Gray Eagle for the B-2 reflects practical testing realities. With only 20 B-2s operational, availability for extensive flight testing became problematic. General Atomics’ Gray Eagle offered more flexible test opportunities, with 12 active drones and lower operational constraints compared to strategic bombers.
This shift accelerates fielding timelines – Gray Eagle testing began Q1 2025 versus the B-2’s planned Q4 2024 start. Army Program Executive Office Aviation confirms the drone’s card-level certification remains on track for summer 2025, with full platform integration expected by 2026.
Broader Implications for Military Modernization
The platform change highlights a growing DoD emphasis on unmanned systems as technology testbeds. Gray Eagle’s 27-hour endurance allows extended M-Code stress testing under varied conditions – a capability difficult to replicate with crewed aircraft. Successful integration here could streamline future UAV/UGV upgrades.
However, challenges persist. The Army and Marine Corps have already abandoned MGUE cards for ground vehicles, opting instead for commercial M-Code solutions. This bifurcated approach risks creating capability gaps until Increment 2’s multi-domain solutions mature in the 2030s.
Navigating Future Challenges
With $214 million allocated in FY2025, MGUE’s success now hinges on parallel progress in space and ground segments. The delayed Next-Gen Operational Control System (OCX) finally enters operator testing this fall, a critical enabler for full M-Code functionality. Program leaders emphasize that 85% of MGUE’s technical risks have been retired, but schedule pressures remain intense.
Looking ahead, MGUE’s lessons are informing the Pentagon’s $12 billion PNT modernization strategy. As Lt. Gen. Philip Garrant notes, “This isn’t just about new hardware – it’s about building an architecture resilient enough for multi-domain operations against advanced adversaries.”
FAQ<
What is MGUE’s primary purpose?br>
MGUE upgrades military platforms to use secure M-Code GPS signals, providing anti-jamming and anti-spoofing capabilities.
Why switch from B-2 to Gray Eagle?
Gray Eagles offer more available test aircraft and lower operational constraints compared to limited B-2 resources.
Will B-2s still get M-Code upgrades?
Yes, but following Gray Eagle certification. B-2 integration is now part of Increment 1’s extended rollout.
When will fielding be complete?
Current estimates target 2026 for aviation platforms, with full multi-domain capability expected in Increment 2 (2030s).
Sources:
Aviation Today,
Breaking Defense,
DOT&E Reports
Defense & Military
Neura Defense Systems Rebrands as Volantyx Aerospace
Neura Defense Systems rebrands as Volantyx Aerospace to develop counter-UAS tech targeting RF-silent drone swarms.

Saint Petersburg, Florida-based Neura Defense Systems, Inc. announced on August 26, 2026, that it has rebranded as Volantyx Aerospace, Inc. to reflect its expansion from a single-product defense developer into a broader aerospace technology platform.
In a press release issued Wednesday, the company stated the original Neura Defense Systems name will be retained for its defense division and current operating business. The corporate restructuring aligns with the company’s focus on developing a distributed edge-intelligence architecture designed to counter autonomous, radio-frequency-silent drone swarms.
Addressing the RF-silent swarm-drone gap
Volantyx Aerospace is targeting a specific vulnerability in current counter-Unmanned Aircraft Systems (UAS) defense networks. Traditional detection and mitigation rely heavily on radio frequency (RF) signals, which are ineffective against pre-programmed or autonomous aircraft that do not emit such signals.
Founder and Chief Executive Officer Sam Talari explained the limitations of legacy systems in the company’s announcement, noting that the new architecture is built on the assumption that any single sensor can be degraded or absent.
An RF sensor cannot detect a signal that is not there, and a jammer cannot sever a control link that does not exist. We start from the aircraft’s physical signature instead — radar return, sound, heat, visual — and combine those into one track and one decision picture for the operator.
The company has filed 13 United States provisional patent applications covering multi-modal sensor fusion, distributed networking, cognitive command, and the detection of non-emitting aircraft. The resulting intelligence layer is designed to make decisions at the edge without cloud dependency while preserving a record of system observations.
Development timeline and market positioning
The rebranding occurs as federal investment in counter-UAS technologies accelerates. Volantyx Aerospace remains in the development stage, with its core capabilities currently undergoing hardware integration and field evaluation following initial tests in a controlled environment.
The company clarified in its release that it does not yet claim a fielded deployment, operational performance metrics, or a contract award. Volantyx Aerospace plans to begin manufacturing or supplying effectors in early 2027. The corporate name change is a structural adjustment for the Delaware corporation and does not alter existing agreements, obligations, or ownership.
AirPro News analysis
The transition from Neura Defense Systems to Volantyx Aerospace signals a strategic pivot to capture dual-use commercial and defense markets. As autonomous UAS capabilities proliferate, the reliance on RF jamming and detection is becoming a recognized vulnerability in airspace security. By focusing on multi-modal physical signatures, we view Volantyx’s approach as a necessary evolution in counter-UAS architecture. The company’s explicit acknowledgment that it lacks fielded deployments or contract awards underscores the significant gap between conceptual architecture and operational validation. The early 2027 target for effector manufacturing will be a critical milestone to monitor as the company attempts to transition from a development-stage startup to an active aerospace supplier.
Photo Credit: Neura Defense Systems, Inc.
Defense & Military
Lockheed Martin Offers Peru $1.8B F-16 Block 70 Offset Package
Lockheed Martin proposes a $1.8B industrial package for Peru’s F-16 Block 70 program, including UAS assembly and MRO expansion.

Lockheed Martin has outlined a $1.8 billion industrial and social collaboration package for Peru, designed to integrate local firms into the global aerospace supply chain as part of the country’s F-16 Block 70 procurement program.
Announced in a press release on August 26, 2026, the offset proposal follows the Peruvian government’s April 2026 decision to acquire an initial batch of 12 F-16 Block 70 aircraft. The comprehensive package aims to position Peru as a regional hub for advanced unmanned systems and aerospace services.
Expanding Peru’s aerospace industrial base
The proposed industrial agreement focuses heavily on technology transfer and domestic manufacturing. Key components include the domestic assembly of an Unmanned Aircraft System (UAS) tailored for the Latin American market, the establishment of joint research hubs, and the creation of a UAS Technical Institute. The package also outlines plans to expand Peru’s high-tech maintenance, repair, and overhaul (MRO) footprint.
“As we collaborate with the local industry, we aim to deliver tangible, high-value opportunities that build a skilled workforce, enable knowledge transfer and create lasting economic impact on both sides of the partnership,” said Tara Lause, Vice President of Business Development for the Integrated Fighter Group at Lockheed Martin.
Lause added that the procurement creates enduring alliances and industrial collaboration opportunities with the United States and other partner nations.
Fleet modernization and electronic warfare capabilities
Peru is currently working to replace its aging fleet of Soviet-era MiG-29s and French Mirage 2000s. The F-16 Block 70 was selected over competing bids from Saab and Dassault. To equip the new fleet, the government of Peru selected L3Harris Technologies to provide its AN/ALQ-254(V)1 Viper Shield all-digital electronic warfare suite, a decision announced on August 17, 2026. The Viper Shield system provides advanced radar warning and jamming capabilities.
Lockheed Martin noted that the F-16 is currently operated by 29 countries, with a global fleet of 2,800 aircraft. Mike Shoemaker, Vice President of the Integrated Fighter Group at Lockheed Martin, stated that the selection highlights the aircraft’s operational performance and ability to meet pressing defense requirements.
AirPro News analysis
The announcement of a $1.8 billion industrial offset package is a strategic move by Lockheed Martin to solidify the F-16 Block 70 sale amid a complex political environment in Lima. While the Peruvian government selected the aircraft in April 2026, regional defense reporting indicates that the procurement process has encountered delays linked to ministerial resignations and defense budget debates. By offering substantial domestic manufacturing opportunities, including UAS assembly and MRO expansion, Lockheed Martin is providing Peruvian leadership with a strong economic justification to finalize the state-to-state contract. We view this comprehensive technology transfer as a critical lever in moving the procurement from selection to a finalized, funded agreement.
Sources: Lockheed Martin
Photo Credit: Lockheed Martin
Defense & Military
Rolls-Royce Completes $1 Billion Indiana Defense Facility Upgrade
Rolls-Royce finalizes a decade-long $1 billion modernization of its Indiana manufacturing and testing facilities for U.S. defense programs.

Rolls-Royce has finalized a decade-long, $1 billion modernization of its Indiana manufacturing and testing facilities, cementing the campus as its largest global hub for defense engine production. The upgraded footprint equips the manufacturer to handle a growing portfolio of United States military aircraft projects and represents the largest single investment the company has made in the country.
In a press release issued on August 27, 2026, the company confirmed the completion of the infrastructure project, which spans manufacturing and ground test sites in Indianapolis and an altitude test facility in West Lafayette. More Rolls-Royce defense products are now built in Indianapolis than at any other location worldwide.
Strengthening military engine production
The modernized facilities will support the production and testing of propulsion systems for several high-profile military aircraft. This includes future engines for the U.S. Air Force B-52 strategic bomber and the U.S. Army MV-75 Cheyenne, alongside current production for the V-22 Osprey, the U.S. Navy MQ-25A Stingray, and the C-130J.
Adam Riddle, President of Defense and CEO of Rolls-Royce North America, emphasized the strategic nature of the upgrades and their alignment with national defense priorities.
“This billion-dollar investment is about more than buildings and test cells, it is about delivering for the American warfighter, on time and at the standard our customers expect. We made this investment because it was the right thing to do for U.S. national security and for the future of Rolls-Royce.”
U.S. Senator Jim Banks of Indiana noted the timing of the completion, stating that the engines built in Indianapolis power aircraft that warfighters depend on. He added that the investment strengthens the American defense industrial base at a critical moment.
Economic footprint and regional impact
The Indianapolis campus currently employs approximately 3,500 people. According to the company, its U.S. operations contributed $6.2 billion to the national economy in 2024 and support 30,000 jobs across 26 states, factoring in research and development spillover. The company estimates a $4 return to the U.S. economy for every dollar invested by the U.S. government in its operations.
Over the past decade, Rolls-Royce has invested a total of $1.5 billion in U.S. facilities and $2.5 billion in domestic research and development. The Indiana investment also includes a $75 million, 10-year alliance with Purdue University, which anchors the LibertyWorks advanced-research organization.
Indiana Governor Mike Braun highlighted the regional significance of the project.
“Rolls-Royce has called Indiana home for three decades, and this billion-dollar investment is a vote of confidence in Hoosier workers and our state. Advanced manufacturing like this is exactly what keeps Indiana’s economy strong and growing.”
AirPro News analysis
We view the completion of this $1 billion modernization as a critical milestone for Rolls-Royce North America as it works to secure its position within the U.S. defense supply chain. By anchoring its advanced testing and manufacturing capabilities in Indiana, the company effectively insulates its U.S. military contracts from international supply chain disruptions. The specific alignment with the B-52 re-engining program and the MV-75 Cheyenne indicates a long-term strategic focus on platforms expected to remain in service for decades. The dedicated altitude test facility in West Lafayette also provides a distinct competitive advantage for future aerospace research and development contracts, particularly as the Department of Defense demands more rigorous domestic testing capabilities.
Sources: Rolls-Royce
Photo Credit: Rolls-Royce
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