Defense & Military
Kratos to Deliver 15-20 Valkyrie Autonomous Combat Aircraft in 2026
Kratos plans delivery of 15-20 XQ-58 Valkyrie drones in 2026, advancing affordable autonomous combat aviation for the US and allies.
Kratos Defense & Security Solutions is on the cusp of a significant achievement in the field of autonomous military aviation, with plans to deliver 15-20 XQ-58 Valkyrie aircraft to customers in 2026. This delivery marks a pivotal moment for both the company and the broader defense sector as it signals a maturing of unmanned, collaborative combat aircraft technology from experimental stages into operational reality. The Valkyrie’s evolution from a research project to a production-ready system has drawn substantial attention from U.S. military branches and international partners, reflecting a shift in how modern airpower may be projected and sustained in the coming years.
The significance of this milestone extends beyond the numbers. The planned deliveries are the result of years of research, development, and testing under the U.S. Air Force Research Laboratory’s Low Cost Attritable Aircraft Technology initiative. With the increasing demand for affordable, attritable, and flexible unmanned platforms, the Valkyrie is positioned at the forefront of a global trend toward integrating autonomous systems alongside traditional manned aircraft. This shift is driven by the need to multiply force, reduce risk to human pilots, and manage escalating costs in an era of technological and geopolitical competition.
Kratos’s readiness to supply these aircraft also coincides with a rapidly expanding market for collaborative combat aircraft. The global market is projected to grow at a robust rate, indicating strong demand for solutions like the Valkyrie that promise both operational effectiveness and fiscal sustainability. The program’s progress is being closely watched by industry analysts, policymakers, and allied militaries as a bellwether for the future of air combat operations.
The XQ-58A Valkyrie traces its roots to the U.S. Air Force Research Laboratory’s (AFRL) LCAAT) project, aimed at breaking the cost cycle of advanced Military-Aircraft and enabling the deployment of large numbers of unmanned systems alongside manned fighters. The program’s goal was to develop a high-performance, survivable, and affordable unmanned aircraft that could perform a variety of missions, including acting as a loyal wingman to manned jets.
Development began in earnest in the mid-2010s, with Kratos selected as the prime contractor. The program moved rapidly, achieving its first flight in March 2019 at Yuma Proving Ground, Arizona. The Valkyrie’s design was shaped by the need for runway independence, stealth, and modularity, allowing for a variety of payloads and mission systems to be integrated with relative ease. This flexibility has enabled the creation of several variants, each tailored to specific operational needs.
By 2024, Kratos had confirmed at least five different Valkyrie variants in various stages of production or development. These included models optimized for conventional takeoff and landing, runway independence, and specialized missions such as electronic warfare and payload deployment. The program’s iterative approach, with rapid prototyping and continuous improvement, has been central to its success and appeal to both U.S. and international customers.
“The XQ-58A Valkyrie is a product of compressed timelines, innovative design, and a relentless focus on affordability, qualities that are redefining what is possible in military aviation.”
Kratos’s production strategy for the Valkyrie is notable for its proactive approach. The company began serial production of 24 aircraft before securing firm contracts, a move designed to establish first-mover advantage and demonstrate manufacturing readiness to potential buyers. This batch is expected to yield 15 aircraft ready for immediate delivery upon contract award, with the full 15-20 aircraft slated for customer delivery in 2026.
To support anticipated demand, Kratos has started procuring long-lead items for an additional 24 Valkyries, doubling the potential production run to 48 units. The Oklahoma City production facility, opened in 2018, has been central to this effort, leveraging experience from earlier drone programs to scale up Valkyrie manufacturing. Kratos officials have indicated that, with sufficient demand, the company could scale production to between 250 and 500 units annually, a testament to the platform’s modular design and the company’s investment in scalable infrastructure. This production flexibility allows Kratos to offer multiple Valkyrie variants tailored to different customer requirements, including both runway-independent and conventional models. Such adaptability is crucial in a market where operational needs and budget constraints vary widely among potential buyers.
“We have invested ahead of the market so customers can see their aircraft being built, examine cost data, and witness flight demonstrations, this transparency is a key differentiator for Kratos.”
The Valkyrie’s market potential is underscored by strong interest from both domestic and international customers. The U.S. Marine Corps is a leading candidate, having made a decision in principle to pursue the Valkyrie as a program of record. This could mark the first operational deployment of the Valkyrie outside of test and evaluation, with the Marine Corps already awarding contracts for mission system integration and planning to field an operational squadron equipped with the unmanned system.
Internationally, Kratos has partnered with Airbus Defence and Space to offer the Valkyrie to the German Air Force, targeting deliveries by 2029. This collaboration leverages Airbus’s mission system expertise and Kratos’s manufacturing capabilities, aiming to deliver a platform-agnostic solution that can integrate with both current and future European defense architectures. The partnership reflects broader trends in defense cooperation, where transatlantic alliances are seeking rapid, cost-effective solutions to evolving security challenges.
Beyond these headline opportunities, Kratos is engaged in negotiations with additional, undisclosed customers, suggesting a broadening market for collaborative combat aircraft. The company’s ability to offer a proven, production-ready platform at a lower cost than many competitors positions it well to capture a significant share of this expanding market.
The XQ-58A Valkyrie is engineered for versatility and survivability. It boasts a cruising speed near Mach 0.72, operational ceilings up to 45,000 feet, and a range of approximately 3,000 miles. Its compact size and rocket-assisted launch capability enable operations from austere environments without the need for traditional runways, enhancing its tactical flexibility and survivability in contested environments.
Stealth features are integral to the Valkyrie’s design, allowing it to penetrate defended airspace and support missions such as strike, surveillance, and electronic warfare. The aircraft’s modular architecture enables rapid integration of different payloads, including internal weapons bays for precision munitions and underwing hardpoints for additional armament such as air-to-air missiles.
Recent advancements include successful demonstrations of autonomous formation flying with manned fighters, integration of electronic warfare payloads, and the deployment of smaller unmanned systems from its internal bay. These capabilities underscore the Valkyrie’s role as a force multiplier, capable of operating independently or as part of a larger, networked team with manned and unmanned assets.
“The Valkyrie’s ability to launch from remote sites, deploy swarming Drones, and operate in concert with manned fighters is a game-changer for distributed airpower.”
Kratos’s financial performance has underpinned its ability to invest in Valkyrie production. With quarterly revenues exceeding $350 million and a strong balance sheet, the company has been able to initiate production ahead of contracts and expand its facilities, including a new engine manufacturing plant in Oklahoma. This financial strength is critical as the company seeks to meet rising demand and maintain its competitive edge. The Valkyrie’s unit cost is a key selling point. While current costs are around $6.5 million per aircraft in low-rate production, Kratos projects that costs could drop below $2 million per unit at higher production rates. This price point is significantly lower than traditional manned fighters and competitive with other unmanned systems, enabling new procurement strategies focused on attritability and mass deployment.
The broader military drone market is projected to grow rapidly, with global spending expected to triple between 2024 and 2032. Kratos’s focus on affordability, scalability, and operational flexibility positions the Valkyrie to capture a meaningful share of this expanding market, especially as allied nations seek to modernize their air forces with cost-effective, autonomous platforms.
The Valkyrie program is emblematic of a broader transformation in air combat doctrine, where the integration of autonomous systems with manned platforms is reshaping operational concepts. The ability to deploy large numbers of low-cost, capable drones alongside traditional fighters offers new options for force multiplication, risk distribution, and operational agility.
This shift has implications for training, maintenance, and command and control, requiring new approaches to human-machine teaming and mission planning. The Marine Corps’s stated intention to field a tactically relevant CCA squadron highlights the move from experimentation to operationalization, setting a precedent that other services and allied nations are likely to follow.
International partnerships, such as the Kratos-Airbus collaboration, further illustrate how autonomous aircraft are becoming central to alliance strategies and interoperability initiatives. As the Valkyrie and similar systems enter service, they are expected to drive doctrinal innovation and influence the next generation of airpower development worldwide.
Kratos’s planned delivery of 15-20 Valkyrie aircraft in 2026 represents a watershed moment for autonomous combat aviation. This achievement is the result of sustained investment in technology, manufacturing, and strategic partnerships, and it signals a shift in how airpower may be generated and sustained in the future. The Valkyrie’s combination of affordability, flexibility, and operational effectiveness positions it as a leading solution in the emerging market for collaborative combat aircraft.
Looking ahead, the successful operational deployment of the Valkyrie will likely accelerate the adoption of unmanned systems across allied air forces and shape the evolution of air combat doctrine. As the boundaries between manned and unmanned operations continue to blur, platforms like the Valkyrie are set to play a central role in defining the future of military aviation.
What is the Kratos XQ-58 Valkyrie? Who are the main customers for the Valkyrie? How much does a Valkyrie cost? What makes the Valkyrie unique? When will the first Valkyries be delivered? Sources: Aviation Week, Kratos Defense
Kratos Set to Deliver 15-20 Valkyrie Aircraft in 2026: A Strategic Milestone in Autonomous Combat Aviation
Background and Program Development
Production Capacity and Delivery Timeline
Market Opportunities and International Partnerships
Technical Capabilities and Platform Evolution
Financial Performance and Market Context
Strategic Implications for Collaborative Combat Aircraft
Conclusion
FAQ
The XQ-58 Valkyrie is an autonomous, low-cost, high-performance unmanned combat aerial vehicle developed by Kratos Defense & Security Solutions for collaborative operations with manned aircraft.
The U.S. Marine Corps is expected to be the first operational customer, with Germany and other unnamed international partners also expressing interest.
Current unit cost is approximately $6.5 million, with projections that it could drop below $2 million per unit at higher production rates.
Its combination of runway independence, stealth, modular payloads, and affordability distinguishes it from other unmanned systems and makes it suitable for a wide range of missions.
Kratos plans to deliver 15-20 Valkyrie aircraft to customers in 2026.
Photo Credit: The War Zone
Defense & Military
Leonardo and 2Excel Win RAeS Medal for Excalibur Flight Test Aircraft
Leonardo and 2Excel Aviation were awarded the RAeS Bronze Medal for engineering on the Excalibur Flight Test Aircraft supporting the UK’s sixth-generation combat plane.
This article is based on an official press release from Leonardo.
Leonardo and 2Excel Aviation have been jointly awarded the Royal Aeronautical Society (RAeS) Team Bronze Medal, a prestigious accolade recognizing their rapid engineering achievements on the Excalibur Flight Test Aircraft (FTA). Announced on December 2, 2025, the award highlights the successful transformation of a commercial Boeing 757 into a sophisticated “flying laboratory” designed to support the Global Combat Air Programme (GCAP).
The Excalibur project represents a critical component of the UK’s strategy to develop a sixth-generation combat aircraft, often referred to as Tempest. According to the official announcement from Leonardo, the RAeS medal specifically honors the “extraordinary efforts,” “pace,” and “agility” demonstrated by the joint team in modifying the airframe to host complex military avionics.
This recognition comes shortly after the team successfully completed the first phase of flight trials, which validated the aerodynamic stability of the aircraft while carrying substantial external modifications.
The Excalibur FTA is a retired Boeing 757-200 commercial airliner that has been heavily modified to test the advanced technology required for future combat scenarios. The primary mission of the aircraft is to de-risk the development of the ISANKE & ICS (Integrated Sensing and Non-Kinetic Effects and Integrated Communications Systems) domain.
By utilizing a large commercial airframe, the engineering team can install and test heavy, power-intensive sensors, such as radar, electronic warfare suites, and communications nodes, in a live flight environment long before the actual GCAP fighter prototype takes to the skies. This approach allows for real-time data monitoring by scientists on board the aircraft.
According to the press release and project updates, the award follows the completion of Phase 1 flight trials. These trials focused on safety and aerodynamics, ensuring the aircraft could fly stable with significant structural additions. Key modifications tested during this phase include:
The Royal Aeronautical Society’s decision to award the Team Bronze Medal underscores the effectiveness of the partnership between a major defense prime, Leonardo, and a specialized aviation services SME, 2Excel Aviation. The collaboration is cited by the UK Ministry of Defence as a model for “agile” defense procurement, prioritizing speed and innovation over traditional, slower development cycles.
In the official release, executives from both companies emphasized the unique challenges posed by the program. “This award from the Royal Aeronautical Society recognizes the extraordinary efforts of the team and acknowledges the significant contribution that their work is making to the UK’s future combat air capability. The success of Excalibur reflects the strong partnership between Leonardo and 2Excel. Together, we are helping the programme break new ground while demonstrating pace and agility to meet the ambitious timelines of GCAP.”
, Anthony Todd, Project Chief Engineer, Leonardo
Steve Riley, Executive Director of 2Excel Aviation, noted the historical significance of the engineering pace achieved by the team.
“This programme has presented challenges in the UK aerospace industry that have not been present for decades. The team has met them head-on… demonstrating unparalleled pace throughout.”
, Steve Riley, Executive Director, 2Excel Aviation
The awarding of the RAeS Bronze Medal to the Excalibur team highlights a pivotal shift in how next-generation air dominance platforms are developed. Historically, avionics testing often waited for the availability of a representative military airframe, which could delay systems integration by years. By repurposing a Boeing 757, the GCAP partners are effectively decoupling the sensor development timeline from the airframe development timeline.
We observe that this “digital-first” and “test-early” methodology is essential for meeting the aggressive 2035 service entry target for the Tempest fighter. The ability to fly live sensors in 2025 suggests that the UK and its partners (Italy and Japan) are prioritizing the maturity of the “brain” of the aircraft, the ISANKE & ICS, just as much as the stealth characteristics of the airframe itself.
Leonardo and 2Excel Aviation Awarded RAeS Bronze Medal for Excalibur Flight Test Aircraft
Engineering a Sixth-Generation Testbed
Phase 1 Success and Modifications
Industry Collaboration and Agile Development
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: 2Excel Aviation
Defense & Military
Egypt Becomes Rafale Fighter Jet Component Manufacturer with Dassault Deal
Egypt’s AOI signs a contract with Dassault Aviation to produce Rafale fighter jet wing parts, joining the global aerospace supply chain.
This article is based on an official press release from the Arab Organization for Industrialization (AOI). See the original release for full details.
In a significant development for the Egyptian defense industry, the Arab Organization for Industrialization (AOI) has signed a new industrial cooperation contract with French aerospace giant Dassault Aviation. The agreement, finalized during the Egypt Defence Expo (EDEX) 2025, designates the AOI’s Helwan Military-Aircraft Factory as a certified partner in the global supply chain for the Rafale fighter jet.
According to the official press release from the AOI, the contract was signed in the presence of Lieutenant General Engineer Mokhtar Abdel Latif, Chairman of the AOI, and H.E. Eric Chevallier, the French Ambassador to Cairo. This deal marks a pivotal shift in the relationship between Egypt and Dassault, moving from a traditional buyer-seller dynamic to a strategic manufacturing partnership.
Under the terms of the agreement, Egyptian facilities will, for the first time, manufacture wing components for the Rafale aircraft. This step aligns with Egypt’s broader “Vision 2030” strategy to localize advanced defense technology and reduce reliance on foreign imports.
The core of the agreement focuses on the Helwan Aircraft Factory, which has now been accredited to meet Dassault Aviation’s rigorous quality standards. The AOI statement confirms that the factory will produce specific wing parts for the Rafale, adhering to “Fourth Industrial Revolution” manufacturing standards. This ensures that components produced in Cairo are compatible with Dassault’s global requirements and can be integrated into aircraft destined for international markets.
Anne-Lise Dallut, General Manager of Dassault Aviation in Egypt, praised the capabilities of the Egyptian industrial base.
“The AOI’s factories have met Dassault’s rigorous quality and operational standards, serving as Egypt’s industrial backbone.”
This certification allows the AOI to act as a supply-chain hub, potentially exporting these locally manufactured parts back to France or to other nations operating the Rafale platform.
This contract builds upon years of deepening military and industrial ties between Cairo and Paris. Egypt currently operates one of the largest fleets of Rafale fighter jets outside of France, following major procurement deals signed in 2015 and 2021. The size of this fleet has provided a strong business case for localizing maintenance, repair, and overhaul (MRO) capabilities, as well as component manufacturing. According to reporting by Ahram Online and Daily News Egypt, the partnership has evolved significantly over the last decade. Previous collaborations included the establishment of the AOI School for Applied Technology in Helwan, which trains Egyptian technicians using French curricula to ensure a skilled workforce capable of handling advanced aerospace technologies.
The Dassault agreement is part of a wider trend of French aerospace companies deepening their footprint in Egypt. As noted in reports from Sada Elbalad, the AOI also recently strengthened ties with Safran Aircraft Engines. In late 2024, the AOI Engine Factory was accredited as the sole international center for the overhaul of Larzac engines, which power the Alpha Jet aircraft. These simultaneous developments position Egypt as a regional hub for French defense exports to African and Arab markets.
During the signing ceremony at the Egypt International Exhibition Center, key officials highlighted the economic and strategic importance of the deal.
Lieutenant General Mokhtar Abdel Latif, Chairman of the AOI, emphasized that the agreement reinforces Egypt’s status as a pivotal regional hub for advanced manufacturing. In the official release, he stated that the AOI is committed to increasing local manufacturing content and attracting foreign investment by leveraging its advanced industrial base.
French Ambassador Eric Chevallier echoed these sentiments, noting the strategic nature of the collaboration.
“This partnership supports France’s goal of using Egypt as a hub to boost French exports to neighboring Arab and African nations.”
From Buyer to Maker: A Strategic Leap Economic Implications
Egypt Enters Global Supply Chain for Rafale Fighter Jets with New Manufacturing Deal
Helwan Aircraft Factory to Lead Production
Strategic Context and French-Egyptian Cooperation
Expanding the Industrial Alliance
Official Statements on the Partnership
AirPro News Analysis
The transition from purchasing military hardware to manufacturing components for that hardware represents a critical maturity milestone for Egypt’s defense sector. By securing a role in the supply chain of a flagship platform like the Rafale, the AOI is insulating itself against supply chain disruptions while simultaneously developing high-tech human capital.
Beyond national security, this deal has significant economic potential. Integrating into a global supply chain allows Egypt to generate hard currency through exports. Furthermore, the adoption of “Fourth Industrial Revolution” standards at the Helwan factory will likely have positive spillover effects, raising industrial standards across other sectors of the Egyptian economy.
Sources
Photo Credit: The Arab Organization for Industrialization
Defense & Military
KAI Unveils MAH-1 Helicopter and ALE Drone System at EDEX 2025
KAI presents the MAH-1 attack helicopter with ALE drone at EDEX 2025, targeting Middle East and African defense markets with advanced coastal strike capabilities.
At the Egypt Defence Expo (EDEX) 2025 in Cairo, Korea Aerospace Industries (KAI) officially presented a major evolution in its naval aviation portfolio: the MAH-1 Marine Attack Helicopter paired with an Air Launched Effect (ALE) drone. This unveiling marks the first time South Korea has publicly displayed a dedicated Manned-Unmanned Teaming (MUM-T) system specifically designed for amphibious operations.
According to reporting by Army Recognition, the system is engineered to bolster survivability and extend strike ranges in coastal environments. By debuting this technology in Egypt, KAI appears to be positioning itself as a competitive alternative in the Middle East and African defense markets, utilizing Cairo as a strategic entry point for regional sales.
The centerpiece of the display was the MAH-1, an armed attack variant of the MUH-1 Marineon. The Marineon itself is a derivative of the KUH-1 Surion utility helicopter. Designed to provide close air support (CAS) and anti-armor capabilities for marine landings, the MAH-1 represents a significant step toward indigenous South Korean naval power.
Reports from the event indicate that the helicopter’s development is scheduled to conclude in late 2026, following a maiden flight that occurred in December 2024. The platform features a folding main rotor for shipboard storage and is treated with salt-resistant anti-corrosion coatings to withstand maritime conditions.
Based on data displayed at the exhibition, the MAH-1 boasts a maximum takeoff weight of 8.7 tons and is powered by twin T700-701K turboshaft engines, each generating over 1,800 shaft horsepower. Its dimensions include a length of 19 meters and a width of 6.1 meters.
The aircraft is heavily armed for its support role. It features a chin-mounted 20mm three-barrel turret gun and is capable of carrying a variety of munitions, including Cheongeom (Taipers) anti-tank guided missiles, Mistral air-to-air missiles, and 2.75-inch rockets.
Complementing the manned helicopter is the Air Launched Effect (ALE) drone, a compact unmanned system designed to launch directly from the MAH-1. This “loyal wingman” concept allows the helicopter crew to control the drone via bidirectional data links, extending their sensory reach while keeping the manned aircraft at a safer distance from threats.
According to the specifications provided at EDEX 2025, the ALE model displayed measures approximately 1.2 meters in length with a wingspan of 2.5 meters. It offers an endurance of roughly two hours and a top speed of around 200 km/h. The drone is intended for diverse roles, including Intelligence, Surveillance, and Reconnaissance (ISR), electronic warfare, and potentially loitering munition strikes. “The drone operates ahead of the manned helicopter to detect threats, reducing risk to the crew.”
— Summary of KAI operational concept
This system is part of KAI’s broader “Adaptable Aerial Platform” (AAP) program, which envisions various sizes of air-launched drones compatible with different platforms, including the FA-50 light combat aircraft.
KAI’s decision to unveil this system in Cairo underscores a deliberate strategy to target the Middle East and Africa (MEA) region. Egypt is viewed as a critical hub for this expansion, with KAI leveraging existing defense ties, such as the sale of K9 Howitzers and ongoing discussions regarding the FA-50.
The marketing approach emphasizes industrial cooperation, with proposals for technology transfer and local assembly. This “win-win” model is designed to appeal to nations like Egypt that possess developing amphibious capabilities, such as Mistral-class carriers, but may face budget constraints or export restrictions when seeking top-tier Western platforms.
We observe that the introduction of the ALE represents a critical tactical shift for the MAH-1 platform. By allowing the helicopter to engage targets or gather intelligence “over the horizon,” the system mitigates the risk posed by coastal air defense systems, such as MANPADS, which are a primary threat during amphibious assaults.
Furthermore, this development highlights South Korea’s growing independence in defense technology. By localizing key components like the T700 engines and developing indigenous weapons like the Cheongeom missile, KAI is reducing reliance on foreign suppliers. This autonomy likely makes the platform more attractive to non-aligned nations seeking advanced capabilities without the geopolitical strings often attached to US or European exports.
KAI Unveils Integrated MAH-1 Helicopter and ALE Drone System at EDEX 2025
The MAH-1 Marine Attack Helicopter
Key Specifications and Armament
The “Loyal Wingman”: ALE Drone
Strategic Market Implications
AirPro News Analysis
Sources
Photo Credit: Korea Aerospace Industries
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