Defense & Military
EDGE Group and Leonardo Finalize Joint Venture in UAE Defense Sector
EDGE Group and Leonardo finalize governance for a UAE-based JV focused on advanced defense tech production and innovation by 2026.
A New Era in Defense Collaboration: EDGE Group and Leonardo Finalize Joint Venture
On November 19, 2025, the defense sector witnessed a pivotal moment at the Dubai Airshow 2025 as EDGE Group and Leonardo announced a definitive milestone in their strategic partnership. We observe that this agreement marks the finalization of governance principles and commercial assessments necessary to launch a new Joint Venture (JV) headquartered in Abu Dhabi. This development is not merely a commercial transaction but a structural evolution in how international defense collaborations are formed in the region.
The collaboration brings together EDGE Group, the UAE’s leading advanced technology and defense conglomerate, and Leonardo, an Italian global leader in aerospace and security. The announcement follows a series of strategic steps taken throughout the year, starting with an initial collaboration agreement at IDEX in February 2025 and a Memorandum of Understanding signed in June 2025. We see this progression as a testament to the rapid pace at which both entities are moving to solidify their industrial ties.
Scheduled to become fully operational in 2026, this joint venture represents a significant leap toward localized defense manufacturing. By moving beyond the traditional buyer-seller dynamic, the two companies are establishing an industrial hub capable of designing, developing, and producing complex systems within the United Arab Emirates. This move aligns with broader geopolitical and economic trends where sovereign capability is becoming a priority for nations in the Gulf region.
Structuring the Alliance: Governance and Scope
The structural framework of this joint venture is designed to ensure mutual benefit while prioritizing local industrial growth. Under the agreed terms, EDGE Group will hold a 51% majority stake, while Leonardo will retain 49%. We understand that this ownership split is significant; it secures the UAE’s directive to maintain sovereign control over critical defense capabilities while leveraging the deep technical expertise and global reach of an established European prime like Leonardo.
Operational Focus and Technology Domains
The scope of the new entity is comprehensive, covering the entire product lifecycle. Rather than focusing solely on final assembly, the JV will handle design, engineering, Manufacturing, and sustainment. We note that the technology domains targeted are vast, spanning air, land, sea, and cyber sectors. Specific focus areas include airborne radar, naval combat management systems, and secure communications. This multi-domain approach ensures that the JV can address a wide array of modern defense requirements.
Furthermore, the partnership places a heavy emphasis on advanced technologies. The integration of AI (AI) and high-performance computing into missile applications and counter-drone (C-UAS) systems is a key priority. By focusing on these high-demand areas, the joint venture positions itself to compete in the market for next-generation warfare tools. We see this as a strategic move to capture market share in sectors that are currently seeing exponential growth due to global security challenges.
Another critical aspect of the agreement involves Intellectual Property (IP). The deal includes provisions for IP licensing and, crucially, the development of new shared IP within the UAE. This indicates that the Abu Dhabi headquarters will not just be a production facility but a center for innovation. We believe this shift is essential for the long-term sustainability of the partnership, as it fosters the creation of indigenous technology rather than relying exclusively on technology transfer.
“This latest milestone… underscores not only the speed with which we are moving, but highlights what can be achieved when two industry players collaborate on the development of a smart strategy… We can tailor solutions born from solid experience, expertise, and innovation, through the UAE to existing and new untapped markets.”, Hamad Al Marar, Managing Director & CEO, EDGE Group.
Strategic Implications for the Region
The establishment of this joint venture is a direct execution of the UAE’s “Make it in the Emirates” initiative. This national strategy aims to increase the industrial sector’s contribution to the GDP and reduce reliance on foreign imports for critical hardware. We observe that by securing a majority stake and mandating local production, EDGE Group is effectively localizing the supply chain for advanced defense electronics and combat systems.
For Leonardo, the partnership offers a privileged channel into the UAE market and beyond. While the Italian firm has operated in the Emirates for 50 years, this JV embeds them deeply into the local industrial fabric. We analyze this as a necessary evolution for global defense primes; to secure major Contracts in the current climate, companies must offer more than just products, they must offer economic value and technology transfer. This partnership provides Leonardo with a platform to export jointly developed solutions to “untapped markets” in the Middle East, Africa, and Asia, leveraging the UAE’s diplomatic and trade relationships.
Additionally, workforce development stands as a central pillar of this agreement. The collaboration aims to build a skilled, locally-based workforce by Training Emirati engineers in advanced European defense technologies. We recognize that human capital development is often the most challenging aspect of defense localization, and the commitment to training suggests a long-term view toward building a self-sustaining defense ecosystem in Abu Dhabi.
Concluding Perspectives
As the joint venture prepares for its operational launch in 2026, it sets a precedent for future defense collaborations in the Middle East. The finalization of governance principles at the Dubai Airshow 2025 demonstrates that EDGE Group and Leonardo have moved past the aspirational phase and are now executing a concrete industrial strategy. We expect this entity to become a key player in the regional defense market, offering competitive, locally produced solutions that rival off-the-shelf imports.
Looking ahead, the success of this venture will likely depend on the speed of technology transfer and the ability to integrate distinct corporate cultures. However, with the governance structure now settled and clear commercial targets defined, the foundation is strong. We view this Partnerships as a clear indicator of the industry’s shift toward “hybrid sovereignty,” where local champions and global giants merge capabilities to navigate an increasingly complex security landscape.
FAQ
Question: What is the ownership structure of the new joint venture?
Answer: The joint venture is majority-owned by the UAE-based EDGE Group, which holds a 51% stake, while Italy’s Leonardo holds the remaining 49%.
Question: When will the joint venture become operational?
Answer: The new entity is scheduled to launch and become fully operational in 2026, following the finalization of agreements in November 2025.
Question: What technologies will the joint venture focus on?
Answer: The JV will focus on the design, development, and production of systems across air, land, sea, and cyber domains. This includes airborne radar, naval combat management systems, secure communications, and AI-integrated solutions.
Sources
Photo Credit: Leonardo
Defense & Military
ST Engineering Secures S$4.8 Billion in Q1 2026 Contract Wins
ST Engineering announced S$4.8 billion in new contracts for Q1 2026, driven by Defence, Commercial Aerospace, and Urban Solutions segments.
This article is based on an official press release from ST Engineering.
On April 27, 2026, Singapore Technologies Engineering Ltd (ST Engineering) announced that it had successfully secured S$4.8 billion in new contracts during the first quarter of 2026. According to the company’s official press release, this robust first-quarter performance represents an increase of approximately S$400 million compared to the same period in the previous year.
The newly announced contracts are distributed across the company’s three core business segments, further solidifying its revenue visibility for the next two to three years. Following a record-breaking financial year in 2025, where the group’s order book reached S$33.2 billion, this latest S$4.8 billion haul is expected to propel the outstanding order book to new near-record highs.
We have reviewed the detailed breakdown provided by ST Engineering, which highlights significant growth driven by global defence spending, resilient commercial aerospace demand, and steady urban infrastructure investments.
Defence and Public Security Drive Growth
Exactly half of the new contract value secured in Q1 2026, amounting to S$2.4 billion, stems from the Defence and Public Security segment. The company’s press release indicates that this surge is heavily driven by a strategic expansion into the Middle-East and a growing demand for advanced digital warfare capabilities.
Middle East Expansion
ST Engineering reported a breakthrough entry into the Qatar defence market, securing a €315 million (approximately S$470 million) multi-year maintenance, repair, and overhaul (MRO) contract to support the Qatar Emiri Land Forces. Additionally, the company secured a six-year, S$600 million sub-contract from Abu Dhabi Ship Building. This agreement involves designing and supplying platform systems for eight Missile Gun Boats destined for the Kuwait Naval Force. The segment also saw a surge in international orders for 40mm and 155mm ammunition.
Domestic Digital and Cyber Integration
Within Singapore, ST Engineering continues to modernize domestic defence infrastructure. The company announced domestic contract wins to provide AI-enabled mission-critical command and control systems, high-performance GPU infrastructure, and training simulation suites. Furthermore, the firm secured contracts for advanced cybersecurity systems, including encryptors and data diodes, reflecting a broader industry shift toward digital and cyber warfare readiness.
Commercial Aerospace Maintains Strong Momentum
The Commercial Aerospace segment remains a vital pillar for ST Engineering, bringing in S$1.7 billion in Q1 2026. These Contracts span the company’s MRO and Aerostructures & Systems businesses, demonstrating sustained global demand as flight volumes remain high.
MRO and Freighter Conversions
According to the company’s announcement, airframe MRO wins include a renewal agreement with an American airline for heavy maintenance and cabin modifications on its Airbus fleet, alongside an agreement with an air freight operator for its Boeing fleet. In the engine and component MRO space, ST Engineering secured a contract with Xiamen Airlines for the first Performance Restoration Shop Visit (PRSV) of its CFM LEAP-1A engines. The company also signed agreements with Skymark Airlines for 737 MAX Maintenance-By-the-Hour support and 737NG landing gear overhauls.
Passenger-to-Freighter (P2F) conversions continue to be a lucrative avenue. The press release details new contracts for Airbus A330-300 P2F conversions with lessors Hengqin Winglet Aircraft Technology and Asia Pacific Aviation Leasing Group.
Urban Solutions and Satcom Contributions
The Urban Solutions and Satcom segment contributed S$0.7 billion to the Q1 total. This segment reflects steady global demand for smart city and connectivity infrastructure. ST Engineering noted that these contracts cover key areas such as rail electronics, tolling, smart utilities, security, healthcare ICT, and satellite ground infrastructure. The geographic spread of these wins is notably diverse, spanning Singapore, Taiwan, the Middle East, the United States, and Europe.
Financial Context and Market Reaction
To understand the significance of these Q1 figures, they must be viewed against the backdrop of ST Engineering’s recent financial momentum. In FY2025, the group reported a revenue of S$12.35 billion, a 9% year-on-year increase, and secured S$18.7 billion in new contracts. Of the record S$33.2 billion order book reported at the end of 2025, S$9.9 billion is expected to be delivered in 2026.
During the FY2025 earnings briefing in February 2026, company leadership emphasized the importance of this backlog.
“Our record order book is a clear leading indicator of revenue growth in the years ahead.”
, Vincent Chong, Group President and CEO, ST Engineering (February 2026 Earnings Briefing)
AirPro News analysis
We observe that the surge in the Defence and Public Security segment aligns closely with broader macroeconomic and geopolitical trends. Global defence procurement is rapidly ramping up amid escalating geopolitical frictions, particularly in the Middle East. ST Engineering’s ability to capture lucrative defence budgets in Qatar and Kuwait demonstrates a successful pivot to capitalize on regional modernization efforts.
Furthermore, the Commercial Aerospace sector continues to act as a reliable cash generator. The sustained demand for passenger-to-freighter conversions and routine MROs indicates that the post-pandemic aerospace boom has stabilized into long-term operational demand.
Despite the positive contract news, market reaction was muted. On the day of the announcement (April 27, 2026), ST Engineering shares closed at S$10.75, down 2.45%. Financial analysts tracking the stock note that while these specific Q1 deals may not materially alter near-term earnings per share, the diversified wins underpin long-term growth. Industry estimates and recent analyst ratings currently hover around a “Hold,” with price targets ranging from S$11.05 (TipRanks) to S$12.30 (RHB).
Frequently Asked Questions (FAQ)
What is the total value of ST Engineering’s Q1 2026 contract wins?
ST Engineering secured S$4.8 billion in new contracts during the first quarter of 2026, an increase of approximately S$400 million from the same period in 2025.
Which business segment contributed the most to the Q1 2026 contracts?
The Defence and Public Security segment was the largest contributor, accounting for 50% of the total, or S$2.4 billion. This was followed by Commercial Aerospace at S$1.7 billion and Urban Solutions & Satcom at S$0.7 billion.
How did the stock market react to the Q1 2026 contract announcement?
On April 27, 2026, the day of the announcement, ST Engineering shares closed down 2.45% at S$10.75, despite the strong contract figures.
Sources
Photo Credit: ST Engineering
Defense & Military
Rochefort Asset Management Funds Firehawk Aerospace to Scale Propulsion Production
Rochefort Asset Management closed a senior secured loan to Firehawk Aerospace to advance U.S. domestic production of 3D-printed rocket propulsion systems.
This article is based on an official press release from Rochefort Asset Management.
Rochefort Asset Management, an investment firm focused on U.S. national security and licensed under the Office of Strategic Capital of the U.S. Department of War (DoW), announced on April 28, 2026, the closing of a senior secured loan to Firehawk Aerospace Inc. According to the official press release, the financing is designed to accelerate Firehawk’s production capacity for solid rocket motors, base bleed motors, hybrid rocket engines, and 3D-printed propellant.
Firehawk Aerospace, a vertically integrated propulsion and energetics manufacturer, serves the U.S. defense industrial base by utilizing additive manufacturing to produce rocket propulsion systems. The newly secured capital aims to address critical manufacturing gaps prioritized by the Department of War as the United States works to rebuild its domestic munitions capacity.
We recognize that this funding arrives at a critical juncture for the defense sector, which is actively seeking to diversify its supply chain and reduce reliance on legacy manufacturing processes.
Addressing Defense Supply Chain Bottlenecks
The U.S. defense industrial base is currently navigating structural bottlenecks in energetics processing, solid rocket motor production, and artillery component manufacturing. These challenges are driven by accelerated replenishment cycles, great power competition, and Congressional mandates to expand domestic capacity. In response, the Department of War and prime defense contractors are actively funding second-source suppliers to mitigate single-point-of-failure risks in the supply-chain.
“America’s defense advantage has always depended on entrepreneurs willing to tackle hard problems,” said Kyle Bass, Co-Founder of Rochefort Asset Management, in the press release.
Bass added that the firm’s capital is designed to align with government objectives to eliminate bottlenecks and ensure the industrial base can respond decisively to critical defense needs.
Scaling 3D-Printed Propulsion Technology
Founded in 2020, Firehawk Aerospace has focused on transforming traditional rocket propulsion through additive manufacturing. The company has built a robust patent portfolio and recently completed a successful flight test of its GMLRS-class rocket system, which achieved supersonic speeds under a U.S. Army SBIR Phase III contract with the Army Applications Laboratory.
The senior secured loan from Rochefort Asset Management will directly support the scaling of these proven technologies. By printing propellant rather than using traditional cast-and-cure methods, Firehawk aims to deliver reliable, scalable motors that can be manufactured closer to the mission with unmatched speed.
“This is a domestic manufacturer at a genuine inflection point, and exactly the kind of company Rochefort’s transformational capital was built to back,” noted Alex Lemond, Co-Founder of Rochefort Asset Management.
Lemond emphasized in the release that Firehawk is directly addressing the manufacturing gaps prioritized by the Department of War as the nation rebuilds its arsenal.
AirPro News analysis
We view the investment in Firehawk Aerospace as indicative of a broader strategic shift within the U.S. defense sector toward advanced manufacturing technologies that can rapidly scale production. Industry estimates from Opulentia Ventures indicate that Firehawk’s proprietary 3D-printed propellant technology can reduce production times from up to 60 days using traditional methods to just seven hours, while simultaneously achieving cost reductions of 30% to 40%.
This senior secured loan follows a period of significant momentum for Firehawk. In late 2025, the company secured a $4 million TACFI contract from AFWERX and reportedly closed an oversubscribed $60 million funding round led by 1789 Capital, according to Metal AM. The continued influx of capital from defense-focused investment firms highlights the critical need for supply chain resilience and the growing reliance on innovative, second-source suppliers to meet the Pentagon’s modernization goals.
Frequently Asked Questions
What is Firehawk Aerospace?
Firehawk Aerospace is a defense technology company founded in 2020 that specializes in advanced energetics and propulsion. The company uses additive manufacturing (3D printing) to produce solid rocket motors, hybrid rocket engines, and propellant.
Why is Rochefort Asset Management investing in Firehawk?
Rochefort Asset Management, a firm focused on U.S. national security, provided a senior secured loan to help Firehawk scale its manufacturing capacity. The investment aligns with Department of War objectives to eliminate supply chain bottlenecks and rebuild domestic munitions production.
What are the benefits of 3D-printed propellant?
According to industry estimates, 3D printing propellant allows for precise design, consistent grain geometries, and safer handling. It significantly reduces production times and costs compared to traditional cast-and-cure manufacturing methods.
Sources
Photo Credit: Rochefort Asset Management
Defense & Military
L3Harris and Partners Complete Fourth Autonomous MQ-72C Flight Test
L3Harris and partners completed the fourth autonomous flight test of the MQ-72C Lakota Connector, an unmanned cargo helicopter for the US Marine Corps.
On April 24, 2026, L3Harris Technologies announced a significant milestone in the U.S. Marine Corps’ Aerial Logistics Connector (ALC) program. A collaborative industry team successfully completed the fourth autonomous flight test of the MQ-72C Lakota Connector, an unmanned cargo helicopter designed to resupply troops in high-risk environments.
According to the L3Harris press release, this recent test marked the first instance where technologies from all four primary partners, Airbus U.S. Space & Defense, Shield AI, L3Harris, and Parry Labs, operated simultaneously on a single aircraft. During the test, the unmanned helicopter demonstrated autonomous flight, obstacle avoidance, and safe landing capabilities in realistic, simulated combat conditions.
The MQ-72C aims to address the military’s growing challenge of sustaining forces in denied areas, providing a scalable platform to deliver critical supplies without endangering pilot lives.
The Contested Logistics Challenge and the ALC Program
As the U.S. Marine Corps shifts its focus toward distributed operations in contested theaters, such as the Indo-Pacific, maintaining secure supply lines has become a critical vulnerability. The 2026 Marine Corps Aviation Plan explicitly prioritizes the expansion of Unmanned Aircraft Systems (UAS) to support Distributed Aviation Operations (DAO).
To meet this operational need, the Department of Defense established the Aerial Logistics Connector (ALC) program. Managed through the Naval Aviation Systems Consortium as a rapid prototyping effort, the program seeks to develop aircraft capable of sustaining distributed forces. The research report provided alongside the release highlights the core issue:
“Contested logistics refers to the difficulty of moving essential supplies, like ammunition, food, and medical equipment, into areas where adversaries can disrupt communications, navigation, and transportation.”
Transforming the Lakota Airframe
Rather than developing a clean-sheet design, the MQ-72C Lakota Connector is based on the proven UH-72 Lakota and H145 commercial airframes. By utilizing an active U.S. production line, Airbus and its partners have created a cost-effective and low-risk solution for the military.
The aircraft has undergone significant design modifications to optimize it for unmanned cargo delivery. The traditional crew cabin, pilot controls, seats, and life-support systems have been completely removed. The nose section now serves as an avionics bay, and the aircraft features forward-opening clamshell doors for easy access to a modular cargo bay. Removing human-centric systems significantly reduces weight, hydraulic lines, and moving parts, which simplifies maintenance in austere environments.
Performance metrics provided in the program data indicate the MQ-72C can cruise at approximately 135 knots, operate at altitudes up to 20,000 feet, and achieve a range exceeding 350 nautical miles. It is specifically designed to transport Joint Modular Intermodal Containers and ordnance.
Industry Collaboration and Technological Integration
The success of the MQ-72C is driven by a consortium of defense and technology companies, each contributing specialized systems to the unmanned platform.
Partner Contributions
Airbus U.S. Space & Defense serves as the prime contractor, providing the airframe and its proprietary Helionix flight control system. Shield AI supplies the “Hivemind” autonomy software, which enables fully autonomous take-offs, waypoint navigation, obstacle avoidance, and landings without human intervention.
L3Harris Technologies acts as the lead systems integrator. According to their release, L3Harris provides the “digital backbone” and communications architecture using a Modular Open Systems Approach (MOSA). Parry Labs delivers the STRATIA Edge Software Platform, computing hardware, and a ground control station that integrates seamlessly with the Marine Air Ground Tablet (MAGTAB) used by deployed troops.
Rapid Development Timeline
The ALC program has moved swiftly since Airbus was awarded a Phase I Other Transaction Authority (OTA) contract in May 2024. Following an initial autonomous flight test in August 2025 in Texas, and a second test validating waypoint navigation in September 2025, the April 2026 test successfully integrated all partner technologies. This fourth flight validated the aircraft’s ability to execute complex missions and avoid obstacles autonomously.
AirPro News analysis
We observe that the MQ-72C Lakota Connector represents a pragmatic shift in military procurement. By leveraging an existing, proven airframe rather than pursuing a completely new design, the consortium is significantly accelerating the development timeline. This “speed to fleet” approach offers the military a faster, more affordable path to fielding unmanned logistics at scale.
Furthermore, L3Harris’s implementation of an open-architecture digital backbone ensures the MQ-72C is not a static asset. The MOSA framework allows the Marine Corps to rapidly integrate third-party hardware, new sensors, and future payloads, such as signals intelligence, without requiring extensive redesigns of the aircraft. This future-proofing is essential as the threat landscape and technological capabilities continue to evolve.
Frequently Asked Questions
What is the MQ-72C Lakota Connector?
It is an unmanned cargo helicopter based on the UH-72 Lakota and H145 airframes, designed to autonomously resupply U.S. Marine Corps troops in contested environments without risking pilot lives.
Who are the primary companies involved in the MQ-72C?
The consortium includes Airbus U.S. Space & Defense (prime contractor), Shield AI (autonomy software), L3Harris Technologies (systems integrator), and Parry Labs (edge computing and ground control).
What is the range and speed of the MQ-72C?
According to program data, the aircraft can cruise at approximately 135 knots, reach altitudes of 20,000 feet, and has a range exceeding 350 nautical miles.
Sources: L3Harris Technologies
Photo Credit: L3Harris Technologies
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