This article is based on an official press release from Airbus, supplemented by industry research.

Spain Unveils Industrial Programme for New SAETA II Combat Training System

On April 28, 2026, an Airbus-led consortium of Spanish aerospace and defense companies officially presented the industrial framework for the Spanish Air and Space Force’s new Integrated Combat Training System (ITS-C). According to an official press release from Airbus, the ambitious programme is designed to replace Spain’s aging fleet of Northrop F-5M aircraft, ensuring a modernized training pipeline for the next generation of fighter pilots.

The ITS-C programme is anchored by a co-development agreement between Airbus, acting as the prime contractor, and Turkish Aerospace (TA). The initiative will introduce a customized Spanish variant of TA’s HÜRJET advanced training aircraft, officially designated as the SAETA II. Industry research indicates that the December 2025 contract underpinning this programme is valued between €2.4 billion and €2.6 billion, marking a historic procurement milestone for both Spain and Turkey.

A central pillar of the agreement is the commitment to domestic industry. The Airbus press release confirms that the programme mandates a 60% participation rate from Spanish national industry. This localized approach aims to secure technological sovereignty, allowing Spain to independently manage the sustainment, maintenance, and future evolution of the 30-aircraft fleet.

The SAETA II and Phased Implementation

A Historic Procurement and Infrastructure Overhaul

The selection of the HÜRJET platform follows a rigorous evaluation process. According to defense industry reports, Spain evaluated a prototype of the Turkish-built supersonic advanced jet trainer in July 2024 at Torrejón Air Base. The subsequent December 2025 contract represents Turkey’s largest-ever single aircraft export deal and its first sale of a complete aircraft system to a NATO and European Union member state.

Beyond the aircraft themselves, the ITS-C programme encompasses a comprehensive infrastructure overhaul. Airbus announced it will lead the redesign of the Fighter and Strike School Training Centre at the Talavera la Real Air Base in Extremadura, Spain. This modernized facility will house an Aircraft Conversion Centre and state-of-the-art synthetic training simulators developed in collaboration with Spanish defense technology firm Indra.

Two-Phase Rollout Timeline

The Airbus press release outlines a two-phase implementation strategy designed to seamlessly transition the Spanish Air and Space Force to the new system:

• Phase 1 (2028–2030): The programme will commence with the delivery of an initial batch of 21 aircraft in their baseline configuration. Airbus will utilize one of these early jets as a prototype to integrate next-generation, Spanish-specific avionics and mission equipment. Concurrently, the ground-based training system is scheduled to become operational during the 2029–2030 academic year.
• Phase 2 (2031–2035): During this phase, the initial 21 aircraft, alongside the remaining nine jets on order, will undergo full conversion to the finalized SAETA II standard. Simulators will be updated to match this configuration, with all deliveries and integrations slated for completion by 2035.

Strategic Autonomy and Domestic Integration

Empowering the Spanish Defense Sector

By localizing 60% of the programme’s value, Spain is deliberately insulating its pilot training ecosystem from critical foreign dependencies. While Turkish Aerospace provides the baseline HÜRJET platform, Spanish industry will be responsible for integrating the aircraft’s “brain.”

According to Airbus, several key national technology firms have been tapped for critical systems integration. GMV will provide the inertial/GPS navigation and mission computers, while Sener is tasked with the DataLink systems. Aertec will supply remote interface units, Grupo Oesía will handle audio management, and Orbital will integrate VMDR mission recorders. Indra will supply the Identification Friend or Foe (IFF) systems alongside its work on the ground simulators.

Company and government officials emphasized the strategic importance of this domestic focus during the April 28 presentation in Getafe.

“As a result of this national programme, Spain achieves three strategic milestones: we ensure technology transfer in key areas, we obtain a deep-reaching industrial return, and, above all, we provide the programme with the strategic sovereignty and independence necessary to manage the sustainment and any future evolution of the system.”

“[The ITS-C] is a project that mobilises our industry, generates knowledge, employment, and opportunities throughout the entire value chain… it strengthens our strategic autonomy by allowing us to design, integrate, and evolve our own capabilities, reducing critical dependencies.”

Industry research also highlights the perspective of Turkish officials. Speaking on the December 2025 contract signing, Turkey’s Defense Industry President Haluk Görgün noted the comprehensive nature of the agreement.

“This is a high-value-added, multi-dimensional defense export rather than a conventional platform sale.”

AirPro News analysis

We observe that Spain’s selection of a Turkish-designed platform over traditional Western or European trainers, such as the Boeing T-7 Red Hawk or the Leonardo M-346, signals a notable shift in the European defense procurement landscape. It demonstrates that emerging aerospace suppliers can successfully compete for top-tier NATO contracts by offering highly flexible, co-development frameworks rather than rigid, off-the-shelf products.

Furthermore, the ITS-C programme exemplifies the modern “ecosystem” approach to military procurement. Spain is not merely purchasing 30 airframes; it is investing in a holistic training architecture. By securing domestic rights to the conversion centers, synthetic ground-based simulators, and long-term maintenance, the Spanish Air and Space Force is ensuring its pilots are prepared for the digital battlefield of 4.5- and 5th-generation fighters like the Eurofighter Typhoon, without being tethered to external supply chain bottlenecks.

Frequently Asked Questions (FAQ)

What is the SAETA II?

The SAETA II is the customized Spanish variant of the Turkish Aerospace HÜRJET. It is a supersonic advanced jet trainer and light combat aircraft that will serve as the backbone of Spain’s new Integrated Combat Training System (ITS-C). The name pays homage to the Hispano HA-200 Saeta, Spain’s first indigenous jet trainer.

When will the new aircraft enter service?

According to the Airbus press release, the initial phase begins in 2028 with the delivery of the first batch of aircraft. The ground-based training system is expected to be operational by the 2029–2030 academic year, with the fully converted SAETA II fleet delivered between 2031 and 2035.

Why is Airbus involved if the aircraft is Turkish?

Airbus Defence and Space is acting as the prime contractor and national coordinator for Spain. While Turkish Aerospace manufactures the baseline HÜRJET, Airbus is leading the integration of Spanish-specific avionics, mission equipment, and ground-based training infrastructure to ensure the system meets the exact requirements of the Spanish Air and Space Force.

Sources:
Airbus Press Release: Airbus leads national industry in the launch of Spain’s new combat training system

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

• ST Engineering Official Press Release

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

• Rochefort Asset Management (PR Newswire)