Defense & Military
Germany Orders €536 Million Strike Drones from Domestic Startups
Germany commits €536 million to buy strike drones from startups Helsing and Stark Defence, aiming to equip troops with AI-enabled systems by 2027.

This article summarizes reporting by Reuters and additional industry data.
Germany Pivots to Startups for €536 Million Strike Drone Order
The German government has initiated a significant shift in its defense procurement strategy, moving to acquire strike drones worth approximately €536 million ($638 million) from domestic startups rather than established defense giants. According to reporting by Reuters, the deal involves two German technology companies, Helsing and Stark Defence, and is part of a broader rearmament effort following Russia’s invasion of Ukraine.
This procurement is intended to equip the Bundeswehr’s 45th Tank Brigade, which is currently stationed in Lithuania to bolster NATO’s eastern flank. The decision highlights a growing emphasis on artificial intelligence and software-defined warfare, as the selected systems are designed to operate in environments where GPS signals are jammed, a critical lesson learned from the ongoing conflict in Ukraine.
The initial order is reportedly part of a larger framework agreement that could eventually reach a value of €4.3 billion over seven years. By selecting agile, tech-focused firms, Berlin is signaling a departure from traditional procurement cycles, though the move has generated scrutiny regarding the maturity of the technology involved.
Details of the Procurement Deal
According to the proposal submitted to the Bundestag’s Budget Committee, the initial contract is split between the two companies, with deliveries expected to begin by early 2027. The framework agreement sets high ceilings for future spending, indicating a long-term commitment to these platforms.
- Total Framework Potential: Up to €4.3 billion.
- Stark Defence Share: A potential ceiling of €2.86 billion.
- Helsing Share: A potential ceiling of €1.46 billion.
Reuters notes that this investment is a direct response to the “Zeitenwende”, Germany’s historic turning point in defense policy. The goal is to rapidly field “loitering munitions,” often called kamikaze drones, that can provide tactical advantages to forward-deployed units.
The Companies and Capabilities
The selection of Helsing and Stark Defence represents a bet on “sovereign tech” and AI capabilities over traditional hardware manufacturing.
Helsing and the HX-2
Helsing, a Munich-based defense AI “unicorn” backed by Spotify founder Daniel Ek, will supply the HX-2 strike drone. The system is catapult-launched and features a range of up to 100 kilometers. Its primary differentiator is advanced artificial intelligence that allows terminal guidance without reliance on GPS, making it resilient against electronic warfare.
However, the choice has not been without controversy. Industry reports indicate that Helsing’s drones have faced mixed reviews in operational environments. According to reporting summarized by Bloomberg, some units deployed in Ukraine experienced issues with takeoff and susceptibility to jamming, leading to a pause in certain orders. Helsing has disputed these characterizations, citing successful combat trials.
Stark Defence and the “Virtus”
Berlin-based Stark Defence, backed by investors including Peter Thiel and the NATO Innovation Fund, will provide the OWE-V “Virtus.” This system offers Vertical Take-Off and Landing (eVTOL) capabilities, eliminating the need for a catapult and increasing mobility for ground troops.
Like Helsing, Stark Defence has faced scrutiny during the testing phase. Reports from comparative trials in October 2025 suggested the system suffered failures, including crashes and missed targets. In response to these reports, the company has described such incidents as part of a “disciplined experimentation” process typical of rapid agile development.
Strategic Implications and Industry Impact
A notable aspect of this procurement is the exclusion of Rheinmetall, Germany’s largest defense contractor. Reports suggest that Rheinmetall was unable to provide a functioning demonstrator of its competing drone in time for the trials, leading the government to favor the faster-moving startups.
AirPro News Analysis
We view this procurement decision as a high-stakes gamble by the German Ministry of Defense. By bypassing a titan like Rheinmetall in favor of venture-backed startups, Berlin is prioritizing software speed and AI integration over traditional industrial reliability. This aligns with the modern battlefield reality where software updates are as critical as ammunition.
However, the reported test failures and operational hiccups in Ukraine introduce significant risk. If these startups cannot scale production or resolve technical glitches by the 2027 delivery target, the 45th Tank Brigade may be left without critical capabilities. This deal serves as a litmus test for whether European defense procurement can successfully adapt to the “Silicon Valley” model of development.
Frequently Asked Questions
When will the drones be delivered?
The first operational systems are scheduled for delivery to the Bundeswehr by early 2027.
Why was Rheinmetall excluded?
Reports indicate Rheinmetall was excluded from this specific contract because it could not present a working demonstrator of its drone in time for the comparative trials.
What is the total value of the contract?
The immediate order is valued at €536 million, but the framework agreement allows for spending up to €4.3 billion over seven years.
Sources
Photo Credit: Helsing
Defense & Military
NSPA Issues RFP for NATO Next Generation Rotorcraft Program
NSPA formally launches the NGRC Concept Design RFP, with four manufacturers competing for a six-nation helicopter replacement program.

The NATO Support and Procurement Agency (NSPA) has formally issued a Request for Proposal for the Concept Design phase of the Next Generation Rotorcraft Capability program, advancing a six-nation effort to replace aging medium multi-role Helicopters fleets.
Announced in a press release on August 10, 2026, the procurement targets a service entry between 2035 and 2040. The NSPA is managing the process on behalf of Canada, France, Germany, Italy, the Netherlands, and the United Kingdom. Four pre-qualified Manufacturers will compete in this phase: Airbus Helicopters, Leonardo Helicopters, The Boeing Company, and Sikorsky.
Advancing the concept design phase
The Request for Proposal (RFP) officially opened on July 31, 2026, and requires the four bidders to submit their concept design proposals by August 31, 2027, at 12:00 Paris Time. Under the procurement guidelines, each manufacturer can propose a maximum of two concept design solutions.
Maxime Martinez, Principal Procurement Officer for the Next Generation Rotorcraft Capability (NGRC) Programme at NSPA, confirmed the launch of the new phase.
I am pleased to announce that the NATO Support and Procurement Agency (NSPA) has launched the next phase of the Next Generation Rotorcraft Capability (NGRC) Programme: a formal Request for Proposals (RFP) to qualified bidders linked to the competition for the Concept Design phase of NGRC.
The NSPA is utilizing a procurement mechanism called Acquisition by Qualified Options. This framework allows the participating nations to evaluate digital trials within an in-house modeling and simulation environment before committing to physical prototypes. The agency plans to complete the bid evaluation process by the end of 2027, at which point it will deliver an evaluation summary report to the participating nations.
Industry positioning and proposals
The four pre-qualified bidders, selected following a Pre-Qualification Assessment that closed in October 2025, have already begun positioning their offerings for the multi-national replacement program.
In February 2026, Airbus Helicopters revealed two distinct concepts for the NGRC study. The European manufacturer is developing both a high-performance conventional helicopter and a high-speed compound rotorcraft that leverages technology from its Racer demonstrator program. Sikorsky, a Lockheed Martin company, announced in July 2026 that it would establish helicopter production facilities in Europe if the partner nations select its proposal.
The NSPA is encouraging broader industry participation through the primary bidders rather than direct submissions. Martinez stated that potential suppliers, technology providers, and industrial partners should engage directly with Airbus Helicopters, The Boeing Company, Leonardo Helicopters, or Sikorsky to contribute to the program.
AirPro News analysis
We view the NSPA decision to utilize the Acquisition by Qualified Options mechanism as a critical step in mitigating the technical and financial risks historically associated with clean-sheet rotorcraft development. By mandating digital trials in a simulated environment before advancing to physical prototypes, the participating nations can rigorously evaluate the aerodynamic and operational viability of complex designs, such as the compound concept proposed by Airbus Helicopters.
Sikorsky’s preemptive commitment to European production highlights the intense political and economic stakes of the NGRC program. With five European nations and Canada funding the development, North American bidders like Sikorsky and The Boeing Company will likely need to guarantee substantial industrial offsets and local manufacturing to remain competitive against indigenous European prime contractors like Airbus and Leonardo. The requirement for up to two concepts per bidder also provides the NSPA with a broad spectrum of conventional and advanced high-speed rotorcraft options to evaluate against the harmonized operational baseline.
Photo Credit: Airbus
Defense & Military
HAL and Safran Sign Aravalli Engine Co-Development Contract
HAL and Safran finalize the Aravalli engine contract via SAFHAL JV to power India’s IMRH and DBMRH helicopters by 2032-2033.

Hindustan Aeronautics Limited (HAL) and Safran Helicopter Engines have finalized a contract to co-develop the new-generation Aravalli engine, marking a definitive shift in Indian aerospace manufacturing from licensed production to indigenous propulsion design.
The agreement, signed on August 26, 2026, in Bengaluru, India, formalizes the design, development, manufacture, and lifecycle support of the engine through SAFHAL Helicopter Engines Pvt. Ltd. SAFHAL is a 50:50 joint venture between the two aerospace manufacturers. The Aravalli engine is slated to power India’s future 13-ton Indian Multi-Role Helicopter (IMRH) and its naval variant, the Deck-Based Multi-Role Helicopter (DBMRH).
Technical specifications and manufacturing
The Aravalli engine will operate in the 3,500 to 4,000 shaft horsepower (shp) class. Under the terms of the agreement, HAL will gain access to core engine technologies, including the high-pressure compressor, power turbine, and accessory gearbox. This technology transfer is designed to build domestic intellectual property and expertise in high-power engine design.
Manufacturing operations for the Aravalli program will be based at HAL’s facility in Tumakuru, Karnataka. Safran Helicopter Engines Chief Executive Officer Cédric Goubet noted the precedent set by the agreement in a press release issued by HAL.
“This is the first time Safran HE has taken up such a class of engine as co-development. The Aravalli engine programme represents a new chapter in the strategic relationship between France and India, combining the expertise of our teams to develop propulsion systems for future Indian rotorcraft.”
Development timeline and strategic shift
The final contract follows a multi-year negotiation and planning phase. HAL and Safran initially signed a Memorandum of Understanding for the project in July 2022, followed by detailed workshare discussions at Aero India in February 2023. The companies executed an airframer contract on August 30, 2024, to commence joint design work.
The design and development phase is targeted for completion between 2032 and 2033. Once operational, the IMRH platform is intended to replace the Indian Air Force’s aging fleet of Mil Mi-17 Helicopters. HAL Chairman and Managing Director Ravi K emphasized the domestic industrial impact of the program.
“The signing of this contract marks a significant step forward in India’s pursuit of self-reliance in aero-engine technologies. Through this collaborative programme with SAFHAL and Safran Helicopter Engines, we are creating a strong foundation for powering next-generation Indian helicopter platforms.”
AirPro News analysis
The Aravalli engine contract represents a critical maturation point for India’s defense aviation sector. Historically, Indian aerospace manufacturing has relied heavily on licensed production of foreign designs, which limits domestic engineering capability and intellectual property ownership. By securing a 50:50 co-development structure that includes core engine components like the high-pressure compressor and power turbine, we view this agreement as a foundational step toward true Propulsion independence for the Indian military. If the 2032 to 2033 development timeline holds, HAL will be positioned not just as an assembler, but as a primary original equipment Manufacturers (OEMs) for high-power rotorcraft engines.
Sources: Hindustan Aeronautics Limited
Photo Credit: Hindustan Aeronautics Limited
Defense & Military
Raytheon Wins $603M Contract for B-52H Radar Modernization
Raytheon secures $603M USAF contract to produce the AN/APQ-188 AESA radar for the B-52H fleet under the B-52 Radar Modernization Program.

This is a developing story. Information may change as official details are released.
Raytheon has secured a $603,000,000 sole-source contract from the U.S. Air Force (USAF) to produce and sustain the new AN/APQ-188 radar for the Boeing B-52H Stratofortress fleet, advancing a critical modernization effort despite the recent loss of the program’s primary test aircraft.
The U.S. Department of Defense announced the indefinite-delivery/indefinite-quantity (IDIQ) contract on August 25, 2026, following the official award on August 21, 2026. The agreement establishes the ceiling value for the production phase of the B-52 Radar Modernization Program (RMP). The Air Force Life Cycle Management Center (AFLCMC) at Wright-Patterson Air Force Base (FFO) in Ohio is the contracting activity, obligating $46,008,396 in fiscal 2026 aircraft procurement funds with the initial delivery order.
Upgrading the B-52 radar capabilities
The RMP replaces the bomber’s 1960s-era mechanically scanned AN/APQ-166 radar with the Raytheon AN/APQ-188, an Active Electronically Scanned Array (AESA) system. The new Radar-Systems is a derivative of the AN/APG-79 used on the F/A-18 and forms a cornerstone of the broader B-52J upgrade package designed to keep the fleet operational into the 2050s.
According to the Department of Defense, Raytheon will perform the contract work across multiple facilities, including Forrest, Mississippi; El Segundo, California; McKinney, Texas; and Warner Robins, Georgia. The contract is expected to be completed by August 20, 2031.
Program continuity following testbed loss
The production contract award follows a major setback for the RMP during the flight testing phase. On June 15, 2026, the sole B-52 radar testbed aircraft crashed shortly after takeoff at Edwards Air Force Base (EDW) in California. The USAF confirmed the accident resulted in the deaths of all eight crew members on board, which included military personnel, government civilians, and contractors. The official cause of the accident remains under Investigation by the USAF.
Despite the loss of the initial testbed, military officials have confirmed the modernization program will proceed. According to reporting by DefenseScoop, Col. Spencer Turner, the B-52 System Program Manager, stated that the original acquisition strategy always included two test aircraft.
Turner confirmed that work on the second aircraft is actively underway at The Boeing Company facility in San Antonio, Texas. He noted that the service expects to “complete the full modification and put the full radar suite onto the aircraft this year and proceed with testing.” Following the June 15, 2026 accident, the active USAF fleet stands at 75 B-52H bombers.
AirPro News analysis
The decision to award a $603,000,000 production contract just two months after the loss of the primary testbed underscores the firm commitment of the USAF to the B-52J upgrade timeline. Because the AN/APQ-188 is heavily derived from an existing, mature AESA system, the service likely views the radar technology itself as low-risk, separating the radar’s production readiness from the ongoing investigation into the June 15 accident. We note that delaying the production contract until a second testbed completes flight trials would have likely pushed the B-52J initial operational capability timeline to the right, a delay the USAF appears unwilling to accept as it plans to operate the airframe for another three decades.
Sources: U.S. Department of Defense
Photo Credit: US Air Force
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