Leonardo DRS, the US-listed subsidiary of Italian aerospace and defense group Leonardo S.p.A., has signed a definitive agreement to acquire Virginia-based defense software firm Raft LLC in an all-cash transaction valued at $450 million.

Announced on July 28, 2026, the acquisition targets the growing defense sector demand for AI and multi-domain data fusion. The integration is designed to improve real-time situational awareness and operational decision-making for national security customers by combining disparate data streams into a common operating picture.

Strategic expansion in defense software

Raft, headquartered in McLean, Virginia, specializes in open-architecture mission software. The company was founded in 2018 by Shubhi Mishra and has built a portfolio focused on data integration and AI-enabled solutions for military applications.

Lorenzo Mariani, Chief Executive Officer and General Manager of Leonardo S.p.A., stated in a press release that the acquisition aligns with the broader corporate strategy of expanding technological capabilities in the United States.

The acquisition is aligned with Leonardo and Leonardo DRS’s strategy and enhances Leonardo DRS’s ability to deliver integrated, mission-focused technologies that help customers operate with greater speed, clarity and confidence in complex operational environments. Raft’s open-architecture software, AI and data integration capabilities are highly complementary and additive to Leonardo DRS’s existing technology portfolio.

John Baylouny, President and Chief Executive Officer of Leonardo DRS, noted that defense customers increasingly require integrated hardware, software, data, and autonomy to support mission outcomes. He added that Raft brings proven software talent that complements the company’s existing sensing and computing capabilities.

Financial terms and transaction details

The $450 million all-cash transaction is expected to close in the fourth quarter of 2026, pending regulatory approvals and customary closing conditions. Leonardo DRS anticipates the deal will generate a tax benefit with an estimated present value of $50 million over the next 15 years.

Leonardo S.p.A. currently holds a 71.38% stake in Leonardo DRS. The parent company views the acquisition as a key step in expanding its footprint in the US defense market. Raft has previously received financial backing from investment firm Washington Harbour Partners.

Mishra described the acquisition as a natural progression for the software firm and its development teams.

Joining DRS is a natural next step for our team and our mission. Our open-architecture platform was built to integrate across systems, not lock customers in, and pairing it with DRS’s sensing and computing franchises will accelerate our ability to deliver mission capability at a global scale.

Leonardo DRS is scheduled to discuss the acquisition further during its second-quarter 2026 earnings conference call on July 30, 2026.

AirPro News analysis

We view the acquisition of Raft as a direct execution of the strategic priorities outlined by John Baylouny when he assumed the role of CEO at Leonardo DRS on January 1, 2026. Baylouny succeeded Bill Lynn with a stated mandate to expand the company’s capabilities in advanced sensing, network computing, and AI-enabled mission solutions.

By acquiring a specialized software firm rather than attempting to build these capabilities entirely in-house, Leonardo DRS accelerates its ability to compete for complex, multi-domain defense contracts. The emphasis on open-architecture systems is particularly notable. Defense departments globally are actively moving away from proprietary, vendor-locked platforms in favor of interoperable data environments, making firms like Raft highly attractive acquisition targets for traditional hardware primes.

Sources: Leonardo S.p.A.

Bell Textron Inc. and The Boeing Company have delivered the 359th and final MV-22 Osprey to the United States Marine Corps (USMC), concluding the production phase of the aircraft’s Program of Record. The milestone shifts the program’s focus entirely to fleet-wide sustainment and modernization designed to keep the tiltrotor operational through 2055.

The final delivery was commemorated during a July 28, 2026, ceremony at the Bell Amarillo Assembly Center in Texas. In a joint press release issued on July 29, 2026, the manufacturers confirmed the completion of the USMC procurement phase. The Marine Corps operates the world’s largest V-22 fleet, supported by an industry network of more than 500 suppliers and 27,000 employees across 44 states.

Transitioning from production to sustainment

With the final airframe delivered, the V-22 Joint Program Office (JPO) and industry partners are pivoting to lifecycle management and capability upgrades. Bell V-22 Program Director Eldon Metzger stated that the delivery represents a transition to the next chapter for the Marine Corps, emphasizing a commitment to delivering sustainment and readiness.

The MV-22 has served as the primary assault support aircraft for the USMC for two decades. Col. Robert Hurst, V-22 JPO Program Manager, noted that the tiltrotor technology sets the United States apart from other militaries. He added that the focus remains on enhancing fleet readiness and modernizing the aircraft to serve as the backbone of the Marine Corps for decades to come.

While USMC MV-22 production has ended, Bell and Boeing continue to manufacture new CMV-22 variants for the U.S. Navy. The companies are also supporting the Nacelle Improvement modernization program for the U.S. Air Force CV-22 fleet.

Operational history and modernization efforts

Since reaching initial operating capability in 2007, the Marine Corps Osprey fleet has logged approximately 686,500 flight hours and completed 114 operational deployments, according to reporting by Breaking Defense. The Military-Aircraft has been utilized extensively in combat operations in Iraq and Syria, as well as humanitarian missions including the 2022 Haiti earthquake response and the June 2026 Venezuela earthquake response.

Lt. Gen. William Swan, USMC Deputy Commandant for Aviation, told Breaking Defense that the aircraft fundamentally changed the way the Marine Air-Ground Task Force generates combat power. He noted that the platform provides commanders with decision space that only speed and reach can provide.

To ensure the fleet remains viable through its 2055 target retirement, Naval Air Systems Command (NAVAIR) and the USMC are implementing a comprehensive modernization initiative. Breaking Defense reported that these efforts include standardizing aircraft configurations across the fleet and improving nacelle wiring to reduce maintenance hours. The program also involves revamping key components to bolster overall safety and sustainability.

AirPro News analysis

The end of the MV-22 production line marks a significant pivot for USMC aviation strategy. With the fleet expected to fly for another three decades, the burden now falls heavily on the supply-chain and maintenance depots. The focus on nacelle improvements and configuration standardization highlights the operational challenges the USMC has faced in sustaining a complex tiltrotor fleet with multiple sub-variants. We expect future budget allocations to heavily favor these modernization programs as the Marine Corps seeks to maximize the readiness and safety of its existing inventory rather than acquiring new assault support airframes.

Sources: Bell Textron Inc.

GKN Aerospace and RTX’s Pratt & Whitney have partnered with the Norwegian Defence Materiel Agency (NDMA) to pioneer the use of additive manufacturing for large structural components on the F135 engine. Announced on July 20, 2026, during the Farnborough Air Show, the Technology Development Agreement focuses specifically on fabricating large engine cases to support the Lockheed Martin F-35 Lightning II propulsion system.

The project will be led from GKN Aerospace’s facility in Kongsberg, Norway. According to the companies, the initiative represents one of the first applications of large-scale additive manufacturing within military aero-engine structures, aiming to increase supply chain resilience, reduce lead times, and improve overall production efficiency.

Advancing military engine manufacturing

The collaboration will utilize a laser-directed energy deposition with wire (L-DED-w) process. This manufacturing method deposits material much closer to the final geometry of the part compared to conventional techniques. By doing so, the process significantly reduces both the raw material waste and the extensive machining time typically associated with traditional aerospace manufacturing.

Executives from both companies highlighted the strategic importance of maturing this technology for high-performance military aircraft applications.

“I am pleased to see this collaboration bringing together strong industrial capabilities and advanced manufacturing expertise. This initiative reflects our ambition to further develop and industrialise additive technologies for demanding aerospace applications,” said Sébastien Aknouche, Senior Vice President at GKN Aerospace.

“This agreement reflects our continued focus on advancing technologies that support the long-term needs of the F135 program. We appreciate the collaboration with GKN Aerospace as we explore new manufacturing approaches that contribute to future engine readiness,” said Chris Johnson, Vice President of the F135 Program at Pratt & Whitney.

Supply chain resilience and production scaling

The push toward additive manufacturing aligns with Pratt & Whitney’s current operational requirements. The manufacturer is actively scaling output for the F135 program while simultaneously advancing the Engine Core Upgrade (ECU) toward a final production decision. Integrating additive manufacturing offers a direct route to bypass the lengthy procurement queues typically required for large aerospace forgings, which have been a persistent bottleneck in the global aerospace supply chain.

The development timeline targets rapid industrialization. The partners expect the first large-scale additive manufacturing demonstrator component to be completed in 2027. Following the demonstrator phase, the companies aim to finalize a fully certified product by the end of 2028.

Commercial aviation agreements

Alongside the military engine development, GKN Aerospace and Pratt & Whitney utilized the 2026 Farnborough Air Show to expand their commercial aircraft manufacturing ties. The companies signed a separate agreement to broaden their existing risk- and revenue-sharing partnership. This expanded commercial agreement includes the manufacturing of low-pressure compressor vanes for the PW1500G and PW1900G commercial engines.

AirPro News analysis

We view the transition of additive manufacturing from small, highly complex internal components to large structural engine cases as a critical maturation of the technology. The aerospace supply chain has long been constrained by the limited global capacity for large forgings. By validating the L-DED-w process for the F135 program, Pratt & Whitney and GKN Aerospace are establishing a framework that could fundamentally alter how heavy military and commercial engine structures are sourced. If the 2028 certification target is met, this manufacturing process will likely cascade into other engine programs seeking similar supply chain resilience and reduced material costs.

Sources: GKN Aerospace