Embraer S.A. and Saab AB signed a Heads of Agreement (HoA) on July 21, 2026, establishing a framework to produce 20 additional Gripen fighter aircraft at Embraer’s facility in Brazil. The announcement, made during the Farnborough International Airshow, positions the companies to finalize a binding production contract later in 2026.

The agreement expands a decade-long industrial partnership between the two aerospace manufacturers and directly supports the Brazilian Air Force (FAB) requirement for additional tactical aircraft. According to official press releases from both companies, Embraer will assemble the new fighters at its Gavião Peixoto industrial complex in São Paulo State, complementing Saab’s primary final assembly line in Linköping, Sweden.

Expanding Brazilian production capacity

The HoA serves as a preliminary framework to allocate industrial responsibilities ahead of a formal contract. The move follows a June 4, 2026 announcement by the Brazilian government detailing plans to purchase 20 additional Gripen jets, supplementing the country’s original base order of 36 aircraft, according to reporting by Breaking Defense. That initial order consisted of 28 single-seat E models and eight two-seat F models.

Company leadership emphasized that the localized manufacturing model is designed to scale with regional requirements.

“The expansion of this partnership with Saab reflects the mutual trust built over the past ten years and reinforces Embraer’s strategic role in the Gripen programme. We are well positioned to support increased production capacity, if demand requires it,” said Bosco da Costa Junior, President and CEO of Embraer Defense & Security.

Recent program milestones and operational deployment

The framework agreement follows a series of recent milestones for the Brazilian Gripen program, designated the F-39E by the FAB. On March 25, 2026, Embraer and Saab unveiled the first Gripen E fighter assembled entirely on Brazilian soil at the Gavião Peixoto complex. Saab confirmed in a statement that this event marked the first supersonic fighter produced in Brazil.

Operational integration of the aircraft is also advancing. On July 14, 2026, the FAB deployed six F-39E Gripen aircraft to Chile for the SALITRE 2026 exercise. Saab noted that this marked the first time Brazilian-operated Gripens participated in a multinational exercise outside of Brazil.

“The partnership between Saab and Embraer reinforces our long-term commitment to Latin America. Together, we are strengthening our capabilities, securing additional capacity for future business opportunities, and taking a forward-leaning approach to supporting the evolving needs of our customers across the region,” stated Micael Johansson, President and CEO of Saab AB.

AirPro News analysis

We view this Heads of Agreement as a formalization of the industrial planning required to execute Brazil’s stated intent to procure 20 additional airframes. While the HoA is not yet a finalized production contract, it signals that both Embraer and Saab are aligning their supply chains and workforce allocations ahead of a formal signature expected later in 2026. By utilizing the Gavião Peixoto facility for this follow-on batch, Saab effectively creates a dual-node global production system for the Gripen E/F. This mitigates production bottlenecks in Sweden and provides a localized manufacturing base that could theoretically support future export campaigns in the broader Latin American market.

Sources: Embraer S.A.

Sikorsky and Safran Helicopter Engines signed a strategic collaboration agreement on July 22, 2026, at the Farnborough International Airshow to jointly develop power and propulsion technologies for next-generation vertical lift platforms.

Announced in a Lockheed Martin press release, the agreement builds upon a 40-year relationship between the two aerospace manufacturers. The partnership aims to accelerate design cycles, shorten proposal turnaround times, and deliver higher-performance propulsion solutions for both commercial and defense rotorcraft markets worldwide.

Deepening a four-decade propulsion partnership

The formal agreement extends a long-standing industrial relationship centered on the Sikorsky S-76 medium helicopter. Safran has delivered more than 1,230 engines for the S-76 program, accumulating nearly 10 million flight hours across the global fleet.

Cédric Goubet, President of Safran Helicopter Engines, noted the shared history between the companies and emphasized the potential for future integration.

“As the world leader in helicopter propulsion and pioneer of hybrid-electric propulsion, our products and services would provide an unrivalled competitive advantage for Sikorsky’s future helicopters,” Goubet stated.

European expansion and next-generation platforms

The propulsion agreement aligns with Sikorsky’s broader strategy to expand its industrial footprint in Europe. On July 20, 2026, Lockheed Martin confirmed that Sikorsky is actively pursuing the establishment of a Next Generation Rotorcraft (NGRC) production line in Europe to deepen its partnership with North Atlantic Treaty Organization (NATO) allies.

Rich Benton, Vice President and General Manager of Sikorsky, framed the Safran partnership as a critical component of this international strategy. Benton stated that collaborating across the industry from the initial design phase empowers customers with faster decision-making and confidence in the final aircraft’s performance and safety.

The push for advanced propulsion coincides with Sikorsky’s ongoing development of autonomous and uncrewed platforms. Also on July 22, 2026, the manufacturer announced the completion of initial ground and flight testing for its Nomad 100 uncrewed aerial system (UAS), developed for the Defense Advanced Research Projects Agency (DARPA) EVADE program.

AirPro News analysis

We view the formalization of the Sikorsky and Safran partnership as a strategic positioning move for the NATO NGRC program. By aligning with a major European propulsion provider, Sikorsky strengthens its industrial base across the Atlantic, which is often a prerequisite for winning major European defense contracts. Safran’s ongoing research into hybrid-electric aviation also provides Sikorsky with a ready pathway to integrate advanced, fuel-efficient powerplants into future uncrewed and crewed vertical lift designs without bearing the entire research and development cost internally.

Sources: Lockheed Martin

BAE Systems and the United Kingdom Ministry of Defence (MoD) unveiled Brontanax, the nation’s first uncrewed autonomous Collaborative Combat Aircraft (CCA), at the Farnborough International Airshow on July 22, 2026. The five-metric-ton aircraft is designed to operate alongside crewed fighter jets, providing electronic warfare and precision strike capabilities to the fleet.

According to a BAE Systems press release, the platform serves as the manufacturers offering for the UK government’s £300 million Storm Fighter program. The initiative aims to establish the Royal Air Force (RAF) as Europe’s first sixth-generation air force by integrating uncrewed systems with existing crewed fighters like the Eurofighter Typhoon and the Lockheed Martin F-35 Lightning II.

The Storm Fighter program and development timeline

Development of the Brontanax platform began internally at BAE Systems in 2022. The manufacturer has invested approximately £300 million to date to fund the project. The UK government formalized its financial backing on July 1, 2026, through its Defence Investment Plan, committing an initial £300 million to the sovereign autonomous combat air initiative.

UK Defence Secretary Wes Streeting highlighted the strategic importance of the platform during the unveiling event at Farnborough, noting the government’s intent to adopt the aircraft as an operational concept demonstrator.

“The unveiling of Brontanax, the UK’s first uncrewed autonomous Collaborative Combat Aircraft, is a testament to the extraordinary talent and innovation across our sovereign defence industry. Built at BAE Systems in Warton by British engineers, backed by British businesses large and small, this aircraft demonstrates that the UK has the skills, the technology and the determination to lead the world in combat air power.”

The prototype is scheduled for its first power-up in the third quarter of 2026. Ground trials are slated to begin in the first half of 2027, followed by flight trials in UK airspace in the second half of the year. The RAF plans to bring the aircraft into service before 2030.

Industrial footprint and supply chain realities

The Brontanax program currently involves more than 500 BAE Systems employees and engages over 75 UK companies and small-to-medium enterprises. The aircraft was designed and built at the BAE Systems facility in Warton, Lancashire.

While marketed as a sovereign British aircraft, the initial iterations of the drone utilize a US-made Williams International engine. BAE Systems and the RAF intend to transition to a British powerplant developed by Rolls-Royce for future production models.

Air Chief Marshal Sir Harv Smyth, Chief of the Air Staff, stated that the RAF is working closely with the manufacturer to meet the aggressive development schedule, confirming that a prototype is expected to fly next year.

AirPro News analysis

The unveiling of Brontanax signals the United Kingdom’s formal entry into the highly competitive CCA market. We are seeing a global surge in the development of these uncrewed systems, with aerospace manufacturers including Airbus, Boeing, Anduril, and General Atomics competing for contracts across multiple allied nations.

The primary driver behind this shift is combat mass. Traditional crewed fighters are highly capable but expensive to procure and operate. A large CCA is estimated to cost approximately 25 percent of a traditional crewed fighter. By pairing uncrewed systems with crewed jets, air forces can significantly expand their tactical footprint, sensor networks, and weapons capacity without a proportional increase in procurement budgets or pilot training requirements. The transition from the Williams International engine to a Rolls-Royce powerplant will be a critical milestone to watch as the UK attempts to secure a fully sovereign supply-chain for the Storm Fighter program.

Sources: BAE Systems Press Release