A multinational consortium of defense contractors signed a collaboration agreement on July 23, 2026, to integrate sovereign weapon systems into the Global Combat Air Programme (GCAP) sixth-generation fighter.

Announced at the Farnborough International Airshow in a press release from Manufacturers Mitsubishi Heavy Industries, Ltd. (MHI), the agreement establishes the Sovereign Effects Partners (SEPs). The group includes MHI, Mitsubishi Electric Corporation, MBDA UK, and MBDA Italia. The partnership will provide engineering services and expert advice to Edgewing, the GCAP prime contractor, ensuring that the distinct weapon systems of Japan, the UK, and Italy can be digitally integrated into the core aircraft platform.

Digital Integration Over Joint Development

The SEPs agreement transitions the four defense companies from national contracting models to a sustained international framework. The consortium will focus on effects optimization and the digital integration of effector systems for the future combat aircraft.

The collaboration does not encompass the joint development of new weapons. Instead, it aligns the sovereign approaches of the partner nations. This strategy ensures that the respective national weapons inventories can interface seamlessly with the GCAP platform, which is slated to replace the Eurofighter Typhoon and the Mitsubishi F-2.

Funding and Infrastructure Milestones

The effector integration agreement follows a major funding breakthrough for the broader GCAP initiative. On July 3, 2026, the tri-nation GCAP International Government Organisation awarded a £4.6 billion ($6.1 billion) Contracts to Edgewing. According to reporting by Defense News, this 18-month contract covers the advanced concept and assessment phase alongside joint detailed design and development.

The contract award was enabled by the release of the UK’s Defence Investment Plan, which committed £8.6 billion over four years to the program. Defense News noted that delays in UK funding had previously caused friction with Japan, which remains focused on meeting the aircraft’s 2035 target in-service date.

To support this accelerated development timeline, Edgewing is expanding its physical footprint. Aviation Week reported that the joint venture, comprising BAE Systems, Leonardo, and Japan Aircraft Industrial Enhancement Co. Ltd., is preparing to build new facilities in Warton, England; Turin, Italy; and Nagoya, Japan.

AirPro News analysis

The formation of the Sovereign Effects Partners highlights a pragmatic approach to multinational defense procurement. By focusing on digital integration rather than forcing the joint development of new munitions, the GCAP partners are avoiding a common pitfall of international fighter programs: protracted negotiations over weapon requirements. We view this decoupled strategy as essential for meeting the aggressive 2035 Delivery target. It allows Japan, the UK, and Italy to maintain their sovereign supply chains and strategic autonomy while still fielding a unified, interoperable sixth-generation platform.

Sources: Mitsubishi Heavy Industries

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.