The Seattle-based defense firm Overland AI has raised $100 million in new funding to help accelerate the use of robots and other autonomous systems across the US military’s ground forces https://t.co/pnNWgpinq3 ...

Market Overview - Futures are trading higher following a strong bounce-back on Monday, with major indices closing positively as investors overlook various geopolitical and market concerns [2] - The Dow Jones closed at 49,407, up 1.05%, S&P 500 at 6,976, up 0.54%, Nasdaq at 23,592, up 0.56%, and Russell 2000 at 2,637, up 0.90% [2] Treasury Bonds - Treasury yields increased as sellers dominated the market, influenced by investor anxiety regarding the new Federal Reserve chair nomination and potential government shutdowns [3] - The 30-year bond yield finished at 4.91% and the 10-year note at 4.28% [3] Oil and Gas - The energy sector faced significant declines due to easing geopolitical risk premiums, particularly related to U.S.-Iran tensions [4] - Brent Crude fell to $66.40, down 4.2%, and West Texas Intermediate closed at $62.26, down 4.52% [4] - Natural gas prices dropped 25% to $3.26, attributed to expectations of warmer weather following a cold snap [4] Gold and Precious Metals - A significant sell-off in precious metals has been observed, attributed to profit-taking and market reactions to the nomination of Kevin Warsh as the new Federal Reserve chair [5] - Gold closed at $4,764, down 4.4%, and silver at $79.36, down 6.7% [5] - Despite the dramatic selling, there was a rally off lows, with market professionals viewing this as a healthy pause [5] Economic Outlook - With the conclusion of 4th-quarter earnings, investors are focusing on upcoming economic data, particularly significant tech earnings expected soon [6] - The recent rally is seen as a positive development amidst losses in precious metals and cryptocurrencies, indicating a shift in investor strategy towards active engagement [6]

Core Viewpoint - Kratos Defense & Security Solutions, Inc. has been awarded contracts totaling approximately $65 million for the design, development, and delivery of simulators and training solutions for military operations and maintenance of key aircraft and platforms [1][2]. Group 1: Contracts and Solutions - The contracts include awards from the U.S. Department of War and allied nations, focusing on the MBRAT simulator, which allows for avionics maintenance training across multiple platforms on a single device, thus reducing financial investment while meeting training goals [2]. - The training systems developed by Kratos support various aircraft, including the Army's CH47F Chinook and UH-60M Blackhawk helicopters, and the Airforce's UH-1 Huey [2]. Group 2: Company Growth and Technology - In 2025, Kratos experienced growth, particularly in air-based system platforms, with customers valuing the cost-effective solutions that yield effective training outcomes [3]. - The company integrates immersive reality technologies, including augmented and virtual reality, into its simulators, enhancing training effectiveness [3]. Group 3: Company Overview - Kratos is a technology company focused on defense, national security, and commercial markets, emphasizing affordability and rapid development of solutions to meet mission-critical needs [4]. - The company aims to be a leader in the market by utilizing proven technologies and approaches, reducing costs, schedules, and risks associated with defense solutions [4].

Core Insights - Virtuix Inc. has integrated AI-driven Gaussian splatting technology into its Virtual Terrain Walk (VTW) system, enhancing training and simulation capabilities in the defense sector [3][6] - The VTW system allows warfighters to physically navigate high-fidelity, geo-specific virtual environments, significantly improving mission planning and operational readiness [4][6] - The company aims to leverage this technology for various applications beyond defense, including industrial training, real estate visualization, and law enforcement [9] Company Overview - Virtuix Inc. is a leading manufacturer of full-body virtual reality systems, with a focus on consumer, enterprise, and defense markets [12] - The company's flagship product, the Omni One, is designed for immersive gaming experiences, allowing users to walk and run in 360 degrees [12] Technology and Innovation - The integration of Gaussian splatting reduces the time to create realistic virtual terrain from weeks or months to just hours, facilitating faster deployment of simulations [5][6] - The VTW system supports multi-user collaboration across more than 12 stations, enabling realistic mission planning and leader rehearsals [6] Market Adoption - Early adoption of the VTW system has been noted within defense organizations, with test units purchased by notable military institutions such as Yokota Air Force Base and the U.S. Air Force Academy [8] - The company showcased a proof-of-concept of the VTW system at the I/ITSEC tradeshow, demonstrating its potential in creating large, navigable virtual environments [7] Future Growth Strategy - Virtuix plans to complement high-volume consumer sales of its gaming system with high-margin enterprise and defense opportunities, including recurring revenues from software licensing [9] - The company believes that AI-driven 3D reconstruction is foundational to the future of virtual reality across various sectors [10]

We came across a bullish thesis on General Dynamics Corporation on The Boring Finance Guy’s Substack. In this article, we will summarize the bulls’ thesis on GD. General Dynamics Corporation's share was trading at $349.95 as of January 29th. GD’s trailing and forward P/E were 23.09 and 20.75 respectively according to Yahoo Finance. Photo by NASA on Unsplash General Dynamics Corporation operates as an aerospace and defense company worldwide. GD enters 2026 with exceptional operational momentum, supported ...

Defense Secretary Pete Hegseth heaped praise on Jeff Bezos-backed Blue Origin in a visit to the space venture’s facility, recruiting another billionaire in his effort to reform government weapons buying and pressure traditional defense contractors. https://t.co/X4bc9UeFFD ...

Core Insights - The latest Q4 2025 earnings reports from major defense companies revealed significant performance variations, with Northrop Grumman and RTX emerging as notable winners [3][8] Group 1: Northrop Grumman - Northrop Grumman reported Q4 2025 earnings with revenue of $11.7 billion, reflecting a nearly 10% growth and exceeding estimates by over $100 million [4] - The company's adjusted earnings per share (EPS) increased by approximately 13% to $7.23, surpassing the expected $6.97 [4] - For 2026, Northrop anticipates mid-single-digit revenue growth, a notable acceleration from the 2% growth experienced in 2025, leading to a 2.7% increase in share price on January 27 [5] Group 2: RTX - RTX achieved a 12% sales growth in Q4 2025, reaching $24.2 billion, which was $1.6 billion above estimates [7] - The adjusted EPS for RTX was stable at $1.55, slightly better than the anticipated decline to $1.47 [7] - RTX expects solid free cash flow growth of around 8% in 2026, supported by a record backlog of $268 billion, which is approximately three times its 2025 sales [7]

Performance Summary - Apis Flagship Fund achieved a net return of 10.0% in Q4 2025 and a total gain of 55.1% for the year, outperforming the MSCI ACWI benchmark by approximately 7.0% in Q4 and 33.0% for the year [1] - Long positions contributed 11.9% gross to the fund's performance, while short positions added 0.8% gross, with a net long position of around 68% as of December [1] - The performance was broad-based, with Technology and Healthcare sectors leading returns, and basic materials also contributing significantly [1] Stock Highlights - uniQure (NASDAQ:QURE) is a gene therapy company focused on rare and neurological diseases, with a one-month return of 0.44% and a market capitalization of approximately $1.4 billion as of January 30, 2026 [2] - The stock traded between $7.76 and $71.50 over the last 52 weeks, closing at about $22.72 per share [2] Key Contributors and Detractors - Celcuity was the top contributor in Q4, adding 3.8% during the quarter and 4.4% for the full year [3] - Memory semiconductor companies contributed over 5.0% to returns, with Kioxia Holdings being a notable performer [3] - uniQure detracted about 1.1% from performance, while Korean defense-related holdings collectively detracted approximately 2.5% in Q4 [3] - The weakness in uniQure and Korean holdings was attributed to a technical pause rather than a decline in fundamentals [3] - Hyundai Rotem, Poongsan, and Hanwha Aerospace were among the top contributors for the year, collectively adding over 11.0% to annual performance [3]

Core Insights - nLIGHT, Inc. will showcase its high-energy laser weapon solutions at the 2026 World Defense Show in Riyadh, Saudi Arabia, including a newly developed 70kW-class Laser Weapon System [1] - The company has expanded its manufacturing capacity by adding 50,000 square feet of leased space in Longmont, Colorado, which will more than double its current capacity [1] - Preliminary financial results for Q4 2025 indicate expected revenue between $78 million and $80 million, exceeding previous guidance of $72 million to $78 million [1] - Gerald M. Haines has been appointed to the Board of Directors and will serve on the Audit Committee [1] Company Overview - nLIGHT, Inc. is a leading provider of high-power lasers for mission-critical applications, headquartered in Camas, Washington, with approximately 800 employees and operations in the U.S., Europe, and Asia [1] - The company specializes in directed energy, optical sensing, and advanced manufacturing applications [1] - In 2019, nLIGHT reported revenues of $176.6 million and a net income loss of $12.884 million [1]

Summary of Aerospace & Defense Conference Call Industry Overview - The conference call focused on the Aerospace & Defense sector in North America, highlighting a record defense backlog of approximately $530 billion, which is the highest in history [1][2][3]. Key Points Defense Backlog and Revenue Growth - The aggregate Defense Prime backlog is at a record level of ~$530 billion, driven by strong demand due to rising geopolitical tensions, supporting an Attractive view of the Defense sector [2][3]. - Historically, backlog trends have been reliable indicators of future revenue growth, with periods of backlog growth outpacing sales growth typically leading to multi-year revenue acceleration [2][11]. - Current projections indicate that revenue growth for Defense Primes is below the growth rate of the backlog, raising concerns about capacity expansion and supply chain pressures [2][11]. Backlog Growth Rates - The aggregate backlog for the five major Defense Primes (Northrop Grumman, General Dynamics, Lockheed Martin, L3Harris, and RTX) has grown at a compound annual growth rate (CAGR) of approximately 13.0% from 2023 to 2025, compared to a 6.6% CAGR from 2000 to 2025 [3]. - A projected $1.5 trillion U.S. defense budget for the current year represents a ~50% increase over the previous year, suggesting continued growth in backlogs [3]. Revenue Growth Forecasts - Despite the backlog growth accelerating to ~11.9% in 2025, revenue growth projections for 2026 to 2029 do not match this rate, indicating potential upside for Defense Primes if they can effectively expand capacity [11]. - The ability of companies to implement innovative structures to scale operations will determine the winners in this defense supercycle [2]. Additional Insights - The call emphasized the importance of monitoring backlog trends as they have historically led revenue growth trends by 2-3 years [11]. - The current defense environment is characterized by significant demand, which is expected to continue influencing backlog levels positively in the near term [2][3]. Conclusion - The Aerospace & Defense sector is positioned for growth, supported by a record backlog and increased defense spending. However, the ability to convert this backlog into revenue will depend on the companies' capacity to scale operations effectively amidst ongoing supply chain challenges.