This week on “Money Talks”, our interview with Armin Papperger, the boss of @RheinmetallAG, about the business of war https://t.co/wTUSasvBtF ...

Company Overview - American Exceptionalism Acquisition Corp. A has priced its upsized initial public offering (IPO) of 30,000,000 Class A ordinary shares at $10.00 per share, with shares set to trade on the NYSE under the ticker symbol "AEXA" starting September 26, 2025 [1] - The company is led by Chamath Palihapitiya, founder and Managing Partner of Social Capital, and aims to engage in mergers, amalgamations, share exchanges, asset acquisitions, and similar business combinations with businesses in the energy production, artificial intelligence, decentralized finance, and defense sectors [2] Offering Details - Santander is acting as the sole book-running manager for the IPO, and the company has granted underwriters a 45-day option to purchase an additional 4,500,000 Class A ordinary shares at the IPO price to cover over-allotments [3] - The offering is being conducted solely through a prospectus, which will be available for free from the SEC website or through Santander US Capital Markets LLC [4] Regulatory Information - The registration statement for the securities became effective on September 25, 2025, and the press release does not constitute an offer to sell or solicit an offer to buy these securities in any jurisdiction where such actions would be unlawful prior to registration [4]

Financial Data and Key Metrics Changes - Revenue for Q4 fiscal 2025 increased by 41.4% to $12.2 million compared to $8.6 million in the same quarter of the previous year [28] - Gross profit increased by 6.6% to $2.7 million, representing 22% of total revenues, down from 29.2% in the same quarter of the prior fiscal year [30] - Net loss for Q4 fiscal 2025 totaled $7.1 million, or $0.16 per share, compared to a loss of $2.4 million, or $0.06 per share in the same quarter of the previous year [31] - Adjusted EBITDA loss for Q4 fiscal 2025 was $1.9 million, compared to a loss of $1.1 million for the same period of the prior fiscal year [32] Business Line Data and Key Metrics Changes - Revenue from infrared components was $4.9 million, accounting for 40% of consolidated revenue [29] - Revenue from visible components was $2.8 million, or 23.2% of consolidated revenue [29] - Revenue from assemblies and modules was $4.2 million, or 34.1% of consolidated revenue [29] - Revenue from engineering services was $0.3 million, or 2.1% of consolidated revenue [29] Market Data and Key Metrics Changes - The company reported a record backlog of $90 million, with more than two-thirds attributed to systems and subsystems [10] - Significant orders totaling over $40 million for infrared cameras were announced for delivery in 2026 and 2027, primarily for border surveillance and counter-UAS applications [11][14] - More than $10 million of the backlog is specifically for cameras designed for counter-UAS systems [15] Company Strategy and Development Direction - The company is transitioning from a component manufacturer to focusing on subsystems and systems enabled by its technologies, particularly in infrared imaging [7] - The acquisition of G5 Infrared is a strategic move to enhance capabilities in thermal imaging cameras and address supply chain challenges [9] - The company aims to leverage its proprietary BlackDiamond glass to create value and capture more of the market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a 41% quarter-over-quarter growth and a substantial backlog as indicators of success [26] - The ongoing geopolitical tensions and supply chain disruptions have increased demand for alternatives to germanium, positioning the company favorably [18] - Management anticipates significant growth in the coming years, driven by investments in unique materials and technologies [26] Other Important Information - The company received an $8 million strategic investment from Ondas Holdings and Unusual Machines to support manufacturing efforts [25] - The integration of G5 Infrared was completed ahead of schedule and below budget, enhancing operational capabilities [32] Q&A Session Summary Question: How much did G5 contribute to revenue in the June quarter? - G5 contributed $4.2 million to revenue [39] Question: How much does G5 comprise of the $90 million backlog? - Approximately two-thirds of the backlog consists of cameras and assemblies [40] Question: Are you expecting to be sole sourced for the border security opportunity? - The company is in a unique position and may end up providing all the towers along the border [41] Question: Can you elaborate on the expansion of capacity in Visimid? - The facility will support multiple projects beyond the Lockheed contract, including uncooled cameras and other developments [48] Question: What is the expected gross margin improvement timeline? - The company expects to reach close to 30% gross margin soon, with a longer-term goal of 40% as the product mix shifts [64] Question: What is the status of the Lockheed contract decision timeframe? - The formal decision is expected by next fall, but indications may come sooner [67]

DroneShield shares have nearly quintupled this year, outperforming Asian defense stocks as the Australian drone technology manufacturer rides a global wave of increased military budgets. https://t.co/SpCOZl2kVS ...

Core Insights - General Dynamics Information Technology (GDIT) has been awarded a $1.5 billion contract to modernize the IT capabilities of the U.S. Strategic Command (STRATCOM) to enhance operational readiness [1][5]. Group 1: Contract Details - The contract includes a one-year base period with six option years, emphasizing a long-term commitment to improving STRATCOM's IT infrastructure [1]. - GDIT will utilize digital engineering, AI, and cyber capabilities to support STRATCOM's mission [1][4]. Group 2: Strategic Importance - STRATCOM is responsible for the nation's strategic deterrence, global strike, and nuclear command and control, necessitating a robust IT network to connect data and systems for decision-makers and warfighters [3]. - The modernization of STRATCOM's IT capabilities is deemed critical for national security and maintaining a strategic deterrence edge [5]. Group 3: Technological Enhancements - GDIT plans to implement advanced cyber and zero trust solutions to protect STRATCOM's networks from evolving cyber threats [4]. - The transition to a hybrid cloud environment will provide greater flexibility and scalability for STRATCOM's operations [4]. Group 4: Company Overview - General Dynamics, the parent company of GDIT, is a global aerospace and defense firm with over 110,000 employees and reported $47.7 billion in revenue for 2024 [6].

Core Points - AeroVironment, Inc. has appointed Johnathan Jones as Senior Vice President of Cyber and Mission Solutions, bringing over two decades of defense experience to the role [2][4] - Jones will lead the strategic direction and operations of the Cyber and Mission Solutions group, enhancing AV's capabilities for U.S. government and defense customers [2][3] - The appointment aims to strengthen AV's advanced cyber and national security capabilities in response to evolving threats in the intelligence community and defense industry [3][4] Company Background - AeroVironment, Inc. is a defense technology leader that provides integrated capabilities across various domains including air, land, sea, space, and cyber [6] - The company develops autonomous systems, loitering munitions, counter-UAS technologies, and cyber capabilities to meet the mission needs of modern warfare [6][7] - AV's core technology includes AV_Halo, a suite of AI-powered software tools designed to empower warfighters and ensure battlefield dominance [6] Leadership Experience - Johnathan Jones is a U.S. Air Force veteran who began his career as an officer, supporting multiple space missions before rising to the rank of Captain [4][5] - He has held various leadership roles at AeroVironment for the past 19 years, contributing significantly to the company's growth and success [4][5] - His recent efforts included integrating over 550 employees from the Defense and Interagency Services Business Unit, establishing Cyber and Mission Solutions as a key segment within AV [4]

Core Insights - Kratos Defense & Security Solutions, Inc. will showcase its latest unmanned aerial systems, including the weapons-configured Valkyrie, at the Marine Corps Air Station Miramar Air Show from September 26-28, 2025 [2][3] - The company emphasizes its commitment to providing affordable and high-performance solutions that align with the Department of Defense's technology initiatives and affordability strategies [3][5] - Kratos' tactical family of unmanned jet drones is designed for various military operations, including strike, ISR, RF, and communications [2][3] Product Highlights - The XQ-58 Valkyrie is a Collaborative Combat Aircraft designed for operation with Joint and Allied Forces, continuing to pioneer tactical unmanned aerial system technology since its first flight in 2019 [5][6] - The MAKO Tactical Jet Drone, which demonstrated manned-unmanned teaming capabilities in 2015, will also be displayed, showcasing its high-speed and maneuverability [2][12] - The Tactical Firejet is designed for rapid ingress and egress in denied battle spaces, capable of delivering significant payloads over long ranges at high speeds [6][12] Strategic Partnerships - Kratos is collaborating with the United States Marine Corps, showcasing its technologies that support national security missions [5][6] - The company is the exclusive U.S. manufacturer of Elroy Air's Chaparral, a hybrid-electric autonomous VTOL cargo drone capable of transporting 300 pounds over 300 miles [9][12] - Kratos aims to leverage its innovative technologies to meet the evolving needs of defense and national security markets [15]

Group 1 - Honeywell will release its third quarter financial results on October 23, 2025, before the Nasdaq Stock Market opens, followed by a conference call at 8:30 a.m. EDT [1] - The company operates across various industries and geographies, focusing on three megatrends: automation, future of aviation, and energy transition, supported by its Honeywell Accelerator operating system and Honeywell Forge IoT platform [3] - Honeywell provides solutions through its Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions business segments, aiming to address complex global challenges [3] Group 2 - Honeywell utilizes its Investor Relations website for disclosing information relevant to investors and complying with Regulation FD, encouraging investors to monitor this site along with press releases and public communications [4] - The company has announced the pricing of senior notes related to the planned spin-off of Solstice Advanced Materials, indicating ongoing strategic financial maneuvers [5][6]

Core Insights - Raytheon has successfully developed and tested a ground-launched variant of the StormBreaker smart weapon in just 50 days, highlighting the company's rapid innovation capabilities [1][3][4] Development and Testing - The prototype was tested at a private range in the Mojave Desert, achieving an altitude of approximately 20,000 feet using a commercial rocket motor [2] - The development of the Ground-Launched StormBreaker was accelerated through significant investments in research, development, and acquisition of expertise [4] Product Features and Capabilities - StormBreaker is designed to operate in GPS-contested environments and can engage both moving and stationary targets under various weather conditions [3] - The new variant maintains the same target set as the air-launched version but offers extended range and enhanced offensive capabilities [4] Company Background - Raytheon, part of RTX, has over 100 years of experience in defense solutions, focusing on advanced technologies in air and missile defense, smart weapons, and integrated systems [5] - RTX is the largest aerospace and defense company globally, with projected sales exceeding $80 billion in 2024 [6]

Core Points - Raytheon and Avio USA have executed a purchase order for up to $26 million to support the Mk 104 dual-thrust rocket motor, enhancing production capacity for solid rocket motors [1][2] - The funding will cover the Critical Design Review phase and procurement of long lead materials, ensuring resilience and availability of the Mk 104 rocket motor [2] - The project aims to strengthen the supply chain and production capacity for Raytheon's Standard Missile franchise [2][3] Company Overview - Raytheon, part of RTX, is a leading provider of defense solutions, focusing on integrated air and missile defense, smart weapons, and advanced sensors [4] - RTX is the world's largest aerospace and defense company, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [5] - Avio USA, a subsidiary of Avio S.p.A., specializes in compliance with US security regulations and is led by retired US Navy Vice Admiral James Syring [6][7]