Palladyne AI reaffirms $24M-$27M 2026 revenue outlook as backlog climbs to $24.6M

Pete Hegseth, the US Secretary of Defense, announced the launch of Project Meridian, a research program into the technology and warfare models of the future, bringing in Elon Musk, Palmer Luckey, founder of Anduril Industries, and Newt Gingrich, former Speaker of the US House of Representatives, as leaders of the research effort. Hegseth unveiled the plan during a State of the Force speech at Marine Corps Base Quantico in Virginia, saying the project would focus on finding, developing and fielding new weapons and systems to meet the forms of warfare the US military may face in the coming decades. Musk's SpaceX and Luckey's Anduril are both major contractors for the US Department of Defense. The project will be overseen by Emil Michael, a former Uber executive who currently serves as a senior technology official at the Pentagon. Hegseth did not disclose further details on the budget, timeline or structure of the project. Beyond Project Meridian, Hegseth also announced the establishment of an Autonomous Warfare Command to oversee the management and deployment of US drones and military robotic systems, and said he wants major US bases to be able to produce their own energy to preserve operational capability if the country's power grid is hit by a cyberattack. He also announced plans to set up an office for religious affairs for the military and to build partnerships with academic institutions to expand cadet training programs, with the first group of institutions taking part including Liberty University, Hillsdale College, Louisiana State University, Mississippi State University and Tuskegee University. At the same time, the US Department of Defense plans to build a new base inside the country for the first time in four decades, with state governments able to compete to host it; the base is expected to accommodate several thousand personnel, and each site could cover several hundred thousand acres. The plan comes as the Pentagon is considering reducing US troop levels in Europe, with Hegseth saying the military will add tens of thousands more personnel overall while shifting its focus back to homeland defense and the Western Hemisphere.

Codan sharply raised its first-half profit outlook on strong demand from drone manufacturers, sending its shares up 18.85% to a record high of A$61.79. The Australian communications technology company said it expects net profit after tax of at least A$160 million for the six months through December, more than double the A$71.2 million reported a year earlier and close to the A$175.2 million it generated for the full year ended June. The stronger outlook was driven by rising demand for electronic components used in unmanned drones deployed in conflicts including Russia-Ukraine and the Middle East, with Codan supplying a radio-frequency component that enables high-speed video and data transmission to about 50 drone manufacturers across the U.S. and Europe. Codan said demand from conflict regions was exceptionally strong, and its Minelab metal-detection business also started the financial year strongly, helped by sales of its Gold Monster 2000 and GPZ8000 detectors amid a higher gold price. The company said it could not provide a full-year profit forecast because demand from conflict regions is difficult to predict beyond roughly three months, and it is working to address potential supply-chain constraints amid the elevated demand.

Kratos Defense & Security Solutions and GE Aerospace announced the successful first ignition of the GEK800 Serial Number 1 turbofan engine on September 21, a milestone in a program the U.S. military has designated the F143-ZZ-100. The test, conducted at Kratos' X-58 facility, achieved a 100% success rate for the development phase and keeps the affordable, high-performance propulsion system on schedule for advanced cruise missiles and uncrewed aerial systems. For Kratos, the milestone supports a Government Solutions segment that posted $379.7 million in Q2 2026 revenue, up 22.0% organically, with Turbine Technologies up 43.3% organically, a consolidated book-to-bill ratio of 1.1x and $2.084 billion in backlog, as the company ramps full-year 2026 revenue guidance to $1.750–$1.810 billion. GE Aerospace's Defense & Propulsion Technologies segment reported $3.4 billion in Q2 2026 revenue, up 16%, and raised full-year DPT operating profit expectations to $1.6–$1.7 billion. Kratos also faces cash conversion pressure, with $11.0 million in Q2 2026 operating cash outflow and $18.9 million in negative free cash flow, while GE's DPT margins face ongoing pressure from investments and inflation.

Amprius Technologies shares rose 11% Monday after the company secured a grant of up to $75 million from the U.S. Department of War to retrofit an existing domestic production line for high-energy density battery cells. The grant, awarded through the DoW's Industrial Base Analysis and Sustainment program, will fund the conversion of a U.S.-based electric vehicle battery production line operated by a major South Korean manufacturer to produce batteries for unmanned aerial systems. The retrofitted line is expected to have the capacity to produce 12 million Amprius cells annually when completed in early 2028, with the cells intended to meet domestic sourcing requirements of the National Defense Authorization Act. The total conversion project is expected to cost approximately $100 million, including in-kind investments from Amprius and its South Korean partner. CEO Tom Stepien said the DoW grant is intended to establish a primary source of domestic, NDAA-compliant battery production, adding that the company's technology combined with its South Korean partner's U.S. manufacturing prowess positions Amprius to accelerate adoption of standardized, high-performance pouch cells in a fast-growing market.