Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.
This week's top story
Almost a week after the abrupt departure of Navy Secretary John Phelan, acting Secretary Hung Cao urged new companies to enter the defense industrial base and outlined early priorities for the service, including shipbuilding under the administration's "Golden Fleet" initiative.
News & notes
General Dynamics reported a 21% revenue surge in its marine business segment in the first quarter of 2026 with senior executives chalking up growth mostly to labor and material betterment across its shipyards.
The Army is requesting additional funding for its MV-75 Cheyenne II helicopter program for the remainder of fiscal year 2026, Textron CEO Lisa Atherton said during a company quarterly earnings call.
Leaders for the Defense Department's programs that support small businesses through what is often called "America's Seed Fund" lauded the changes that are being made to the program after its recent reauthorization.
The Defense Department has entered into new agreements with seven frontier artificial intelligence providers to deploy advanced capabilities on the Pentagon's classified networks, even as some lawmakers raise alarms about the operational use of lethal AI.
David Sacks, the influential co-chair of the White House Council of Advisors on Science and Technology, took aim at assertions that the federal government needs access to Anthropic's Mythos frontier AI model amid an ongoing legal battle with the Defense Department, saying rival developer OpenAI has already caught up with the Mythos cybersecurity capabilities and others will do so shortly.
Anduril Industries is launching a new variant of its Sentry situational awareness systems to deliver secure 5G communication capabilities in remote, austere environments that lack infrastructure, the company announced last week.
Defense technology company Firestorm Labs announced it has secured $82 million in a Series B funding round to scale production and expand fielding for xCell, its mobile drone manufacturing platform.
For Inside Defense subscribers
The Defense Department is seeking nearly $55 billion in fiscal year 2027 for a sweeping new "drone dominance" initiative aimed at rapidly scaling autonomous warfare capabilities, but the request is raising questions among budget analysts and lawmakers over its size, structure and lack of specificity.
Several combatant commands have opted against identifying unfunded priorities for Congress this year as the Trump administration pitches lawmakers on its plans for a $1.5 trillion fiscal year 2027 budget, according to documents obtained by Inside Defense.
The Air Force listed 40 military construction projects as priorities left out of the fiscal year 2027 budget request, according to documents obtained by Inside Defense.
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