Europe A&D roundup: Airbus strike resumes, BAE wins Italy rocket approval

The Pentagon signed agreements with Lockheed Martin and General Dynamics to boost production of THAAD and Patriot missiles. Lockheed will quadruple THAAD production to 400/year and triple PAC-3 MSE to 2,000/year. The moves aim to address missile shortages and enhance U.S. defense capabilities, with $67.1B requested to prevent shortfalls.

FTSE 100 reached 10,979 after Bank of England held rates at 3.75%, with a 7-2 vote. Rolls-Royce rose 3% on upgraded guidance, reporting £2.534bn H1 operating profit. Lloyds Banking Group beat Q2 estimates, launching a £1bn buyback. Shell gained 1.4% on earnings beat, while Rentokil fell 17% on missed targets.

Bae Systems has secured a $149.8 million contract for the modernization of the USS Boxer, according to a Reuters report. The deal involves upgrades to the amphibious assault ship, which is part of the U.S. Navy's fleet. This contract is significant for Bae Systems as it highlights the company's role in defense and naval modernization projects.

Australia began assembling the first Hunter-class frigate at Osborne Naval Shipyard on 24 August 2026. BAE Systems Maritime Australia is building six frigates for the Royal Australian Navy, with the first expected in the early 2030s. The ships will feature advanced anti-submarine warfare capabilities and US Navy's Aegis combat management system.

BAE Systems Maritime Australia laid the keel for the Royal Australian Navy's first Hunter-class frigate at the Osborne Naval Shipyard. The vessel, based on the British Type 26 design, will enhance Australia's anti-submarine warfare capability and is set to enter service in the early 2030s. The program supports over 2,500 direct jobs and 5,000 more in the national supply chain.

The U.S. Space Force has selected 15 companies, including Lockheed Martin (LMT), Boeing (BA), and Northrop Grumman (NOC), to develop advanced training systems under a $981 million contract. The NITE-STAR program aims to enhance training for space operators, with Colorado-based firms playing a significant role. The contract is structured as an indefinite delivery/indefinite quantity (IDIQ) agreement over two five-year periods.