$BAESY

Scottish MSPs backed a Scottish Greens proposal to impose boycotts, divestment and sanctions targeting Israel and firms linked to its military actions. In September, First Minister John Swinney said Scotland would pause new public funding to arms firms selling weapons to Israel. Reporting says Scottish Enterprise awarded over £5.5m to Israel-linked weapons firms in the year to Mar 31, 2026, including BAE Systems (£2.34m), Raytheon Systems (£710k), Thales UK (£467.4k) and Leonardo UK (£648.6k).

BAE Systems’ FAST Labs said it completed Phase I of DARPA’s THREADS heat-removal program and will advance to Phase II. The $12 million effort began in 2024 and aims for X-band GaN transistor test devices targeting 81 W/mm output power density and one-eighth thermal resistance, with required defense lifetime. DARPA cited about 5x power-density gains in Phase I, but BAE-specific results and Phase II funding were not disclosed.

MBDA and BAE Systems said the UK and Italy provided additional funding to finish integrating Meteor air-to-air and MBDA SPEAR precision surface-attack missiles on the F-35. The RAF plans to fit both; Italy’s role is for Meteor, with possible interest in Spear. The investment amount is not disclosed, but is estimated around $400 million, with Lockheed Martin subcontracting integration work.

Freedom of Information documents show Scottish Enterprise granted £5.525 million to six Israel-linked arms firms in the year ending March 31, 2026, about 67% of all funding to the ADMS sector. Firms named include Raytheon Systems, Thales UK, BAE Systems, Leonardo UK, Chemring Energetics UK, and Rosyth Royal Dockyard. Scottish Enterprise says post-September 2025 payments relate to pre-existing contracts; the Scottish Government says rules are not retrospective.

BAE Systems said on its first-half 2026 earnings call it is accelerating internal factory investment in the U.S. and Europe to convert a record defence backlog into higher output. CFO Brad Greve cited higher CapEx and R&D. U.S. investment exceeds $4bn since 2020, with U.S. CapEx seen up 40% YoY. Electronic Systems approved $250m; MBDA plans €5bn (2026-30) after €6.5bn orders in H1 2026, backlog €48bn.

BAE Systems’ FAST Labs completed Phase 1 of DARPA’s THREADS program on heat removal for RF electronics at the device scale and received support to move to Phase 2. The effort targets thermal limits in GaN devices via material and process improvements, which BAE says could nearly triple RF system range. Work is at its Nashua, NH microelectronics center with academic and industry partners.

BAE Systems agreed to pay a $36 million civil penalty to resolve US State Department allegations of 104 ITAR/Arms Export Control Act export-control violations, including unauthorized transfers of defense technical data and equipment, with at least one case involving China. $18 million is suspended if BAE funds approved remedial compliance measures and keeps an external compliance officer and audits.

BAE Systems said it signed an MoU with Türkiye’s TUALCOM to explore integrating communications, assured navigation, and electronic warfare technologies into future autonomous air platforms. The companies plan to develop capabilities for reliable communications in contested environments, supporting customers in the UK, Türkiye, and international markets, according to a press release.

BAE Systems said its THREADS program for DARPA has advanced to Phase 2, targeting improved heat removal in high-performance RF electronics, especially GaN devices. The company claims the thermal-management techniques could nearly triple RF system range, supporting greater safety and engagement distances. Work is in BAE’s Microelectronics Center in Nashua, with academic and industry collaborators.

The UK Ministry of Defence issued an Aug. 8 request for information to industry on a Jet Training System (JTS) to replace BAE Systems Hawks used by the Red Arrows and for advanced jet training. The program targets fifth- and sixth-generation transition and has £360 million set aside over four years. BAE, Leonardo and others have shown interest; RFI submissions due Sept. 11.