Simmons Sitrep: January 2026

Strategic Direction & Policy Signals

1. The UK Ministry of Defence (MOD) has announced over £650 million in new investment to upgrade the Royal Air Force's Eurofighter Typhoon fleet, delivering on a key Strategic Defence Review commitment. The package includes a £453 million contract for the manufacture of advanced European Common Radar System (ECRS) Mk2 radars by Leonardo UK, BAE Systems, and Parker Meggitt. An additional £205 million contract with QinetiQ will provide long-term engineering support, ensuring that the Typhoon remains the backbone of UK and NATO air defence into the 2040s. The new radars will significantly enhance the RAF's operational advantage, enabling simultaneous detection, identification, and tracking of multiple targets, and providing advanced electronic attack capabilities. (link)

2. The MOD has announced the launch of a £20 million fund to support British SMEs specialising in AI, robotics and precision weapons. This announcement is supported by a new MOD team 'the Defence Office for Small Business Growth' to support SMEs in bidding and winning contracts. (link)

3. The UK Royal Navy has unveiled Proteus, its first full-sized autonomous helicopter, designed to enhance anti-submarine warfare and maritime patrol operations in the North Atlantic. Developed by Leonardo under a £60 million programme, Proteus leverages advanced sensors and artificial intelligence to interpret its environment and make operational decisions independently, enabling it to undertake submarine tracking and sea patrols without exposing personnel to danger. The introduction of Proteus forms part of the UK's broader efforts to strengthen national and NATO defences in response to evolving security threats in the region. (link)

4. The European Commission has approved a total of €112 billion worth of national investment plans in January 2026 as part of the Security Action for Europe (SAFE) programme. Approvals on 15 and 26 January provided over half of the currently allocated loans to two Eastern European member states, with €43.7 billion of funding for Poland and €16.6 billion for Romania. EU ministers now have four weeks to approve the plans, with the first loans expected to be paid in March 2026. (link) (link)

5. Luxembourg has launched its first-ever defence bond, allowing citizens to invest in national defence projects through a three-year government bond offering a fixed annual interest rate of 2.25%, with investments capped at €150 million. The proceeds will support Luxembourg's efforts to meet new NATO defence spending targets, funding projects such as military vehicles, space technology, and infrastructure. Investments can be made in tranches of €1,000 up to €150,000 per person, with interest exempt from income tax for residents, resulting in an effective yield of around 2.81%. (link)

Industry Updates

1. The MOD has launched Project Nightfall, a rapid development initiative to deliver new ground-launched tactical ballistic missiles for Ukraine, capable of carrying a 200kg warhead over distances exceeding 500 kilometres. The project aims to award three industry teams £9 million each to design, develop, and deliver prototype missiles within 12 months, with a production target of 10 systems per month and a maximum unit price of £800,000. (link)

2. The MOD has also launched Project Goshawk, a tender for a low-cost short-range interceptor to counter drones, loitering munitions and missiles at a favourable 'cost-exchange ratio'. The initial phase will award one or two development contract, for 12 months and will require evidence of the ability to provide scalable production for a potential follow on contract of 3,000 to 7,000 units per year. (link)

3. Seasats, a California-based developer of long-endurance autonomous surface vessels, has been awarded a $24 million APFIT contract by the Department of War, following recommendations from the US Navy and Marine Corps, to accelerate procurement and production of its Lightfish USV. This milestone follows an $89 million SBIR Phase III contract and a series of operational demonstrations. The APFIT award, part of a Pentagon initiative to fast-track operational technologies, will enable Seasats to scale manufacturing and deliver advanced maritime capabilities at reduced costs, building on its proven track record in both defence and scientific missions. (link)

4. Anduril has been awarded a $23.9 million contract by the US Marine Corps to deliver more than 600 Bolt-M loitering munitions for the next phase of the Organic Precision Fires-Light (OPF-L) programme, with deliveries scheduled between February 2026 and April 2027. The OPF-L programme aims to equip dismounted Marine infantry squads with a man-packable, easy-to-operate precision strike capability for engaging adversaries beyond line of sight. This contract follows 13 months of testing, and will be fielded with the operational units in summer 2026. The Bolt-M order follows a $42.5 million award to Teledyne FLIR for 600 Rogue 1 strike drones, as the Marine Corps expands its adoption of organic, loitering precision strike capabilities for tactical formations. (link)

5. Renault and Turgis Gaillard have announced a partnership, supported by the French Ministère des Armées, for the production of drones in support of the war in Ukraine. The announcement follows a request in June 2025 by the French government for car companies to work with the defence sector on drone production. (link)

Capital & Investment Watch

1. Czechoslovak Group (CSG) listed on the Euronext Amsterdam on 23 January 2026 at a market cap of €25 billion. The IPO raised €3.8 billion making it the largest defence IPO ever recorded, in terms of both amount raised and market capitalisation. It is reported that Funds managed by Artisan Partners, BlackRock and Al-Rayyan Holdings, a subsidiary of the Qatar Investment Authority, acted as cornerstone investors, committing €300 million each. CSG is one of Europe's largest arms manufacturers with key products including refurbished soviet-era IFVs and MBTs, NATO standard 105mm and 155mm ammunition and MLRS platforms. (link)

2. Harmattan AI, a Paris-based autonomy startup, has closed a $200 million Series B round led by Dassault Aviation at a $1.4 billion valuation, bringing its total funding to $242 million. The strategic partnership will see Harmattan's autonomy stack integrated into Dassault's platforms, including the Rafale fighter and future unmanned aircraft, marking a major move in collaborative air combat. The new funding will support team expansion, R&D, and global scaling across the US, Europe, and the Middle East. (link)

3. Hadrian, the software-defined precision manufacturing startup, has raised an undisclosed sum at a $1.6 billion valuation in a round led by T. Rowe Price, with participation from Altimeter Capital, D1 Capital Partners, StepStone Group, 1789 Capital, Founders Fund, Lux Capital, a16z, Construct Capital, and other existing investors. This latest raise, following a $260 million round in July 2025, brings Hadrian's total funding to $611.28 million, according to PitchBook. The new capital will fuel factory expansion, workforce growth, and broaden Hadrian's manufacturing capabilities from components to full assemblies and product lines. (link)