Global Defense Budgets Surge as Nations Fast-Track AI and Counter-Drone Systems
Issued on behalf of VisionWave Holdings, Inc.
NEW YORK, Feb. 24, 2026 /CNW/ -- Equity Insider News Commentary -- India has unveiled a record defense budget of approximately $87 billion for fiscal year 2026, representing a 15% increase that signals the country's accelerating investment in multi-layered air defense systems and indigenous military technology[1]. Across Europe, the European Union has launched its SAFE initiative, mobilizing up to $178 billion in defense upgrades as member states move to strengthen continental security infrastructure[2]. Companies positioning at the intersection of counter-drone technology, space-based defense intelligence, and AI-driven military platforms include ParaZero Technologies (TASE: PRZO), BlackSky Technology (NYSE:BKSY), Redwire (NYSE:RDW), and Safe Pro Group (NASDAQ:SPAI).
The United Kingdom's Ministry of Defence faces an additional funding requirement of £28 billion over the next four years as the government targets defense spending at 3% of GDP by 2029[3]. Meanwhile, the Pentagon is advancing counter-drone sensor demonstrations scheduled for spring 2026, designed to protect critical domestic infrastructure from evolving unmanned aerial threats[4]. These converging defense priorities are creating demand across the aerospace and security sectors for advanced counter-UAS platforms, orbital intelligence capabilities, and AI-enhanced operational systems.
VisionWave Holdings (NASDAQ:VWAV) has executed a definitive agreement to acquire a 51% controlling stake in C.M. Composite Materials, a certified aerospace manufacturer based in Modi'in, Israel. C.M. produces structural composite assemblies utilized in Israel's multi-layer missile defense architecture publicly known as Iron Dome and the Barak 8 long-range air defense system developed jointly by Israel Aerospace Industries and India's Defense Research and Development Organization.
For fiscal year 2025, C.M. reported approximately $17.3 million in revenue and $3.0 million in net income before tax under IFRS standards. An independent valuation prepared by BDO Consulting Group placed the company at $50 million. VisionWave will issue 250,000 shares for the majority interest, retaining an option to acquire the remaining 49%. Comprehensive due diligence spanned 64 continuous days of on-site inspections in Israel, covering aerospace-grade production lines, autoclave capabilities, and certification compliance.
"With the previously announced $10 million QSpeed™ Statement of Work and now entering into a definitive agreement to acquire majority control of a certified aerospace composite manufacturer embedded in active missile defense programs, VisionWave is building both the computational acceleration layer and the regulated manufacturing foundation," said Douglas Davis, Interim CEO & Executive Chairman of VisionWave. "We believe integrating advanced software acceleration into certified aerospace production infrastructure creates a differentiated industrial model."
The acquisition builds on VisionWave's recently entered into $10 million Statement of Work for qSpeed-Mine™, a mining acceleration platform built on the company's QuantumSpeed computational acceleration engine. Management believes integrating QSpeed™ into C.M.'s certified manufacturing environment could optimize production sequencing and reduce process-cycle bottlenecks. C.M. has also identified India as a strategic next-stage growth market as the country continues expanding its multi-layered air defense systems, including ongoing Barak 8 deployments.
The company's wholly owned subsidiary Solar Drone recently reported executive meetings in Italy advancing business development for drone cleaning solutions targeting select Middle Eastern markets, following earlier live demonstrations of the technology and a strategic distribution agreement covering commercial operations in Italy and Spain.
VisionWave also demonstrated real-world performance of SaverOne's RF-based Vulnerable Road User detection system before a major vehicle manufacturer, identifying pedestrians and cyclists in live field conditions. The company established a $7.0 million strategic exchange with SaverOne that could yield 51% fully diluted ownership, while continuing to advance its dual-market autonomous systems platform integrating QuantumSpeed™ and RF-based defense capabilities.
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In other industry developments:
ParaZero Technologies (TASE: PRZO) has secured an additional order from a second branch of an Israeli defense entity for its DefendAir counter-UAS solution, building on a successful first deployment earlier this year. The expanded contract includes specialized net-launchers designed for rapid deployment in urban and field environments, interception pods compatible with handheld, stationary, and drone-mounted configurations, and a comprehensive training package for operational readiness.
"We are thrilled to deepen our partnership with leading Israeli Defense Entities through this second order form an additional branch," said Ariel Alon, CEO of ParaZero. "We believe that DefendAir represents a paradigm shift in counter-drone technology, and this contract validates our commitment to delivering reliable, innovative solutions that enhance national security. We look forward to potentially supporting more defense entities around the world with our cutting-edge systems and expert training."
Recent demonstrations have achieved 100% interception rates against high-speed threats including FPV kamikaze drones and heavy-lift logistics platforms. The system's non-explosive, patent-protected net-launching mechanism offers a cost-effective alternative to traditional counter-drone methods across multiple deployment configurations.
BlackSky Technology (NYSE:BKSY) reported over $60 million in new contract awards during the third quarter of 2025, driven by strong international demand for its space-based intelligence solutions. The company's backlog reached $322.7 million, with approximately 91% derived from international contracts as sovereign nations accelerate acquisition of Gen-3 tactical ISR services.
"Strong international demand for our space-based intelligence solutions drove over $60 million in new contract awards," said Brian E. O'Toole, BlackSky CEO. "Significant international opportunities for commercial imagery, analytics, and sovereign solutions are outpacing the near-term U.S. government business. Sovereign nations around the world are recognizing the best-in-class capability of our Gen-3 satellites at a time when they are increasing their budgets and accelerating acquisition cycles."
The company ended the quarter with $147.6 million in cash, restricted cash, and short-term investments, positioning it to continue building out its constellation. BlackSky has also won a multi-year contract valued at over $30 million with a strategic international defense customer to deliver high-cadence Gen-3 tactical ISR services at scale.
Redwire (NYSE:RDW) has been awarded a $44 million contract from DARPA to advance the Otter Very Low Earth Orbit mission, designed to demonstrate the world's first air-breathing spacecraft and advance next-generation orbital capabilities. The phase 2 contract provides funding to complete manufacturing and deliver the SabreSat orbital drone platform to launch.
"VLEO represents an exciting new frontier for defense, intelligence, and communications missions. Through our work with DARPA, we are accelerating the development of cutting-edge capabilities that will define the future of this domain," said Tom Campbell, President, Space Missions at Redwire. "With Otter and our SabreSat platform, we are delivering higher-performance missions at lower altitudes: improving sensor perception and proximity to targets of interest, increasing revisit, reducing latency, and redefining mission resilience."
The award strengthens Redwire's leadership in VLEO capabilities, complementing its role as prime contractor for the European Space Agency's Skimsat mission and its digital engineering work for DeepSat's planned VLEO constellation. The company continues to build its portfolio of advanced space and defense technology solutions.
Safe Pro Group (NASDAQ:SPAI) projects over 500% year-over-year revenue growth in the first quarter of 2026, driven by initial deliveries under a recently awarded U.S. Government subcontract supporting deployment of the company's AI-powered edge processing platform. The milestone marks a transition from development-stage operations into revenue-generating government programs.
"The first quarter of 2026 represents a transformational period for Safe Pro," said Dan Erdberg, Chairman and Chief Executive Officer of Safe Pro Group. "We believe global demand for AI-enabled drone intelligence and American defense technology is entering a sustained growth cycle. Initial government revenue validates our technology platform and positions Safe Pro for continued operational expansion."
The company's patented SPOTD technology enables rapid analysis of drone imagery to identify potential explosive hazards at the tactical edge. A $14 million PIPE financing completed in Q4 2025, with strategic investments from Ondas Holdings and Unusual Machines, supports manufacturing scale-up and government contracting execution as Safe Pro expands engagements with domestic and allied defense agencies.
Article Source: https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/
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SOURCES:
- https://www.thehindu.com/business/budget/union-budget-2026-defence-budget-pegged-at-785-lakh-crore-15-increase-over-current-fiscal/article70578012.ece
- https://www.theatlantic.com/international/2026/02/european-union-defense-spending/685983/
- https://www.bbc.co.uk/news/articles/cpqwl10lvr2o
- https://www.defensenews.com/news/pentagon-congress/2026/02/13/pentagon-wants-counter-drone-sensors-to-protect-us-infrastructure-and-fast/
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