From the Tarmac to the Stars: Defense Budgets Fueling the Next Aerospace Boom

CAPE CANAVERAL, Fla., March 06, 2026 (GLOBE NEWSWIRE) -- USA News Group News Commentary — The U.S. Space Force secured a nearly $14 billion boost to its budget in fiscal 2026, bringing its total allocation to approximately $40 billion, more than double its first independent budget of $15 billion in fiscal 2021^[1]. The administration has proposed increasing total annual military spending to $1.5 trillion by fiscal 2027, with specific focus on the Golden Dome proliferated space-based defense architecture and proliferated satellite constellations^[2]. Companies positioned across aerospace testing, defense manufacturing, and space infrastructure include Starfighters Space (NYSE-A: FJET), AeroVironment (NASDAQ:AVAV), Curtiss-Wright (NYSE:CW), Elbit Systems (NASDAQ:ESLT), and Archer Aviation (NYSE:ACHR).

Governments accounted for $138 billion of the $236 billion global space market in 2025, driven by national security, sovereignty, and exploration programs^[3]. European defense stocks have surged more than 260% since Russia's February 2022 invasion of Ukraine, as NATO allies accelerate long-term rearmament programs stretching into the next decade and driving sustained demand for advanced U.S. defense platforms^[4].

Starfighters Space (NYSE-A: FJET) recently announced an expansion of its operations at Midland International Air & Space Port, relocating aircraft, engines, and support equipment to increase mission cadence and geographic flexibility. The company reports four F-104 aircraft and 14 GE J-79 engines now stationed at Midland, with plans to double that number within 18 months.

From Midland, Starfighters can reach nine locations across the U.S. Southwest, including spaceports, Air Force bases, and test ranges in Texas, New Mexico, Oklahoma, Nevada, Utah, and California. The expansion complements the company's headquarters at NASA's Kennedy Space Center in Florida, providing operational resilience across two strategic hubs.

"Midland's strategic location allows us to reach nine different air and spaceport locations," said Tim Franta, Chief Executive Officer at Starfighters. "The flexibility of the Starfighters platform allows us to scale operations rapidly, especially compared to static vertical launch sites."

The Midland site also supports Starfighters' partnership with the Midland Development Corporation on high-speed corridor initiatives focused on safe supersonic flight over land. The company expects the location to play a growing role as operational cadence increases across its airborne testing and air-launch development programs.

In parallel, Starfighters continues to advance its STARLAUNCH 1 program, having recently announced it is moving forward to Critical Design Review. The next step builds on completed subsonic and supersonic wind tunnel testing at Florida Center for Advanced Aero-Propulsion (FCAAP), which demonstrated clean separation behavior at Mach 0.85 and Mach 1.3 across ten successful runs.

Starfighters operates the only commercial fleet in the free world capable of carrying underwing test payloads at speeds greater than Mach 2, or more than 1,500 miles per hour. The company's growing range of collaborations across defense and space positions its F-104 platform as a versatile high-performance testbed serving both government and commercial partners.

In other industry developments:

AeroVironment (NASDAQ:AVAV) recently announced plans to invest more than $30 million to expand its defense manufacturing operations across three facilities in Albuquerque, New Mexico. Supported by a $6 million performance-based incentive package from the State of New Mexico and City of Albuquerque, the investment will establish a vertically integrated manufacturing campus producing directed energy systems, space-grade components, and counter-UAS technologies.

"The growth we're driving in Albuquerque goes beyond our own business," said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. "It's about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most."

The expansion is expected to generate more than $670 million in economic impact over the next decade and create more than 450 high-wage jobs. AeroVironment's Albuquerque operations anchor its Space & Directed Energy Group, which supports next-generation defense, aerospace, and commercial space programs including laser communications, autonomous systems, and prototype development for U.S. military customers.

Curtiss-Wright (NYSE:CW) was recently selected by Boeing to supply mission computer technology for the U.S. Air Force's C-17 Globemaster III Fleet Modernization program. The contract, with an estimated lifetime value in excess of $400 million, covers Modular Open Systems Approach-aligned mission computers designed to extend the operational life and capability of the military's strategic airlift fleet.

"By delivering rugged, modular mission computing technology, we are supporting the long-term readiness of the C-17, a platform essential to global logistics and mobility operations," said Lynn M. Bamford, Chair and Chief Executive Officer of Curtiss-Wright. "Our scalable, MOSA-aligned solution is designed to evolve with future mission needs, helping to ensure availability and performance for decades to come."

The C-17 has served as a cornerstone of the U.S. Air Force's strategic airlift capability since the early 1990s. Curtiss-Wright is performing the work within its Defense Electronics segment, building on its long-term relationship with Boeing and the company's growing role in next-generation aerospace modernization efforts.

Elbit Systems (NASDAQ:ESLT) recently secured contracts valued at approximately $277 million from an international customer for the supply of 30mm turrets and munitions. The contracts will be performed over a period of three years and include the company's UT30MK2 configurable turret system, which enhances armored personnel carrier firepower through both manned and unmanned configurations.

"We are proud to be selected once again by a valued international customer," said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. "These contracts reflect the customer's confidence in our advanced land systems and munitions technologies and further demonstrate our ability to deliver high-performance, operational solutions to armed forces worldwide."

The company reported revenues of $1.922 billion in the third quarter of 2025 and maintains an order backlog of $25.2 billion. Elbit Systems continues to expand its global defense footprint, developing next-generation solutions across land, air, naval, space, and cyber domains for allied governments.

Archer Aviation (NYSE:ACHR) recently announced that it has selected Bristol as the home of its UK Engineering Hub, which will support some of the company's most advanced engineering initiatives across both commercial and defense programs. The hub will drive local collaboration with Anduril UK and GKN in support of the British Army's Project NYX.

"We want to hire the best engineers the UK has to offer," said Adam Goldstein, CEO and founder of Archer. "Bristol has a strong industrial base and a deep talent pool that makes that possible. This market is a big area of focus for us moving forward and our UK hub will be our home base."

The company's defense work is anchored by its strategic partnership with Anduril, which selected Archer as its exclusive partner to develop a hybrid-electric VTOL aircraft tailored for U.S. and allied defense applications. The Bristol hub positions Archer to pursue both the commercial air taxi market and growing defense demand for advanced aerial platforms.

Article Source: usanewsgroup.com

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SOURCES:

1. https://www.airandspaceforces.com/space-force-officials-prepping-budget-growth-2027/

2. https://satnews.com/2026/02/28/defense-sector-analysts-highlight-three-satellite-stocks-positioned-for-fy2027-budget-growth/

3. https://spacenews.com/when-space-is-hot-washington-holds-a-match/

4. https://europeanbusinessmagazine.com/business/which-defence-stocks-are-set-to-surge-in-2026-top-5-to-watch/