The Future of Modern Warfare Is Being Built in Ukraine
Known as 'TerMIT,' one has a simple steel platform to bring supplies to troops at the front. The other has a superstructure that makes it look like a miniature combine. But rather than reaping crops, it sows a deadly harvest of anti-tank mines at the remote touch of a button.
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Yahoo
an hour ago
- Yahoo
Wartime innovation boosts Israeli defence tech growth, drawing global interest
By Emily Rose JERUSALEM (Reuters) -Israeli army reservist Zach Bergerson felt he had to take action when he saw fellow soldiers having to rely on their eyes and ears to detect swarms of enemy drones overhead. So the high-tech professional, 36, developed a wearable device that uses mobile phone technology to warn troops of aerial threats. Like other reservists, Bergerson has leveraged his civilian expertise and military experience to bolster Israel's defence industry. Known as SkyHoop, his startup has since emerged from stealth mode - a period when startups typically work in secrecy - to be piloted in Ukraine with discussions under way for a trial by the U.S. Defense Department. While U.S. President Donald Trump brokers a Gaza ceasefire, Israeli startups like Bergerson's are drawing investment from U.S. and Israeli venture capital firms and looking to build on a growing European market for Israeli defence exports. More than a third of all defence tech startups registered with the country's Startup Nation Central, an organization that tracks Israeli innovation, were created since a deadly Hamas attack on Israel on October 7, 2023, launched the war in Gaza. In June, while Israel attacked Iranian nuclear and ballistic missile targets, their 12-day air war highlighted the efficacy of Israel's aerial defences. Israel successfully intercepted 86% of Iran's ballistic missile launches, the Defence Ministry said. The changing nature of war has led to shifts in defence procurement worldwide. Western armies demand new battle-tested technology, refined by soldiers in combat. Some 20% of Israeli reservists work in the robust high-tech sector. Israeli defence startups have drawn investment from major American venture capital firms that previously avoided the sector as it was considered riskier and mired in regulation. Israeli VC firms have emerged as well to invest in defence. Lital Leshem, an Israeli reservist, in December co-founded Protego Ventures, a fund that has studied some 160 defence companies and raised around $100 million. She expects the fund will invest in around four companies by year's end. 'Reservists are coming out of the battlefield and are actually putting together new companies to solve real problems that they have experienced in real time on the battlefield,' Leshem told Reuters. These companies will face major challenges scaling up to the global market and overcoming regulatory hurdles, Leshem said, but she predicts that, like Israel's cyber industry, it is a field in which Israeli entrepreneurs can thrive. These startups formerly viewed the U.S. as the "holy grail" for their target market, Leshem said, but that is also changing. EYES ON EUROPE Israeli startups are hoping to benefit from Trump's demand that European countries take over from the U.S. more of the burden of defending their continent. Under a new NATO defence spending plan, countries will spend 5% of GDP - up from 2% - on defence. The figure includes 3.5% of GDP on "core defence" such as weapons and troops and 1.5% on security-related investments. Such an increase - to be phased in over 10 years - will mean hundreds of billions of dollars more spending on defence. Israel's defence exports hit a record $14.8 billion in 2024, according to Defence Ministry figures released last month, while exports to Europe comprised more than 50% of these sales, up from 35% in 2023. Despite calls from some countries to boycott Israeli weapons, 'when one side is purchasing, in the end, they want to buy the best product possible,' said Reserve Brigadier General Yair Kulas, head of the Defence Ministry International Defence Cooperation Directorate. Largely as a result of the Russia-Ukraine war, Kulas said, European states are upgrading their militaries, sending older equipment to Ukraine and replacing it with new products, many of them from Israel. Kulas said the story of Israeli weapons exports is also part of a larger global trend. The political backlash is worrisome, Kulas said, because on the one hand Israel's innovation is groundbreaking and world-class but there has been a 'delegitimization of Israel". More than 57,000 Palestinians have been killed, most of them civilians, local health officials have said, in the 21 months since Israel launched its assault on Gaza, displacing the population and leaving the territory in ruins. 'I don't know how it will impact the results in 2025,' Kulas told Reuters. He said it is 'certainly a huge challenge.' Avi Hasson from Startup Nation Central said the surge of new defence startups created by reservists is reminiscent of a technological revolution 20 years ago that would later evolve into smartphones. Startups may prompt larger Israeli defence companies such as Elbit, Rafael and Israel Aerospace Industries to either try to acquire more Israeli startups and help bring them up to scale or develop their own technology at a faster pace. "We are now in a different world," Hasson told Reuters.
Bloomberg
an hour ago
- Bloomberg
Russian Drone Documents Draw Line From China to Ukraine's Skies
Politics By Soon after President Vladimir Putin launched his full-scale war on Ukraine, a little-known Russian company thousands of miles away hatched a plan to partner with Chinese firms and solve one of the most urgent challenges faced by the invading army — the need for combat drones that were radically reshaping the battlefield. Documents reviewed by Bloomberg — including memos from the company, Aero-HIT, as well as correspondence with Russian government officials — offer unprecedented insight into how Moscow capitalized on its friendly ties with Beijing to skirt Western sanctions and acquire the know-how and capability to build drones to attack Ukraine. They lay out in detail a previously unreported case study of Russian-Chinese corporate collaboration on defense technology.
Yahoo
10 hours ago
- Yahoo
Kratos Defense & Security Solutions, Inc (KTOS): A Bull Case Theory
We came across a bullish thesis on Kratos Defense & Security Solutions, Inc on Polymath Investor substack by Polymath. In this article, we will summarize the bulls' thesis on KTOS. Kratos Defense & Security Solutions, Inc's share was trading at $42.16 as of 18th June. KTOS's trailing and forward P/E were 324.31 and 79.37 respectively according to Yahoo Finance. A drone taking off from a commercial warehouse, representing the company's custom manufacturing capabilities. Kratos Defense & Security Solutions (KTOS) stands out as a rare publicly traded company offering direct exposure to the rapidly growing tactical drone and unmanned aerial vehicle (UAV) market. Its Unmanned Systems segment, in particular, is the primary reason investors are taking notice. Positioned in a high-priority niche for the Pentagon, Kratos is investing heavily in next-generation drone and space technologies, which represent critical capabilities for modern defense. These areas are seeing increasing government focus, suggesting strong long-term tailwinds. However, the aggressive reinvestment into these growth opportunities has kept consolidated profits relatively flat for now. The company's strategy reflects a long-term vision, with current spending aimed at capturing future defense budgets and technological leadership. Despite the promising outlook, Kratos is not without risks. The unpredictable nature of defense contract timing—where delays or cancellations can significantly impact performance—remains a key concern. Additionally, the company's reliance on equity issuance to fund growth introduces short-term dilution, which may deter some investors. Yet, for those who believe in the secular growth of tactical drones and trust in Kratos's strategic positioning, the company could emerge as a leader in an increasingly vital segment of defense technology. With few public peers offering this level of exposure to unmanned systems, Kratos presents a unique opportunity to gain early-stage access to a sector likely to see substantial expansion, driven by evolving military needs and increasing autonomy in combat systems. As such, the current period of heavy investment may eventually give way to meaningful returns, making Kratos a compelling long-term play. Previously we covered a bullish thesis on Kratos Defense & Security Solutions, Inc. (KTOS) by Kooky_Lime1793 in January 2025, which highlighted the company's $1.45 billion hypersonic test contract, growing prominence in autonomous military drones, and partnerships with RocketLab and Leidos. The company's stock price has appreciated approximately by 47% since our coverage. This is because the thesis played out with strong government backing and strategic execution. The thesis still stands as Kratos remains well-positioned in defense innovation. Polymath shares a similar outlook but emphasizes Kratos' long-term positioning in tactical drones despite current profit headwinds. KTOS isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of KTOS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
