Category: Defense

Release – Kratos and GE Aerospace Sign Teaming Agreement, Expand Small Engine Portfolio with New Propulsion System

Posted on by slightbourne@noblecapitalmarkets.com

June 3, 2025 at 8:00 AM EDT

SAN DIEGO, June 03, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, and GE Aerospace (NYSE: GE) today announced a formal teaming agreement to advance propulsion technologies for the next generation of affordable unmanned aerial systems and Collaborative Combat Aircraft-type (CCA-type) aircraft.

Eric DeMarco, President and CEO of Kratos, said, “Kratos’ strategically important Teaming Agreement with GE Aerospace continues to rapidly advance and expand, with the GEK family of engines targeting certain of the most important, mission critical and highest priority needs and requirements of United States National Security. At Kratos, affordability is a technology and delivering more capability for less cost as quickly as possible are key contributions we are bringing for truly industry leading GEK offerings with our partner and global leader GE Aerospace.”

“The formalization of this teaming agreement and initiation of development of these new engines mark another step forward in our dedication to providing affordable, adaptable, high-performance propulsion systems for the future force,” said Amy Gowder, President and CEO of Defense & Systems at GE Aerospace. “We’re thrilled to continue our collaboration with Kratos and accelerate development across various classes of unmanned systems.”

This collaboration strengthens Kratos’ ongoing partnership with GE Aerospace – building on last year’s Memorandum of Understanding (MOU) to advance the development and production of small, cost-effective engines for unmanned platforms. The new teaming agreement expands on that MOU and provides the framework for the two companies to develop, manufacture, test, and field the GEK800 Engine, as well as collaborate on other low-cost expendable turbofan engines.

The GEK800

The GEK800

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7eb9eaed-8320-4e62-be5a-195d3569535b

In addition to the joint work on the GEK800, the companies have commenced work on another new engine, the GEK1500. The engines under development support unmanned aerial systems (UAS), collaborative combat aircraft, and similar applications, positioning Kratos and GE Aerospace to offer affordable mass propulsion solutions across a range of next-generation defense applications for the Department of Defense.

Kratos brings more than 20 years of experience developing and producing small, affordable engines for UAS, drones, and missile platforms. GE Aerospace adds a century of expertise in propulsion technology and the ability to scale advanced designs into high-rate production —helping bridge the gap from prototype to deployment.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, advanced vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 45,000 commercial and 25,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.com. 

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

The GEO Group (GEO) – An ISAP Extension?

Posted on by slightbourne@noblecapitalmarkets.com


Monday, June 02, 2025

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Enter Negotiations for Extension. On Friday, it was announced the government intends to enter into negotiations with GEO’s BI subsidiary for a one year extension of the ISAP program, which is currently effective through July 31, 2025. We would view an extension of this program as a significant positive for GEO in both the near-term and longer term.

A Positive Future? Acknowledging Friday’s release is limited to extending the current contract for a year, the verbiage used by the government contracting agency highlights the moat GEO has built around the business, suggesting the Company should be in the catbird’s seat for a longer term renewal. For example, the government states, “Market research conducted by the Office of Acquisition Management revealed that there is only one responsible source because the current contractor is uniquely positioned to maintain existing operations of the program without transitioning active program participants between contractor solutions.”


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Graham (GHM) – Awarded Large Follow-on Contract

Posted on by slightbourne@noblecapitalmarkets.com


Wednesday, May 28, 2025

Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Award. Yesterday, Graham announced that its Barber-Nichols subsidiary was awarded a $136.5 million follow-on contract to support the U.S. Navy’s Virginia Class Submarine program. This new award strengthens Graham’s position as a critical supplier to the U.S. Navy’s undersea programs.

Details. The contract period of performance extends from April 2025 through February 2034. Graham recognized approximately $50 million in backlog from the contract during the fourth quarter of the fiscal year ended March 31, 2025 to procure long-lead-time materials. As a reminder, the backlog at the end of the fiscal third quarter totaled $384.7 million, just below a record high.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

U.S. Oil Production May Have Peaked, Diamondback Energy CEO Warns

Posted on by slightbourne@noblecapitalmarkets.com

U.S. oil production is approaching a turning point, according to Diamondback Energy CEO Travis Stice. In a letter to shareholders this week, Stice warned that domestic output has likely peaked and will begin to decline in the coming months, citing falling crude prices and slowing industry activity as key factors.

“U.S. onshore oil production has likely peaked and will begin to decline this quarter,” Stice wrote. “We are at a tipping point for U.S. oil production at current commodity prices.”

The warning comes as U.S. crude prices have dropped roughly 17% this year, weighed down by fears of a global economic slowdown tied to President Donald Trump’s renewed tariffs and an aggressive supply push from OPEC+ producers. Prices for West Texas Intermediate (WTI) crude briefly surged 4% on Tuesday to $59.56 per barrel amid expectations that U.S. supply will tighten.

Stice emphasized that adjusted for inflation, oil is now cheaper than it has been in nearly every quarter since 2004—excluding the pandemic collapse in 2020. That pricing reality, he said, is forcing producers to slash spending and slow operations, threatening broader economic impacts.

Diamondback, a major producer in the Permian Basin and one of the largest independent oil companies in the U.S., has already reduced its capital spending by $400 million for the year. The company now plans to drill between 385 to 435 wells and complete 475 to 550, while maintaining reduced rig and crew levels.

“We’ve dropped three rigs and one completion crew, and expect to stay at those levels for most of Q3,” Stice said.

The U.S. shale boom of the last 15 years helped make the country the world’s top fossil fuel producer, outpacing even Saudi Arabia and Russia. That shift reshaped the U.S. economy, reduced reliance on foreign energy, and strengthened national security. But Stice now warns that this progress is at risk.

“Today’s prices, volatility and macroeconomic uncertainty have put this progress in jeopardy,” he said.

Fracking activity is already falling sharply. The number of completion crews is down 15% nationwide and 20% in the Permian Basin since January, Stice said. Oil-directed drilling rigs are expected to drop nearly 10% by the end of Q2, with further declines projected in the third quarter.

Adding to the pressure are rising costs tied to tariffs. Stice said Trump’s steel tariffs have added around $40 million annually to Diamondback’s expenses, raising well costs by about 1%. While some of this impact may be offset by operational efficiencies, the CEO warned that sustaining current output levels at lower prices may no longer be financially viable.

Stice likened the situation to approaching a red light while driving: “We are taking our foot off the accelerator. If the light turns green, we’ll hit the gas again—but we’re prepared to brake if needed.”

As the U.S. energy sector confronts an increasingly uncertain landscape, the prospect of declining domestic production is no longer just a possibility—it’s becoming a reality.

Release – Graham Corporation Announces Strategic Investment by Customer to Enhance Production Capabilities in Batavia

Posted on by slightbourne@noblecapitalmarkets.com

Research News and Market Data on Graham Corporation

May 01, 2025 8:30am EDT

BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or “the Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, today announced a strategic investment to support the implementation of new Radiographic Testing (“RT”) equipment at Graham’s Batavia, New York facility.

The investment of $2.2 million, from one of GHM’s customers, will enhance the Company’s capabilities in evaluating critical welds in support of the Columbia and Virginia class submarine programs. As part of the investment, Graham will also contribute $1.4 million for a total project cost of $3.6 million.

Daniel J. Thoren, CEO commented, “This strategic investment in RT equipment represents our commitment to delivering the highest quality components for critical naval defense programs. The upgraded RT capabilities at our Batavia facility is expected to significantly enhance our production efficiency while ensuring superior quality control for the vital welds that support the Columbia and Virginia class submarine programs. We’re grateful for our customer’s commitment to drive enhanced manufacturing infrastructure and are excited to continue our partnership.”

The strategic investment creates opportunities to support future, multi-year orders with potential enhanced revenue expected to begin in calendar year 2026.

This agreement builds upon previously announced investments by partners, including $13.5 million to expand defense production capabilities in Batavia in August 2023 and $2.1 million by the BlueForge Alliance in July 2024 to expand Graham’s welder training program in support of the U.S. Navy’s Submarine Industrial Base initiatives.

About Graham Corporation

Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “continue,” “expects,” “future,” “will,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, expected expansion and growth opportunities, and expected benefits from the implementation of new RT equipment, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.

Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

For more information, contact:
Christopher J. Thome
Vice President – Finance and CFO
Phone: (585) 343-2216

Tom Cook
Investor Relations
Phone: (203) 682-8250
tom.cook@icrinc.com

Source: Graham Corporation

Released May 1, 2025

Release – NN Announces 2025 Investor Day

Posted on by slightbourne@noblecapitalmarkets.com

Research News and Market Data on NN Inc.

Company plans to host a virtual investor day for analysts, current and prospective investors in August 2025

CHARLOTTE, N.C., April 30, 2025 (GLOBE NEWSWIRE) — NN (NASDAQ: NNBR) a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced its plans to host a 2025 virtual investor day in August 2025.

NN has been performing to its short-term and long-term goals. During its coming Investor Day, NN’s executive management plans to provide updates and discuss multiple important shareholder value-creating topics including:

  • A holistic update to NN’s five-year targets for sales growth, increased profitability, and shareholder value
  • Update on 2025 Outlook
  • The Company’s capital allocation strategy
  • The Company’s M&A acquisition strategy and objectives
  • The Company’s capital markets strategy and the next phase of its capital structure optimization roadmap
  • An overview and discussion of market trends and NN’s participation in specific markets including;
    • US electrical grid market
    • US industrial market
    • Global passenger vehicle market
    • Global commercial vehicle market
    • Global medical market
  • NN management will also host discussions and overviews on important topics including;
    • NN’s $700+ million new business program and pipeline specifics
    • NN’s cost-out program and major ongoing and upcoming projects
    • NN’s free cash flow generation program and major associated projects

There will be more to come regarding this investor event. NN management plans to spend the day together with analysts, current and prospective investors, lenders, and the broader investment community.

About NN

NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Asia, Europe, and South America. For more information, visit www.nninc.com. 

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the “Company”) based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “trajectory” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.

Investor Relations: 
Joseph Caminiti or Stephen Poe, Investors 
NNBR@alpha-ir.com  
312-445-2870 

Release – DLH to Announce Fiscal 2025 Second Quarter Financial Results

Posted on by slightbourne@noblecapitalmarkets.com

Research News and Market Data on DLH Holdings

April 28, 2025

ATLANTA, April 28, 2025 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of science research and development, systems engineering and integration, and digital transformation and cyber security solutions to federal agencies, will release financial results for the fiscal second quarter ended March 31, 2025 on May 7, 2025 after the market closes. DLH will then host a conference call for the investment community at 10:00 a.m. Eastern Time the following day, May 8, 2025, during which members of senior management will make a brief presentation focused on the financial results and operating trends. A question-and-answer session will follow.  

Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256.  Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call. A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID 3751581.
  
About DLH
DLH (NASDAQ: DLHC), a Russell 2000 company, enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by customers today, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,800 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of technology, innovation, and world-class expertise, to improve lives across the globe. For more information, visit www.DLHcorp.com.

INVESTOR RELATIONS
Contact: Chris Witty
Phone: 646-438-9385
Email: cwitty@darrowir.com

Government Solutions Industry Report: New ICE Emergency Funding?

Posted on by slightbourne@noblecapitalmarkets.com

Thursday, April 3, 2025

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the bottom of the report for important disclosures

Emergency Funding. On Tuesday, the Department of Homeland Security submitted on SAM.gov for an emergency detention and related services strategic sourcing vehicle to bring an additional allotment of detention beds online nationwide, in compliance with the President’s Declaration of a National Emergency at the Southern Border of the United States and related Executive Orders. The maximum ceiling value of the vehicle is $45 billion.

Details. Under the RFP, the government anticipates making multiple indefinite delivery/indefinite quantity (IDIQ) contract awards. It appears the contract will have a two-year period of performance, from April 14, 2025, through April 13, 2027.  Responses are due by April 4th. Under the scope of work, the vendor may be required to provide infrastructure, staffing, services, and/or supplies necessary to provide safe and secure confinement for aliens in the administrative custody of ICE. Ground transportation services may also be required.

Current ICE Population. ICE populations have increased significantly under the new Administration. ADP during the month of October was 38,714, which rose to 40,205 for the month of January. ADP for March 1 through March 22nd was 47,304, while the population on that date was 47,892, according to ICE. There has not yet been a significant change in ATD populations.

Implications. Given the timelines involved and the scope of work required, this ID/IQ would seem to favor the abilities of both CoreCivic and GEO, given their history in the sector and the number of idle facilities that can be brought back online. ICE’s budget in 2024 was $9.7 billion, with about $3.3 billion dedicated to Enforcement and Removal Operations, so a new max of $45 billion is a major jump. If these types of funds are put to use in a timely manner, the current financial projections for both CoreCivic and GEO would prove conservative, in our view.

Research reports on companies mentioned in this report are available by clicking below:

CoreCivic (CXW)

The GEO Group (GEO)

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The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc.. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc..

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public
appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

Scale AI’s Defense Deal: A New Frontier in Military AI Technology

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Scale AI secures multimillion-dollar contract with Department of Defense
– “Thunderforge” program aims to integrate AI into military planning and operations
– Tech industry continues shifting towards military AI partnerships

Scale AI has entered a pivotal moment in the evolving landscape of military artificial intelligence, securing a multimillion-dollar contract with the Department of Defense for the “Thunderforge” program. This landmark deal represents a significant step in the integration of AI technologies into military strategic planning and operational decision-making.

The Defense Innovation Unit’s flagship program will leverage AI agents to enhance military capabilities across multiple domains. Partnering with technology giants like Anduril and Microsoft, Scale AI will develop AI solutions designed to accelerate decision-making processes and provide advanced modeling and simulation capabilities.

CEO Alexandr Wang emphasized the transformative potential of the technology, stating that their AI solutions will “modernize American defense” and provide military leaders with a technological advantage. The program’s initial rollout will focus on U.S. Indo-Pacific and European Commands, with plans to expand to additional areas.

The contract highlights a broader trend in the tech industry’s approach to military partnerships. Companies that previously maintained strict policies against military applications are now actively engaging with defense initiatives. OpenAI, Google, and other major tech firms have quietly modified their stance on military technology use, reflecting a significant shift in the industry’s perspective.

This evolution hasn’t been without controversy. Tech employees have historically voiced concerns about their companies’ military contracts, most notably during Google’s Project Maven, which involved AI analysis of drone surveillance footage. Margaret Mitchell, an AI ethics researcher, points out the complex ethical considerations, noting that companies cannot fully control how their technologies might be ultimately utilized.

The Thunderforge program emphasizes “speed” as a critical advantage, with defense officials repeatedly highlighting the need for rapid decision-making in modern warfare. The AI agents will support various military functions, including modeling potential scenarios, suggesting courses of action, and creating automated workflows.

While Scale AI maintains that the program will operate under human oversight, the broader implications of AI in military applications remain a topic of intense debate. The potential for AI to transform military operations is significant, but so are the ethical concerns surrounding autonomous decision-making systems.

Other recent military AI partnerships underscore this trend. Anthropic has collaborated with Palantir and Amazon Web Services to provide AI models for intelligence agencies, while OpenAI has partnered with Anduril to develop advanced systems for national security missions.

The technology’s potential extends beyond traditional warfare, with applications in intelligence gathering, threat assessment, and strategic planning. However, experts like Mitchell caution that the line between defensive technology and potential harm can be increasingly blurry.

As military AI continues to evolve, the tech industry finds itself at a critical intersection of innovation, ethics, and national security. Scale AI’s Thunderforge program represents a significant milestone in this ongoing technological transformation.

The GEO Group (GEO) – A Look into the Fourth Quarter

Posted on by slightbourne@noblecapitalmarkets.com


Friday, February 28, 2025

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q Results. Revenues for the fourth quarter slightly declined to $607.7 million from $608.3 million in the prior year. Adjusted EBITDA totaled $108.0 million, down from $129.0 million last year. Net income was $15.5 million, or $0.11 per diluted share, down from $25.2 million, or $0.17 per share, last year. Adjusted EPS was $0.13 per diluted share versus $0.29 per share the prior year. Earnings and adjusted EBITDA were below expectations, primarily due to higher general and administrative expenses incurred during the fourth quarter of 2024.

New ICE Contract. Also announced was the award of a 15-year, fixed-price contract by ICE to provide support services for the establishment of a federal immigration processing center at the company-owned, 1,000 bed Delaney Hall facility in Newark, NJ. The contract is expected to generate in excess of $60 million in its first full year of operations, with margins consistent with GEO’s Secure Services facilities. The idle facility is expected to be activated in 2Q 2025, with revenues and earnings from the new contract normalizing during the second half of 2025.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

CoreCivic, Inc. (CXW) – ICE Adding Capacity

Posted on by slightbourne@noblecapitalmarkets.com


Friday, February 28, 2025

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Additional Capacity. Yesterday, CoreCivic announced the Company entered into contract modifications with the U.S. Immigration and Customs Enforcement (ICE) at various facilities for up to an additional 1,036 beds. We view this as the first step by ICE to add capacity in its efforts to enforce President Trump’s crackdown on undocumented migrants. We anticipate additional contracting activity that will help satisfy ICE’s growing needs.

Details. ICE entered into contract modifications to add capacity for up to a total of 784 detainees at CoreCivic’s 2,016-bed Northeast Ohio Correctional Center, its 1,072-bed Nevada Southern Detention Center, and its 1,600-bed Cimarron Correctional Facility in Oklahoma. In addition, CoreCivic has obtained a contract modification to specify that ICE may use up to 252 beds at its 2,672-bed Tallahatchie County Correctional Facility in Mississippi.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

V2X (VVX) – Another New Award

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, February 27, 2025

V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

FBI Award. Yesterday, V2X announced a $100 million contract award to provide aviation maintenance and support services for the Federal Bureau of Investigation’s (FBI) Critical Incident Response Group. Under this contract, V2X will deliver mission-critical aviation resources that enable the FBI to conduct intelligence gathering, investigate operations, and law-enforcement activities.

Contract Details. The indefinite-delivery, indefinite-quantity contract includes a five-year ordering period with four 12-month options. V2X will operate at multiple locations across the United States for the FBI. We view this award as further client diversification for the Company.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Kratos Defense & Security (KTOS) – New Joint Venture Announced with 4Q Results

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, February 27, 2025

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q Results. Revenue for the fourth quarter was $283.1 million, an increase from $273.8 million last year but slightly below our $290 million estimate. Gross margin was 24.7% compared to 26.3%. Net income was $3.9 million, or $0.03/sh, from $2.4 million, or $0.02/sh, last year. We estimated net income of $2.5 million or $0.02/sh. Adjusted EPS was $0.13 from $0.12 last year and our $0.10 estimate. Adjusted EBITDA was $25.2 million from $29.1 million last year and our $24 million estimate.

New Joint Venture. Alongside the results was the announcement of a new joint venture with the Company and RAFAEL. The roughly 50/50 partnership is to establish a U.S.-based merchant supplier of solid rocket motors (SRMs) and other energetics named Prometheus Energetics. Up to $175 million in capital is committed between the two companies, with the venture currently forecasted an annual base case revenue of several $100 million a year once at rate production. In our view, the venture can represent a substantial value-creation driver and could potentially drive top and bottom-line growth once up and running.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.