Elroy Air has increased its PIPE investment commitments to $175 million, with participation from Lockheed Martin Ventures and Inflection Point. The company has already received $75 million in funding ahead of its business combination with Inflection Point Acquisition Corp. VII. The autonomous heavy-cargo drone developer recently secured a multi-year US Army contract worth up to $46 million. Elroy Air also completed the first autonomous flights under the FAA's eVTOL Integration Pilot Program and expanded its partnership with Bristow Group, which now has reservations for 15 early delivery positions and a pre-order agreement for up to 100 Chaparral drones. The company plans to accelerate production of its Chaparral aircraft, which can carry over 500 pounds of cargo with a range of up to 450 miles. Kratos Defense will manufacture the aircraft at its Sacramento facility, with first production planned for late 2026.

Lockheed Martin has secured a contract worth up to $1.2 billion from the US Army to produce the Increment 2 variant of the Precision Strike Missile (PrSM). The PrSM is the Army's next-generation long-range precision strike weapon, designed to replace the Army Tactical Missile System. The award follows a successful flight test demonstrating the missile's ability to engage moving maritime targets. The contract comes as Lockheed ramps up production amid rising demand for long-range strike weapons. In March, the defence giant signed a seven-year agreement with the US Department of War to increase annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year.

Lockheed Martin plans to build five Vectis stealth drones despite losing a US Air Force contract for Collaborative Combat Aircraft in June. The Air Force awarded contracts to privately held Anduril Industries and General Atomics instead, marking a setback for publicly traded defence companies. The Pentagon split the CCA programme into hardware and software components. Lockheed remains eligible for separate software contracts alongside five other vendors, including RTX and Northrop Grumman. Lockheed's Skunk Works division announced it will proceed with building four additional Vectis drones, adding to one already under construction. The Group 5 stealth drone, expected to fly in late 2027, can operate with F-35 fighters or independently for surveillance and strike missions. Lockheed describes the drone as affordable and compatible with third-party autonomy software.