The Insider

(Editor’s note: Kongsberg reported their quarterly financial information in Norwegian Krone. This story uses the conversion rate to the U.S. dollar as of July 10, 2024.)

Kongsberg defense revenue increased by 28% for the second quarter of 2024 driven in part by U.S. air defense and remotely operated weapon systems, company executives reported during a quarterly earnings presentation today.

With defense segment revenues at $413 million, President and CEO Geir Håøy said programs with the U.S. Air Force and U.S. Army “were an important milestone” in the Norwegian company’s defense profits for the second quarter of this year.

Kongsberg’s defense segment is currently contracted to produce the Joint Strike Missile (JSM) for the U.S. Air Force and the Common Remotely Operated Weapon Station (CROWS) for the U.S. Army.

In total, the company reported an approximate $1.08 billion in revenue with growth ranging from 8% to 28% across all segments, which include maritime, aerospace and digital design.

Based off the Navy’s Strike Missile, the JSM is an air-launched cruise missile with a 345-mile range designed to be fired from an F-35.

“The U.S. Air Force is by far the largest purchaser of F-35s and represent a huge potential for our missile going forward,” Håøy said during the presentation. “We expect more countries to order the missile in the next years.”

Kongsberg also opened a new factory associated with the JASM, which Håøy added would contribute to further growth.

The CROWS is a remotely operated machine gun that allows soldiers the fire on targets from inside combat vehicles without having to expose themselves to enemy fire. The Army is currently fitting the system to the Stryker combat vehicle, according to service budget documents.

Mette Toft Bjørgen, the company’s financial officer, noted that CROWS was the “largest contributor” to growth in the defense segment.

Partnering with Textron, Kongsberg is also designing lethal payloads for the U.S. Army’s Robotic Combat Vehicle program, an unmanned vehicle designed to operate alongside manned units.

Assistant Air Force Secretary for Financial Management and Comptroller Kristyn Jones, who performed the duties of the service under secretary for more than a year, will retire from the government tomorrow, the service announced today.

Jones began her role as assistant secretary in May 2022, and from March 2023 until May of this year, she acted as the Air Force under secretary. During this time, she helped shape the service’s “Reoptimization for Great Power Competition” plan to meet the potential threat posed by near peer adversaries, particularly China.

“I want to express my gratitude to Kristyn Jones for her dedicated service while serving as under secretary,” Air Force Secretary Frank Kendall said in May. “Her leadership and focus was invaluable as we advanced our modernization priorities and efforts to reoptimize the department for an era of great power competition.”

Melissa Dalton took over as under secretary in May following her Senate confirmation, more than a year after former Under Secretary Gina Ortiz Jones left the position.

Jones previously served in the Army and worked in financial management for both the Navy and Army.

This Tuesday INSIDER Daily Digest has news on the Sentinel intercontinental ballistic missile program's price tag, plus coverage of the Senate Armed Services Committee's fiscal year 2025 defense authorization bill and more.

Pentagon acquisition chief Bill LaPlante certified this week that the Sentinel intercontinental ballistic missile modernization program is necessary for national security, there are no alternatives to meet the requirements and the program is a higher priority than other programs whose funding will need to be cut:

Sentinel nuclear missile program to continue despite cost jump to $141 billion

The Defense Department is committing to the LGM-35A Sentinel nuclear missile program despite the price tag jumping to $140.9 billion -- an 81% increase -- and facing years-long delays.

The Senate defense authorization bill released this week would add $615 million in funding to a variety of Army programs:

Senate authorizers add funding for counter UAS, missile items from Army UPL in bill

The Senate Armed Services Committee would add funding for multiple items listed on the Army's unfunded priorities list related to unmanned systems and air and missile defense in its version of the fiscal year 2025 defense authorization bill.

Building a manned refueling aircraft remains Boeing's priority because it "requires much less electromagnetic spectrum to accomplish the mission over time, through technologies such as artificial intelligence, which could reduce the electromagnetic spectrum required to command and control those assets," according to a senior company executive:

Boeing not interested in making autonomous air refuelers -- for now

ST. LOUIS -- Even as the Air Force has signaled some support to eventually field unmanned tanker systems, plane-maker Boeing is looking at "principally crewed concepts" when developing future refueling platforms, Sean Liedman, Boeing's director of global reach, mobility, surveillance and bombers, recently told reporters here.

In its latest annual weapon system assessment, the Government Accountability Office found the Army initially intended to conduct its design completion review for the Precision Strike Missile (PrSM) Increment 1 by December 2023 but delayed the review until all entrance criteria were met:

Army completes design review of Precision Strike Missile

The Army completed the design review for its short-range precision fire missile in the third quarter of this fiscal year, moving the nearly $8 million multiyear program closer to full operability.

GAO's weapon systems assessment also found cost increases in the Navy's MQ-4C Triton uncrewed aircraft program:

MQ-4C costs rise by 117%, final version estimated at $618 million per unit

The Navy's MQ-4C unmanned aircraft program has experienced substantial increases in acquisition unit costs with the newest version of the aircraft estimated to cost $618 million per unit, according to the Government Accountability Office and a Navy spokesperson.

The Multi-Domain Artillery Cannon System (MDACS) effort is a new-start program in fiscal year 2025 aimed at bolstering the joint force's air and missile defense efforts against cruise missiles and unmanned aircraft systems:

Army releases RFIs for Multi-Domain Artillery Cannon System

The Army's Rapid Capabilities and Critical Technologies Office released a series of requests for information today related to the service's new Multi-Domain Artillery Cannon System (MDACS) effort.

Document: Army RFI for MDAC

Document: Army RFI for MFPR

The Pentagon is seeking congressional permission to shift $3.3 billion among budget accounts to launch a handful of new-start projects, including additional funding needed for the Air Force's Collaborative Combat Aircraft program, Army accounts to buy ship-sinking missiles needed for its Mid-Range Capability program and a new Mobile-Long Range Precision Strike Missile.

On June 28, Pentagon Comptroller Mike McCord submitted a pair of omnibus reprogramming requests to Congress to shift funds appropriated in fiscal years 2024 and 2023 to higher-priority programs in FY-23. Inside Defense obtained a copy of the documents; one is for general budget funding realignment; the second is for military intelligence programs.

Read the full story, now available to all.

Rep. Adam Smith (D-WA), the ranking member on the House Armed Services Committee, released a statement today saying President Biden should end his candidacy for a second term, though the congressman added that he intends to "back him one hundred percent and without reservation" should Biden continue as the nominee.

Biden should leave the race “as soon as possible to give the new ticket the maximum amount of time to make its case to the American people,” Smith said.

“Any candidate for the highest office in our nation has a strong burden to bear,” he said. “That candidate must be able to clearly, articulately and strongly make his or her case to the American people. It is clear that President Biden is no longer able to meet this burden.”

During an appearance on CNN today, Smith said he believed Vice President Harris would be the best replacement for Biden, noting “there were concerns” about Biden’s abilities to deliver the party’s message prior to a recent debate with former President Trump.

“It hasn’t gotten better since the debate,” Smith said.

Still, Smith said Trump and his brand of “MAGA extremism” are “an existential threat to our nation.”

To that end, if Biden chooses to remain in the race, Smith said he would support him.

“Elections are, after all, a choice,” he said. “The president would still be, by a wide margin, the best candidate in the current field. He has done an outstanding job as president and our country will always owe him an enormous debt of gratitude for the job he has done. But no candidate is owed another term in office based solely on past performance. Every new term must be earned with the clear understanding of what that candidate will be capable of doing in the term to come.”

But Smith made clear in his statement that it “would be a mistake” for Biden to continue his campaign.

“He should step aside now so that we can find a new candidate that will put us in the strongest possible position to beat Donald Trump in November,” Smith said.

Other congressional Democrats have also called on Biden to leave the race, including Reps. Jerry Nadler (D-NY), ranking member on the House Judiciary Committee, and Seth Moulton (D-MA), a member of the House Armed Services Committee and himself an unsuccessful presidential candidate.

Biden, meanwhile, released a letter to Democratic lawmakers earlier today pledging to stay in the race.

“I am firmly committed to staying in this race, to running this race to the end, and to beating Donald Trump,” the president said.

During a televised phone call today on MSNBC, Biden called on those challenging his candidacy to accompany him on the campaign trail and see for themselves.

“Come out with me. Watch me. Watch people react,” he said. “You make a judgment.”

Biden said he would not be running if he did not believe he could beat Trump for a second time.

“The bottom line here is that we’re not going anywhere,” he said. “I’m not going anywhere.”

The Marine Corps is conducting market research for its developing Advanced Reconnaissance Vehicle ahead of an upcoming engineering and manufacturing development competition that will include three ARV mission-role variants, according to a July 3 request for information.

A future request for proposals for the program’s EMD phase will solicit the design and test of a 30mm Autocannon (ARV-30) variant, a Command, Control, Communication and Computers Unmanned Aerial System (ARV-C4UAS) variant and an ARV-Logistics (ARV-LOG) version, the notice states.

The service plans to release a request for proposals in the second quarter of FY-25 and award an EMD contract in the second quarter of FY-26, according to budget documents, which seek $63.7 million in continuing research and development funding for the program in FY-25.

In March, Textron Systems and General Dynamics Land Systems were awarded separate contracts to design and build ARV-30 prototypes. Both contractors have already delivered initial ARV-C4UAS prototypes that participated in government testing during FY-23.

The notice provides instructions to obtain an ARV EMD draft statement of work and other related documents. It asks interested contractors to answer a series of questions on their experience developing combat vehicles and ability to meet ARV program specifications, with responses desired by August 16.

The notice also asks respondents to explain their plan to integrate the ARV-30 gun turret system with the vehicle, indicating the Marine Corps wants to begin taking delivery of ARV-30s within 16 months of the contract award.

“The purpose of publicizing this market survey is to aid in the continued development of a future acquisition strategy, identify the number of interested small businesses and other-than-small businesses, gather information for planning purposes about the capabilities of each industry source as defined in Federal Acquisition Regulation 15.201(e), and obtain feedback on the draft P Spec, Statement of Work, Attachments and answers to specific questions,” the notice states.

The ARV will succeed the legacy Light Armored Vehicle and become a primary platform supporting the Marine Corps’ new Mobile Reconnaissance Battalions. The service plans to procure a family of six mission-role variants including organic precision fires, counter-UAS and recovery variants in addition to the ARV-30, ARV-C4UAS and ARV-LOG versions.

Erik Raven will step down from his post as Navy under secretary in August, according to a Wednesday announcement from the office of the Navy secretary.

Raven assumed the role of under secretary in April of 2022, becoming the second-highest ranking civilian Navy official and performing the roles chief operating officer and chief management officer for the service.

According to a statement from Navy Secretary Carlos Del Toro, Raven has been “a driving force for actions that will have long-lasting, positive impacts, not just for the United States but also for our Allies and partners.”

“His efforts contributed significantly to the AUKUS trilateral security partnership, the largest-ever investment in shipbuilding, improving Guam’s infrastructure to support defense in the [U.S. Indo-Pacific Command] region as well as improving the Department of Navy’s business operations, optimizing information management and cyber operations while improving efficiency,” the statement continues.