IHI Reports 73.2 Billion Yen Operating Profit for Q1 FY2026, Stock Drops from 3,000s to 2,700s

BAE Systems confirmed involvement in a potential acquisition of Dutch drone tracking specialist Robin Radar Systems and announced a new collaboration with Arteris and SiFive focused on secure microelectronics for U.S. defence projects. The microelectronics partnership is part of a wider U.S. programme aimed at supply chain security in defence-focused chip design. BAE Systems is a £52.6b aerospace and defense group with operations across the United States, the United Kingdom, the Middle East, Australia, Saudi Arabia and wider Europe. The next test is whether these initiatives turn into identifiable contract activity, such as BAE Systems being named as the acquirer when Robin Radar is formally sold or being listed on larger Trusted and Assured Microelectronics follow on awards. Clear order wins that reference drone detection, secure SoCs or related U.S. programmes would show these announcements are feeding into the £75b plus backlog rather than staying at the pilot stage.

Japan is considering counting railway infrastructure improvements toward its defense spending as it seeks to strengthen military logistics and respond to U.S. pressure for higher security budgets, Kyodo News reported Sunday, citing government sources. The proposal would be part of revisions to three national security documents expected by year-end, and officials are also weighing a broader definition of security spending that would include investments in artificial intelligence, space technology and energy infrastructure. Japan currently targets defense and related spending equivalent to 2% of GDP, while the United States has urged allies to increase military spending to 3.5% of GDP. Under the proposal, railway projects could include adding tracks, expanding tunnels to accommodate military equipment and maintaining lightly used routes considered strategically important, drawing on lessons from Ukraine where rail networks have played a critical role in moving supplies during Russia's invasion. Japan's existing defense-related infrastructure program focuses on airports, seaports and connecting roads, with 24 airports and 33 seaports designated for improvements, and for the fiscal year ending March 2027 the government allocated 225 billion yen, or $1.42 billion, for related infrastructure projects, including 118.4 billion yen for roads, 53.4 billion yen for seaports and 53.2 billion yen for airports.

The Export-Import Bank of Thailand, or EXIM BANK, has signed a memorandum of understanding with the Defence Technology Institute, or DTI, to help Thai defense operators gain easier access to loans, guarantees, export insurance, and risk management tools, with the goal of moving research toward commercial production and export. The signing ceremony was held on October 9, 2026, with General Dr. Charat Uamsamrit, Director of the Defence Technology Institute, and Mr. Chalash Ratanaboonnithi, Managing Director of EXIM BANK, as signatories, while General Napon Sangsomwong, Chairman of the Defence Technology Institute, and Mr. Bandit Sapianchai, Chairman of the Executive Board of EXIM BANK, witnessed the event. Under this collaboration, EXIM BANK will combine its expertise in finance, international trade, investment, and risk management with DTI's expertise in technology and its network of operators to support entrepreneurs and projects with potential to develop production capacity, investment, and the extension of technology and innovation into commercial use, as well as to expand opportunities into overseas markets. DTI, meanwhile, will connect potential operators or projects to EXIM BANK's appropriate financial support mechanisms. This marks another important step in linking technology, capital, production, and markets to bring promising technologies and products from research and development into commercial production.

Mitsubishi Heavy Industries held a naming and launching ceremony on the 8th at its Kobe Shipyard for the Japan Maritime Self-Defense Force's new submarine Shogei. It is the seventh vessel of the conventionally powered Taigei-class submarines and is scheduled to enter service in March 2028. It has a total length of 84 meters, a beam of about 9 meters, a standard displacement of 3,000 tons, a crew of about 70, and a construction cost of about 80.5 billion yen. According to the Maritime Self-Defense Force, it has improved detection capabilities and a structure that makes it difficult for underwater noise to leak, making it harder to detect from the outside. Shogei is written in kanji as "翔鯨," and Defense Minister Shinjiro Koizumi selected the name from candidates solicited from Maritime Self-Defense Force units and other sources.