President Donald Trump’s War Department is supercharging missile-defense production, signing framework agreements with Lockheed Martin and Northrop Grumman to expand production capacity for components used in two defense systems.

The deals aim to quadruple output of Terminal High Altitude Area Defense (THAAD) interceptor structural components and support a threefold increase in Patriot Advanced Capability-3 (PAC-3) production, according to a War Department release Monday.

“Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base,” Michael Duffey, undersecretary for acquisition and sustainment, wrote in a statement. “Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production.”

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This image from Lockheed Martin’s media kit showcases a rendering of a THAAD missile defense system. (Lockheed Martin)

The department said the agreements would give suppliers longer-term demand commitments needed to invest in tooling, facility upgrades and workforce development.

Financial terms and production timelines were not included in the War Department announcement, but Northrop Grumman said it entered into agreements worth a combined $3 billion. The deals include a $2 billion agreement to supply rocket motors and safety devices and a $1 billion agreement to increase deliveries of THAAD components.

“Our long-term investments in breakthrough manufacturing technologies and resilient supply chains let us pivot from steady production to a production surge in record time,” Northrop Grumman Vice President Ben Davies wrote in a statement. “As one of America’s leading producers of solid rocket motors, we’re supporting the administration’s push to accelerate munitions output.”

“It’s a mission-critical leap forward that ensures America’s defense edge stays sharper, faster, and farther ahead of global threats,” Davies continued.

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Northrop said it plans to raise PAC-3 solid rocket motor production at its Allegany Ballistics Laboratory in West Virginia, where the company has doubled tactical motor capacity since 2021 and expects to triple production capability by 2027. It will support U.S. Army plans to increase annual PAC-3 MSE missile production from about 600 units to thousands for U.S. forces and allied countries.

The deal establishes a second source for solid rocket motors and increases production of ignition safety devices. The Pentagon said adding another rocket-motor supplier would increase competition and reduce supply-chain risks.

Northrop is also doubling solid rocket motor capacity at its Utah facilities and increasing capacity by 25% at its Elkton, Maryland, plant.

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Michael Duffey, U.S. undersecretary of Defense for Acquisition and Sustainment, and NATO Secretary-General Mark Rutte, talked missile defense at the NATO Summit Defense Industry Forum (NSDIF) in Ankara, Turkey, on July 7, 2026. (Kerem Uzel/Bloomberg)

Under the THAAD agreement, Northrop will increase monthly deliveries of structural components, including interceptor shell cores, aft bulkheads and heat-shield assemblies. The company has supplied components for the missile-defense system since 2002.

Northrop said it has invested more than $2 billion in munitions-related technologies and facilities since 2019, including more than $1 billion for solid rocket motor production.

Lockheed announced a seven-year contract modification for up to $53.86 billion for PAC-3s. The award brings the total multiyear contract value to $58.62 billion, following the $4.7 billion UCA awarded in April for year one.

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The agreements were developed with the Munitions Acceleration Council, the Economic Defense Unit, the Missile Defense Agency and the Office of the Under Secretary for Acquisition and Sustainment, the War Department said.

The company in a filing with the exchange said that the profit after tax was reported at Rs 718 crore in Q1FY27 registering a growth of 156% compared to the corresponding period of the previous year. The revenue from operations (including other income) was reported at Rs 16,076 crore.

The EBITDA surged 105% YoY to Rs 991 crore, and profit before tax was reported at Rs 869 crore, which grew 137% YoY.

The company reported the net profit for the year at Rs 498 crore compared to Rs 15.93 crore a year ago. The employee benefits expenses were recorded at Rs 51.44 crore and the total tax expenses were 86.17 crore.

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During the year ended March 31, 2026, the company transferred its lighting business undertaking, including the shares of its subsidiary, Dixon Technologies Solutions, to Lightanium Technologies for a total consideration of Rs 140.30 crore (Rs 115.30 crore and Rs 25.00 crore, respectively, based on the registered valuer’s report) with effect from August 1, 2025. This transaction was executed as part of the joint venture arrangement, and the company recognised a gain on the sale of the undertaking and subsidiary shares amounting to Rs 21.88 crore and Rs 24.99 crore, respectively.
Signify Innovations India transferred its LED lighting manufacturing operations at Vadodara, Gujarat, to Lightanium Technologies Private Limited as a going concern on a slump sale basis for a cash consideration of Rs 140.30 crore. Following the completion of these transactions, both the company and Signify Innovations India each hold 50% of the post-issue share capital of Lightanium Technologies. The company’s Board of Directors, at its meeting held on May 12, 2026, recommended a final dividend of Rs 10 per equity share with a face value of Rs 2 each for FY26, subject to shareholders’ approval at the ensuing Annual General Meeting.

The company also announced the reappointment of Sunil Vachani as Whole-Time Director for another five-year term from May 5, 2027, to May 4, 2032, along with his remuneration, subject to shareholders’ approval.

Atul B. Lall has been reappointed as Managing Director for another five-year term from May 5, 2027, to May 4, 2032, along with his remuneration, subject to shareholders’ approval.

In the last month, the stock rose 12% and 25% in the last three months. The stock has surged 215% in the last three years and 227% in the last five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The company stated on Friday that the business slowdown was primarily due to a steep increase in import duty from 6% to 15% from May 13, 2026, along with significant depreciation in the rupee. These factors led customers to postpone purchases in anticipation of a future decline in gold prices in U.S. dollar terms.

Geopolitical uncertainties about the U.S.-Iran war also weighed on demand. The company said the resulting slowdown in gold purchases by expatriates, driven by lower inward remittances in the areas where it operates, further contributed to the sluggish offtake on a quarter-on-quarter basis.

Thangamayil Jewellery said that it saw no visible improvement in sales during the first 28 days of the second quarter of FY27. The company attributed this to continued war uncertainty and customer expectations of a moderate decline in international gold prices, which led to further postponement of purchases.

The jeweller reported same-store sales (SSS) growth of 44.4% for the quarter ended June 30, 2026, compared with 72.3% in the preceding quarter. The company said gold volumes were relatively lower during the quarter despite international gold prices being more benign compared to the previous quarter, when prices had remained elevated.

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Investment outlook

The company had gained the attention of some of India’s best-performing PMS fund managers in June, and featured among the five largest holdings of four of the top 10 equity portfolio management service strategies that disclosed their portfolios.
Equirus Wealth’s Long Horizon Fund made the most aggressive wager, allocating over 22% of its portfolio to the stock, according to data cited by PMS Bazaar. The conviction coincided with performance, as the smallcap strategy topped the June rankings with a return of over 14%, well ahead of the 10.5% return delivered by the tenth-ranked portfolio.
The stock was also the largest holding of Clockvine Capital Advisors’ Growth Fund, with a 12.4% weight. The strategy returned 11.41% in June, placing it fourth.
East Green Advisors’ Agile Strategy, ranked fifth with an 11.35% return, held 5.5% in the jeweller. SBI Funds Management’s Aeon Alpha PMS had a 6.15% allocation and ranked tenth with a 10.5% return.

Thangamayil Jewellery Q1 results

The Tamil Nadu jeweller reported a net profit of Rs 85 crore for the first quarter of FY27, marking an 86% growth from Rs 45.7 crore posted in the corresponding quarter of the previous year.

The company’s revenue from operations jumped 71.2% in the June quarter to Rs 2,666.4 crore from Rs 1,558 crore reported in the same period last year.

EBITDA (earnings before interest, tax, depreciation and amortisation) rose 66.2% to Rs 144.6 crore from Rs 87 crore. Margins for the quarter under review stood at 5.4%, as compared to 5.6% in the corresponding period of the previous year.

Thangamayil Jewellery share price

Thangamayil Jewellery shares have doubled so far in 2026, but the previous week witnessed a 32% decline in the stock. The company’s shares fell 5% on Monday, to trade at Rs 4,972.15 apiece.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)

The transport hub is inviting businesses to put forward proposals

Bristol Airport is planning to open 10 new food and drink outlets including a speakeasy bar in its departure lounge as part of its terminal transformation plans, it has announced.

The South West transport hub is inviting potential partners to take part in a tendering process as it looks to expand its fast-food, coffee shop and bar offering.

The airport is looking for businesses “capable of delivering standout concepts” that meet the needs of leisure and business travellers. It said the location of the units would offer operators “high-visibility spaces with strong passenger footfall”.

Kate Gwyther, head of retail at Bristol Airport, said: “We look forward to receiving proposals from passionate and innovative businesses ready to bring fresh culinary concepts and dynamic hospitality experiences as part of terminal transformation.

“With 10.8 million customers a year passing through our doors this is a great opportunity to become part of the Airports vibrant departure lounge, and we are keen to hear from businesses who can offer customers something special.”

The tender will be a two-stage process, with interested partners invited to submit stage 1 requirements through the airport’s e-tendering system ‘In-Tend’ by midday on Tuesday, September 1.

The announcement is part of a huge £400m transformation scheme at the airport which included the opening of a new transport interchange last year.

The news comes as Bristol Airport sets its sights on further expansion as it targets new routes and more long-haul destinations. Earlier this year, the transport hub submitted a planning application to North Somerset Council to increase its capacity from 12 million passengers to 15 million a year.

Hundreds of people in the West of England support the proposals, according to a YouGov Poll, but there have been years of resistance against the plans.

Local residents and environmental campaigners have raised concerns about the impact of extra carbon emissions from an expanded airport. They also claim increasing capacity could lead to more congestion on local roads around the transport hub and create more noise.

Meanwhile, many business local leaders back the plans, believing the airport plays a “critical role” in the regional economy.

Bristol Airport has already won one expansion battle. In 2022, it was given the go ahead to expand from 10 million to 12 million passengers a year after a High Court judge dismissed a challenge to its plans.

Around 1.6 million journeys were made via Bristol Airport in 2025 – higher than before the Covid-19 travel restrictions.

The founder of a recruitment software firm used by NHS trusts and police forces has challenged Prime Minister Andy Burnham’s call for employers to rethink AI screening, arguing that stepping back from the technology would leave recruiters facing 2.5 unemployed people for every vacancy with fewer tools to manage applications.

“Andy Burnham is right to ask whether young people are getting a fair chance in recruitment. I do not agree, though, that stepping back from AI screening would solve that,” said Charles Hipps, founder and chief executive of Oleeo, which develops AI-powered applicant tracking software.

Burnham criticised AI screening and remote interviews on the Jimmy’s Jobs of the Future podcast last week, saying recruitment had “changed post-pandemic, not necessarily for the better” and asking of video interviews: “How does a young person shine in that situation?” His comments came amid official figures showing nearly one million young people out of work or education.

Hipps said manual sifting was not automatically fairer. “Recruiters were making quick decisions about candidates long before AI came along. When a large employer receives hundreds or thousands of applications, people are already being sifted according to qualifications, previous employers, job titles and the wording used in their CVs. Having a person carry out that process manually does not automatically make it more considered or inclusive.”

Figures from the Office for National Statistics show there were 2.5 unemployed people for every vacancy in the UK in March to May 2026, up from 2.3 a year earlier, while the number of vacancies has continued to fall, reaching 712,000 in April to June.

“Employers are dealing with more competition for fewer available roles,” Hipps said. “Removing technology would not give recruiters additional hours to consider every application. It would leave them facing the same volume with fewer tools to manage it.”

He argued some criticism rests on an inaccurate view of how the systems work. “There is also a fairly outdated picture of AI screening behind some of this criticism, where an algorithm scans for a few words and rejects somebody without explanation. I would question that kind of system too.”

“Good recruitment technology can look for evidence of skills, relevant experience and transferable capability, then show the recruiter why an applicant has been highlighted. It can give recruiters a prioritised view without automatically filtering anybody out, while leaving the recruitment team in control of who moves forward.”

Hipps cited Sopra Steria, the European technology and digital services company, whose recruitment team had more than 1,100 applications to review at a time when AI-generated applications were becoming harder to distinguish through wording alone. Using AI to assess the evidence within them cut screening time by 50 per cent while maintaining 90 per cent alignment with expert human judgement, he said, with final decisions remaining with the recruitment team.

On remote interviews, Hipps drew a distinction with AI screening. “They serve completely different purposes. A video interview may not be right for every candidate or every stage, but it can be the only practical way for somebody to take part. Young people may be applying outside their local area, working shifts, studying or unable to afford repeated travel for early-stage interviews.”

He acknowledged the technology could be misused. “Employers should understand what a system is assessing, why somebody has been brought to their attention and how to challenge its recommendation. I would be far more concerned by a system that produces an unexplained score than by the use of AI itself.”

Hipps said candidates’ use of generative AI was making applications sound increasingly similar, at a time when entry-level vacancies have fallen by almost a third since late 2022. “That is another reason traditional CV sifting is becoming less useful. Recruiters need to get beyond polished wording and establish whether somebody can demonstrate the skills or potential required for the role.”

“The test is whether the technology helps more people receive proper consideration and leaves recruiters with more time to understand the person applying,” he said. “When it does, stepping away from it would not make recruitment more human. It would make an already stretched process harder to manage.”

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk