[MUSIC] Today is August 26th, 2025. I'm Maria Varmazis, and this is T-minus. [MUSIC] >> T-minus, 22nd to LOS, T-dred. >> Open aboard. >> Right, roll. >> [INAUDIBLE] >> [INAUDIBLE] >> [INAUDIBLE] >> [INAUDIBLE] >> Five. >> ESA's Jupiter Ice Moons Explorer is on track for its gravity assist flyby at Venus on August 31st, despite earlier communications issues. Planet has been selected by NASA for a Ciber Grant to develop a next-generation weather forecasting system. York Space Systems has completed its spacecraft for the space development agency's Tronch1 transport layer. SpaceX is due to launch an Earth observation exclusive Falcon 9 mission with eight EO payloads from California. Aerospace Lab has closed an extended Series B funding round totaling 94 million euros. [MUSIC] >> Today's guest is Scott Thompson, PWC Global Aerospace and Defense Leader. And I spoke to Scott about PWC's Global Aerospace and Defense annual performance and outlook report. So stay with us for more on the insights that Scott shared with me later in the show. [MUSIC] >> Happy Tuesday, everybody. Thank you for joining me. Let's dive into today's Intel briefing. European Satellite Manufacturer Aerospace Lab has closed an extended Series B funding round totaling 94 million euros, which comes to about 110 million US dollars. The funding was raised through a dual Tronch of 56 million euros from private companies alongside a 38 million euro commitment from a European financial institution. Aerospace Lab says this investment will be used to develop a fleet of ready to sell satellites. Additionally, it has been directed towards full verticalization of all key subsystems, reinforcing its industrial autonomy and accelerating its product development. Aerospace Lab's mega factory in Belgium has already benefited from the Series B funding, enabling the company to build one of the most advanced satellite production sites in Europe. It has a manufacturing capacity of up to 500 satellites per year. Construction of the mega factory began in 2024 with its first satellite production expected in 2026 and with a full production capacity to be reached by 2027. At the time of our recording and nearly publishing time, SpaceX is targeting a launch from California. SpaceX is due to launch an Earth observation exclusive Falcon 9 mission with eight payloads from Space Launch Complex 4 East at Vandenberg Space Force Base. The 27-minute launch window opens at 11.53 a.m. Pacific Time with a backup opportunity tomorrow, which would be Wednesday, August 27th, at the same time. On board this mission is Luxembourg's national EO satellite, NEOS, planets Pelican 3 and 4, Capella Space's Acadia 6, Pixels F-Fly 1, 2, and 3, which will complete phase 1 of its hyperspectral constellation, and Druva Space's Leap 1 hosting payloads from Acula Tech and Esper Satellite imagery. And SpaceX is also planning a third attempt at Starship's 10th test flight after cloudy weather paused the mission attempt last night. The launch window opens at 7.30 p.m. local time. York Space Systems has completed its spacecraft for the Space Development Agency's Tronche1 transport layer. The spacecraft have also been shipped to the launch site. A total of 21 York-built satellites will lift off by the end of the summer, marking the on-orbit debut of the first generation of the Space Development Agency's proliferated warfighter space architecture directly supporting warfighters in the field. Planet has been selected by NASA for a Ciber Grant to develop QubitCast, which is a next-generation weather forecasting system. QubitCast will be powered by artificial intelligence and aims to improve long-range or sub-seasonal to seasonal weather predictions beyond current limitations, with a focus on extreme weather detection capabilities. The system will provide critical early warning signals for high-impact severe weather, making it possible to plan and prepare for extremes. The NASA Grant follows a National Science Foundation grant to develop NEVA, its foundational AI model for Earth system analysis. The company also recently launched EDDI, making previously inaccessible long-range weather predictions freely available to the public for the first time. We hope to see this system launch in the coming years. And you know, it's been a little while since we checked in with the European Space Agency's Jupiter/IC Moons Explorer, better known as JUICE, so let's build JUICE. Let's see what we did there. ESA says that JUICE is on track for its Gravity Assist flyby at Venus on August 31, despite earlier communications issues. ESA has successfully resolved a spacecraft communication anomaly that temporarily severed contact with Earth. And that issue, which emerged during a routine ground station pass on July 16, temporarily disrupted JUICE's ability to transmit information about its health and status. But ESA says thanks to action performed by teams at the European Space Operations Center in Germany and JUICE's manufacturer Airbus, communication was restored in time to prepare for the upcoming planetary encounter. Bravo! And that concludes today's Intel Briefing. Stay with us for insights from PWC's annual report. But before we get to that today, we've got N2K Senior Producer Alice Carruth standing by with additional stories that we are watching today. And indeed I do, Maria. We've added two additional links into today's selected reading section of our show notes. They cover Philtronics' announcement that SpaceX has placed an order with them for a next-generation proprietary gallium nitrate e-band product, and assured space has unveiled a new-phased array for missile defense radar operations and space communications. It's always nice to hear about new products after all. And a reminder, folks, that you can find the original sources to all the stories that I've mentioned throughout the show today in the show notes, which are available on our website, space.n2k.com. Hey T-Minus Crew, if you are just joining us, hello and welcome, and be sure to follow T-Minus Space Daily in your favorite podcast app. Also, if you could do us a favor, share this intel with your friends and coworkers. That's because a growing audience is the most important thing for us, and we would love your help as part of the T-Minus Crew. So if you find T-Minus useful, and we always hope that you will, please share so other professionals like you can find the show. Thank you so much for your support, everybody. It means a lot to me and the entire team here at T-Minus. Our guest today is Scott Thompson, PWC Global Aerospace and Defense Leader. I spoke to Scott about PWC's Global Aerospace and Defense Annual Performance and Outlook Report. Every year we gather up the financial results of the top 100 A&D companies globally, and we accumulate that information at the same time we look at other major headlines, developments, trends that are going on in the industry, and we put that all together and package up in an annual report. So this report was looking at the 2024 results. And so what I can share with you, the good news is that it was a record year for the A&D industry, both in terms of revenue and profitability. The total revenue was $922 billion, which was 9% above 2023, and the profitability was $84.4 billion, which was 11% above the previous year. So there's a fair amount to unpack in terms of these results. So the first thing that I would point to is that Boeing lost over $10 billion in the year. So the industry had a record profitability despite this type of headwind. And the main reason it was able to achieve that was very, very strong growth, particularly in the commercial aviation aftermarket. So three companies in particular, RTX, GE Aerospace, and Rolls Royce, all major tier one providers and engine makers had extraordinary results, up 24%, 84%, 54% on profitability. If I take out Boeing from the results, the other 99 companies had a profit increase of an average of 25%. But then again, if I take out those other three companies that did extraordinarily well, the 96 companies grew at 6%. And I think that's probably most representative of the industry overall. On the defense side, I think we all know that defense budgets are high driven by geopolitical risk in Europe in particular. There's a lot of increased defense spending. In fact, when I look at the backlogs for the dozen largest defense companies, in the past two years, backlogs are up about 25%. So I think again, underscores the fact that the industry can't produce at the same rate that they're getting orders in at. I really appreciate the context here because I don't often get that insight into the larger sector since my view can also be sometimes quite siloed. And of course, inevitably, I'm going to be asking that question of specifically the space silo such as it is in this case. Is there anything that is particularly worth calling out or any outliers in there within the broader context that you've been mentioning? Again, keep in mind this is as you said 2024. And I want to make sure to remind our listeners as we're talking about here. Still, it was a very fascinating year in the space industry and I just wanted to make sure that there's anything there you wanted to mention. Sure. Well, I mean, the demand is tremendous in space as well. Maybe many of your listeners have heard some of the estimates that the space economy is going to approximately triple in value to around $1.5 trillion annually sometime mid next decade. So there's a few things that are driving that. There's three or four things that I point to. So the first thing that I would point to is this proliferation of small satellite networks. Smaller satellites now are more affordable, they're more powerful, and they're being deployed extensively. They also have advanced technologies, synthetic aperture radar, which is high res images that work day or night through any type of weather. Satellite to ground optical technology, which is basically using optical lasers instead of RF signals, improves the data density. So there's a whole bunch of reasons why the technology is really fantastic and being deployed. And then you've got these networks that are going up, traditional satellite providers like SCS and ViASAT, but then newcomers like SpaceX, Starlink Network, and Amazon's Kuiper Network. In addition to that, national defense is using a lot more small sats for Intel communications, things like missile tracking. It's very important. And then of course, there's space exploration, the Artemis program going back to the moon and possibly Mars someday. And all of this is being driven also by significantly reduced launch costs, smaller satellites, lower launch costs. And these are the major things that are really driving tremendous growth in space. People circling back to this is a 2024 review, a major story of that year was, and again, it wasn't always correctly reported, but it's often shorthanded as the Russian nukes in space and I'm being very glib about the description there. And it's also not fully correct, but it's sort of the larger trend or thoughts about the trend of the militarization in space, especially with the story we saw last year. I noticed it got a call out in the report and I just sort of wanted to invite your reflections on that and any thoughts on where it's going. Yeah. Yeah, absolutely. Well, you know, this story highlights what we've always known, which is that the space domain is a highly vulnerable domain. Okay. You know, space has become tremendously important, both for national security and for the global economy. And we're, it's increasing in terms of our reliance all the time. You know, and the main reason that I've talked about this is this proliferation of small satellites. And they are more difficult to attack these small satellite networks. And we've also been prioritizing satellite defense systems. But this story about the Russian nukes in space shows that, you know, if an adversary could potentially destroy all space assets with a nuclear weapon, that we are very vulnerable. And we really can't rely entirely on space assets, you know, on the one hand, they're tremendously valuable. They're, you know, proliferating in terms of their use. And that's great. But we have to recognize the risk associated with that. And I think it's very important to have ground-based backups for national security, for communications, and even important things like running our economy. Absolutely. Anything that you would like to make sure that we include for regarding this report or anything at all, really, I invite you to wrap up thoughts here. Well, you know, one of the things I didn't touch upon yet is, is just the, you know, some of the statistics around the launches, I think are incredible. So, you know, when we look at 2024, there was another, you know, record in terms of orbital launches. So there were 261 launches in 2024, 253 of those were successful, which means 17 were, just seven weren't. And that's a 17% increase year over year. Now, SpaceX conducted 134 of those launches, which is a 51% market share globally, which is pretty impressive. And that's a 37% increase over the previous year. And it's a doubling over a two-year period of time. And the US is clearly the leader in terms of launches. 156 of those launches were done from the US. That was a 34% increase. The second most was from China, which was 68. And that was only one more than the previous year. So, you know, the space industry is a tremendous asset for the US and one that really can, should continue to be nurtured, I think. We'll be right back. Welcome back. A shout out today to the grand prize winner of NASA's 2025 student art contest, high school senior, Da Yong Jung of Washington state with her winning digital art piece called My Wonders With You. It is an exceptional illustration full of all sorts of space, legendary Americana, like a space shuttle lifting off into a starry night sky, a little child on the roof of a red barn with their trusty dog watching in wonder and yep, some sneaky alien friends right behind. It is the cover of a children's picture book if I have ever seen one. The 2025 contest theme for this art contest was Our Wonder Changes the World. And Jung says this theme really spoke to her. She said, "The theme immediately sparked memories of the moment I first saw a NASA spacecraft launch into space that experience filled me with awe and endless questions, especially about how aliens might view our efforts to explore the cosmos. I began imagining what future space missions might look like if we ever made contact with extraterrestrial life. That was the moment everything clicked. The exact moment when imaginations started to fill up the tiny world in my head and I knew exactly what I wanted to draw. Yep, I love it. And you know, I paint from time to time and I've worked on a number of pieces in my day also inspired by space science and exploration. So yes, I completely get it. It has been the highlight of my day today, honestly, looking through all of the 2025 contest winners by grade from kindergarten through 12th grade. And these are some fantastic artists, y'all. What are the amazing things that kids are dreaming of when it comes to space right now? What's inspiring the next generation? Well, we don't even have to ask or wonder really. We can simply look at the creative work that they're sharing with us. Communication, connection, the beautiful unknown, the infinite possibilities for life, the fantastic work of making our world and worlds beyond better places. These fantastic budding artists are dreaming big, far beyond the stars. So please take a moment and enjoy their work. We have a link in the show notes for you and let's hear it for space science inspiring the arts and how beautiful it all is, especially through a child's eyes. [Music] And that's T-minus brought to you by N2K Cyber Wire. We'd love to know what you think of this podcast. Your feedback ensures we deliver the insights that keep you a step ahead in the rapidly changing space industry. If you like our show, please share our rating and review in your podcast app. Please also fill out the survey in the show notes or send an email to space@n2k.com. We're proud that N2K Cyber Wire is part of the daily routine of the most influential leaders and operators in the public and private sector, from the Fortune 500 to many of the world's preeminent intelligence and law enforcement agencies. N2K helps space and cybersecurity professionals grow, learn, and stay informed. As the nexus for discovery and connection, we bring you, the people, the technology, and the ideas, shaping the future of secure innovation. Learn how at N2K.com. N2K Senior Producer is Alice Carruth. Our Producer is Liz Stokes. We're mixed by Elliott Peltzman and Tre Hester with original music by Elliot Peltzman. Our Executive Producer is Jennifer Eiben. Peter Kilpie is our publisher, and I am your host, Maria Varmazis. Thanks for listening. See you tomorrow. [Music] [Music] [Music] [Music] [BLANK_AUDIO]
