Defense and Space News Update — 2026-06-03

Headline Summary

• Blue Origin's New Glenn Explodes, Launch Pad Repair Could Take 2 Years: On May 29, a New Glenn rocket exploded during a hot-fire engine test at Cape Canaveral Space Force Station. While CEO Dave Limp aims to resume launches by the end of the year, full site restoration might take until 2028.

• Lockheed Martin Wins $1B+ Contract for F-35 Fleet Upgrades: Lockheed Martin secured a contract worth over $1 billion (approx. €860 million) to enhance air combat capabilities and bolster supply chain reliability.

• Raytheon Technologies Awarded $1B Army NASAMS Contract: Raytheon Co., based in Tewksbury, Massachusetts, won a $1,020,659,819 firm-fixed-price contract to procure NASAMS firing units.

• SpaceX and ULA Successfully Launch After Explosion: Despite the Blue Origin incident, SpaceX and ULA successfully completed a doubleheader launch from Cape Canaveral on Friday, May 29.

• Amazon Concerns Over Satellite Deployment Due to Blue Origin Delay: In an internal memo, Amazon acknowledged that the New Glenn explosion could delay its LEO internet satellite deployment, potentially impacting its strategy to challenge Starlink.

Key Defense Contracts and Programs

Lockheed Martin F-35 Fleet Upgrade and Supply Chain Contract

• Contracting Authority / Recipient: U.S. Department of Defense → Lockheed Martin
• Contract Value: Over $1 billion (approx. €860 million)
• Key Details: Enhancing F-35 air combat capabilities and supporting sustainment in Europe, with a focus on the Cameri hub in Italy.
• Strategic Significance: Bolstering NATO alliances and securing European defense industrial bases. Maintaining core fighter operational capabilities is central to U.S.-European deterrence amidst tensions with Russia and Iran.

1 sources

defence-industry.eu

defence-industry.eu

Raytheon Technologies NASAMS Air Defense Contract

• Contracting Authority / Recipient: U.S. Army → Raytheon Technologies Co. (Tewksbury, MA)
• Contract Value: $1,020,659,819 (Firm-fixed-price)
• Key Details: Procurement of NASAMS (National Advanced Surface-to-Air Missile Systems) firing units to expand medium-range air defense coverage.
• Strategic Significance: Increased defense needs in the Middle East due to rising instability, along with modernizing domestic air defense to supplement Patriot systems.

1 sources

aerotechnews.com

aerotechnews.com

U.S. Department of Defense Contract Announcements (June 2, 2026)

• Contracting Authority / Recipients: U.S. Department of Defense (Multiple)
• Contract Value: $7.5 million+ (Daily aggregate)
• Key Details: Various contracts across Army, Navy, Air Force, and Defense Logistics Agency departments, covering automation, operations support, and equipment procurement.
• Strategic Significance: Reshaping supply chains and bolstering wartime production readiness to restock inventory following recent Iran-related conflicts in early 2026.

Space Industry Trends

Blue Origin New Glenn Engine Test Explosion

• Entity: Blue Origin (Owned by Jeff Bezos)
• Vehicle / Payload: New Glenn rocket (Hot-fire test; no payload)
• Result / Status: Explosion at Cape Canaveral Space Force Station (CCAFS) on May 29 caused significant damage to ground facilities. While CEO Dave Limp maintains a year-end goal for a retry, site repairs could last until 2028.
• Industry Impact: Short-term disruption to commercial launch supply, leading to increased market concentration for SpaceX and ULA. Elevated risk for Amazon's Project Kuiper LEO deployment and potential mission delays for NASA and the DoD.

SpaceX and ULA Doubleheader Success

• Entities: SpaceX, United Launch Alliance (ULA)
• Vehicles: SpaceX Falcon 9, ULA Atlas V
• Result / Status: Successful twin launches from Florida on May 29.
• Industry Impact: Boosts confidence in SpaceX and ULA's operational reliability. Signals resilience in U.S. launch infrastructure, though capacity shortages remain likely until Blue Origin returns.

Blue Origin Recovery Progress and Timeline

• Entity: Blue Origin
• Status: Access to the launch site was resumed on June 2. Despite CEO optimism, major repairs will take time. Concerns linger regarding the impact on NASA's Artemis program schedules.

Geopolitical and Policy Context

2026 U.S. Defense Budget and Congressional Trends

The U.S. Congress passed the Fiscal Year 2026 National Defense Authorization Act (NDAA) in December 2025, authorizing record-level investment, including $910 million in annual military spending and a 4% pay raise for service members. Escalating tensions with Iran are currently a major driver for increased defense spending and rapid procurement of systems like NASAMS.

Launch Market Realignment

The Blue Origin explosion is causing a structural shift in the commercial launch market. With Blue Origin temporarily sidelined, SpaceX's dominance is expected to deepen, creating economic challenges for Amazon’s Project Kuiper, which heavily relied on New Glenn.

Comparison and Analysis

Next Week's Watchlist

• Blue Origin Repair Updates: Official timelines and cost estimates.
• Amazon Project Kuiper Announcements: Updates on satellite deployment delays.
• NATO/F-35 Contracts: Potential expansion of European supply chain contracts for Lockheed Martin.
• Final FY2026 Budget Approval: Confirmation of new contract priorities.

Reader Action Guide

• Investors: Public defense firms (LMT, RTX) show positive momentum due to government contracts. Amazon (AMZN) impact is limited by diversified revenue streams.
• Policy/Strategy: U.S. launch bottlenecks likely to persist into 2027. Increased collaboration between DoD and smaller launch providers (e.g., Rocket Lab) is recommended.
• Industry/Supply Chain: Expect continued tightness in commercial launch availability. Lockheed Martin and Raytheon will need to keep supply chains at high capacity to meet surging contract demand.