Defense & Aerospace Report DEFAERO Daily Pod [Dec 01, 25] Week in Review & Byron Callan’s Week Ahead
Dec 1, 2025
Byron Callan, an independent Washington analyst at Capital Alpha Partners with expertise in defense and aerospace policy, dives deep into current military trends. He discusses the upcoming National Defense Authorization Act and the complex defense funding landscape for FY26. Callan analyzes Indo-Pacific tensions, particularly Taiwan's defense strategies, and the implications of the ongoing Ukraine conflict, emphasizing the political ramifications of corruption. He also covers lessons from Navy procurement and calls for a redesign of ship capabilities to align with allied needs.
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Episode notes
NDAA Policy Changes Matter Most
- The NDAA conference text should be released this week and likely will pass before Congress' December recess.
- Policy changes matter more than topline numbers for long-term investor clarity.
Treat FY27 As The Budget Inflection Point
- Watch the FY27 budget and OMB pass-back between now and January to see true spending direction.
- Use the published five-year plan (if released) as the primary guide for defense investment decisions.
Taiwan Risk: Blockade More Likely Than Invasion
- Callan doubts China will attempt a full military takeover of Taiwan this decade and sees blockade/slow-squeeze scenarios as more plausible.
- He highlights gaps in amphibious lift, sustainment needs, and the critical role of C2 and radar improvements.