Defense & Aerospace Report DEFAERO Daily Pod [Jan 5, 26] Week in Review & Byron Callan’s Week Ahead
Jan 5, 2026
Byron Callan, an independent Washington research analyst and founder of Capital Alpha Partners, shares insights on defense industry trends and geopolitical impacts. He evaluates the U.S. operation in Venezuela, its tactical implications, and air defense systems' performance. Discussing Ukraine's war dynamics, he contemplates potential diplomatic resolutions by 2026. Callan also highlights challenges in U.S. crisis management and outlines defense budget expectations, emphasizing the importance of a resilient industrial base and effective supply chains.
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Venezuela Action Has Unclear Defense Impact
- The Venezuela operation is likely neutral-to-negative for the U.S. defense sector because costs and potential stabilization deployments could strain resources.
- Byron Callan warns uncertainty remains about air defenses' performance and whether Russia or China will intervene.
Questions Raised About S-300 Effectiveness
- Suppression of Russian S-300 and other systems in recent operations raises questions about their effectiveness.
- That could push countries to modernize or look to Chinese alternatives while Russia reallocates capabilities to Ukraine.
Ukraine Conflict Likely To Drag On
- The war in Ukraine will likely continue through 2026 absent an operational breakthrough or economic collapse.
- Both Russia and Ukraine appear committed to fighting rather than negotiating a quick settlement.