Defense & Aerospace Report DEFAERO Daily Pod [Nov 17, 25] Week in Review & Byron Callan’s Week Ahead
Nov 17, 2025
Byron Callan, a senior analyst at Capital Alpha Partners, provides insightful commentary on defense spending and acquisition trends. He discusses the aftermath of the US government shutdown and its impact on the National Defense Authorization Act. Callan critiques Army Secretary Driscoll’s push for commercial sourcing and explains the implications of NATO's shift toward European defense solutions. He also highlights Germany's expanding military budget and the potential for US action in Venezuela, painting a complex picture of global defense dynamics.
AI Snips
Chapters
Transcript
Episode notes
NDAA Will Pass; Watch Acquisition Language
- The NDAA likely will pass while the real fight will be about acquisition reform language, not top-line authorizations.
- Appropriations probably track the request plus reconciliation money, with limited upside without a major security shock.
Defense Funding Likely Near Request
- Byron expects FY26 defense funding to end up near the request level plus reconciliation funds rather than higher Senate increases.
- Small adjustments (a few billion) matter to contractors but won't change the overall defense budget trajectory.
Commercial Buying Push Faces Real Limits
- Army Secretary Dan Driscoll's push for 90% commercial buys is bold but overlooks scaling, supply networks, and workforce realities.
- Byron warns the commercial pivot raises many unanswered questions about sustainment and capacity.