Defense & Aerospace Report DEFAERO Daily Pod [Oct 27, 25] Week in Review & Byron Callan’s Week Ahead
Oct 27, 2025
Byron Callan, a senior analyst at Capital Alpha Partners with expertise in defense budget and geopolitical risks, joins the conversation. He dives into the implications of the government shutdown on federal morale and pay. Callan discusses the U.S. naval deployment near Venezuela and potential risks of escalation. He also analyzes recent earnings reports from defense contractors, highlighting issues with rare earths dependency due to U.S.-China trade dynamics. Additionally, he shares insights on the evolving defense budget and the implications of historical military lessons.
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Carrier Deployment Raises Complex Risks
- Deploying USS Gerald R. Ford brings significant strike and cruise-missile capability to the Caribbean.
- Byron cautions conventional strikes could be followed by complex political and regional spillovers.
Earnings Reveal Sector Divergence
- Earnings showed a split: some contractors like CACI held up while firms like Booz Allen guided down.
- Byron highlights sector divergence, especially in services and federal non-defense work.
Rare Earths Pose Strategic Risk
- Lockheed flagged rare-earth risks in its 10-Q amid potential Chinese export controls.
- Byron warns complacency would be dangerous if China reasserts leverage over rare earths.