Skylock Excels in NATO Counter-Drone Exercise

[Image: Scene from the NATO exercise in Romania. Courtesy of Autonomous Guard]

Last week, NATO conducted a large-scale operational exercise in Romania to evaluate advanced counter-drone systems—an increasingly critical capability in modern battlefields such as Ukraine. The exercise brought together 21 countries and tested more than 200 technological solutions, including the integrated Sky Dome system developed by Israeli company Skylock, a subsidiary of Autonomous Guard.

According to the company, Sky Dome consistently demonstrated the highest performance in detecting and neutralizing drones throughout the exercise. Autonomous Guard believes these results position the system as a strong contender for future procurement programs across NATO member states.

The exercise, held at the Capu Midia range on the Black Sea coast under the name LCI-X Crucible Eastern Phoenix 2026, was designed as a full-scale field trial rather than a controlled demonstration. Systems were required to operate under realistic combat conditions, handling complex scenarios such as coordinated drone swarms, timed attacks, and multiple simultaneous intrusions. Around 150 different types of drones were deployed, enabling a broad evaluation across diverse threat profiles.

The testing process included several phases. Following an initial screening round, only four systems advanced to the final stage—those developed by Skylock, Rheinmetall, Cognifly, and Bluespace. The final evaluation was attended by senior Romanian defense officials, including the Minister of Defense and the Air Force Commander. Systems that performed well are expected to be listed in NATO’s procurement portal, making them eligible for future acquisition programs.

Sky Dome is built on a multi-layered architecture combining radar, RF sensors, electro-optical systems, and acoustic sensors to deliver precise detection, classification, and tracking. The system operates across multiple ranges and is designed to counter drones that do not rely on GPS, including those using alternative navigation methods. Interception is primarily achieved through “soft-kill” techniques such as communication jamming and navigation spoofing, allowing effective neutralization even against drone swarms.

The company noted that the system also performed well against larger drones, which are typically more challenging to intercept using kinetic methods. Participation in the exercise has reportedly generated interest from additional European NATO members.

Alongside its operational efforts, Skylock is working to establish a local presence in Romania through the SAFE framework—an accelerated defense funding mechanism—in collaboration with a local partner. The company is also exploring the integration of additional interception technologies, including laser-based solutions, in line with evolving battlefield requirements.

Trophy Selected as Baseline Protection for NATO’s Next-Generation Tanks

[Image: The Leopard 2A8 main battle tank. Photo credit: EuroTrophy GmbH and KNDS Deutschland]

Rafael’s Trophy active protection system has been selected as part of the standard baseline configuration of the Leopard 2A8, the next-generation variant of Germany’s Leopard 2 main battle tank family. The decision was made under a broad, multinational contract signed between EuroTrophy and tank manufacturer KNDS Deutschland, covering tank deliveries to four NATO members: Lithuania, the Netherlands, the Czech Republic and Croatia.

The contract, estimated at approximately €330 million, includes the supply of Trophy systems, spare parts, training, and comprehensive lifecycle logistical support. Beyond its financial scope, the agreement reflects a broader shift in how NATO defines baseline requirements for next-generation armored platforms.

Not an Upgrade — Integration from the Start

One of the most significant aspects of the deal is the way Trophy is being incorporated: not as a retrofit or optional add-on, but as an integral part of the tank’s standard baseline configuration.

This means the active protection system is embedded at the production stage, fully integrated into the tank’s electrical, sensor and command-and-control architecture, as well as its overall operational concept. The fact that KNDS Deutschland, the tank’s manufacturer, is a direct party to the agreement further reinforces the assessment that this is a production-line integration rather than a post-delivery modification. From NATO’s perspective, active protection is increasingly being defined as a baseline requirement rather than a future enhancement.

Leopard 2A8: A Veteran Platform, Reimagined

The Leopard 2 family entered service in the late 1970s, but the Leopard 2A8 represents a significant leap forward. It is the most advanced variant of the platform to date and the first in many years to be produced as a newly built tank, rather than a conversion of older hulls.

The 2A8 is designed for the contemporary battlefield — one characterized by advanced anti-tank missiles, drones, dense sensor networks and network-centric warfare. It combines an upgraded 120mm main gun, enhanced fire-control systems, multi-layered survivability and the ability to operate as part of a joint, multinational force.

Integrating Trophy as part of the baseline configuration complements this concept, providing real-time interception of anti-tank threats while significantly improving crew situational awareness.

How Many Tanks — and How Many Systems?

Based on publicly reported procurement plans, the four participating countries have each committed to purchasing dozens of Leopard 2A8 tanks, with a combined baseline total of approximately 170–180 tanks, and the potential for further expansion should options be exercised.

Since Trophy is defined as part of the tank’s baseline configuration, this implies the integration of several dozen active protection systems — potentially approaching 200 units if procurement plans are fully realized.

EuroTrophy: Bridging Israeli Technology and European Industry

The European implementation of the deal is being carried out through EuroTrophy, a German joint venture between Rafael, KNDS Deutschland and General Dynamics, headquartered in Frankfurt. The company focuses on the marketing, production and integration of the Trophy system for NATO and European Union customers.

This structure enables the incorporation of combat-proven Israeli technology into Europe’s defense-industrial base, while meeting local regulatory, industrial and logistical requirements — positioning Trophy as a core element of Europe’s armored warfare architecture for years to come.

Trophy: Operational Active Protection

Trophy, developed and manufactured by Rafael, is an operational active protection system designed to intercept anti-tank threats using a hard-kill mechanism. The system incorporates detection, tracking and alert capabilities, providing armored crews with information on the direction and source of incoming threats as part of the engagement cycle.

The system is deployed on Merkava tanks, M1 Abrams, Leopard 2 platforms and additional armored vehicles. Its selection as a baseline configuration for the Leopard 2A8 reflects the integration of active protection as an inherent component of modern Western armored force doctrine.

More Than a Contract — A Strategic Statement

Beyond its commercial dimensions, the agreement reflects lessons learned from recent battlefields and a growing recognition within NATO that tank survivability can no longer rely on passive armor alone. The shift toward integrated active protection marks a deeper transformation in armored warfare doctrine — one that positions the Leopard 2A8, together with Trophy, as a central pillar of Europe’s armored forces in the coming decade.

Europe Rearms: Financial Reports Reveal the Scale

[Pictured above: Saab’s Swedish Gripen fighter jet. Source: Saab]

Europe’s push to rapidly strengthen its military capabilities is now clearly reflected in the latest quarterly reports from the continent’s largest defense contractors. Their second-quarter and first-half 2025 results reveal the vast scale of incoming orders, the build-out of production capacity, and forward-looking projections tied to Europe’s rearmament drive.

Leading the charge are Sweden’s Saab, Germany’s Rheinmetall and Hensoldt, France’s Thales, the UK’s BAE Systems, and Italy’s Leonardo. Together, they anchor Europe’s defense-industrial base, producing everything from fighter jets and armored vehicles to missile systems, sensors, command-and-control suites, naval platforms, and submarines. The first-half 2025 numbers point to an unprecedented surge—steep revenue gains, massive order volumes, and sweeping investments in new manufacturing infrastructure.

Investment Wave Across the Defense Supply Chain

Rheinmetall is building Europe’s largest ammunition plant in Lower Saxony, targeting output of hundreds of thousands of shells annually by 2027, alongside expanded Leopard tank lines, armored vehicle production, and F-35 components. Saab is boosting output of its Gripen fighter jets, missile systems, and submarines, aiming for annual order growth of around 20%.

Thales is doubling electronics plant output to ramp up production of weapons systems, antennas, and aerial systems. BAE Systems—the continent’s largest defense contractor—is doubling Eurofighter Typhoon output and expanding submarine and land-systems facilities. Leonardo, partially owned by the Italian government, is reducing debt, streamlining manufacturing, and investing in new projects. Hensoldt is building logistics capacity to produce at least 30 TRML-4D air-defense radars a year by 2027.

Accelerated Factory Construction

Saab reported a 22% sales increase in the first half of 2025, fueled by demand from Scandinavia, Central Europe, and Asia. Its flagship Gripen aircraft, missile systems, and submarines are seeing heightened NATO demand to strengthen air and naval forces. Saab raised its full-year growth forecast to 16–20% and unveiled plans for production expansion at existing sites and new lines. CEO Micael Johansson emphasized the company’s strategy to remain an independent, end-to-end defense manufacturer.

Rheinmetall, a cornerstone of Europe’s defense industry, posted 24% first-half sales growth and a record order backlog driven by European customers. Its headline project—the giant ammunition plant in Unterlüß—will reach full capacity by 2027. The company is also ramping up production of F-35 components and Lynx and Boxer armored vehicles. CEO Armin Papperger called Rheinmetall “a critical player in supplying essential weaponry in response to growing threats to Europe’s security.”

Hensoldt ended the first half with an 11% sales increase year-on-year, reaching €944 million, and a record €7 billion order backlog. Most of its orders center on radar systems—particularly the TRML-4D air-defense radar and radars integrated into the Eurofighter—vital for early detection of aircraft, cruise missiles, and drones.

A Prolonged Era of Military Buildup

Thales saw 8.1% first-half revenue growth and raised its full-year forecast to 6–7%, backed by strength in sensors, command-and-control systems, and missiles. BAE Systems holds an order backlog exceeding £75 billion, with plans to double Eurofighter Typhoon output and advance nuclear submarine and armored vehicle programs. Leonardo reported 12.9% sales growth, a stronger balance sheet, and ongoing supply chain optimization to meet rising demand.

While many companies disclose only partial figures, the trend is unmistakable: Rheinmetall’s sales rose from €3.8 billion in H1 2024 to roughly €4.7 billion in 2025; Saab’s Q1 sales climbed to $1.6 billion from $1.4 billion a year earlier; BAE’s first-half revenue increased from £13.4 billion in 2024 to £14.6 billion in 2025. Leonardo did not release consolidated figures, but its U.S. subsidiary Leonardo DRS—owner of Israel’s RADA—posted a 20% sales jump to $1.44 billion.

Across the EU, defense spending rose more than 30% in real terms from 2021 to 2024. Among the 23 EU countries that are also NATO members, joint defense outlays are set to rise from 1.99% of combined GDP in 2024 to about 2.04% in 2025. Analysts forecast an additional increase exceeding €100 billion in budgets by 2027.