Defense is a growth opportunity for our business, Honeywell Aerospace Technologies CEO says
Jim Currier, CEO of Honeywell Aerospace Technologies, joins CNBC's Phil LeBeau at the Paris Air Show to discuss the outlook for the company, and the increase in global defense spending.
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CNBC
21 minutes ago
- CNBC
Shipping groups are starting to shy away from the Strait of Hormuz as Israel-Iran conflict rages on
Some shipowners are opting to steer clear of the strategically important Strait of Hormuz, according to the world's largest shipping association, reflecting a growing sense of industry unease as the Israel-Iran conflict rages on. Israel's surprise attack on Iran's military and nuclear infrastructure on Friday has been followed by four days of escalating warfare between the regional foes. That has prompted shipowners to exercise an extra degree of caution in both the Red Sea and the Strait of Hormuz, a critical gateway to the world's oil industry — and a vital entry point for container ships calling at Dubai's massive Jebel Ali Port. Jakob Larsen, head of security at Bimco, which represents global shipowners, said the Israel-Iran conflict seems to be escalating, causing concerns in the shipowner community and prompting a "modest drop" in the number of ships sailing through the area. Bimco, which typically doesn't encourage vessels to stay away from certain areas, said the situation has introduced an element of uncertainty. "Circumstances and risk tolerance vary widely across shipowners. It appears that most shipowners currently choose to proceed, while some seem to stay away," Larsen told CNBC by email. "During periods of heightened security threats, freight rates and crew wages often rise, creating an economic incentive for some to take the risk of passing through conflict zones. While these dynamics may seem rudimentary, they are the very mechanisms that have sustained global trade through conflicts and wars for centuries," he added. The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world's most important oil chokepoints. In 2023, oil flows through the waterway averaged 20.9 million barrels per day, according to the U.S. Energy Information Administration, accounting for about 20% of global petroleum liquids consumption. The inability of oil to traverse through the Strait of Hormuz, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays. Alongside oil, the Strait of Hormuz is also key for global container trade. That's because ports in this region (Jebel Ali and Khor Fakkan) are transshipment hubs, which means they serve as intermediary points in global shipping networks. The majority of cargo volumes from those ports are destined for Dubai, which has become a hub for the movement of freight with feeder services in the Persian Gulf, South Asia and East Africa. Peter Tirschwell, vice president for maritime and trade at S&P Global Market Intelligence, said there have been indications that shipping groups are starting to "shy away" from navigating the Strait of Hormuz in recent days, without naming any specific firms. "You could see the impact that the Houthi rebels had on shipping through the Red Sea. Even though there [are] very few recent attacks on shipping in that region, nevertheless the threat has sent the vast majority of container trade moving around the south of Africa. That has been happening for the past year," Tirschwell told CNBC's "Squawk Box Asia" on Monday. "The ocean carriers have no plans to go back in mass into the Red Sea and so, the very threat of military activity around a narrow important routing like the Strait of Hormuz is going to be enough to significantly disrupt shipping," he added. Freight rates jumped after the Israeli attacks on Iran last week. Indeed, data published Monday from analytics firm Kpler showed Mideast Gulf tanker freight rates to China surged 24% on Friday to $1.67 per barrel. The upswing in VLCC (very large crude carrier) freight rates reflected the largest daily move year-to-date, albeit from a relative lull in June, and reaffirmed the level of perceived risk in the area. Analysts at Kpler said more increases in freight rates are likely as the situation remains highly unstable, although maritime war risk premium remains unchanged for now. David Smith, head of hull and marine liabilities at insurance broker McGill and Partners, said shipping insurance rates, at least for the time being, "remain stable with no noticeable increases since the latest hostilities between Israel and Iran." But that "could change dramatically," depending on whether there is escalation in the area, he added. "With War quotes only valid for 48 hours prior to entry into the excluded 'Breach' area, Underwriters do have the ability to rapidly increase premiums in line with the perceived risk," Smith told CNBC by email. A spokesperson for German-based container shipping liner Hapag-Lloyd said the threat level for the Strait of Hormuz remains "significant," albeit without an immediate risk to the maritime sector. Hapag-Lloyd said it does not foresee any bigger issues in crossing the waterway for the moment, while acknowledging that the situation could change in a "very short" period of time. The company added that it has no immediate plans to traverse the Red Sea, however, noting it hasn't done so since the end of December 2023.
Business Wire
an hour ago
- Business Wire
AIRO Group Holdings, Inc. to Attend Paris Air Show 2025
ALBUQUERQUE, N.M. & MONTREAL & STØVRING, Denmark & WASHINGTON--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO)('AIRO' or the 'Company'), a company specializing in advanced aerospace and defense technologies, announced today that Company executives, including Executive Chairman and Co-Founder Dr. Chirinjeev Kathuria and CEO and Co-Founder Joe Burns, will attend the 55 th edition of the Paris Air Show, taking place from June 16 to June 22, 2025, in Paris, France. Experiencing triple-digit percentage year-over-year revenue growth, commanding global enterprise backlog and accelerating military training momentum Share Shares of AIRO common stock began trading on the Nasdaq Global Market under the ticker symbol 'AIRO' on June 13, 2025. AIRO's market debut comes amid strong historical financial performance for the Company and underscores its commitment to an integrated portfolio of cutting-edge technologies, including the development of fully autonomous AI-enabled surveillance drones, eVTOL hybrid and electric cargo aircraft, advanced avionics systems and comprehensive flight operations training solutions. In 2024, AIRO achieved over $86 million in revenue, reflecting growth of more than 100% from the previous year. This increase is attributed to an increase in drone shipments and support revenue driven by market entry strategies to target NATO member countries. 'The strength of AIRO lies in its diversified yet complementary portfolio of products and services, all centered around a unified aerospace and defense ecosystem,' said Executive Chairman, Dr. Chirinjeev Kathuria. 'AIRO's complementary business segments, with strategic locations in the US, Canada, and Europe, provide unparalleled access for our global client base. With significant year-over-year revenue and EBITDA growth, we believe our offerings are essential for both current and future operational landscapes.' Segment Overview AIRO's Drones (Uncrewed Air Systems) segment, the largest segment, experienced unprecedented revenue growth over the past two years, generating over $75 million in 2024. This success is largely due to the global demand for its military drone equipment and services, led by AIRO's branded RQ-35 Heidrun. 'The demand for our systems continues to rise globally, serving warfighters in challenging operational environments,' said CEO, Joe Burns. 'Our surveillance drone solutions have proven themselves in harsh battlefield conditions, offering precision, accuracy, and AI-enabled operational, communication and data analysis capabilities.' The Electric Air Mobility segment also saw significant progress into 2025, with a backlog of over 300 eVTOL aircraft orders from notable operators worldwide. AIRO's focus on cargo transportation, certification, and manufacturing in Canada, along with its patented Slowed Rotor Compound technology, positions it uniquely for certification in as early as 2027. 'Our eVTOL family has attracted attention due to its size, mission profiles, minimal noise footprint and cargo capacity,' said CEO, Joe Burns. AIRO's Training segment, renowned for delivering specialized military training solutions to the US Department of Defense (DoD) for over a decade, has recently secured a second-phase five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract valued at over $5.7 billion. This contract focuses on providing Close Air Support (CAS) and Adversary Air pilot training. Under multiple IDIQ contracts—including the Combat Air Force/Commercial Air Service (CAF CAS II) and Terminal Air Attack Controller Trainer (TAACT) Contracts—AIRO's elite training teams deliver initial qualification and follow-on training for DoD clients on an ongoing basis. To enable it to provide a wide variety of specialized training operations, AIRO is expanding its aircraft fleet of L-39 and S-211 fighter jets and Twin-Cessnas equipped for these missions. 'We are proud to deliver high-caliber training support to our military partners,' said CEO, Joe Burns. 'Our expert aircrews and specialized aircraft aim to ensure our warfighters receive realistic and effective training. I am extremely proud of this dedicated team of specialized trainers operating AIRO's military training business.' This press release shall not constitute an offer to sell or the solicitation of an offer to buy AIRO securities, nor shall there be any sale of AIRO securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About AIRO AIRO is a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. AIRO is organized into four operating segments, each of which represents a critical growth vector in the aerospace and defense market: Drones, Avionics, Training, and Electric Air Mobility. Forward-Looking Statements The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' 'seeks,' 'intends,' 'plans,' 'estimates,' or 'anticipates,' or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release, and include, but are not limited to, statements relating to AIRO's operational landscapes, demand for AIRO's systems, timing and expectations regarding certification of its Slowed Rotor Compound technology, the expected value of its IDIQ contract and expansion of its aircraft fleet. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. AIRO's expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Any forward-looking statement in this press release speaks only as of the date of this release. AIRO undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
CNBC
2 hours ago
- CNBC
European markets set to open sharply lower as Middle East conflict weighs on sentiment
A view of the London skyline during sunrise looking east, including Canary Wharf, from Horizon 22, London's highest free viewing platform. Picture date: Friday September 15, 2023. Yui Mok - Pa Images | Pa Images | Getty Images Good morning and welcome to CNBC's live blog covering European financial market action and the latest regional and global business news, data and earnings. Futures data from IG suggests sharp falls across European markets at the open, with London's FTSE looking set to open 52 points lower at 8,827, Germany's DAX down 245 points at 23,447, France's CAC 40 down 75 points at 7,665 and Italy's FTSE MIB 329 points lower at 39,568. Global investors continue to assess ongoing fighting between Israel and Iran tensions after continued missile attacks and airstrikes on Monday. Oil prices have risen on supply worries, and the price of gold has also increased amid a flight to safe haven assets after the conflict erupted last week. Those prices rose further overnight, and U.S. stock futures turned lower, after U.S. President Donald Trump signaled a further escalation in attacks could be coming as he urged Iranians to evacuate Tehran. — Holly Ellyatt U.S. President Donald Trump participates in a meeting with fellow G7 leaders during a meeting at the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Canada is hosting this year's meeting of the world's seven largest economies. Chip Somodevilla | Getty Images The Group of Seven summit concludes in Canada on Tuesday, with no joint communique expected at the end of the gathering. U.S. President Donald Trump left the meeting a day early because of the situation in the Middle East, the White House said on Monday. The G7 released a statement late on Monday affirming its support for Israel and describing Iran as the "principal source of regional instability and terror." In Europe, the Paris Air Show continues, with last week's Air India crash disaster and conflict in the Middle East dominating conversation at the show. Read more here: Boeing Dreamliner crash, military escalations darken mood at Paris Air Show On the data front, ZEW's survey of economic sentiment in Germany and Europe will be released at 10 a.m. London time. There are no major earnings in Europe Tuesday. — Holly Ellyatt
