Company: SAC-UN
Filing Date: 2025-08-22
Form Type: DRS
Source: 0002077096-25-000043
Chunk: 156

Company: Safeguard Acquisition Corp.
Filing Date: 2025-08-22
Form: DRS
Chunk 156
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 cycle. The enacted U.S. DoD budget has grown each of the last eight years, reaching $842 billion in fiscal year 2024. While the fiscal year 2025 requested budget of $850 billion represents a modest ~1% increase over the prior year, the One Big Beautiful Bill Act (“OBBB”) outlines a fiscal year 2026 DoD budget of $962 billion, reflecting a ~13% year -over -yearincrease when reconciliations are included. This continued upward trajectory underscores the federal government’s commitment to strengthening national defense capabilities. We anticipate that the current administration’s early actions will mirror the previous Trump Administration, under which the enacted DoD budget increased at an approximate 8% compound annual growth rate. Historically, the DoD has prioritized programs that support homeland security however, following the most recent election cycle the DoD is also actively modernizing the U.S. approach to enduring and emerging threats which we think will drive increased growth and opportunities for companies in our targeted sectors. To that end, the current administration has outlined numerous priority areas aimed at addressing both existing and evolving national security challenges. These investments span the defense technology, government services & national security, and space industries. Defense Technology We believe the global defense technology sector is undergoing a profound transformation, driven by heightened geopolitical tensions, evolving threat landscapes, and a renewed emphasis in national security and technological superiority. These dynamics are creating a robust and sustained investment environment, particularly in the U.S. and among NATO allies, as governments prioritize defense modernization and strategic deterrence in response to a rapidly shifting global security environment. We believe that the broad adoption of next -generationdefense technology represents a foundational investment theme within the sector. The proliferation of unmanned systems — including unmanned aerial vehicles, unmanned surface vessels, and unmanned underwater vehicles — is reshaping modern warfare by enhancing intelligence, surveillance, and reconnaissance, enabling precision strikes, and improving logistics. Emerging tactics such as use of swarms, autonomous operation and attritable (one -way) drone design are increasing both the number of devices fielded and the complexity and capability of each device. Simultaneously, investment in counter -unmannedand other electronic warfare systems is accelerating as adversaries increasingly rely on those same advances in unmanned systems and continue to develop more sophisticated detection capabilities. Advanced militaries are also investing in next -generationplatforms, including sixth -generationfighter programs such as NGAD, Tempest, and FCAS, as well as hypersonic weapons and autonomous combat systems, to maintain air and space superiority