Castellum, Inc. (CTM) announced that its Specialty Systems, Inc. (SSI) subsidiary has been re‑awarded a $49.8 million, five‑and‑a‑half‑year contract to provide Software Support Activities (SSA) and cyber engineering for the Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst. The award covers key naval aviation systems, including the Electromagnetic Aircraft Launch System and Advanced Arresting Gear, and marks SSI’s third win and second successful recompete on the NAWCAD LKE contract.
The contract is Castellum’s fourth‑largest award to date, following the $103.3 million Special Missions contract in March 2025 and the $66.2 million NAWCAD logistics and cyber support contract in September 2025. The new award adds roughly 60 % of the company’s annual revenue to its recurring revenue base, reinforcing a high‑margin, long‑term partnership with a core defense customer and expanding the backlog to provide greater visibility and cash‑flow stability in a market where government funding can be volatile.
Management highlighted the strategic importance of the win. CEO Glen Ives said the award “marks the end of the most successful year in our history” and underscores Castellum’s growing reputation as a trusted partner for critical naval aviation systems. VP of Operations for NAWCAD Lakehurst, Robert Swigon, added that the contract “demonstrates consistent execution, deep domain expertise, and a shared commitment to the Navy’s mission.”
Financially, the contract comes at a time when Castellum has shown a turnaround. In Q3 2025 the company reported its first positive GAAP net income and a 26 % revenue increase to $14.6 million, driven by strong demand in core defense segments. Operating margin in that quarter was –6.02 % and net margin –7.55 %, indicating that while the new contract is high‑margin, the company still faces profitability challenges. The award is expected to improve the margin profile of the overall business by adding a stable, high‑margin revenue stream that offsets lower‑margin legacy contracts.
The NAWCAD Lakehurst contract also positions Castellum to capitalize on the Navy’s ongoing modernization of launch and recovery equipment. By providing software support and cyber engineering for the Electromagnetic Aircraft Launch System and Advanced Arresting Gear, Castellum will play a critical role in maintaining fleet readiness and supporting future aircraft platforms. This aligns with the company’s strategy to secure long‑term, high‑value defense contracts and to transition from small‑business set‑asides to full‑open, large‑value opportunities.
The award is part of Castellum’s broader “Big 3” prime contract opportunities for 2026, which collectively exceed $200 million in value. The company’s backlog now includes multiple multi‑year contracts that collectively provide a predictable revenue stream and support the company’s goal of achieving sustainable profitability and reducing debt exposure.
Overall, the NAWCAD Lakehurst contract strengthens Castellum’s market position, expands its backlog, and adds a high‑margin, long‑term partnership with a core defense customer, reinforcing the company’s trajectory toward a more stable and profitable business model.
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