SQADVISORSMONTHLYMARKETMONITOR|JULY2026DEFENSE·SPACE·INTELLIGENCETHISMONTHATAGLANCEPUBLICVALUATIONSS&PA&DEV/EBITDAM&A/DEALACTIVITYIndustryDeals↓-1.0xMoM↓-3MoMTopmover:DefenceElectronicsAggregateDealValue:$7,251M16.2x20USDEFENSETECHVENTURELTMDisclosedFundingMIDMARKETDEFENSE-FOCUSEDPRIVATEEQUITYCurrentDryPowder$13.7B~22.8BFirmsmonitored:26↑+8%MoMMonthlyFunding:$1,270MTotalAUM:$82.8BTOPTAKEAWAYS•Valuations:PullbackContinues,ElectronicsStillLeads.PublicA&DEV/EBITDAmovedto16.2x(-1.0xMoM),whileDefenceElectronicsremainedthetopmoverdespitebroadermultiplecompression.•M&A:ActivityRemainsHealthy,butDownMoM.Julyrecorded20announceddeals(-3MoM)and$7.3Bofdisclosedvalue,ledbyscaleddefense,governmentservices,andaerospacecomponenttransactions.•Venture:FundingReacceleratesAroundSpaceandDual-UseHardware.Monthlydisclosedfundingroseto$1.27B(+8%MoM),liftingLTMdisclosedfundingto$13.7BasK2SpaceandAntaresanchoredJuly'slargestrounds.ARTICLESTOCONSIDERHouseUnveils$60BReconciliationBill—83%LessthanRequested“ThebillwasthesecondlegislativedisappointmentforthePentagoninasmanydays…”PrivateEquitySpendinginDefenseandAerospaceResurgent“Muchofthecurrentdealflowisconcentratedinfragmented,tier-twoandtier-threesupplychains…”AndurilinTalkstoRaiseFundingata$100BValuation“Inthefirstsixmonthsoftheyear,thesectorsawventurefundingmorethandoubletoover$12billion…”SDAAwards$1.75BforAdditionalGoldenDomeMissileTrackingSats“…tappedL3HarrisandSierraSpacetobuild36additionalmissilewarningandtrackingsatellites…”AdministrationGivesCongress20MoreIdeastoReformAcquisition“Theadministrationisseekingtoraiseboththesimplifiedacquisitionthresholdto$10millionandthemicropurchasethresholdto$100,000,bothby2030.”R.LEEPRIEST,JR.lpriest@southwindquilty.comJUSTINCADMANjcadman@southwindquilty.comHARRISONPOWELLhpowell@southwindquilty.com

PUBLICCOMPANYVALUATIONS|JULY20261-YrHistoricalEBITDAMultiples*24.0x22.0x20.0x18.0xTEV/ForwardEBITDAMultiplesfortheS&PAerospaceDefenseIndex50DayMovingAverage10-YrHistoricalEBITDAMultiples*22.0x17.0x12.0x7.0xTEV/ForwardEBITDAMultiplesfortheS&PAerospaceDefenseIndex200DayMovingAverageSUBSECTORVALUATIONSUMMARYEV/EBITDALTMEV/EBITDAForwardΔMoMEV/RevLTMΔMoMPrimes15.0x14.8x↓2.1x↑Gov'tIntelServices10.2x10.1x↑1.1x↓Gov'tTechnicalServices9.8x8.8x↑0.8x↑DefenseElectronics30.3x24.3x↓5.3x↓Space-Launch&AccessNMNM↑56.3x↓Space-Systems&MfgNMNM↑7.5x↓Space-Satcom15.6x13.4x↓5.5x↓Space-Data&AnalyticsNM20.2x↑16.6x↓NationalSecuritySoftwareNMNM↓7.9x↓Subsector*Source:S&PCapitalIQasofAugust3,2026.SouthwindQuiltyAdvisors|www.southwindquilty.com

US-BASEDDEFENSETECHVENTUREFUNDINGEXECUTIVESNAPSHOT8$1,270MMonthlyRoundsJuly2026$13,655MMonthlyFundingJuly2026LTMFunding($M)VENTUREFUNDINGROUNDSDateCompanyFundingRoundAmountLeadInvestorsStrategicInvestorsJul30K2SpaceSeriesD$500MKleinerPerkins,ICONIQCapitalG,LightspeedJul27AntaresSeriesC$470MParadigm,CaffeinatedCapitalPoint72Ventures,ShineCapital,Jul24FPFDefenseSeed$10MRSEVentures,OndasInc—Jul23AndrenamSeriesA$18MUpfrontVenturesValorEquityPartners,AlsoCapitalJul22CathedralSeries(unclassified)$160MAndreessenHorowitz—Jul14SingularityDefenseCorpSeriesA$80MKhoslaVentures,AEIndustrialFelicisPartners,NEAJul9SkapionSeed$36MUP.Partners,KhoslaVenturesFusionVC,StratosVenturesJul3SurtrDefenseSystemsPre-Seed$4.8MAllegisCapitalEniacVentures,GaingelsMONTHLYACTIVITYMonthlyDealActivity76411Sep-25Oct-252Nov-251Dec-252Jan-26Feb-263Mar-2682Apr-26May-26Jun-26Jul-26STRATEGICFOCUS•FundingReacceleratesAroundScale-UpPlatforms.JulyUS-baseddefense/dual-useventureactivitytotaled$1.27Bacross8trackedrounds,withK2Space($500MSeriesD)andAntares($470MSeriesC)accountingformostdisclosedcapital.•InvestorThemes:SpaceResilience,Power,andDefenseAI.Capitalconcentratedincontested-spaceinfrastructure,deployablepower,AI-enabledcyberworkflows,andindustrial-basecapacity,whileseedandSeriesAroundskeptthenextpipelineofdual-usecapabilityactive.Source:Publicfilings,Pitchbook,Crunchbase,proprietaryresearch.Figuresreflectdisclosedamountsonly.SouthwindQuiltyAdvisors|www.southwindquilty.com*SelectUS-baseddefense/dual-useventureinvestments.Dataasannounced/closed.

DEFENSE&GOVERNMENTM&AACTIVITYEXECUTIVESNAPSHOT$1,208M$7,251MAvg.DealSize(Disclosed)20AggregateDealValueTotalDealsKEYTRANSACTIONS(JULY2026)#DateTarget1Jul1SAMGmbH2Jul6UltraMaritimeLLC3Jul6DZYNETechnologies,LLC4Jul6ExailTechnologies(ENXTPA:EXA)5Jul66AcquirerTransDigmGroupIncorporated(NYSE:TDG)LockheedMartinRotaryandMissionSystemsOndasInc.(NasdaqCM:ONDS)DealSizeND$3,450M$830MThalesS.A.(ENXTPA:HO)$926MWestwayEnterprisesLLCCapitolMeridianPartnersLPNDJul6HighlightTechnologies,Inc.EmpowerAI,Inc.ND7Jul10HeartlandPrecisionFasteners,Inc.SFSGroupAG(SWX:SFSN)ND8Jul13Veridiam,Inc.PelicanEnergyPartnersLP.ND9Jul15BGISGlobalIntegratedSolutionsCanadaLPVeritasCapitalFundManagement,L.L.CND10Jul16ExoticRubber&PlasticsCorporationValueAddedDistributors,L.L.C.ND11Jul16Gooch&HousegoPLC(AIM:GHH)ArlingtonManagementEmployees,LLCBuyerFunds:ArlingtonCapitalPartnersVII,L.P$529M12Jul20AerospacePneumaticProductportfolioMid-AmericaAerotech,LLCND13Jul21DelphinusEngineering,Inc.BluestoneInvestmentPartnersND14Jul22AEGISSystemsEngineeringandTechnologyPartnersCorporationOrganizationalDevelopmentResourceGroup,LLCND15Jul23HRLLaboratories,LLCInternationalBusinessMachinesCorporation(NYSE:IBM)ND16Jul27PRINCE&IZANT,LLC17Jul27SecturionSystems,Inc.18Jul27RHAeroSystems19Jul28RaftLLC20Jul31CodyComputerServices,Inc.Source:CapitalIQSouthwindQuiltyAdvisors|www.southwindquilty.comTransDigmGroupIncorporated(NYSE:TDG)TheCarlyleGroupInc.(NasdaqGS:CG)$1,066MNDCapitolMeridianPartnersLPNDLeonardoDRS,Inc.(NasdaqGS:DRS)$450MTylerTechnologies,Inc.(NYSE:TYL)ND

ACTIVEMIDDLEMARKETPEFIRMSDRYPOWDERSNAPSHOT~$22,784$82,85026TotalEst.DryPowder($M)TotalAUM($M)TotalFirmsTOP5DRYPOWDERFirmAUM($M)#ofFundsDryPowder($M)ArlingtonCapitalPartners$18,19575,004AEIndustrialPartners$9,20082,530J.F.Lehman&Co.$9,00772,477OceanSoundPartners$8,20032,255BrightstarCapitalPartners$5,00041,375TOPLTMACTIVITY#ofTransactionsTotalDealValue($M)GodspeedCapitalManagement7NDArlingtonCapitalPartners6$1,950MCenterGateCapital6NDFalfurriasManagementPartners6$557Healthcare/Cyber/Food/Tech,Food&Beverage/ServicesRenovusCapital6$200MultipleSectors,FederalIT/Cybersecurity,M&AConsultingFirmPrimarySectorFocusFederalTech/MissionSolutions,Engineering/TechnologyEngineering/Infrastructure,NavalDefenseServices,NuclearEngineering/EnergyIndustrialMaintenance,MedicalCompressionGarmentsMONTHLYACTIVITY(JULY2026)FirmCapitolMeridianPartnersAcornGrowthCompaniesArlingtonCapitalPartnersDealAcquisitionofWestwayEnterprisesPortfoliocompanySentryAerosparesacquiredAirStartInc.LaunchednavalservicesplatformSouthwindQuiltyAdvisors|www.southwindquilty.comDealValue($M)PrimarySectorFocusNDNatSecInfrastructure/ClassifiedWorkspaceNDAerospace/AircraftComponentsNDNavalServices/Defence

APPENDIX–DEFINITIONS,SOURCES&DISCLOSURESDefinitionsUS-BasedDefenseTech—PrivatelyheldorpubliclytradedcompaniesheadquarteredintheUnitedStatesthatderiveamaterialportionofrevenuefromdefense,nationalsecurity,intelligence,ordual-usetechnologyapplicationsacrosshardware,software,andservices.DryPowder(Definition/ProxyUsed)—Uncommittedcapitalavailablefordeploymentbyprivateequity,venturecapital,andgrowthequityfundsfocusedonaerospace,defense,andgovernmenttechnologyverticals.FiguresaresourcedfromPreqinandPitchBookfund-leveldatawhereavailable;wheredirectdataisunavailable,sector-adjustedestimatesareappliedasaproxy.A&DManufacturing/MRO—Companiesengagedinthedesign,production,assembly,andmaintenance,repair,andoverhaul(MRO)ofaerospaceanddefenseplatforms,subsystems,andcomponents.GovTech/ITServices—Firmsprovidinginformationtechnologysolutions,managedservices,systemsintegration,anddigitaltransformationcapabilitiesprimarilytoU.S.federal,state,andlocalgovernmentagencies.ISR/Cyber/Space—Companiesoperatingacrossintelligence,surveillance,andreconnaissance(ISR);cybersecurity;electronicwarfare;andspace-basedsystemsincludingsatellitecommunications,launchservices,andorbitalinfrastructure.MissionSystems/Electronics—Providersofmission-criticalelectronics,avionics,embeddedcomputing,sensors,andcommand-and-controlsystemssupportingdefenseandintelligenceplatforms.DataSources•S&PCapitalIQ—Publiccompanyfinancials,valuationmultiples,andtransactiondata•Crunchbase—Early-stageventurefundingroundsandstartupecosystemdata•CompanyFilings—SECfilings(10-K,10-Q,8-K,proxystatements)andinvestorpresentations•PublicDisclosures—Pressreleases,earningstranscripts,andregulatoryfilingsDisclosures/DisclaimersThispresentationhasbeenpreparedbySouthwindQuiltyAdvisorsforinformationalpurposesonlyanddoesnotconstituteanoffertosell,asolicitationofanoffertobuy,orarecommendationofanysecurity,investmentproduct,orinvestmentstrategy.Theinformationcontainedhereinisbelievedtobereliablebutisnotguaranteedastoitsaccuracyorcompleteness.Datahasbeensourcedfromthird-partyprovidersandpublicfilings;SouthwindQuiltyAdvisorsmakesnorepresentationorwarranty,expressorimplied,regardingtheaccuracy,completeness,ortimelinessofsuchinformation.Thismaterialdoesnotconstituteinvestmentadviceandshouldnotberelieduponassuch.Recipientsshouldconsulttheirownlegal,tax,andfinancialadvisorsbeforemakinganyinvestmentdecisions.Pastperformanceisnotindicativeoffutureresults.SouthwindQuiltyAdvisors,itsaffiliates,officers,directors,andemployeesmayholdpositionsinsecuritiesdiscussedherein.Thispresentationisconfidentialandintendedsolelyfortheuseoftheintendedrecipient(s).Unauthorizedreproductionordistributionisstrictlyprohibited.SouthwindQuiltyAdvisors|www.southwindquilty.com