PBS Aerospace Secures Multi-Million Dollar Turbojet Engine Contract with Zone 5 Technologies

PBS Aerospace, a U.S.-based subsidiary of the Czech company PBS Group, has been awarded a significant subcontract from Zone 5 Technologies, Inc. To supply turbojet engines. The deal, valued at several tens of millions of dollars, will support the production of missiles, potentially including the AGM-188A Rusty Dagger, designed for Ukraine.

Expanding U.S. Manufacturing Capabilities

The agreement, announced on February 24, 2026, signifies a major commitment to expanding PBS Aerospace’s U.S. Defense manufacturing operations. According to Erin Durham, CEO of PBS Aerospace, the company’s Georgia facility is operational and increasing production to meet customer demand for reliable, high-performance propulsion systems. PBS Aerospace manufactures the PBS TJ40 turbojet engine (approximately 100 lbs thrust) and the PBS TJ80 (maximum thrust of 200 lbs) for rapid deployment in missile and unmanned systems.

The Rusty Dagger Missile and Ukraine

While PBS Group has not disclosed the specific application of its engines, reports indicate they will be used in the production of the AGM-188A Rusty Dagger missile. Aviation Week reports that Zone 5 Technologies developed the Rusty Dagger as a low-cost alternative missile for Ukraine, under the U.S. Air Force’s ERAM (Extended Range Attack Munition) program.

The U.S. Government authorized the purchase of up to 3,350 Rusty Dagger missiles for Ukraine in a deal valued at $825 million last summer. The missiles, tested successfully in Florida in early February, have a range of approximately 400 kilometers and can carry a 227 kg (500 lbs) payload. Defense Daily

Investment in U.S. Production

PBS Group invested $20 million to scale U.S. Production of its precision-made turbojet engines, opening its U.S. Headquarters in Roswell, Georgia, in September 2025. Bizjournals Owner William Didden emphasized that the agreement demonstrates PBS Aerospace’s capacity to serve as a long-term industrial partner for U.S. Defense priorities.

About PBS Group

PBS Group, a Czech engineering holding company, has been involved in aviation technology development for over 200 years. The company recently established a manufacturing facility in Georgia to produce the TJ40 and TJ80 turbojet engines. PBS Group was previously the sole Czech manufacturer of jet engines, but the Czechoslovak Group (CSG) began production last year. Kongsberg, a Norwegian arms company, acquired a majority stake in Zone 5 Technologies at the end of last year.