Castellum, Inc. Announces Creation of New Subsidiary to Focus on Advanced Technology Products
Castellum (NYSE-American: CTM), a cybersecurity and electronic warfare solutions provider, has announced the formation of a new subsidiary, Castellum Advanced Technology Products, Inc. (CATP). This strategic initiative represents a significant expansion of Castellum's business model, focusing on developing internal technology, partnering with leading-edge tech companies, and potentially taking equity positions in companies with advanced technology relevant to Department of Defense customers.
CEO Glen Ives emphasized that advanced technology deployment is crucial for modern battlefield success. The company aims to enhance its organic growth capabilities and improve its service delivery to government clients through greater control over key products. This strategic shift is expected to drive both revenue growth and operating margin improvements.
Castellum (NYSE-American: CTM), fornitore di soluzioni per la cybersecurity e la guerra elettronica, ha annunciato la creazione di una nuova controllata, Castellum Advanced Technology Products, Inc. (CATP). Questa iniziativa strategica rappresenta un'importante espansione del modello di business di Castellum, con un focus sullo sviluppo di tecnologie interne, la collaborazione con aziende tecnologiche all'avanguardia e la possibilità di acquisire partecipazioni in società con tecnologie avanzate rilevanti per i clienti del Dipartimento della Difesa.
Il CEO Glen Ives ha sottolineato che l'implementazione di tecnologie avanzate è fondamentale per il successo sul campo di battaglia moderno. L'azienda punta a potenziare le proprie capacità di crescita organica e a migliorare la qualità del servizio offerto ai clienti governativi attraverso un maggiore controllo sui prodotti chiave. Questo cambiamento strategico è destinato a favorire sia la crescita dei ricavi che il miglioramento dei margini operativi.
Castellum (NYSE-American: CTM), proveedor de soluciones de ciberseguridad y guerra electrónica, ha anunciado la creación de una nueva filial, Castellum Advanced Technology Products, Inc. (CATP). Esta iniciativa estratégica representa una expansión significativa del modelo de negocio de Castellum, enfocándose en el desarrollo de tecnología interna, la colaboración con empresas tecnológicas de vanguardia y la posible adquisición de participaciones en compañías con tecnología avanzada relevante para clientes del Departamento de Defensa.
El CEO Glen Ives destacó que el despliegue de tecnología avanzada es crucial para el éxito en el campo de batalla moderno. La empresa busca potenciar sus capacidades de crecimiento orgánico y mejorar la prestación de servicios a clientes gubernamentales mediante un mayor control sobre productos clave. Este cambio estratégico se espera que impulse tanto el crecimiento de ingresos como la mejora de los márgenes operativos.
Castellum (NYSE-American: CTM)은 사이버보안 및 전자전 솔루션 제공업체로서 새로운 자회사인 Castellum Advanced Technology Products, Inc. (CATP)의 설립을 발표했습니다. 이 전략적 조치는 Castellum의 비즈니스 모델을 크게 확장하는 것으로, 내부 기술 개발, 첨단 기술 기업과의 협력, 그리고 국방부 고객과 관련된 첨단 기술을 보유한 기업에 대한 지분 취득 가능성에 중점을 두고 있습니다.
CEO Glen Ives는 첨단 기술의 도입이 현대 전장에서의 성공에 필수적이라고 강조했습니다. 회사는 주요 제품에 대한 통제력을 높여 정부 고객에 대한 서비스 제공을 개선하고 유기적 성장 능력을 강화하는 것을 목표로 하고 있습니다. 이러한 전략적 변화는 매출 성장과 영업 이익률 개선을 동시에 견인할 것으로 기대됩니다.
Castellum (NYSE-American : CTM), fournisseur de solutions en cybersécurité et guerre électronique, a annoncé la création d'une nouvelle filiale, Castellum Advanced Technology Products, Inc. (CATP). Cette initiative stratégique représente une expansion majeure du modèle économique de Castellum, axée sur le développement de technologies internes, le partenariat avec des entreprises technologiques de pointe, et la prise éventuelle de participations dans des sociétés disposant de technologies avancées pertinentes pour les clients du Département de la Défense.
Le PDG Glen Ives a souligné que le déploiement de technologies avancées est essentiel pour réussir sur le champ de bataille moderne. L'entreprise vise à renforcer ses capacités de croissance organique et à améliorer la qualité de ses services aux clients gouvernementaux grâce à un contrôle accru des produits clés. Ce virage stratégique devrait stimuler à la fois la croissance du chiffre d'affaires et l'amélioration des marges opérationnelles.
Castellum (NYSE-American: CTM), ein Anbieter von Cybersecurity- und elektronischen Kriegslösungen, hat die Gründung einer neuen Tochtergesellschaft, Castellum Advanced Technology Products, Inc. (CATP), bekanntgegeben. Diese strategische Initiative stellt eine bedeutende Erweiterung des Geschäftsmodells von Castellum dar und konzentriert sich auf die Entwicklung interner Technologien, die Zusammenarbeit mit führenden Technologieunternehmen sowie die mögliche Beteiligung an Firmen mit fortschrittlicher Technologie, die für Kunden des Verteidigungsministeriums relevant ist.
CEO Glen Ives betonte, dass der Einsatz fortschrittlicher Technologie entscheidend für den Erfolg auf dem modernen Schlachtfeld ist. Das Unternehmen strebt an, seine organischen Wachstumsmöglichkeiten zu verbessern und die Servicequalität für staatliche Kunden durch größere Kontrolle über Schlüsselprodukte zu erhöhen. Dieser strategische Wandel soll sowohl das Umsatzwachstum als auch die Verbesserung der operativen Margen vorantreiben.
- Strategic expansion into advanced technology products through new subsidiary CATP
- Potential for increased revenue and operating margins through value-added solutions
- Enhanced capability to serve Department of Defense customers through product control
- Opportunity for equity investments in advanced technology companies
- Risks associated with government contract cancellations and budget delays
- Uncertainty in successful integration of future acquisitions
- Exposure to federal budget constraints and continuing resolutions
- Dependence on U.S. government spending patterns
Insights
Castellum's creation of CATP subsidiary represents strategic diversification beyond services into product development and strategic investments to boost margins.
Castellum's announcement of its new subsidiary, Castellum Advanced Technology Products (CATP), marks a significant strategic pivot for the government contractor. Rather than solely providing technology-enabled services, the company is now pursuing a three-pronged approach: partnering with other technology companies, developing proprietary technology, and taking equity positions in firms with DoD-relevant advanced technologies.
This strategic evolution addresses several business challenges simultaneously. First, it potentially creates higher-margin revenue streams compared to the traditionally lower-margin government services business. Second, it positions Castellum to capture more value in the defense technology supply chain. Third, by controlling key technologies rather than just implementing them, Castellum can differentiate its offerings in a competitive federal contracting landscape.
From a competitive positioning perspective, this move follows a pattern seen among other defense contractors who've recognized that intellectual property and proprietary technology generate stronger financial returns than pure services. The timing aligns with increased defense spending on advanced technologies to counter near-peer threats. While the announcement lacks specifics about initial focus areas or financial commitments, the emphasis on
This subsidiary creation represents an execution risk as Castellum will need to develop new capabilities in product development and investment evaluation. However, if successful, it could transform the company's growth trajectory and valuation multiples by shifting toward higher-value business activities while leveraging their existing customer relationships and domain expertise.
VIENNA, Va., June 24, 2025 (GLOBE NEWSWIRE) -- Castellum, Inc. (the “Company” and “Castellum”) (NYSE-American: CTM), a cybersecurity, electronic warfare, and software services and solutions company focused on the federal government, today announced the creation of a new wholly owned subsidiary, Castellum Advanced Technology Products, Inc. (“CATP”).
CATP will focus on teaming with other leading-edge technology companies, developing technology internally, and potentially taking equity positions in companies that have advanced technology, which Castellum’s Department of Defense customers could use.
“Fully and timely leveraging advanced technology is the key to success on the 21st-century battlefield,” said Glen Ives, Chief Executive Officer of Castellum. “While we will continue to provide technology-enabled services to our government clients, today’s announcement represents a meaningful broadening of Castellum’s strategy for supporting the Department of Defense. We believe that having greater control over some of the key products our customers need will enable us to provide better overall solutions for the warfighter. Financially, we believe that we can increase both our revenue and our operating margins by adding more value and solving our customers’ most challenging problems. This important step reinforces our priority, focus, and commitment to constantly strengthen and enhance our organic growth capabilities.”
About Castellum, Inc. (NYSE-American: CTM):
Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government - https://castellumus.com/.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Words such as “will,” “would,” “believe,” and “expects,” and similar language or phrasing are indicative of forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, that could cause actual results to differ (sometimes materially) from the results expressed or implied in the forward-looking statements, including, among others: the Company’s ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company's revenue due to a delay in the U.S. Congress approving a federal budget, operating under a prolonged continuing resolution, government shutdown, or breach of the debt ceiling, as well as the imposition by the U.S. government of sequestration in the absence of an approved budget; the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in Item 1A. “Risk Factors” section of the Company’s recently filed Form 10-Q, Item 1A. "Risk Factors” in the Company’s most recent Form 10-K, and other filings with the Securities and Exchange Commission which can be viewed at www.sec.gov. These risks and uncertainties, or not closing the described potential equity financing in this press release, could cause the Company's actual results to differ materially from those indicated in the forward-looking statements. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
Contact:
Glen Ives
President and Chief Executive Officer
Phone: (703) 752-6157
info@castellumus.com
https://castellumus.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/12cff6dc-d18b-4810-9020-5e7bab268788
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