A venture studio expands into Austin, a counter-drone maker moves into high-energy lasers, and three Austin-area public companies report quarterly results.

A London- and Seattle-based firm that builds startups to order for corporate buyers is opening an Austin office with $100 million in fresh capital, and Austin defense company ACS has formed a directed energy division staffed by two former Army laser program leaders. Cedar Park’s Hyliion raised its revenue forecast for the second time this year, YETI trimmed its 2026 outlook and solar maker T1 Energy reported progress on its Central Texas cell plant. New data also show how quickly defense and aerospace companies are absorbing local real estate.

XLIO adds $100 million and opens Austin office

XLIO said Nov. 10 it secured an additional $100 million, lifting its total funding facility to $150 million, and is opening an office at 801 Barton Springs Road. The company, which is backed by private equity, did not name the investors.

XLIO uses what it calls a “Made to Order” model. A corporate client defines a capability it needs, XLIO funds and builds a dedicated startup to deliver it, and the client buys the team and technology once agreed milestones are met, usually within one to three years. Deals typically range from $10 million to $50 million.

CEO Ron Kornfeld will lead the Austin office and cited the city’s engineering talent and experienced founders. The move adds another buyer-backed path for Austin engineers at a time when the region’s venture totals are at record highs. (PR Newswire)

ACS launches directed energy division

Austin-based ACS, the maker of the Bullfrog AI-powered weapon station that turns existing guns into counter-drone systems, announced Nov. 10 it has created a directed energy division to develop high-energy laser systems for the U.S. and allied governments.

Amanda Clark will lead the unit as vice president of directed energy. She spent 17 years at the U.S. Army Space and Missile Defense Command, most recently as chief of its directed energy division. John Mason, previously a directed energy technologies branch chief at the same command, joins as program director for high-energy lasers.

CEO Joe Bingold said the company’s targeting and engagement work pairs naturally with lasers. ACS manufactures in Austin and has offices in Alexandria, Virginia, and a lab in Huntsville, Alabama. (Business Wire via GazetteXtra)

Hyliion raises 2026 revenue forecast to $18 million

Hyliion Holdings, which develops the KARNO linear generator, reported third-quarter revenue of $7.5 million, up from $0.8 million a year earlier, driven mainly by military research and development work. Its net loss narrowed to $11.1 million from $13.3 million, and it ended September with $121.4 million in cash and investments.

The company raised its full-year revenue forecast to about $18 million, up from $15 million. It said two more military awards totaling about $8 million are in final negotiations, but its 800-kilowatt system for the Navy’s USX-1 Defiant vessel has slipped to early 2027 after a component redesign. (SEC filing)

T1 Energy reports progress on Rockdale solar cell plant

T1 Energy, which lists Austin and New York on its releases, reported third-quarter net sales of $196.6 million, down from $210.5 million a year earlier, and a net loss of $41.6 million. Its Dallas module factory produced 1,056 megawatts in the quarter.

The company’s 2.1-gigawatt G2_Austin cell fab in Rockdale has its main steel structure up and Phase 1 equipment at U.S. ports. T1 said it will slow spending there until it lands a financing package that is still under negotiation. (GlobeNewswire)

YETI trims outlook as consumer demand wobbles

Austin-based YETI reported Thursday that third-quarter net sales rose 4% to $509.4 million, with international sales up 19%. Adjusted earnings per share climbed 49% to 91 cents, helped by lower net tariff costs.

The outdoor products maker cut its full-year adjusted sales growth forecast to about 6% from 7% to 8%. CEO Matt Reintjes described demand as “uneven at times during the quarter.” (GlobeNewswire)

Defense and aerospace firms leased 3.7 million square feet

Defense tech, aerospace and advanced manufacturing companies have leased 3.7 million square feet of office and industrial space across the Austin metro over the past two years, according to CoStar data reported by The Real Deal. That compares with less than 200,000 square feet in 2015.

Blue Origin’s 1.3-million-square-foot lease is the largest single lease on record in Austin, and Saronic took 416,000 square feet in East Austin. Venture deals in the sector have topped $3.6 billion so far in 2026. (The Real Deal)

Also in Silicon Hills

  • WhiteMatter, which has offices in San Francisco and Austin, raised a $20 million Series A led by Blumberg Capital for security and governance software for enterprise AI agents. (Fortune)
  • Overhaul launched Gen2 Tamper Detection, which alerts shippers in near real time when a trailer or container door is opened. (PR Newswire)
  • Filana Therapeutics named biotech veteran Jill M. Quigley to its board as an independent director. (GlobeNewswire)
  • Micro Center opens its first Austin store Friday at 12707 N. MoPac Expressway, with more than 100 employees. (PRWeb)
  • CBS Austin profiled veteran-founded Austin companies including Saronic, SkyFi, ACS and Luling’s X-Bow Systems. (CBS Austin)

Only in Austin

With Friday the 13th arriving tomorrow, here is a fitting Sixth Street stop. The Museum of the Weird began as a sideline at Steve and Veronica Busti’s gift shop, Lucky Lizard Curios and Gifts, after customers kept wandering to the back to gawk at giant lizards and the owners decided to charge admission. Built in the tradition of 19th-century dime museums such as P.T. Barnum’s, it displays shrunken heads, a Feejee mermaid, two-headed animals, Texas Bigfoot footprints and the Minnesota Iceman, still in its ice chest. A live sideshow plays in the back theater, where performers work for tips. (Texas Standard)

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