This is not ordinary English speech. It is specific military jargon, a kind of shorthand used among soldiers in wartime. Both "visual" and "hostile" are adjectives, and their corresponding nouns have been left unspoken but understood among the soldiers imparting and hearing such a message. So the full meaning is: "I have visually identified a hostile person (i.e., an "enemy").
One can imagine these chilling words being spoken in an overhead helicopter — or even by a drone "pilot," a soldier sitting far from the battlefield at a computer console in New Mexico — preparing to unleash a missile intended to murder one specific person adjudged or imagined to be a terrorist.
As a shocking and horrific Wikileaks video shows, one such aerial attack, presumably targeting one or more armed soldiers, killed at least 18 people, including two journalists, children and their unarmed father who was attempting to rescue a wounded person: <https://wikileaks.org/wiki/Coll...r,_5_Apr_2010>
Instead of awarding Bradley (Chelsea) Manning (the soldier who courageously exposed this chilling and casual murder of civilians) the much deserved Presidential Medal of Freedom, the United States cruelly and arbitrarily meted out a sentence of 35 years' imprisonment for revealing the truth.
Sorry, as I understand we have some acoustical problems and the terrorist was a tourist. But meanwhile he's died in the rocket attack anyway.