You might have heard Anduril being compared to Palantir, but while they’re not identical, there’s definitely some resemblance.
Palmer Luckey, who helped start Anduril Industries, shared with Bloomberg recently that his company is gearing up to go public. He believes it’s crucial for Anduril to take this step sooner rather than later, though he hasn’t committed to a specific timeline just yet.
Just the hint of Anduril going public caught my attention and made me curious enough to delve into what this company is all about. Earlier this month, I offered investors an introductory look at this innovative defense firm, touching on its operations and making some rough guesses on what its market value could be once it goes public.
Let’s dive deeper into Anduril’s operations and explore why this company, founded by former Palantir employees, might evolve into another powerhouse like Palantir.
Anduril’s Contract Success
What’s sparked this recent buzz? Surely the founder’s declaration about an IPO plays a part. Additionally, Anduril’s consistent success in securing government contracts is noteworthy and bodes well for a successful IPO. Just recently, Anduril bagged a hefty $99 million deal with the Department of Defense.
According to the DoD’s contract descriptions, this recent project will extend through February 2030 and involves work related to "Thunderdome Small Business Innovation Phase III." Although the name leaves much to the imagination, it’s likely a cybersecurity contract. Given Anduril’s specialization in AI-driven drone technology, protecting these drones from cyber threats is crucial, making cybersecurity an essential piece of their technological arsenal.
With my curiosity piqued about Anduril’s recent endeavors, I uncovered a series of substantial contracts awarded to them over the last year, all detailed on the Pentagon’s contracts page. Here’s a look at the major ones, listed from the most recent:
-
December 3: Anduril secured a $100 million agreement with the Pentagon’s Chief Digital and Artificial Intelligence Office aimed at "scaling its edge data integration services capabilities." Essentially, this involves local data integration from multiple sources instead of sending all information back to a central hub.
-
November 15: The Air Force granted Anduril $23 million for "fielding latticed mesh network to additional space surveillance setwork sites." This project works on maintaining data flow across various domains and platforms.
-
October 16: Partnering with the Navy, Anduril is part of a $400 million contract focused on integrating and delivering a Counter-Unmanned Aircraft System Engagement System. Besides building drones, Anduril is well-versed in creating C-UAS weapons to neutralize threatening drones.
-
September 27: Another collaboration with the Air Force saw Anduril earning $25.4 million for expanding their latticed mesh network across additional surveillance sites, reminiscent of their earlier task.
-
September 17: Anduril bagged a $9 million Army deal aimed at developing and showcasing the Agile-Launched, Tactically Integrated Unmanned System, known as ALTIUS. These are tube-launched kamikaze drones similar to AeroVironment’s Switchblade.
-
June 14: Anduril was among 49 companies selected to compete for parts of a $982.1 million contract to enhance various drone technologies for the U.S. Army, including payloads and control systems. The list of winners included big names like AT&T, Honeywell, Microsoft, and General Atomics, highlighting Anduril’s stature amidst industry giants.
- April 15: Alongside partners AeroVironment and Honeywell, the Navy awarded Anduril $6.5 million to aid in producing, testing, and maintaining the Organic Precision Fires Light system for the U.S. Marine Corps.
All these contract wins show their deep involvement in the defense sector, especially in drone technology and counter-drone measures. If each of these contracts is fully funded and Anduril gets an even split from multi-award agreements, we’re looking at around $400 million in potential new revenue. That amount is quite close to the $457 million Anduril reported from all revenue streams in 2023, as per S&P Global Market Intelligence data.
And that’s just from these known contracts, not considering others Anduril might have with defense departments in countries like the UK and Australia, or with other U.S. agencies like Homeland Security.
In a nutshell, while we have a glimpse of Anduril’s noteworthy projects, there’s undoubtedly more to uncover about its financial performance and contract wins until they officially file for an IPO. It’s evident Anduril is already a major player in the U.S. military industrial scene, particularly with drones and loitering munitions.
As we edge closer to Anduril’s IPO, any new details I unearth will be promptly shared with you.
