Anduril Industries is not exactly the same as Palantir, yet there are notable similarities between the two. Last month, Palmer Luckey, co-founder of Anduril Industries, shared with Bloomberg that the company is "on a path to being a publicly traded company." Luckey emphasized the importance of an initial public offering (IPO) in the near future, although he did not specify a timeline.
The mere possibility of an Anduril IPO has sparked significant interest in the company. Earlier in the month, a column introduced investors to this innovative defense stock, outlining its business model and providing preliminary estimates of its potential valuation if Anduril goes public.
Currently, efforts are underway to delve deeper into Anduril’s operations to determine whether this military AI company, established by former members of Palantir, might emerge as the next Palantir.
Anduril’s Latest Contract Achievement
Interest in Anduril has been driven in part by the founder’s stated intentions regarding an IPO. Another factor is Anduril’s success in securing government contracts, which could enhance the likelihood of a successful IPO. Recently, Anduril announced a significant win with a $99 million contract from the Department of Defense (DoD). According to the DoD contracts website, this new contract, set to run until February 2030, is part of the "Thunderdome Small Business Innovation Phase III." While the name might be unclear, it is believed to pertain to a cybersecurity contract, aligning with Anduril’s focus on artificial intelligence-driven drone technology, where cybersecurity is crucial to prevent hacking.
In pursuit of further insights into Anduril’s recent ventures, evidence of Anduril’s activity was found in a series of seven notable contract wins over the past year, described on the Pentagon’s contracts website. Notably, these include:
- Dec. 3: A $100 million contract from the Pentagon’s Chief Digital and Artificial Intelligence Office to enhance edge data integration services, allowing data integration from multiple sensors locally.
- Nov. 15: A $23 million Air Force contract for the implementation of a latticed mesh network for space surveillance networks, facilitating data distribution across domains and platforms.
- Oct. 16: Participation in a $400 million Navy contract for the development of a Counter-Unmanned Aircraft System Engagement System, a technology to neutralize hostile drones.
- Sept. 27: A $25.4 million award from the Air Force for further development of latticed mesh networks in space surveillance.
- Sept. 17: A $9 million Army contract for the development of the Agile-Launched, Tactically Integrated Unmanned System, a system of tube-launched kamikaze drones known as ALTIUS.
- June 14: Selection as one of 49 partners eligible to compete for funds under a $982.1 million umbrella contract for various drone technologies for the U.S. Army.
- April 15: A $6.5 million award from the Navy for the development and maintenance of the Organic Precision Fires Light system, another type of kamikaze drone.
Current Insights on Anduril
If fully funded, these contracts collectively promise about $400 million in new revenue for Anduril. Coincidentally, this figure closely aligns with Anduril’s total revenue from various sources in 2023, reported as $457 million according to S&P Global Market Intelligence.
This summary does not include other contracts Anduril has with national defense agencies, like the UK’s Ministry of Defence and the Australian Defence Force, or contracts with various U.S. government entities such as the Department of Homeland Security.
In conclusion, although these particular contract wins are known, Anduril likely generates significant additional revenue that remains undisclosed until its IPO filing. What is certain is that Anduril has already established a substantial presence in the U.S. military sector, particularly in military and kamikaze drones—referred to as "loitering munitions" by the Pentagon. Intelligence processing and distribution appear to be key focal areas for the company.
Further insights into Anduril’s operations and future prospects may become available as the path towards an IPO progresses.
