The New Missile Makers: Castelion, Anduril and Covenant
Updated September 18, 2026 · By Edoardo Zarghetta
Quick answer
A new group of venture-backed companies is building missiles for a fraction of what legacy programs cost. Castelion's Blackbeard hypersonic missile came in at about $468,000 per round, shipping containers included, in its first Navy lot, and Covenant describes the price of its Anthem cruise missile as mid six figures. Anduril, the third leader, has not published a price for its Barracuda cruise missiles. A Tomahawk costs about $3.8 million. All three companies are private and none has announced an IPO. Secondary-market price indications we reviewed on September 17, 2026 placed Anduril at roughly $98 billion to $117 billion; we found no shares available to buy in Castelion, Covenant or Cambridge Aerospace.
Why now: the magazine ran dry
The 2026 Iran war, Operation Epic Fury, turned an old debate about munitions stockpiles into an urgent budget line.
- Stockpiles. In about 39 days of fighting the United States fired more than 1,000 Tomahawks and about 1,100 JASSM-ERs. CSIS estimates its Patriot interceptor stock fell from about 2,330 rounds before the war to between 759 and 827 by late July 2026, and does not expect stocks to be rebuilt before 2029 or 2030.
- Budget. The Pentagon's FY2027 munitions request is $70.5 billion, up from $24.4 billion the year before, a 188% increase. Planned Tomahawk purchases rise from 55 to 785, and THAAD interceptors from 55 to 857.
- Buying cheap, at scale. The Air Force's Family of Affordable Mass Missiles (FAMM) program plans about 28,000 cruise missiles over five years at a target of roughly $218,000 each. In July it signed framework agreements with Anduril, CoAspire and Zone 5.
- The constraint. Legacy lines cannot scale fast enough. Lockheed Martin delivered roughly 600 PAC-3 interceptors in 2025 and is working toward about 2,000 a year. Solid rocket motors, made at scale by only two legacy suppliers, remain a bottleneck.
- Timing. Congress has funded the government only to December 11, so the full-year munitions budget will be settled after the November midterms.
The investment case in one line: the Pentagon now pays for how many rounds it can buy, not only how capable each round is. That favors companies that build missiles like products rather than programs. Andreessen Horowitz, an investor in all three companies above, made the same argument on September 15 in Magazine Depth: Affordability Is a Choice.
Cost per shot: one legacy round, or several new ones
| Legacy round | Unit cost | New-entrant alternative | Unit cost | Rounds for the same money |
|---|---|---|---|---|
| Tomahawk (long-range cruise) | ~$3.8M | Covenant Anthem | mid six figures (~$400K to $500K) | about 8 to 9 |
| PrSM (ground-launched, ~500 km) | ~$1.7M | Castelion Blackbeard | ~$468K (first Navy lot, containers included) | about 3 to 4 |
| JASSM (air-launched cruise) | ~$1.3M to $2.6M | FAMM program target | ~$218K | about 6 to 12 |
| PAC-3 MSE (air defense) | ~$4.4M | Missile Defense Agency low-cost interceptor target | $750K | about 6 |
How to read this table:
- Legacy costs are FY2027 budget requests divided by quantity, so they include support and integration costs, not just the missile.
- New-entrant costs are company targets or first-lot prices. They are not yet proven at volume. Anduril has not published a Barracuda price, so it is not in this table.
- The pairs are not like for like. A Tomahawk carries a larger warhead and has decades of combat use. The point is capacity: for the same budget, the new entrants promise many more shots.
One legacy missile, or several new ones
Unit cost per round, log scale. Legacy cost is the FY2027 budget request divided by quantity, so it includes support costs. New-entrant cost is a company target or first-lot price, not yet proven at volume. Pairs are not like for like in capability.
Sources: FY2027 budget requests (USNI, DefenseScoop, The Defense News); Quwa; The Aviationist; Interesting Engineering; CTech. JASSM shown as a range across variants and sources. Castelion price is the first Navy lot, shipping containers included. Anduril has not published a Barracuda price and is not shown. Data as of September 17, 2026. IPO CLUB
The map: who builds what, by range
| Company | Missile | Published range | Stage |
|---|---|---|---|
| Castelion | Blackbeard, hypersonic strike | up to 500 nautical miles (about 926 km) | Navy production orders |
| Anduril | Barracuda-500M, cruise missile | over 500 nautical miles | Army order for at least 3,000; deliveries from 2027 |
| Covenant | Anthem, ground-launched cruise missile | about 1,200 km (reported, not confirmed by the company) | Serial production from Q1 2027 |
All three sit in the long-range tier (500 to 1,500 km), the most crowded part of the market. The full report maps 12 companies across four range tiers, from Destinus's planned 2,000 km Ruta Block 3 to interceptor makers such as Cambridge Aerospace. For comparison, a large contractor's answer in the long-range tier is Leidos's AGM-190A Black Arrow, demonstrated at about 740 km. For the wider picture, see our defense technology research.
Castelion: hypersonic, priced like a cruise missile
Castelion was founded in 2022 in Torrance, California, and is led by CEO Bryon Hargis. Its Blackbeard is a hypersonic strike missile that is launched from Navy F/A-18 fighters, with integration on the Army's HIMARS rocket launchers planned, and has a range of up to 500 nautical miles.
- Proof points. The Navy bought a first lot of 50 rounds for $23.4 million in June 2026 (about $468,000 each, including shipping containers), added an $89.99 million early production award in August, and placed a production order of up to $200 million on September 14. Castelion reports more than $500 million in US government contracts.
- Factory. A 1,000-acre production campus, Project Ranger, is under construction near Rio Rancho, New Mexico.
- Funding. The August 2026 Series C, $800 million of equity plus a $250 million revolving credit commitment, valued the company at $13 billion. The round was co-led by Andreessen Horowitz, Carlyle and JPMorgan's Strategic Investment Group. Earlier rounds include a $350 million Series B (July 2025). In total Castelion has disclosed about $1.23 billion of equity financing plus about $280 million of committed debt facilities.
- What to watch. Delivery against the Navy production order, the Army ground-launch program, and whether the price holds near $300,000 at scale, as the Navy has suggested.
- Secondary market. On September 17, 2026 we found no Castelion shares available to buy.
More: Castelion stock, valuation and IPO outlook
Anduril: the cruise missile inside a $66 billion company
Anduril, founded in 2017 in Costa Mesa, California, sells drones, sensors, autonomy software and, increasingly, missiles. Its Barracuda family covers the 120-nautical-mile Barracuda-100M and the 500-plus-nautical-mile Barracuda-500M.
- Proof points. In May 2026 the Army agreed to buy at least 3,000 surface-launched Barracuda-500M missiles, with at least 1,000 a year from 2027. In July Anduril signed an Air Force FAMM framework agreement. It is also one of the companies selected to develop space-based interceptors for Golden Dome. Anduril has not published a Barracuda unit price.
- Propulsion. Anduril builds its own solid rocket motors in McHenry, Mississippi, targeting 6,000 tactical motors a year, helped by Defense Production Act funding.
- Funding. A $5 billion Series H in May 2026, led by Thrive Capital and Andreessen Horowitz, valued Anduril at $66 billion post-money. In July it was reported to be in talks at about $100 billion; the company said no decisions had been made.
- What to watch. Whether the $100 billion round closes, Barracuda production starting in 2027, and IPO timing, which management has not dated.
- Secondary market. Price indications on September 17, 2026 ranged from about $98 billion to $117 billion.
More: Anduril stock, valuation and IPO outlook
Covenant: a Tomahawk-class missile at a fraction of the price
Covenant came out of stealth on September 9, 2026. The company, founded in 2024, operates in the United States, Germany and Israel. Its Anthem is a ground-launched cruise missile carrying a warhead of more than 200 kg, flown more than 200 times in testing.
- Price and range. Covenant describes the price as mid six figures at full production. It has not published a range; reports put it at about 1,200 km.
- Factory. A new 105,000-square-foot plant in the Dallas area of North Texas begins serial production in Q1 2027, with a stated target of 5,000 missiles a year. The company also has sites in Germany and Israel.
- Orders. About $150 million in booked orders, an Army test agreement and a Navy award of about $70 million for a maritime version.
- Funding. More than $250 million across three rounds from Andreessen Horowitz, Founders Fund, Lux, 8VC, Aleph and Lightspeed. Covenant has not disclosed its valuation; press reports put it above $1 billion.
- What to watch. First serial deliveries, a published range and a program of record.
- Secondary market. The company is too new for a secondary market; we found no shares available.
The real bottleneck: rocket motors
Every missile needs a solid rocket motor, and the United States has relied on two large suppliers, Northrop Grumman and L3Harris. Some new entrants now build their own (Anduril, Castelion, Mach Industries), while independent suppliers such as Ursa Major, X-Bow and Firehawk race to become second sources; the full report profiles each of them.
Exits have already started
Kongsberg bought 90% of Zone 5 in June 2026, and Ursa Major has agreed to go public through a SPAC, expected to close in Q1 2027 subject to approvals. L3Harris plans to revisit an IPO of its missile unit around mid-2027. The full report maps every liquidity path in the sector and who could be next.
Risks
- Prices are targets. Most new-entrant costs are company goals or first-lot prices. They have not yet been proven at volume.
- Not like for like. Cheaper missiles often carry smaller warheads, have less combat history and are not certified on every platform.
- Budget timing. Much of the FY2027 increase depends on reconciliation and on a full-year appropriation that has not passed.
- Execution. Factories in Texas, New Mexico and Oklahoma are still being built or commissioned. Qualification of new motors can take years.
- Valuation. Several companies doubled or more in a single year. Valuations are running ahead of delivered production.
- Access and liquidity. Private shares are scarce, transfer-restricted and illiquid. We found almost no shares on offer.
Only in the full report
The New Missile Makers, September 2026
- The valuation ladder: every round and secondary-implied value, company by company
- Secondary-market indications for more names, cleaned and dated
- 10 company cards, including Mach Industries, Cambridge Aerospace, CoAspire and Destinus
- The motor makers: Ursa Major's SPAC terms, X-Bow and Firehawk
- Catalyst calendar, scenarios and the IPO CLUB view
The managed way in
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FAQ
Last updated:
Is Castelion a public company?
No. Castelion is private. Its August 2026 Series C valued it at $13 billion. There is no ticker and no announced IPO.
Can I buy Anduril stock?
Not on a public exchange. Anduril is private; its last priced round (May 2026) valued it at $66 billion post-money. Shares trade only occasionally on secondary platforms, for accredited investors, and supply is limited.
What is Covenant's Anthem missile?
A ground-launched cruise missile from Covenant, a startup that came out of stealth in September 2026. The company describes the price as mid six figures and plans serial production in Texas from Q1 2027.
How much does a Tomahawk cost compared with the new missiles?
About $3.8 million based on the FY2027 budget request, which includes support costs. New entrants target roughly $200,000 to $500,000 per round, though those prices are not yet proven at volume.
What is the Family of Affordable Mass Missiles (FAMM)?
An Air Force program to buy about 28,000 low-cost cruise missiles over five years at roughly $218,000 each. Anduril, CoAspire and Zone 5 signed framework agreements in July 2026.
Which missile companies could go public next?
Ursa Major has agreed to merge with a SPAC (expected to close in Q1 2027, subject to approvals), L3Harris plans to revisit an IPO of its missile unit around mid-2027, and Destinus is reported to be raising ahead of a planned IPO. Castelion, Anduril and Covenant have not announced IPO plans.
How can I invest in missile makers before they go public?
Accredited investors can buy private shares directly through secondary platforms when supply exists, join a single-company SPV, or invest through a diversified fund such as America 2030. Each route has different minimums, fees and risks.
Sources
- CSIS, Last Rounds: status of key munitions after the Iran war ceasefire
- Breaking Defense, The Pentagon wants a 188 percent bump for missile procurement (Apr 2026)
- USNI News, New Navy budget wants $3B for new Tomahawks, $4.3B for SM-6s (Apr 6 2026)
- DefenseScoop, Army FY2027 PrSM procurement (Apr 7 2026)
- The Defense News, Army seeks $12.2B for 2,798 PAC-3 MSE in FY2027
- Quwa, Pentagon signs FAMM framework deals with Anduril, CoAspire and Zone 5
- Quwa, Profile: Covenant Anthem
- The Aviationist, Anduril to supply surface-launched Barracuda-500M to the US Army (May 16 2026)
- Interesting Engineering, Blackbeard hypersonic missile Navy deal
- a16z, Magazine Depth: Affordability Is a Choice (Sep 15 2026)
- TechCrunch, Castelion hits $13B valuation (Aug 20 2026)
- Defence Blog, US Navy orders Blackbeard hypersonic missiles in $200M deal (Sep 2026)
- TechCrunch, Anduril raises $5B, doubles valuation to $61B (May 13 2026)
- CTech, Covenant emerges from stealth with $250 million
- The Defense News, Covenant emerges from stealth with Anthem
- Kongsberg, completes acquisition of Zone 5 (Jun 2026)
- The Next Web, Destinus pre-IPO raise
- DefenseScoop, Golden Dome space-based interceptor contractors (Apr 24 2026)
- GovConWire, Ursa Major SPAC merger
- L3Harris, closes $1B Department of War investment in Missile Solutions (Apr 2026)
- Washington Technology, L3Harris presses pause on Missile Solutions IPO plan (Jul 2026)
- CRFB, Appropriations Watch FY2027
About the secondary-market data. Price indications are compiled from several secondary-market platforms as of September 17, 2026. They are indicative, not offers or completed trades, may be stale, and do not mean shares are available. Private company shares are illiquid and transfer-restricted. Nothing here is a recommendation to buy or sell any security.
This article is for information only and is not an offer to sell or a solicitation of an offer to buy any security. Company figures, including prices, ranges and production targets, are company-stated or reported and have not been independently verified. Andreessen Horowitz, cited above, is an investor in Anduril, Castelion and Covenant. IPO CLUB and America 2030 are not affiliated with the companies discussed unless stated. Private investments are illiquid and involve risk of total loss.
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