The U.S. Air Force has named Anduril Industries' FQ-44A Collaborative Combat Aircraft drone the "Fury" and outlined a production plan that could bring the company $5 billion in hardware revenue through 2032. General Atomics' rival drone, the FQ-42A, was named "Vengeance." Anduril has also picked up a separate autonomy-software contract and a spot on a shortlist for further software work.
Vengeance and Fury replace prototype designations
Secretary of the Air Force Troy Meink announced last Monday that General Atomics' FQ-42A will be called "Vengeance" and Anduril's FQ-44A will be called "Fury," replacing the numeric designations the two prototypes carried since June. The Air Force wants to pair the unpiloted, stealthy drones with piloted fighter jets so pilots can send the drones on riskier missions instead of flying them directly. Naming the aircraft moves the program a step closer to that goal.
Production plans could total $10 billion
The Air Force will buy 150 Vengeance and Fury drones combined in "Increment 1" of the program, a number that should rise to 500 by 2032. Reportedly, the Air Force has asked General Atomics and Anduril to build the drones for an average of $20 million per unit. At 500 units total, that works out to a $10 billion program cost, and an even split between the two contractors would put $5 billion in revenue on Anduril's side.
Software contracts add to Anduril's opportunity
The hardware contract is only part of the program. Anduril has already won a separate, unspecified-value contract for the autonomy software that would let the drones fly themselves, and it made a shortlist of six companies bidding on additional software work covering sensors, communications, and weapons.
How much that software work ends up being worth to Anduril isn't yet known, and the outcome still depends on how the Fury prototype performs against General Atomics' Vengeance. Larger contracts would strengthen the case for Anduril pursuing an IPO.
Source: The Motley Fool
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