A new ‘Prime’ on the block? Anduril vs. Lockheed Martin, General Dynamics and Northrup Grumman

By Jay Manciocchi, JD

Updated on May 20, 2025

Key Takeaways

Anduril, a next-generation¹ defense contractor founded in 2017, is rapidly disrupting ² ³ ⁴ the traditional defense industry by taking a proactive, software-driven approach to military innovation.
While legacy defense giants, or ‘Primes,’ like Lockheed Martin, General Dynamics and Northrop Grumman typically build to government-issued specs, Anduril develops battlefield-ready solutions in anticipation of future needs — emphasizing speed, autonomy and integrated AI systems.
In the past year, Anduril’s Forge Price™ has risen by 52%, suggesting heightened investor interest and signaling a market perception shift toward this fast-moving, tech-native defense player.
Meanwhile, public market stalwarts like Lockheed Martin (-9%), General Dynamics (+2%), and Northrop Grumman (-6%) have seen flat or negative stock performance over the same period, as pressures mount to evolve their legacy models.

Overview

In defense contractor circles, the top companies who receive a significant portion of government contracts are known as “the Primes.”⁵ The Primes include Lockheed Martin, General Dynamics and Northrup Grumman, as well as Raytheon and Boeing. Anduril, a tech-native defense company, is increasingly being seen as a potential candidate to join this roster ⁶ ⁷ — one that doesn’t wait for legacy marching orders but instead charts its own strategic path. As traditional defense contractors continue to execute on sometimes-dated business models, Anduril is moving at startup speed, integrating AI, software and autonomous systems into battlefield-ready platforms. And with each new contract win and valuation bump, the market is beginning to take notice, too.

While Anduril and the defense contractor leaders Lockheed Martin, General Dynamics and Northrup Grumman may appear to operate similar businesses on the surface — developing high-tech weapons systems, drones, surveillance tools and AI-powered platforms for the U.S. military — their models couldn’t be more different. Historically, legacy Primes have waited for the federal government to release specific program requirements before building to spec. Anduril flips that approach on its head, proactively designing and deploying systems that anticipate future needs. ⁸ ⁹ It’s a bet on speed and vision — and so far, it’s paying off.

The Details

Anduril's disruptive approach

Founded in 2017 by Palmer Luckey, Anduril has rapidly gained attention for its innovative approach to defense technology. Unlike traditional defense contractors that often wait for government directives, Anduril proactively develops integrated hardware and AI-driven software solutions, anticipating military needs. This strategy has led to significant contract wins ¹⁰ and a valuation surge to $29 billion as of early 2025.¹¹

Anduril’s new playbook

Where traditional defense contractors are large organizations with vast portfolios and long-standing government relationships, Anduril operates much more like a Silicon Valley tech firm. The result? The company has become a new magnet for defense contracts, scoring deals across border security, autonomous systems and battlefield AI¹² — and doing so at a speed that stands in stark contrast to the historic pace of legacy contractors.

Since its founding, Anduril has raised over $2 billion in funding and, as of April 2025, boasts a Forge Price™ of $42.52 per share implying the valuation noted above — up sharply from its August 2024 $14 billion valuation at its last primary funding round.¹³ In fact, Anduril’s price on Forge’s private market platform has risen 52% in the past year alone, signaling strong demand from investors eager to tap into next-generation defense innovation.

Comparing market performance

Anduril's significant Forge Price increase over the past year stands in contrast with the public market performance of Lockheed Martin, General Dynamics and Northrup Grumman over the same period:

Lockheed Martin (LMT) is +7.2% from April 2024 to April 2025, due to some recovery from its trough in March as spending pressure, flat earnings, and limited growth in next-gen tech sectors have weighed on its valuation.¹⁴
General Dynamics (GD) has posted a -0.9% return over the last year, though still lagging behind broader market indices.¹⁵
Northrop Grumman (NOC) has faced headwinds with a +3.5% return over the same period, impacted by budgetary uncertainty and missed contract expectations.¹⁶

Meanwhile, Anduril’s +52% gain on Forge tells a very different story — one of a company rapidly building momentum in a sector historically dominated by legacy players.

Forge + Yahoo Finance Data: A new lens on public vs. private defense contractor stocks

Thanks to the recently announced partnership between Forge and Yahoo Finance, investors can now closely monitor private company prices like Anduril’s Forge Price™ alongside public defense giants in real time. These side-by-side comparisons help spotlight potential shifts in market leadership — and Anduril’s current trajectory is tough to ignore.

Conclusion

What comes next?

Anduril’s growth is a signal that the defense industry is undergoing a noteworthy structural shift.¹⁷ The old model — build to spec, win the bid and iterate slowly — may no longer be sufficient¹⁸ in an era of rapidly evolving threats and technological acceleration. Anduril’s strategy of proactive product development and integrated tech stacks positions it as not just a disruptor, but potentially the next four-star general in the defense hierarchy.

While Anduril remains much smaller than Lockheed Martin, General Dynamics or Northrup Grumman in raw scale, its model, momentum, and market response suggest that a new type of defense contractor is gaining traction. As the U.S. government increasingly prioritizes speed, innovation, and adaptability, Anduril may be exactly the kind of partner it needs — and investors are taking note.

So, is it time for the defense sector to embrace a new Prime? Based on share price trends and contract wins, Anduril is making its case — one billion-dollar deal at a time.¹⁹

FAQs about Anduril

What is Anduril?

Anduril is a private defense technology company that designs and builds autonomous systems, AI-powered software, surveillance solutions, and battlefield platforms for the U.S. military and allies. Founded by Palmer Luckey in 2017, the company is known for its proactive approach to defense innovation.

Unlike traditional players such as Lockheed Martin or Northrop Grumman, which typically wait for detailed government specs before developing solutions, Anduril anticipates future threats and builds integrated systems ahead of demand — similar to how a tech company might ship product fast and iterate.

How can I invest in Anduril?

While Anduril remains a private company, accredited investors may be able to invest in Anduril pre-IPO through a secondary marketplace such as Forge. Anduril Industries co-founder Palmer Luckey told Bloomberg last month that his company is "on a path to being a publicly traded company." Luckey thinks it's "important" that Anduril IPO soon — although he hasn't said exactly when that might happen.²⁰