Anduril delays IPO plans as CEO warns defense tech valuations are overheated

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Anduril delays IPO plans

Highlights

Anduril CEO Brian Schimpf said the company will delay IPO plans due to overheated defense tech valuations and concerns over sustainable investor returns.
Anduril's valuation doubled in May to $61 billion as demand rises from military reindustrialization, with defense budget spending tracking toward $1.5 trillion.
Despite strong sector demand, the tech IPO market remains cautious as SpaceX shares fell over 25% since debut and AI firms like OpenAI lack set IPO timelines.

IPO timing concerns amid elevated valuations

As reported by CNBC, Anduril CEO Brian Schimpf says the company is in no hurry to go public and views an IPO during a market hype cycle as a poor outcome for investors. Speaking to CNBC’s Julia Boorstin at the Allen & Co. Sun Valley Conference on Thursday, Schimpf says Anduril defines a successful listing as one that still delivers a good return to investors three years after the offering.

Schimpf says some company valuations are "crazy high" and questions whether current market pricing is rational. He adds that a number of businesses are moving into overvalued territory in ways that could eventually backfire.

Those comments come as Anduril, which develops drones and AI-powered weapons, remains one of the most highly valued private technology companies. The company doubled its valuation in May to $61 billion, and Schimpf said at that time that Anduril would invest aggressively to scale defense systems for the U.S.

Defense tech demand rises as IPO market stays selective

Defense technology companies are benefiting from a broader rise in spending tied to President Donald Trump’s military reindustrialization plans. The article says defense budget spending is on track to reach $1.5 trillion, supporting demand for products and services across the sector.

Even so, the technology IPO market remains relatively subdued despite high-profile offerings. SpaceX shares closed at $201.80 on their third trading day after last month’s record offering, but have since fallen by about a quarter and are trading just above the $150 opening price.

Other AI leaders are also taking a cautious approach. OpenAI and Anthropic have both confidentially filed to go public, but neither company has set an IPO timeline, while some investors are increasingly questioning whether public markets would support valuations approaching $1 trillion.

At Anduril, questions remain over when the company will eventually list. Founder Palmer Luckey says he definitely aims to take the company public, but no target date has been announced.

Our earlier coverage of the Nasdaq 100 rally explained how fresh passive demand was building after BlackRock launched the iShares Nasdaq 100 ETF and SpaceX was officially added to the index. We also noted that while the index stayed above key moving averages, mixed momentum signals suggested the upside could prove fragile if sentiment shifts.

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