# Anduril pitches new Steelfin interceptor as a lower-cost option to PAC-3

Anduril executives aim for a third of the PAC-3 MSE's price, Breaking Defense reported. The company declined to say whether Steelfin was selected for the Army's next-generation PAC-3 effort.

Published 2026-10-13 by TGOs. Canonical: https://tgos.io/news/2026/10/13/anduril-pitches-new-steelfin-interceptor-as-a-lower-cost/

Anduril on Monday unveiled Steelfin, a family of two-stage surface-to-air interceptors designed for cruise, ballistic and hypersonic missile threats.[1][2] Executives aim for it to cost a third of the price of the Patriot's PAC-3 Missile Segment Enhancement (MSE), Breaking Defense reported.[2] That benchmark is Lockheed Martin's missile, built under an undefinitized multiyear contract Lockheed puts at $58.62 billion.[4] Lockheed says that funding lets it triple PAC-3 MSE capacity by the end of 2030.[4]

Anduril was one of many vendors chosen for testing and demonstrations after the Army's xTech Apex Intercept competition, Breaking Defense reported Monday.[2] Steve Milano, Anduril's senior director of missiles, said the company is vying for the Army's low-cost interceptor program with Steelfin.[2] He called it a "natural fit" for Future Interceptor, the Army's effort to find a next-generation PAC-3 MSE, though Anduril executives declined to say whether Steelfin was selected.[2] Lockheed's Tim Cahill said in a Breaking Defense report Friday that Lockheed is one of two companies selected, without naming the other.[3]

The company says Steelfin variants are compatible with launchers including the M903A2, the Mk 41 Vertical Launch System and Typhon.[1] It plans to produce on the order of several thousand Steelfin variants a year in the short term.[1] Milano expects full-rate production at the end of 2028 or the beginning of 2029, Breaking Defense reported.[2] Anduril intends to build most subassemblies at Arsenal-1 in Ohio and do final integration with a "handful of our partners," he said.[2] Anduril says it has spent years on Steelfin "investing alongside multiple customers," though neither its announcement nor the outlet's report names one or describes an order.[1][2]

## Why it matters

Anduril says it has completed ballistic testing with representative air vehicles and will begin flight testing Steelfin variants next year.[1] Naming the second Future Interceptor company will show whether Steelfin advanced in the same program as Lockheed's PAC-3 Edge, which Lockheed intends to begin testing in 2027, according to Breaking Defense.[3]

## Sources

1. Anduril: Steelfin (Oct. 12, 2026) <https://www.anduril.com/news/steelfin>
2. Breaking Defense: Anduril unveils Steelfin interceptor as cheaper option to PAC-3 missiles (Oct. 12, 2026) <https://breakingdefense.com/2026/10/anduril-unveils-steelfin-interceptor-as-cheaper-option-to-pac-3-missiles/>
3. Breaking Defense: Lockheed unveils PAC-3 Edge, its next-gen Patriot interceptor (Oct. 9, 2026) <https://breakingdefense.com/2026/10/lockheed-unveils-pac-3-edge-its-next-gen-patriot-interceptor/>
4. Lockheed Martin: Department of War Awards Lockheed Martin $58.62B for Multiyear PAC-3 MSE Production (July 29, 2026) <https://news.lockheedmartin.com/2026-07-29-Department-of-War-Awards-Lockheed-Martin-58-62B-for-Multiyear-PAC-3-MSE-Production-to-Strengthen-the-Arsenal-of-Freedom>
