Stock Markets September 9, 2026 08:29 AM

Covenant launches Saxony production hub for Anthem cruise missile

US-Israeli startup opens German factory as it scales dual-site manufacturing for Europe and the U.S.

By Sofia Navarro
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Covenant, a US-Israeli defense startup, inaugurated a 110,000-square-foot production facility in Saxony, Germany, to manufacture its Anthem ground-launched cruise missile. The company also disclosed parallel facilities in Texas and Israel, recent funding of more than $250 million, booked orders of roughly $150 million, and contracts with U.S. military offices to accelerate testing and adapt the missile for maritime use.

Covenant launches Saxony production hub for Anthem cruise missile
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Key Points

  • Covenant opened a 110,000-square-foot factory in Saxony, Germany, to mass produce the Anthem ground-launched cruise missile; first deliveries to at least two European customers are expected in Q1 2027.
  • The company also revealed a 105,000-square-foot facility in Grand Prairie, Texas, and a 32,000-square-foot site in northern Israel; Texas serial production is slated to start in Q1 2027 with a target ramp to 5,000 units per year.
  • Covenant has raised over $250 million across three funding rounds, has about $150 million in orders booked, and holds U.S. Army and U.S. Navy agreements supporting accelerated testing, qualification, and a maritime adaptation valued at roughly $70 million.

Covenant on Wednesday opened a 110,000-square-foot factory in Saxony, Germany, intended for the mass production of its Anthem ground-launched cruise missile as NATO partners look to replenish depleted inventories of precision-strike weapons.

The plant, located near Leipzig airport - described in public sources as a military logistical hub - is expected to supply its first shipments to at least two European customers in the first quarter of 2027, according to people familiar with the matter cited by Bloomberg. Covenant has said the Anthem can carry a warhead weighing more than 200 kilograms.

In a simultaneous announcement, the company revealed that it has emerged from stealth with a network of facilities that includes a 105,000-square-foot production site in Grand Prairie, Texas, and a 32,000-square-foot location in northern Israel. Covenant said the Texas site will enter serial production in the first quarter of 2027 and will scale toward an annual output of 5,000 units.

Financially, Covenant reported more than $250 million raised across three funding rounds led by Andreessen Horowitz, Founders Fund, Lux, 8VC, Aleph and Lightspeed. The company also said it has approximately $150 million in orders on its books to date; those bookings cover qualification, research and development, and multiple production contracts.

On the procurement and test front, Covenant is operating under an Other Transaction Agreement with the U.S. Army to support an accelerated test and qualification program. The company also holds a contract with the U.S. Navy’s Rapid Capabilities Office, valued at roughly $70 million, aimed at adapting the ground-launched Anthem into a Maritime Anthem variant.

Since the missile's maiden flight in August 2025, Covenant has flown the Anthem in excess of 200 times. The company has conducted multiple test flights with the U.S. Army at domestic and international locations, reflecting the role of those trials in its qualification timeline.


Operational footprint and timeline

Covenant now operates three primary facilities: the newly opened 110,000-square-foot Saxony plant, a 105,000-square-foot site in Texas slated for serial production beginning in early 2027, and a 32,000-square-foot facility in northern Israel. The company has linked its manufacturing expansion to planned deliveries in the first quarter of 2027 for European customers and to a production ramp in Texas aimed at achieving 5,000 units per year.

Contracts, bookings and testing

The startup has secured roughly $150 million in orders that encompass qualification work, research and development efforts, and production contracts. It is engaged with U.S. military acquisition pathways through an Other Transaction Agreement with the Army and a roughly $70 million Navy Rapid Capabilities Office award to develop a Maritime Anthem variant.

These elements together outline Covenant's stated pathway from flight-testing to qualification and scaled production, with timelines tied to the facilities opened in Germany, Texas and Israel.

Risks

  • Timing and delivery uncertainty - The expectation of first deliveries to European customers in Q1 2027 and the Texas production ramp are forward-looking operational targets that depend on successful qualification and serial production.
  • Production scale-up risk - Achieving the stated ramp toward 5,000 units per year from the Texas facility will require execution across manufacturing, supply chain and workforce dimensions.
  • Dependence on military qualification and contracts - Continued progress and revenue depend on outcomes from the Army's accelerated test and qualification program and the Navy's adaptation contract.

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