The U.S. Navy has awarded Castelion Corp. a contract modification worth nearly $105 million to continue work tied to a long-range strike weapon effort, including development and testing connected to the Blackbeard Hypersonic Weapon.
The award was listed under the Navy’s contract announcements for April 24, 2026, and supports a Small Business Innovation Research Phase III project focused on producing a low-cost, highly manufacturable long-range strike weapon.
Contract Modification Exercises an Existing Option
The award is a $104,998,566 modification to a firm-fixed-price order previously issued under a basic ordering agreement.
In practical terms, the Navy is exercising an option that allows Castelion to continue moving the project forward rather than starting a completely new contract from scratch.
The contract is connected to SBIR Phase III topic AF231-D026, titled “Low Cost Highly Manufacturable Long Range Strike Weapon Production.”
That wording points to one of the Navy’s central goals: building advanced strike weapons in a way that can be produced more efficiently and at lower cost.
Blackbeard Hypersonic Weapon Takes Center Stage
A major part of the award involves final early operational capability requirements for the Blackbeard Hypersonic Weapon. Castelion will also provide test and integration configurations for the system.
The contract also includes the completion of live-fire test events in the Indo-Pacific Command area of responsibility, a region where long-range strike capability is especially important because of the vast distances involved and the growing focus on deterrence.
Work Will Be Based in California
The work will be carried out in Torrance, California, where Castelion is based. The Navy expects the effort to be completed by January 2028.
The timeline suggests the program is moving through a serious development and testing phase, with enough runway for integration work, operational preparation, and live-fire events before completion.
Navy Research and Development Funds Will Cover the Award
The award will use Navy research, development, test, and evaluation funding from two fiscal years. According to the contract notice, $33,983,566 will come from fiscal 2025 Navy RDT&E funds, while $71,015,000 will come from fiscal 2026 Navy RDT&E funds.
The full amount will be obligated at the time of award. However, the fiscal 2025 portion, worth nearly $34 million, is set to expire at the end of the current fiscal year if not used.
Contract Was Competed
The Navy said the contract action was competed, meaning Castelion was selected through a competitive process rather than receiving the award as a sole-source action.
The contracting activity is the Naval Air Warfare Center Aircraft Division in Lakehurst, New Jersey, which is managing the award on behalf of the Navy.
Impact and Consequences
This award shows that the Navy is continuing to invest in hypersonic and long-range strike capabilities, especially systems that can be built at lower cost and potentially produced at scale.
That matters because advanced weapons are often expensive and difficult to manufacture quickly, creating pressure on the Pentagon to find faster and more sustainable production models.
The Indo-Pacific testing component is also significant.
It signals that the weapon is being evaluated in a theater where range, speed, survivability, and rapid response are central to U.S. military planning.
If the Blackbeard effort succeeds, it could strengthen the Navy’s ability to hold distant targets at risk and support broader deterrence goals in the region.
For Castelion, the award is a major boost. A nearly $105 million Navy modification gives the company a larger role in the defense hypersonics space and could position it for future production or follow-on work if testing proves successful.
What’s next?
The next phase will likely involve completing early operational capability requirements, preparing test and integration configurations, and carrying out live-fire events in the Indo-Pacific Command area.
The Navy will be watching closely to see whether the system can meet performance, production, and integration expectations.
If the program performs well, it could lead to expanded development, further testing, or eventual production decisions before or after the scheduled January 2028 completion date.
Summary
The Navy has awarded Castelion Corp. a $104.99 million contract modification to continue work on a long-range strike weapon project tied to the Blackbeard Hypersonic Weapon.
The effort will support early operational capability requirements, testing, integration, and live-fire events in the Indo-Pacific.
Work will take place in Torrance, California, and is expected to finish by January 2028. The award reflects the Navy’s push for lower-cost, manufacturable hypersonic strike capability.
Bulleted Takeaways:
- The Navy awarded Castelion Corp. a $104,998,566 contract modification.
- Castelion is based in Torrance, California.
- The award supports a Small Business Innovation Research Phase III effort.
- The project is titled “Low Cost Highly Manufacturable Long Range Strike Weapon Production.”
- The contract involves the Blackbeard Hypersonic Weapon.
- Castelion will support final early operational capability requirements.
- The company will also provide test and integration configurations.
- Live-fire test events will be completed in the Indo-Pacific Command area of responsibility.
- Work is expected to be completed by January 2028.
- Navy RDT&E funds from fiscal 2025 and fiscal 2026 will be obligated at award.
- The contract action was competed.
- The Naval Air Warfare Center Aircraft Division in Lakehurst, New Jersey, is the contracting activity.
