KTOS Reported this cycle

Kratos Defense

Round Rock, TX Founded 1994 Defense & Aerospace

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Latest analysis

Updated Aug 4, 2026

Kratos Q2 2026: 30.5% revenue growth and raised full-year guidance signal accelerating defense production ramp across hypersonics, jet engines, and unmanned systems.

Kratos Defense delivered Q2 2026 revenues of $458.8 million, up 30.5% year-over-year (19.1% organic), driven by 50.2% organic growth in Defense Rocket Systems and 43.3% in Turbine Technologies — segments directly tied to hypersonic and cruise missile demand. Management raised full-year 2026 revenue guidance to $1.750–$1.810 billion and explicitly committed to 3,000 jet engines in production by 2027 and approximately 40 Valkyries annually by early 2028, signaling that Kratos has crossed from development-stage to scaled production across multiple high-priority DoW programs. The LTM book-to-bill of 1.3x and a $15.0 billion bid and proposal pipeline — up from $14.3 billion at end of Q1 — confirm that demand acceleration is structural, not episodic.

Tone: bullish

Revenue

$1.3B

KTOS 10-K · FY 2025

Employees

4,300

Revenue FY2024

$1.1B

EBITDA margin

8.3%

Profile

KTOS 10-K Item 1 · Feb 23, 2026

Kratos Defense & Security Solutions is a technology, hardware, and software company serving defense, national security, and commercial markets. The company is best known for jet-powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, microwave electronics, and virtualized satellite ground systems. Kratos differentiates itself through internally funded R&D, a 'first to market' strategy, and an explicit focus on affordability as a core engineering discipline.

Read filing description ↓

Kratos is a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field relevant solutions that address our customers' mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos' approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as the innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing, which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos' primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR) and microwave electronic products for missile, radar, air defense, missile defense, space, satellite, counter unmanned aircraft systems (CUAS), directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. We believe that there is a generational recapitalization of weapon systems and related defense industrial bases occurring globally, including with the United States and its allies, to address individual and potential collective peer and near peer threats, including Russia, China, North Korea and Iran. The Company currently has record levels of backlog and opportunity pipeline.

Primary products

BQM-177 jet target drone system
BQM-167 jet target drone system
MQM-178 jet target drone system
Valkyrie fifth-generation stealth tactical drone
Mako high performance jet powered tactical unmanned drone
Thanatos tactical drone

Business segments

Kratos Government Solutions Unmanned Systems

End markets

U.S. Department of Defense / Department of War U.S. Intelligence Community Foreign Military Sales Commercial Space and Satellite Commercial Aviation

Geographies

United States Other North America Asia Pacific Middle East Europe Other

Named customers

U.S. Air Force U.S. Navy U.S. Army U.S. Marine Corps Missile Defense Agency Space Command Space Force NASA

We have a highly diverse base of customers and contracts with no contract representing more than 5% of 2025 revenue.

Named competitors

Anduril XBow Shield AI Castelion Ursa Major Bee Hive Northrop Grumman Lockheed Martin

“We believe that Kratos is known as the innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing, which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers.” Competitive position, as stated in the filing

Revenue commentary · FY 2025

Total revenues grew from $1,136.3 million in fiscal 2024 to $1,346.8 million in fiscal 2025, driven by growth in both the Kratos Government Solutions and Unmanned Systems segments.

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Analysis, signals, diligence answers, M&A activity and every quote, each citing the filing it came from.

SeventhBiz analysis 6 signals 9 diligence answers 3 M&A transactions SWOT

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