Question · Q4 2025
Brock Cannon asked for more details on the timing and planning capacity in Taiwan for the Mighty Hornet system, following its successful test, and how Kratos plans to recognize revenue for the program.
Answer
Eric DeMarco, President and CEO, Kratos Defense & Security Solutions, indicated that flight demonstrations are being prepared, and if successful, a production decision could be made in Q4 of this year, with Taiwan looking for hundreds, if not thousands, of systems. He attributed Kratos' success to its long-flying and in-production Tactical Firejet and Air Wolf drones. Deanna Lund, EVP and CFO, Kratos Defense & Security Solutions, explained that revenue recognition would depend on contractual terms, with services recognized as performed and aircraft either by percentage completion or at delivery.
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