Question · Q3 2025
Seth Siefman inquired about the progress of the Valkyrie program with the Marines, specifically the ramp-up to full-rate production and the potential for affordable mass. He also asked for a qualitative framework regarding the company's EBITDA progression and the timeline for becoming cash flow positive or narrowing cash burn.
Answer
Eric DeMarco, Kratos' President and CEO, explained that the Valkyrie program with the Marines is progressing as a typical program of record, with infrastructure, personnel, and equipment being put in place for production quantities. He anticipates dozens of aircraft annually in full-rate production. Mr. DeMarco stated that Kratos has a clear line of sight on when the business will turn cash flow positive, but noted that increasing opportunities and associated bid and proposal costs might slightly delay this, even as EBITDA margins are expected to expand.