KRATOS DEFENSE & SECURITY SOLUTIONS (KTOS) Company Report

Kratos Defense & Security Solutions, Inc. has opened a new Propulsion Manufacturing Facility in Auburn Hills, Michigan, to fulfill upcoming demand for its Spartan engines.
The 22,500-square-foot facility is designed for concurrent production of all four Spartan engine types, with a capacity of over 50,000 units per year.
This investment aims to advance affordable mass inventory levels and expand crucial infrastructure for the US defense industrial base.

Nov 13, 2025, 2:00 PM

Press Release

Kratos Defense & Security Solutions, Inc. to Acquire Orbit Technologies Ltd

KTOS

M&A

Kratos Defense & Security Solutions, Inc. signed a definitive agreement on November 4, 2025, to acquire 100% of Orbit Technologies Ltd for $356.3 million.
The acquisition is expected to be funded via cash on Kratos’ balance sheet and is anticipated to be immediately accretive across virtually every financial metric for Kratos.
Orbit is a leading global provider of mission-critical satellite-based communication systems, and the transaction is projected to close by the end of March 2026.

Nov 7, 2025, 9:09 PM

8-K

Kratos (KTOS) Updates 2025-2027 Revenue and Margin Guidance, Announces Orbit Acquisition

KTOS

Guidance Update

M&A

Revenue Acceleration/Inflection

Kratos (KTOS) increased its full-year 2025 revenue forecast to $1.310 billion to $1.330 billion, reflecting 14%-15% organic growth over fiscal 2024, up from the original 11%-13% forecast. The company also raised its full-year 2026 organic revenue growth forecast to 15%-20% and provided a preliminary 2027 target of 18%-23% organic growth.
The company projects an approximate 100 basis point EBITDA margin expansion for 2026 over 2025, with another similar expansion in 2027 over 2026, as it scales the business and transitions to more profitable contracts.
Kratos announced the acquisition of Orbit for approximately $356 million, a global provider of mission-critical satellite communication systems, which is expected to be immediately accretive across virtually every financial matrix. This transaction is scheduled to close in Q1 2026.
For Q3 2025, cash flow used in operations was $13.3 million, and free cash flow used in operations was $41.3 million, primarily due to working capital requirements from revenue growth and investments. Consolidated days sales outstanding (DSOs) increased to 111 days.

Nov 4, 2025, 10:00 PM

Transcript

Kratos Reports Strong Q3 2025 Results, Raises Guidance, and Announces Orbit Acquisition

KTOS

Earnings

Guidance Update

M&A

Kratos reported Q3 2025 revenues of $346.7 million and Adjusted EBITDA of $30.8 million, both exceeding estimated ranges.
The company increased its full-year 2025 revenue forecast to 14%-15% organic growth (up from 11%-13%) and raised its full-year 2026 organic revenue growth forecast to 15%-20% (up from 13%-15%), also providing a preliminary 2027 revenue growth target of 18%-23% organic growth.
Kratos projects an approximate 100 basis point EBITDA margin expansion for 2026 over 2025, and another approximate 100 basis point expansion in 2027 over 2026.
Kratos announced the acquisition of Orbit for approximately $356 million, which is expected to be immediately accretive across virtually every financial metric.
Key growth drivers include the Valkyrie program (with the MUX TACAIR program and a partnership with Airbus for a German variant), the hypersonic franchise, and new turbojet engine programs.

Nov 4, 2025, 10:00 PM

Transcript

KTOS Reports Strong Q3 2025 Results and Raises Future Revenue Guidance

KTOS

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Kratos (KTOS) reported strong Q3 2025 financial results, with revenues of $346.7 million and adjusted EBITDA of $30.8 million, both exceeding estimated ranges.
The company significantly increased its full-year 2025 revenue guidance to $1.310 billion to $1.330 billion, reflecting 14%-15% organic growth over 2024, and raised its 2026 organic revenue growth forecast to 15%-20%. A preliminary 2027 organic revenue growth target of 18%-23% was also provided.
Kratos projects approximately 100 basis point EBITDA margin expansion for both 2026 and 2027.
Key strategic developments include the announced Orbit acquisition (approx. $70 million annual revenue, 23% EBITDA, expected to close Q1 2026, not in current guidance) , the Valkyrie becoming a program of record with the Marines (not in current guidance) , and significant contract wins for Poseidon (total potential value approx. $750 million) , Anaconda, and Helios.

Nov 4, 2025, 10:00 PM

Transcript

Kratos Defense & Security Solutions, Inc. Reports Q3 2025 Financial Results and Updates Guidance

KTOS

Earnings

Guidance Update

Revenue Acceleration/Inflection

Kratos reported strong Third Quarter 2025 Revenues of $347.6 million, marking 26.0 percent growth and 23.7 percent organic growth over the prior year period. This was driven by 35.8 percent organic growth in Unmanned Systems and 20.0 percent organic growth in Kratos Government Solutions.
For Q3 2025, the company achieved Net Income of $8.7 million and Adjusted EBITDA of $30.8 million, with Adjusted EPS of $0.14.
The consolidated book-to-bill ratio for Q3 2025 was 1.2 to 1 on $414.1 million in bookings, contributing to a consolidated backlog of $1.480 billion as of September 28, 2025.
Kratos increased its full year 2025 revenue guidance to $1,320 to $1,330 million and raised its full year 2026 organic revenue growth forecast to 15 percent to 20 percent above the 2025 forecast.
The company anticipates Adjusted EBITDA margin rate increases of approximately 100 basis points for both full year 2026 and fiscal year 2027 over the preceding years.

Nov 4, 2025, 9:19 PM

8-K

Kratos to Acquire Orbit Technologies Ltd

KTOS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Kratos Defense & Security Solutions, Inc. has signed a definitive agreement to acquire Orbit Technologies Ltd for $356.3 million, which is expected to be funded via cash on Kratos’ balance sheet.
Orbit is a leading global provider of mission-critical satellite-based communication systems for mobile and unmanned aerial, seaborne, undersea, and land systems, military vehicles, and other systems.
The acquisition is expected to be immediately accretive across virtually every financial metric for Kratos.
The transaction is anticipated to close by the end of March 2026, subject to customary closing conditions.

Nov 4, 2025, 9:05 PM

Press Release

Kratos and GE Aerospace Announce Successful GEK800 Engine Altitude Testing

KTOS

New Projects/Investments

Product Launch

Kratos Defense & Security Solutions and GE Aerospace announced the successful completion of altitude testing for the GEK800 engine.
The testing, which also included durability and limits testing, concluded this week (October 31, 2025) and marks a major milestone for the engine program, validating its performance and accelerating its path toward production.
The 800-lb jet engine is designed to power the next generation of affordable unmanned aerial systems (UAS) and collaborative combat aircraft (CCA).
This collaboration, formalized by a teaming agreement in June, combines Kratos's 25 years of experience in small, affordable engines with GE Aerospace's century of propulsion technology and high-rate production capabilities.

Oct 31, 2025, 1:00 PM

Press Release

Kratos Unveils "Ragnarök" Low-Cost Cruise Missile System

KTOS

Product Launch

New Projects/Investments

Kratos Defense & Security Solutions, Inc. announced the launch of its new "Ragnarök" Low-Cost Cruise Missile (LCCM) system on October 13, 2025, designed for tactical strike capabilities.
The Ragnarök LCCM boasts an operational range of 500 nautical miles with an 80-pound payload, high-altitude capability up to 35,000 feet, and a cruise speed greater than Mach 0.7.
With an estimated production cost of approximately $150,000 per unit in quantities of 100, Kratos emphasizes the system's affordability and readiness for high-quantity production.

Oct 13, 2025, 12:30 PM

Press Release

Kratos Awarded Navy Contract for AN/SPY-1 Radar Sustainment

KTOS

New Projects/Investments

Kratos Defense & Security Solutions (KTOS) has been awarded Phase 1 of a contract to develop an organic sustainment capability for the U.S. Navy’s AN/SPY-1 radar systems.
This single-award agreement, internally named Project Anaconda, has an initial total projected ceiling of $175 million across multiple phases.
Kratos will establish a 155,000-square-foot Indiana Radar Integration Complex (IRIC), expected to be operational in 2027, to support the AN/SPY-1 radar systems which are projected to remain in service through 2065.

Oct 6, 2025, 12:03 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for KRATOS DEFENSE & SECURITY SOLUTIONS.

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