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Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, systems, and software company operating in the defense, national security, and commercial markets. The company is known for its innovative and disruptive approach, focusing on affordability and rapid development of mission-critical solutions. Kratos sells a range of products and services, including virtualized ground systems, unmanned aerial drone systems, hypersonic vehicles, propulsion systems, and training systems.
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Kratos Government Solutions (KGS) - Provides microwave electronics products, space, satellite and cyber solutions, training solutions, C5ISR/modular systems, turbine technologies, and defense and rocket support services.
- Microwave Electronics Products - Develops products for missile, radar, missile defense, space, satellite, counter-UAS, directed energy, and communication systems.
- Space, Satellite, and Cyber Solutions - Offers virtualized ground systems for satellites and space vehicles, including software for command & control (C2) and telemetry, tracking, and control (TT&C).
- Training Solutions - Provides virtual and augmented reality training systems for the warfighter.
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Unmanned Systems (US) - Develops unmanned aerial, ground, and seaborne systems, along with command, control, and communications systems.
- Unmanned Aerial Drone Systems - Focuses on jet-powered unmanned aerial drone systems.
- Hypersonic Vehicles and Rocket Systems - Engages in the development of hypersonic vehicles and rocket systems.
- Propulsion Systems - Includes propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, and launch systems.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Deanna Lund ExecutiveBoard | Executive Vice President and Chief Financial Officer | Deanna Lund has served as the Executive Vice President and Chief Financial Officer at KTOS since April 2004 and was elected as a director in May 2021, playing a key role in overseeing the financial operations and strategic growth of the company. | ||
Eric DeMarco ExecutiveBoard | Chief Executive Officer | CEO of Kratos Defense & Security Solutions, Inc. since April 1, 2004 and previously served as President and Chief Operating Officer starting November 2003. He has also held executive roles at The Titan Corporation, demonstrating extensive leadership experience in the industry. | View Report → | |
Benjamin Goodwin Executive | Senior Vice President, Corporate Development & Government Affairs | Benjamin Goodwin currently serves as Senior Vice President, Corporate Development & Government Affairs at KTOS since June 2018. He previously held the role of President of the Public Safety & Security Segment from June 2008 until June 2018, contributing significantly to corporate growth. | ||
David Carter Executive | President, Defense & Rocket Support Services Division | David Carter is the President of the Defense & Rocket Support Services Division at KTOS since December 2009. He brings over 45 years of defense industry experience and previously served as the Executive Vice President of the DRSS Division from December 2007 to December 2009. | ||
Jonah Adelman Executive | President of the Microwave Electronics Division | Jonah Adelman has been serving as the President of the Microwave Electronics Division at KTOS since August 2015 , and previously managed the Electronic Products Division’s Israel business group from March 2011. | ||
Maria Cervantes Executive | Vice President, Corporate Controller, and Principal Accounting Officer | Maria Cervantes is the Vice President, Corporate Controller, and Principal Accounting Officer at KTOS since May 2016. She previously served as the Director of Internal Audit from May 2012 to May 2016, gaining extensive financial and operational expertise. | ||
Marie Mendoza Executive | Senior Vice President, General Counsel, and Secretary | Marie Mendoza has served as the Senior Vice President, General Counsel, and Secretary at KTOS since December 2015, overseeing the company’s legal affairs. Prior to this, she contributed her legal expertise as the Senior Corporate Attorney starting in December 2011. | ||
Phillip Carrai Executive | President, Space, Training & Cyber Division | Phillip Carrai has served as President of KTOS's Space, Training & Cyber Division since December 2009, and previously served as Executive Vice President from July 2008 to December 2009. | ||
Stacey Rock Executive | President, Kratos Turbine Technologies Division | Stacey Rock is the President of Kratos’ Turbine Technologies Division since February 2019, and has extensive leadership experience including serving as Senior Vice President for Weapons & Defense Solutions from November 2016 to February 2019. | ||
Steven Fendley Executive | President, Unmanned Systems Division | Steven Fendley has served as the President of the Unmanned Systems Division at KTOS since January 2017, where he leads innovation in unmanned systems. He previously held executive roles at KTOS as Senior Vice President, General Manager/Chief Technology Officer (March 2016 to January 2017) and Vice President of Engineering (February 2014 to March 2016). | ||
Thomas Mills Executive | President of Kratos’ C5ISR Systems Division | Serves on several boards including his alma mater’s foundation | Thomas Mills has been serving as the President of Kratos’ C5ISR Systems Division since August 2013. Previously, he served as President and CEO of Gichner Systems Group from 2004 until its acquisition by Kratos in May 2010. | |
Amy Zegart Board | director | Member of Audit Committee for The Capital Group (American Funds); Member of Contracts Committee for The Capital Group (American Funds) | Amy Zegart has served as a director at KTOS since September 2014 and is the Chairperson of the Nominating and Corporate Governance Committee. She also holds external roles on the Audit and Contracts Committees for the fund boards of The Capital Group (American Funds) and brings extensive expertise from her academic and government experiences. | |
Bobbi Doorenbos Board | Board Director | National Guard Association; STEM Flights; Senior Advisor at The Roosevelt Group; American Airlines Pilot | Bobbi Doorenbos is a veteran military leader with nearly 25 years of experience in defense, intelligence, and military operations. She joined KTOS as a Board Director on March 28, 2024 and has held numerous key roles including advisory positions focused on defense policy and STEM education initiatives. | |
Bradley Boyd Board | director | Visiting Fellow at the Hoover Institution, Stanford University | Bradley Boyd is a director on the Board of Kratos Defense & Security Solutions, Inc. elected on November 1, 2023, he brings over 31 years of military and national security experience, including extensive work in emergent technologies and AI-enabled warfighting development. | |
Scot Jarvis Board | Director | Board member at Airspan Networks; Board member at Spectrum Effect; Board member at Slingshot Sports; Board member at Investco, LLC | Scot Jarvis has served as a Director at KTOS since February 1997 and is the Chairperson of the Compensation Committee at KTOS. With extensive experience in wireless communications investments and M&A strategies from his various roles at other companies, he brings significant expertise to the board. | |
Scott Anderson Board | Director | Principal of Cedar Grove Partners, LLC (since 1997); Principal of Cedar Grove Investments, LLC (since 1998); Board member at PowerLight, Inc.; Board member at Saltchuk, Inc.; Board member at Anvil Corp.; Chairman of Opanga, Inc.; Advisor at Tupl, Inc. | Scott Anderson has served as a Director at KTOS since March 1997 and is the Chair of the Audit Committee, bringing extensive expertise in mergers and acquisitions, litigation, and board governance. | |
William Hoglund Board | Chairman of the Board | Owner and Director of SAFE Boats International; Director of Bridger Trust | William Hoglund serves as the Chairman of the Board at KTOS since June 2009 and has been a director since February 2001. He also holds external roles as Owner and Director of SAFE Boats International since 2000 and as Director of Bridger Trust since November 2021. |
- Could you provide more details on the margin headwinds in the Unmanned Systems segment due to pricing pressures and inflation on subcontractor costs for fixed-price contracts, and how you plan to address these challenges in 2025?
- Given the delays in establishing your microwave product facility in India, with expectations possibly moving from 2026 to 2027, what steps are you taking to accelerate this timeline and mitigate the impact on your financial plans?
- Regarding the MACH-TB program, since revenue is expected to significantly ramp starting in 2026 due to long lead times for SRMs and flight vehicles, how are you managing these challenges to ensure timely execution and profitability over the next few years?
- As Kratos becomes more of a merchant supplier, particularly with low-cost engines and the Prometheus rocket motor joint venture for hypersonics, how will this shift impact your long-term margin profile and overall strategy for the company?
- With your Space and Satellite business currently at approximately 2/3 government and 1/3 commercial, and with commercial demand expected to be flat due to satellite deployment delays, how do you plan to adjust your business mix and address potential revenue impacts in this segment?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Anduril | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
XBow | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
Shield AI | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
Castellion | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
Ursa Major | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
Bee Hive | Competition in the KGS and US segments includes newer defense technology companies, which are part of a competitive landscape that also involves tier one, large U.S. Government contractors and system integrators. |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
General Atomics | System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. |
System integrators are part of the competitive landscape in the KGS and US segments, which also includes tier one, large U.S. Government contractors and newer defense technology companies. | |
Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. | |
Qinetiq | Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. |
Cobham | Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. |
Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. | |
Peraton | Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. |
Linquest (now owned by KBR) | Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. |
Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. | |
Tier two competitors include smaller government contractors, which are part of the competitive landscape in the defense industry. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Norden Millimeter, Inc. | 2025 | Acquisition by asset purchase – Kratos acquired select assets for $37.8 million in common stock (subject to a $6 million holdback) and issued 1,095,674 shares valued at $32.2 million, completed on February 4, 2025. The acquisition of microwave and millimeter wave products is expected to add $20–24 million in revenue, aligning well with Kratos’ defense electronics strategy. |
KTT Core | 2024 | Final consolidation move – On June 21, 2024, Kratos acquired the remaining 9.95% of KTT Core for approximately $22.5 million ($11.25 million cash plus 583,700 shares), achieving 100% ownership and building on earlier acquisitions from 2019 and 2022 to strengthen its portfolio. |
Sierra Technical Services, Inc. | 2023 | Equity-based purchase with earn-outs – Completed on October 3, 2023, the deal involved issuing 866,026 shares at closing and up to an additional 979,038 shares contingent on earn-outs, with a total potential valuation of about $25 million. This strategic acquisition of a longtime partner brings a critical stealth jet drone contract valued at approximately $77 million and a facility on a key airbase. |
Southern Research Engineering Division (SRE) | 2022 | Integrated acquisition for technology expansion – Executed on March 9, 2022 and completed on May 23, 2022, the deal was valued at roughly $79.4–$80.0 million (approximately $74.4 million cash plus $5.0 million in stock), leading to the formation of Kratos SRE, Inc. The acquisition provided advanced materials, intellectual property, and key intangible assets, contributing to subsequent revenue growth. |
Cosmic Advanced Engineered Solutions, Inc. (Cosmic AES) | 2022 | Cash acquisition with strategic integration – Completed on December 27, 2021 (with reporting in 2022), the acquisition was made for $37.5 million in cash (subject to adjustments and a $0.5 million holdback). Cosmic AES, which specializes in RF, digital signal processing, geolocation, and embedded cyber solutions, was integrated into Kratos’ Government Solutions Segment, with significant allocations to goodwill and identifiable intangible assets bolstering its strategic capabilities. |
Recent press releases and 8-K filings for KTOS.
- Q1 revenue reached $302.6 million, marking a 9.2% increase from Q1 2024 with notable organic growth in key segments
- Adjusted EBITDA was $26.7 million, surpassing analyst estimates and reflecting strong performance in Microwave Products and C5ISR
- Operating Income was $6.6 million and Net Income stood at $4.5 million, indicating improved profitability over the prior year
- The company maintained a consolidated book-to-bill ratio of 1.2:1 and reported consolidated bookings of $365.6 million, underscoring strong order flow
- A robust opportunity pipeline of approximately $12.6 billion highlights ongoing momentum in defense and national security programs
- Updated Q2 guidance anticipates impacts from facility moves and ongoing investment in manufacturing expansion to support future revenue growth, particularly in its hypersonic and unmanned systems franchises