KTOS Reported this cycle

Kratos Defense

Round Rock, TX Founded 1994 Defense & Aerospace

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Latest analysis

Updated Nov 5, 2026

Kratos posts 35.7% revenue growth and $1.04B bookings quarter with 2.2:1 book-to-bill; initiates FY2027 guidance of $2.1B–$2.2B revenue on broad program-of-record momentum

Kratos delivered Q3 FY2026 revenue of $471.8M with 23.2% organic growth and $50.9M adjusted EBITDA, well above the high end of guidance, driven by 149% organic growth in rocket/hypersonics and 52.5% total KGS segment growth. The company secured a Valkyrie LRIP contract, received EMD designation for the GEK800 turbofan as JASSM second-source propulsion, and disclosed approximately $600M in cumulative hypersonics funding with a clear path to $700M in 2027 hypersonics revenue. Record backlog of $2.6B, a $15.5B opportunity pipeline, and initial FY2027 guidance of $2.1B–$2.2B revenue with $230M–$240M adjusted EBITDA signal continued high-conviction organic growth across drones, propulsion, C5ISR, and space.

Tone: bullish

Revenue

$1.3B

KTOS 10-K · FY 2025

Employees

4,300

Revenue FY2024

$1.1B

Founded

1994

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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