Category: Aerospace and Defense

Release – Kratos Successfully Launches Second Erinyes™ Hypersonic Test Bed in MDA’s HTB-2 Mission

Posted on by aweinsoff@channelchek.com

Research news and Market Data on KTOS

February 18, 2025 at 8:00 AM EST

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SAN DIEGO, Feb. 18, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced today that Kratos Defense & Rocket Support Services (DRSS) supported the Missile Defense Agency (MDA) and the Naval Sea Systems Command (NAVSEA) in a successful flight of Kratos’ Erinyes™ Hypersonic Test Bed, in January 2025, from the NASA Wallops Flight Facility (WFF) in Virginia. This successful flight of Erinyes™ expanded the vehicle’s performance envelope and demonstrated the utility of the platform as a low-cost, rapidly configurable test bed for hypersonic experimentation supporting U.S. Department of Defense initiatives.

Erinyes(TM) hypersonic test bed launch

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6672b361-9383-4b40-9927-c63dd7898cfb

The exercise, designated Hypersonic Test Bed-2 (HTB-2), demonstrated new onboard technologies and enabled valuable data collection that will be used for design validation and evaluation of current and future technologies.

“Kratos is leading the way in U.S. hypersonic research by affordably and repeatably providing real flight test opportunities to researchers, allowing them to gain valuable experience in relevant conditions and push the Technology Readiness Levels of their products higher. Our low-cost ErinyesTM hypersonic vehicle enables incremental high-speed testing of advanced technologies for next generation weapon systems and interceptors without adding unnecessary risk to programs of record,” stated Dave Carter, President of Kratos DRSS. “The Kratos team is proud to continue lending our expertise to providing innovative hypersonic products and flight-testing to advance technologies in support of our nation and our warfighters.”

Eric DeMarco, President and CEO of Kratos, said, “The Kratos ErinyesTM low-cost hypersonic vehicle had another successful flight with our long-time MDA and Navy partners. Our successes have proven the thesis that hypersonic capabilities can be affordable and rapidly developed and deployed, advancing U.S. readiness. The MDA and United States Navy truly lean forward with ready to fly today systems, technologies and relevant capabilities, and Kratos sincerely values our relationship and the focus on affordability and moving fast for the benefit of our country’s National Security.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Primary Logo
Erinyes(TM) hypersonic test bed launch

 

Erinyes(TM) hypersonic test bed launch

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Defense & Security Solutions Schedules Fourth Quarter and Fiscal Year 2024 Earnings Conference Call for Wednesday, February 26th

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

February 13, 2025 at 1:17 PM EST

PDF Version

SAN DIEGO, Feb. 13, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, announced today that it will publish financial results for the fourth quarter and fiscal year 2024 after the close of market on Wednesday, February 26th. Management will discuss the Company’s operations and financial results in a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern).

The call will be available at www.kratosdefense.com. Participants may register for the call using this Online Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos’ website.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Primary Logo

Source: Kratos Defense & Security Solutions, Inc.

Triumph Group Sells for $3 Billion: Private Equity Giants Berkshire Partners and Warburg Pincus Make Strategic Aerospace Bet

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Triumph Group to be acquired for $3 billion by Warburg Pincus and Berkshire Partners
– Deal offers 123% premium to shareholders
– Transaction expected to close in second half of 2025
– Company will become privately held, focusing on aerospace component innovation

Triumph Group, a leading aerospace components manufacturer, has agreed to be acquired by affiliates of Warburg Pincus and Berkshire Partners in an all-cash transaction valued at approximately $3 billion. The deal, which will take the company private, represents a substantial premium of 123% over Triumph’s unaffected stock price and signals significant confidence in the aerospace industry’s future.

Under the terms of the agreement, Triumph shareholders will receive $26.00 per share in cash, a premium that demonstrates the strong strategic value perceived by the private equity firms. The transaction is expected to close in the second half of 2025, subject to shareholder approval and regulatory clearances.

Dan Crowley, Triumph’s chairman, president, and CEO, highlighted the strategic importance of the deal, noting that it will provide the company with enhanced capabilities to meet evolving customer needs. The transaction comes after years of portfolio optimization and building a world-class team of aerospace engineering professionals.

Warburg Pincus and Berkshire Partners bring extensive experience in the aerospace and defense sectors. Dan Zamlong from Warburg Pincus emphasized the firms’ deep investment history in aerospace platforms, expressing excitement about partnering with Triumph’s global team to capture growing demand for high-quality aerospace components.

The acquisition reflects the ongoing consolidation and strategic repositioning within the aerospace industry. Triumph, founded in 1993 and headquartered in Radnor, Pennsylvania, designs, develops, manufactures, and repairs aerospace and defense systems and components for both original equipment manufacturers and military and commercial aircraft operators.

Blake Gottesman of Berkshire Partners highlighted Triumph’s critical role in the aerospace and defense industry, noting the firm’s history of partnering with market-leading aerospace companies. The transaction is not contingent on financing, underscoring the financial strength of the acquiring partners.

Warburg Pincus brings significant financial muscle to the deal, with over $86 billion in assets under management and a diverse portfolio of over 230 companies. Berkshire Partners, a 100% employee-owned investor, is currently investing from its Fund XI, which closed in 2024 with approximately $7.8 billion in commitments.

The transaction will result in Triumph becoming a privately held company, delisting from the New York Stock Exchange. The company plans to continue its scheduled financial reporting, with third-quarter fiscal 2025 earnings expected to be released by February 10, 2025.

Planet Secures $230 Million Satellite Contract, Signaling Space Industry’s Continued Growth

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Planet secures $230 million contract for Pelican satellite constellation
– Company plans to deploy up to 32 advanced satellites with AI capabilities
– Stock has more than doubled in past 12 months, indicating growing market confidence

The satellite imagery and data analysis company Planet has made a significant stride in the commercial space sector, announcing a landmark $230 million contract for its next-generation Pelican satellite constellation. This deal represents not just a financial milestone for the company, but also signals the growing potential of space-based technologies and services in the global market.

Planet’s CEO Will Marshall described the contract as the company’s biggest deal ever, involving the construction of dedicated satellites for an undisclosed customer in the Asia-Pacific region. The multi-year agreement spans satellite construction and a five-year operational period, highlighting the increasing commercial demand for specialized satellite services.

The Pelican satellite project represents a strategic evolution for Planet, which currently operates over 200 satellites in orbit. The new constellation aims to deploy up to 32 high-powered satellites, featuring advanced artificial intelligence capabilities through Nvidia’s Jetson edge platform. This technological leap underscores the rapid innovation happening in the commercial space industry, where data processing and imagery capabilities are becoming increasingly sophisticated.

Investors have taken notice of Planet’s potential, with the company’s stock more than doubling over the past 12 months. Despite the challenges faced by space companies following the SPAC boom of 2021, Planet has demonstrated resilience and strategic positioning in a competitive market. The recent contract, coupled with a multiyear agreement with the European Space Agency, suggests growing confidence in the company’s technological capabilities and market potential.

The broader space industry continues to attract significant investment and attention, with private companies pushing the boundaries of satellite technology, earth observation, and data analytics. Planet’s approach of offering dedicated satellite services represents a novel business model that could reshape how organizations access and utilize space-based technologies.

The company’s strategy extends beyond simply launching satellites, focusing on creating adaptable spacecraft that can be tailored to specific customer needs. This approach has already been tested with the Tanager satellite product line, demonstrating Planet’s ability to deliver customized solutions for various sectors, including environmental monitoring and research.

Technological advancements are driving the space industry’s growth, with artificial intelligence, miniaturization, and improved data processing capabilities making satellite services more accessible and valuable. The Pelican satellites, featuring advanced AI integration, exemplify this trend of increasingly intelligent and responsive space technologies.

For investors and industry observers, Planet’s latest contract represents more than a single business deal. It symbolizes the expanding commercial potential of space technologies, the increasing value of earth observation data, and the continued innovation in a sector that promises to transform multiple industries from agriculture and environmental monitoring to defense and telecommunications.

Take a moment to take a look at Kratos Defense & Security Solutions, a company that is changing the way for the United States National Security related customers, allies and commercial enterprises.

Honeywell’s Future in Question as Elliott Management Urges Corporate Breakup

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Elliott Management holds a major stake in Honeywell, urging a split into Aerospace and Automation segments.
– Elliott projects a 75% stock price boost within two years if Honeywell proceeds with the split.
– Reflecting a broader trend, Elliott argues for simplification to enhance focus and unlock value.

Activist investor Elliott Management has acquired a $5 billion stake in Honeywell International and is calling for the industrial conglomerate to split into two separate companies. Elliott’s proposal would see Honeywell divide along its two main business lines: Aerospace, which supplies critical technology to military and commercial clients, and Automation, a major supplier of sensors and control systems for industrial applications. Elliott’s managing partner, Jesse Cohn, and partner Marc Steinberg believe that a breakup would unlock significant shareholder value, projecting a 75% increase in Honeywell’s stock price within two years if their recommendations are followed.

In a letter addressed to Honeywell’s board, Cohn and Steinberg argue that the company’s current conglomerate structure has become a drag on its growth. They point to underperformance since 2019, attributing it to an unwieldy corporate structure and ineffective investor communication. Elliott, however, did not direct criticism at Honeywell’s CEO, Vimal Kapur, who took the reins in 2023 and has pursued an aggressive M&A strategy to enhance Honeywell’s portfolio. Nevertheless, Elliott contends that Honeywell would achieve better performance by focusing on core areas, which could be achieved more effectively through a separation.

Honeywell’s Aerospace division, which Elliott calls the company’s “crown jewel,” has been a consistent source of revenue, yet has received only 10% of the M&A investment allocated by Honeywell in the past 20 years. Elliott suggests that by reallocating resources and focusing exclusively on high-performing units, both Aerospace and Automation could realize their full potential independently. Additionally, Elliott argues that Honeywell’s back-office operations—such as legal, IT, and HR—are largely divided between the two units, making a split more feasible than in typical conglomerates.

Honeywell responded to Elliott’s recommendations by stating its openness to shareholder perspectives and welcoming further engagement with the activist investor. Despite this, Honeywell’s board was reportedly unaware of Elliott’s involvement prior to the public release of the letter. In keeping with its careful approach to activism, Elliott consulted extensively with industry experts and former employees to understand the company’s operational and strategic options, even enlisting investment bankers and consultants to aid in its analysis.

Elliott’s push for a breakup reflects a growing trend across industrial conglomerates, many of which have embraced separations in recent years. General Electric, for example, completed a long-awaited division into distinct units, which has driven significant stock gains in 2024. Similarly, 3M and Johnson Controls have shed divisions in favor of streamlined operations. Elliott argues that such moves allow companies to focus on core competencies, attract dedicated investor interest, and ultimately improve shareholder value—a transformation it believes Honeywell would benefit from.

Elliott’s recommendation proposes that the split would yield two businesses each valued at over $100 billion if taken public independently. They also suggest that Honeywell divest some additional non-core segments, such as its personal protective equipment and Advanced Materials units, a step Kapur has already considered. Cohn and Steinberg emphasized that their proposed path for Honeywell is not unprecedented, pointing out that investor sentiment has moved away from conglomerates in favor of more focused companies.

As Honeywell’s board weighs Elliott’s recommendations, the company’s future remains uncertain, but Elliott’s pressure may catalyze significant changes to its longstanding structure. With this move, Elliott hopes to add Honeywell to its track record of successful activist campaigns, having previously advocated for similar strategic breakups in companies like Marathon Petroleum and Alcoa.

Boeing Reports $6 Billion Quarterly Loss Amid Looming Union Vote

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Boeing reported a $6.17 billion net loss for Q3, with total losses in 2024 nearing $8 billion.
– The company secured $10 billion in supplemental credit and filed for up to $25 billion in new debt and stock offerings.
– A critical labor vote by Boeing’s largest union is expected, which may end the ongoing strike

Boeing reported a significant financial loss for the third quarter of 2024, revealing the challenges the company continues to face as it navigates through production delays, labor unrest, and rising operational costs. The aerospace giant announced a net loss of $6.17 billion, bringing its total losses for the year so far to nearly $8 billion. This quarterly performance is particularly concerning, as it follows multiple setbacks in both its commercial and defense divisions. The company’s revenue for the quarter was $17.8 billion, a slight decrease of about 1% compared to the same period in 2023.

One of the critical factors contributing to Boeing’s disappointing performance is the slowdown in deliveries, especially for its widebody jets. Delays in the production and delivery of the 737 Max and 777X jets have compounded the company’s struggles, affecting both cash flow and revenue. In the third quarter, Boeing’s operating cash flow was at a negative $1.34 billion, a stark contrast to the positive $22 million reported in the same period last year.

The company anticipates further cash flow challenges in the fourth quarter, warning that it expects to burn more cash and face negative free cash flow for the full year of 2025. These projections have spooked investors, as Boeing had initially set more optimistic targets for its production and financial recovery. The company also disclosed that its previous delivery target for the 737 Max will likely be delayed, contributing to the financial strain.

In an effort to address its financial difficulties, Boeing has taken several measures, including securing $10 billion in supplemental credit from a consortium of banks. The company also filed a mixed shelf registration with the Securities and Exchange Commission (SEC) to offer up to $25 billion in debt and stock offerings. This includes potential new debt securities, common stock, preferred stock, and other share options as Boeing seeks to shore up its liquidity.

Despite the grim financials, Boeing still boasts a significant backlog of $511 billion, which includes over 5,400 commercial airplanes. While this backlog represents future potential revenue, it is not enough to offset the immediate financial challenges the company faces. The delays in production, coupled with the ongoing labor dispute, have further strained Boeing’s ability to capitalize on its order book.

The company’s troubles extend beyond its financial performance. Boeing is currently engaged in a labor dispute with the International Association of Machinists (IAM), its largest labor union, which represents 30,000 workers. The union went on strike in September, demanding better terms in a new contract proposal. The ongoing strike has been costly for both Boeing and its workforce, with one estimate suggesting the total financial impact has reached nearly $5 billion.

Boeing’s leadership is working to resolve the strike, as the company faces significant pressure to cut costs and streamline operations. In addition to the strike, Boeing plans to lay off 10% of its workforce, totaling around 17,000 employees, in an effort to reduce expenses. The layoffs, expected to occur in the coming months, will affect multiple divisions within the company as it aims to create a leaner, more focused organization.

As Boeing navigates these turbulent times, the company’s future hinges on its ability to resolve its labor issues, deliver on production targets, and regain investor confidence.

Boeing’s $4.7 Billion Gamble: Will This Shock Acquisition Save the Struggling Aerospace Giant?

Posted on by slightbourne@noblecapitalmarkets.com

In a significant move that’s reshaping the aerospace industry, Boeing has announced its decision to acquire Spirit AeroSystems in an all-stock deal valued at $4.7 billion. This strategic maneuver, which brings Spirit’s equity value to $8.3 billion including debt, marks a pivotal moment in Boeing’s efforts to streamline its supply chain and address ongoing quality control issues.

The acquisition comes at a critical juncture for Boeing, following a series of setbacks that have dented its reputation and financial performance. The company’s stock has plummeted by over 30% this year, underscoring the urgency for transformative action. By bringing Spirit AeroSystems back into the fold, Boeing aims to regain control over a crucial segment of its production process, potentially mitigating the quality concerns that have plagued its operations.

Spirit AeroSystems, which was spun off from Boeing in 2005, has been a key supplier for the aerospace giant, accounting for approximately 70% of its revenue. The company manufactures critical components for Boeing’s aircraft, including fuselages for the 737 and sections of the 787 Dreamliner. However, both companies have struggled with manufacturing flaws, most notably highlighted by the recent mid-flight door panel blowout on an Alaska Airlines 737 Max 9.

From an investor’s perspective, this acquisition presents both opportunities and challenges. On the positive side, the deal could lead to improved quality control and streamlined production processes, potentially reducing costly delays and enhancing Boeing’s ability to meet delivery targets. This integration may also result in significant cost synergies and operational efficiencies, which could bolster Boeing’s profitability in the long term.

However, the transaction also carries risks. Boeing’s decision to take on additional debt at a time when it’s facing financial pressures could strain its balance sheet. The company has already warned of negative cash flow in the first half of 2024, and integrating Spirit’s operations will require substantial resources and management attention.

The market reaction to this deal will be closely watched. While Boeing’s stock has been under pressure, the potential for improved operational performance could lead to a positive reassessment by investors. Conversely, Spirit AeroSystems’ shareholders stand to benefit from the premium offered in the all-stock transaction, with the $37.25 per share offer representing a significant uplift from recent trading levels.

This acquisition also has broader implications for the aerospace supply chain. By bringing a major supplier in-house, Boeing is signaling a shift towards greater vertical integration. This move could prompt other aerospace manufacturers to reevaluate their supply chain strategies, potentially leading to further consolidation in the industry.

For Airbus, Boeing’s main rival, the deal presents both challenges and opportunities. While Airbus will lose access to Spirit’s manufacturing capabilities, it will receive a $559 million compensation package and gain control over key production lines. This could allow Airbus to streamline its own supply chain and potentially gain a competitive edge in certain aircraft programs.

Investors should also consider the regulatory implications of this deal. Given the critical nature of aerospace manufacturing and its importance to national security, the transaction will likely face scrutiny from regulators. The timeline for closing, projected for mid-2025, reflects the complex approval process ahead.

Boeing’s acquisition of Spirit AeroSystems represents a significant shift in the aerospace manufacturing landscape. For investors, it offers a potential turnaround story for Boeing, albeit with considerable execution risks. The deal’s success will hinge on Boeing’s ability to effectively integrate Spirit’s operations, improve quality control, and restore confidence in its production capabilities. As the aerospace industry continues to evolve, this acquisition may well be remembered as a defining moment in Boeing’s efforts to regain its position as a leader in commercial aviation.

V2X (VVX) – Capital Structure Enhancement

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, June 04, 2024

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Repricing and Extension. Yesterday, V2X announced a repricing and extension of its $907 million First Lien term loan. The actions are another step by management to enhance the capital structure, in our view, and should lead to lower interest costs and additional financial flexibility.

Details. Under the repricing, the annual interest margin was reduced by 50 basis points to 2.75%. Additionally, the 10-basis point credit spread adjustment was eliminated from the Company’s Secured Overnight Financing Rate, further improving the anticipated savings from the repricing. The company also extended the maturity of the loan by two years to December 2030.


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Release – Kratos Defense & Security Solutions, Inc. Completes Development of the Zeus Solid Rocket Motor (SRM) Family with the Successful Zeus 2 Static Test Fire

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

April 15, 2024 at 9:00 AM EDT

PDF Version

SAN DIEGO, April 15, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced today that its Space & Missile Defense Systems (SMDS) Business Unit, a part of Kratos’ Defense & Rocket Support Services (DRSS) Division, successfully completed the static test firing of the Zeus 2 solid rocket motor (SRM) with Aerojet Rocketdyne, an L3Harris Technologies [NYSE: LHX] company, at their Camden, Arkansas facility. This Zeus 2 milestone combined with the successful Zeus 1 static test firing last year, completes the development phase of Kratos’ new affordable commercial SRM family.

Zeus 2 Solid Rocket Motor Fires During April 10th Static Test

A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/5361a221-aa5c-4fd9-a782-2e24cab859d9

Zeus 1 and Zeus 2 are high-performance 32.5-inch diameter solid rocket motors envisioned and internally funded by Kratos. The Zeus motors, designed with commonality, versatility, and affordability in mind, coupled with the Kratos ongoing development of the Erinyes and Dark Fury Hypersonic Flyers demonstrates Kratos’ commitment to investing in crucial defense industrial base technology. Kratos’ technology investments are delivering leading-edge systems and expanding our extensive portfolio of Hypersonic Flyers and SRMs available for our customers.

Kratos has now initiated orders for a combined total of nine Zeus 1 and Zeus 2 SRMs in preparation for upcoming customer flights. The Kratos developed Zeus family of SRMs is in direct response to the urgent need for affordable commercial launch vehicle stages for hypersonic test, ballistic missile target, sounding rocket and other customer missions.

Dave Carter, President of the KDRSS Division, said, “I am very excited to introduce Kratos’ family of Zeus SRMs and commend our SMDS group and teammate, L3HARRIS/Aerojet, for successfully completing this crucial motor development program. Zeus motors enable us to bring to market affordable rocket systems to support critical MACH-TB Hypersonic testing, NASA Sounding Rocket Program experiments, and Navy/MDA target program requirements.”

Eric DeMarco, President and CEO of Kratos Defense & Security Solutions, Inc., said, “Kratos’ successful completion of this internally funded Zeus family of motors will enable rapid and affordable hypersonic testing and be ‘first to market’ with a highly relevant system to support DoD, NASA and commercial customers. At Kratos, we are committed to rapid development, delivery of relevant systems and introduction of affordable technology to support warfighter requirements for the United States and our Allies’ National Security.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct 

Investor Information:
877-934-4687
investor@kratosdefense.com 

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos and Shield AI Conduct AI-Piloted Flights on the Kratos Tactical Firejet

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

April 1, 2024 at 8:00 AM EDT

Kratos and Shield AI use Firejet as first application of Shield AI’s Hivemind on the Kratos Family of UAS

SAN DIEGO, April 01, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets and an industry-leading provider of high-performance, jet-powered unmanned aerial systems (UAS) and Shield AI, Inc., a defense technology company building the world’s best AI pilot, today announced the successful completion of the first phase of Shield’s AI-piloted flight-testing on-board the Kratos family of UAS as the two companies move toward productizing Shield AI’s pilot on these systems.

Hivemind Enabled Firejet Just Prior to Launch

A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/891609ac-a92f-4b1c-a6e4-e74c13ac6ed5

Having successfully flown AI pilots on five aircraft — three classes of quadcopters, the MQ-35A V-BAT, and the F-16 in fully autonomous air combat training — Shield AI’s Hivemind AI pilot has now successfully flown on and controlled the Kratos Tactical Firejet. These successful flights are a major milestone in the comprehensive integration project as Shield AI and Kratos look to ultimately productize another configuration of the Valkyrie, in this case with Shield AI’s Hivemind AI pilot.

“Our substantial investments in autonomy and AI design tools, infrastructure, and pipelines are what enable Shield AI to rapidly integrate Hivemind onto different classes of aircraft and most importantly, fly them safely. We’re getting faster and faster. It was over three years from signing the contract to flying the F-16; now, it’s less than 180 days for the Kratos Firejet. The vision of portable autonomy software for military hardware has been realized, flown, and deployed by Shield AI,” said Ryan Tseng, Shield AI’s CEO and Co-Founder.

Hivemind-Directed Autonomous Maneuvering Underway

A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2f2f2042-c0a5-4d03-a150-050c454a3e2b

“The ability of our teams (Kratos and Shield AI) to collaborate and work together as two commercial entities driving toward technical mission capability solutions and systems to ultimately support the DoD provides a rapid path to system realization. Firejet is the first; there’s more to come and we’re excited about the technology, what it enables, the speed at which we can create and deliver these systems, and the broad application space and impact that these high capability, affordable UAS provide to the warfighter,” said Steve Fendley, President of Kratos’ Unmanned Systems Division.

The Firejet, in its jet target system role, fills a variety of end-to-end weapons-release training, supporting surface-to-air and air-to-air engagements. Additionally, the Tactical Firejet offers an offensive/defensive jet UAS system in the sub $500K price range per aircraft with substantial mission systems and performance capabilities. In either mission configuration (target/tactical), the Firejet delivers a high-speed, high-maneuverability, low-signature solution for replicating threats or enabling no-risk-to-Warfighter-life operational effectiveness with a level of contested environment capability.

Youtube Video link: https://www.youtube.com/watch?v=jkmYV3ZUH1Q&t=1s

About Shield AI
Founded in 2015, Shield AI is a venture-backed defense technology company whose mission is to protect service members and civilians with intelligent systems. In pursuit of this mission, Shield AI is building the world’s best AI pilot. Its AI pilot, Hivemind, has flown jets (F-16; MQM-178 Firejet), a vertical takeoff and landing drone (MQ-35 V-BAT), and three quadcopters (Nova, Nova 2, iPRD). The company has offices in San Diego, Dallas, Washington DC and abroad. Shield AI’s products and people are currently in the field actively supporting operations with the U.S. Department of Defense and U.S. allies. For more information, visit www.shield.ai. Follow Shield AI on LinkedIn, X and Instagram.

About Kratos Defense & Security Solutions, Inc.
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high, and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Receives $57.6 Million Contract for 70 BQM-177A Aerial Targets

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

March 18, 2024 at 8:00 AM EDT

PDF Version

SAN DIEGO, March 18, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today that its Unmanned Systems Division has received a $57,673,542 modification to a previously awarded firm-fixed-price contract. This modification exercises options to procure full rate production Lot Five of the BQM-177A Surface Launched Aerial Targets to provide for the production and delivery of 70 BQM-177A Surface Launched Aerial Targets and 70 Rocket-Assisted Takeoff attachment kits, as well as associated technical and administrative data in support of weapons system test, and evaluation and fleet training for the Navy.

Kratos BQM-177A Shipboard Launch

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d9916314-cd45-49cf-b0e0-d22296646070

Steve Fendley, President of Kratos Unmanned Systems Division, said, “It’s exciting to be a major part of this critically important capability for the U.S. Navy with our BQM-177A Sub-Sonic Aerial Target (SSAT) aircraft system (target). The 177A continues to push the envelope delivering leading edge realistic threat-representative capabilities to support today’s peer-level threat environment. We look forward to the increased production rate and continuing to evolve the system with our customer as the threats evolve.”

Greg Crewse, Program Manager for the Navy’s Aerial Targets program office (PMA-208), said, “In partnership with the Navy Aerial Targets program office, Kratos Defense and the BQM-177A Air Vehicle are true assets to the Navy and, together, we have the opportunity to engage in critical training exercises that will prepare our personnel to face a multitude of scenarios in a challenging, cost-effective test environment prior to engaging real-world threats, should the need arise. As recent real-world events have proven, these target presentations are growing ever more critical to prepare our warfighters to go into harm’s way – and prevail.”

About Kratos Defense & Security Solutions, Inc.
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high, and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Awarded a $499 Million Multiple Award, Indefinite-Delivery/Indefinite-Quantity Contract for the Design, Build, Test, and Delivery of Functioning Anti-Tamper Solutions

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

March 4, 2024 at 8:00 AM EST

SAN DIEGO, March 04, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in Defense, National Security and Global Markets, announced today that it has been awarded a $499,000,000 multiple award, indefinite-delivery/indefinite-quantity contract for the design, build, test, and delivery of functioning anti-tamper solutions that will be ready for follow-on production to be integrated into a broad range of Department of Defense programs. The development of these solutions enables the necessary protection of critical program information from adversarial tamper efforts. Work will be performed in the continental United States and is expected to be completed February 28, 2030. This contract was a competitive acquisition, and twenty offers were received. The Air Force Life Cycle Management, Wright Patterson Air Force Base, Ohio, is the contracting activity.

Kratos SRE is a technology business focused on strategic deterrence systems, missiles, space and satellite communications, exotic material test and analysis, intelligence, surveillance and reconnaissance, hypersonic platforms, trusted and assured microelectronics, anti–tamper technology and other platforms and systems.

Michael Johns, President of Kratos SRE, said, “This recent award provides Kratos access to a new contractual channel and new customers for certain of our most sophisticated technology and products, specifically related to the protection of mission critical national security programs and systems from tampering efforts.”  

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.  For more information, visit www.KratosDefense.com

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Kratos Press Contact:
Yolanda White
858-812-7302 Direct

Kratos Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Defense & Security Solutions, Inc. Prices Public Offering of Common Stock

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KTOS

February 22, 2024 at 7:45 PM EST

PDF Version

SAN DIEGO, Feb. 22, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (“Kratos”) (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced the pricing of an underwritten offering of 16,666,667 shares of its common stock at a public offering price of $18.00 per share pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The net proceeds to Kratos from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $288 million. Kratos has also granted the underwriters a 30-day option to purchase up to an additional 2,500,000 shares of common stock. All of the shares in the offering are to be sold by Kratos. The offering is expected to close on February 27, 2024, subject to customary closing conditions.

Kratos expects to use the net proceeds to facilitate its long-term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated capital expenditures for expansion of current sole-source/single award programs and high probability pipeline opportunities, further strengthen the Company’s balance sheet in anticipation of upcoming customer and partner decisions and source selection on additional large, new program and contract opportunities, for general corporate purposes, including paydown of debt, and to pay fees and expenses in connection with the offering.

Baird, RBC Capital Markets, and Truist Securities are acting as joint book-running managers for the offering. B. Riley Securities and Raymond James are acting as passive book-runners for the offering. The Benchmark Company and Noble Capital Markets are acting as co-managers for the offering.

The securities described above are being offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-277222) that was previously filed by Kratos with the SEC and automatically became effective upon filing on February 21, 2024. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

The offering will be made only by means of a prospectus supplement and the accompanying prospectus. The preliminary prospectus supplement and accompanying prospectus describing the terms of the offering have been filed with the SEC and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from Robert W. Baird & Co. Incorporated, 777 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202, by telephone at (800) 792-2473, or by email at syndicate@rwbaird.com, RBC Capital Markets, LLC, 200 Vesey Street, New York, New York 10281, by telephone at (877) 822-4089, or by email at equityprospectus@rbccm.com, Truist Securities, Inc., 3333 Peachtree Road NE, 9th Floor, Atlanta, Georgia 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com, B. Riley Securities, Inc., 1300 17th Street North, Suite 1300, Arlington, VA 22209, by telephone at (703) 312-9580, or by email at prospectuses@brileyfin.com, Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com, The Benchmark Company, LLC, 150 East 58th St., 17th Floor, New York, NY 10155, by telephone at (212) 312-6700, or by email at Prospectus@benchmarkcompany.com and Noble Capital Markets, Inc., 150 East Palmetto Park Rd., Suite 110, Boca Raton, FL 33432, by telephone at (561) 998-5483, or by email at jtarantino@noblecapitalmarkets.com. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC’s website at www.sec.gov.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, 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 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 an 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 intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos comfort level. 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, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to a variety of matters, including, without limitation, Kratos’ expectations regarding the sale of shares of its common stock in the proposed public offering, use of the expected proceeds from the proposed public offering and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements including, but not limited to: risks and uncertainties related to market conditions, the satisfaction of customary closing conditions related to the proposed public offering, and general economic factors. There can be no assurance that Kratos will be able to complete the proposed public offering on the anticipated terms, or at all. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.