Kratos Defense & Security (KTOS) – A Look at the Second Quarter


Thursday, August 08, 2024

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.

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.

Continued Strong Results. Revenue was reported at $300.1 million, beating out our estimate of $270 million by a wide margin and last year’s revenue of $256.9 million. Organic growth was 16.7%. Net income totaled $7.9 million from a prior net loss of $2.7 million last year. We estimated net income of $0.4 million. Adjusted EBITDA was $29.9 million.

KUS. For the quarter, Unmanned Systems was the star performer, generating revenues of $85.8 million, as compared to $52.1 million in the second quarter of 2023, with organic revenue growth of 61.8% driven primarily by increased domestic target drone production and a certain international target drone delivery which contributed $17.4 million.


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