Tag: Kratos Defense & Security Solutions

Research News and Market Data on KTOS

SAN DIEGO, Jan. 21, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in Defense, National Security and Global Markets, announced today a $34,856,449 award modification to a previously awarded cost-plus-fixed-fee contract from the U.S. Marine Corps. The expanded scope is to support the XQ-58A Unmanned Aerial Systems mission systems and subsystems integration for the Marine Air-Ground Task Force Unmanned Aerial System Expeditionary (MUX) Tactical Aircraft (TACAIR).

Since 2022, Kratos and its industry partner, Northrop Grumman, have been working with the U.S. Marine Corps to define operational requirements for the MQ-58 Valkyrie variant. The team recently demonstrated advanced collaborative capabilities during the Penetrating Affordable Autonomous Collaborative Killer Portfolio (PAACK-P) program, which is transitioning to MUX TACAIR in 2025. The modification contract provides the additional non-recurring engineering and material to support the planned spiral developmental efforts, as well as additional flight tests for the continuing capability enhancement of the Valkyrie system.

Work under this contract will be performed in Sacramento, California, Oklahoma City, Oklahoma, China Lake, California and Patuxent River, Maryland.

Col Derek Brannon, Director of the HQ USMC Cunningham Group, said, “The U.S. Marine Corps is at the vanguard of collaborative combat aircraft (CCA) development and intends to field an operational CCA squadron with a tactically relevant aircraft equipped with effective, affordable mission system payloads.”

Steve Fendley, President of Kratos Unmanned Systems Division, said, “The Valkyrie is validating the thesis that uncrewed system development and evaluation can be executed at a fraction of the cost and schedule required for manned military jet aircraft systems. The immediate takeaway is recognizing that uncrewed systems can be teamed in the very near term with existing fielded manned aircraft—reducing risk and increasing effectiveness and life of the manned systems long before replacement or next generation manned systems can be fielded, not to mention afforded. It’s an incredible opportunity.”

The Kratos XQ-58A Valkyrie is a high-performance, runway-independent tactical unmanned aerial vehicle capable of long-range flights at high-subsonic speeds. Combining affordability, survivability, long-range, high-subsonic speeds, maneuverability and ability to carry flexible mission kit configurations and mix of lethal weapons from its internal weapons bay and wing stations, the XQ-58A provides unmatched operational flexibility at an affordable price for multiple DoD customers.

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

Representative Smith Briefed on Kratos Erinyes, Dark Fury, Zeus and Other Kratos Hypersonic Systems

SAN DIEGO, Jan. 14, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, recently welcomed House Armed Services Ranking Member Adam Smith (D-WA-9) to Kratos Defense & Rocket Support Services (DRSS) in Glen Burnie, Maryland. The visit provided an opportunity to showcase Kratos’ latest achievements in advancing hypersonic systems, strategic systems, ballistic missile targets, sub-orbital research vehicles, sounding rockets, directed energy and laser systems, and to discuss recent successes delivering mission-critical, cost-effective solutions to support U.S. national security.

During the visit, Rep. Smith was briefed on Kratos’ cutting-edge hypersonic programs, including the low cost Erinyes Hypersonic Flyer, Dark Fury, Zeus Solid Rocket Motors, and other Kratos systems and technologies, all of which exemplify the company’s commitment to affordability, being first-to-market, and innovation. The discussion also highlighted Kratos’ recent award of the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 contract, under which Kratos was selected as the prime for Task Area 1 Systems Engineering, Integration, and Testing (SEIT). This effort includes integrated subscale, full-scale, and air launch systems and services designed to affordably increase hypersonic flight test cadence, a critical need for advancing the nation’s defense capabilities.

“Kratos believes in delivering more for less and is proud to showcase our systems that are pushing the boundaries of hypersonic technology testing to accelerate delivery of low-cost, high-performance solutions to the warfighter,” said Dave Carter, President of Kratos’ Defense & Rocket Support Services Division. “The MACH-TB 2.0 contract is a testament to our leadership and dedication to addressing the Department of Defense’s needs for rapid, reliable, and scalable hypersonic testing and development.”

Rep. Smith’s visit underscores the importance of collaboration between industry and government in advancing technologies critical to national security. Kratos remains steadfast in its mission to deliver affordable, innovative solutions to support the warfighter and strengthen the nation’s defense posture.

Eric DeMarco, Kratos President and CEO, said, “Kratos employees were thrilled to have the opportunity to meet and spend time with Ranking Member Smith, who we believe shares Kratos’ philosophy of “delivering more and better systems for less”. I was also particularly pleased to spend time discussing with the Representative Kratos’ now multi-year strategy and philosophy of investing Kratos’ own research, development and innovation focused funds, to deliver affordable, hypersonic, tactical jet drone, jet engine and other relevant systems to the warfighter.”

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

SAN DIEGO, Jan. 13, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, announced today that it has recently received an approximate $100 million total potential value hypersonic system program award. Approximately $15 million of funding has been received by Kratos at contract award, with significant increased funding expected in the second half of Kratos fiscal year 2025. Under the new program contract award, Kratos will provide engineering, systems and hardware. Work related to the program will be performed at secure Kratos fabrication, manufacturing and system integration facilities. Due to competitive, security related and other considerations, no additional information will be provided.

Tom Mills, President of Kratos C5ISR Division, stated, “Kratos’ reputation as the industry leader in delivering military quality hardware, products and systems at scale, was a key factor in the receipt of this new program award. The design, engineering and production of National Security related hardware, that must work every time, is hard, and I am proud of our entire organization’s commitment to the United States and its allies’ mil spec system requirements.”

Eric DeMarco, Kratos President and CEO, said, “Kratos is the recognized industry leader in the rapid development and fielding of affordable hypersonic systems, including Erinyes and Zeus, tactical unmanned jet drone aircraft including Thanatos and Valkyrie, jet engines for aerial drones and missiles and related C5ISR hardware. At Kratos, it’s products today, not PowerPoints of a hoped for, maybe someday system, at an unknown cost. Kratos warfighter and mission focused customers understand that “better is the enemy of good enough and ready to field today”, while reducing development cost and saving money in today’s increasing fiscally challenging environment.”

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

SAN DIEGO, Jan. 08, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced that it was awarded a Geolocation Global Support Services (GGSS) contract in the amount of $48 million.

Kratos will provide support services to Space Forces Space electromagnetic interference managers and supporting elements with EMI resolution services. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by Oct. 31, 2029.   Due to customer related, competitive and other considerations, no additional information will be provided regarding the new contract award at this time. The Kratos owned and operated global RF sensor network supplies intelligence across SDA missions through a variety of available services, among them bandwidth monitoring, geolocation, signal characterization, interference mitigation and tracking and maneuver detection, as well as other capabilities. Kratos’ satellite communications experts manage the 24/7 network operations center with coverage of L, S, C, X, and Ku bands. RF data is monitored and collected by Kratos’ global deployment of RF sensors comprising more than 21 worldwide sites hosting more than 190 fixed and steerable sensors and antennas. Kratos internally funded and constructed, its one-of-a-kind, world-wide, Space Domain Awareness network, and currently counts the U.S. government and many of the world’s largest commercial satellite operators as customers for its signal management expertise.

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 

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

Contract Represents Single Largest Award in Kratos History

SAN DIEGO, Jan. 06, 2025 (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 five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1. The total value of this award, if all options are exercised over the five-year period, is $1.45B. The Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)) Test Resource Management Center (TRMC) established MACH-TB to support OUSD’s National Hypersonic Initiative 2.0 by creating an affordable flight test bed to rapidly increase hypersonic flight test capacity. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests. This will reduce overall hypersonic development risks and time and provide rapid transition of innovative hypersonic technologies to the warfighter.

George Rumford, Director of the Test Resource Management Center, said, “We are excited to continue the success of the MACH-TB program with this award. MACH-TB is an essential tool to accelerate science and technology experiments into next generation, leap-ahead hypersonic capabilities for our nation.”

“We are honored to be selected to be part of the MACH-TB 2.0 integrated team. The nation is at a critical point in the need for rapid and affordable hypersonic flight testing to quickly develop and field hypersonic technologies and the MACH-TB program is filling that need,” said Michael Johns, Senior Vice President of Kratos SRE.

Kratos was awarded the prime role in Task Area 1 Systems Engineering, Integration, and Testing (SEIT), to include integrated subscale, full-scale, and air launch services to address the need to affordably increase hypersonic flight test cadence. Kratos will lead a team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&T), mission planning and execution, and launch services. Key teammates on the Kratos team include Leidos, Rocket Lab, Koda Technologies, Corvid Technologies, Northwind, JRC, Stratolaunch, CFD Research, PAR Systems, University of Minnesota, and Purdue University among many others.

Dave Carter, President of Kratos Defense and Rocket Support Services Division, said, “With the recent successes of our low-cost Erinyes Hypersonic Flyer and Zeus Solid Rocket Motors, Kratos is a leader in the testing and fielding of hypersonic systems. We are very excited to bring this unmatched expertise to the MACH-TB 2.0 program.”

Eric DeMarco, President & CEO of Kratos Defense & Security Solutions, Inc., said, “Kratos is honored to receive the largest contract award in our company’s history, a testament of the value Kratos’ employees and team bring both to our Company and United States National Security. This programmatic milestone underscores our unwavering commitment to making upfront investments for rapidly developing, and being first to market with affordable, mission-critical solutions that meet the evolving needs of the warfighter. The MACH-TB 2.0 program award is an important element of Kratos’ future year organic growth forecast and expectation.”

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

SAN DIEGO, Dec. 17, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, was awarded a $6.5 million, single award contract by the Defense Advanced Research Projects Agency (DARPA) to provide flight testing for hypersonic research supporting future weapon systems. The two-year contract which began in August 2023 includes flight tests to develop, characterize, and validate critical hypersonic components for technology maturation and risk reduction.

The contract was awarded by the DARPA Defense Sciences Office (DSO) and supports their mission of creating the next generation of scientific discoveries and fueling innovation by leaning forward to expand the art of the possible. During program execution, Kratos is leveraging flight proven, affordable hypersonic test beds and sounding rocket-based launch vehicles to fulfill various flight experiment requirements and validate modeling and simulation (M&S) tools rapidly and affordably for future hypersonic flight testing.

Kratos is a leading provider of innovative products and solutions supporting ballistic missile targets, hypersonic systems, sub-orbital research, sounding rockets, unmanned drone systems, turbine technologies, directed energy and laser program systems. In recent years, Kratos has made significant investments in launch vehicle and hypersonic systems and technologies, including a focus on enabling affordable, rapid high-speed testing for the DoD and agencies including DARPA. Among the investments made by Kratos are the Erinyes hypersonic flyer, the Zeus solid rocket motor series and Dark Fury.

Dave Carter, President of Kratos’ Defense & Rocket Systems Division, said “Kratos’ investments in affordable and relevant hypersonic flight systems continue to pay off for our stakeholders and our customers. We are committed to helping our partners and customers, including DARPA, develop new technologies and execute test regimes and programs that push science towards its fundamental limits. We are excited and look forward to working with DARPA and supporting their mission.”

Eric DeMarco, President and CEO of Kratos said, “Our entire organization is laser focused on working with our government and industry partners and customers to rapidly deliver relevant, affordable systems and capabilities for United States National Security. Kratos’ in production and operational Erinyes and Zeus hypersonic systems, Valkyrie, Thanatos and entire family of affordable tactical jet UCAVs, Spartan family of low-cost turbojet engines for drones and cruise missiles and OpenSpace software-based TT&C and C2 systems for satellite communications are representative of the value Kratos delivers to each of our stakeholders.”

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

SAN DIEGO, Dec. 05, 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, today announced the successful performance of a recent series of flight tests of the United States Marine Corps’ XQ-58A Valkyrie, manufactured by Kratos. These flights and exercises were conducted jointly earlier this year by Kratos, Northrop Grumman Corporation, Autodyne, the United States Marine Corps (USMC), the United States Navy, and the United States Air Force (USAF).

Kratos’ XQ-58A Flies in Joint Emerald Flag Exercise

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/94bd48b4-0b84-4660-8063-18330361338a

The test was conducted as a part of Emerald Flag 2024—a multiservice and multi-domain training exercise. During this milestone event, the USMC demonstrated cooperative kill chain closure between crewed and uncrewed strike platforms, specifically Kratos’ XQ-58A Valkyrie, for the first time in a large-force exercise.

The USMC kill chain closure demonstration, hosted in a joint force environment, showcased collaborative electronic warfare (EW) operations in addition to newly added tactical data link capabilities. These tests mark the first time the Department of Defense (DoD) controlled an XQ-58 using expeditionary methods. Initial results indicate the system met threshold requirements for autonomously exchanging relevant tactical information. These capabilities significantly enhance the Marine Air-Ground Task Force’s ability to conduct integrated and joint operations, contributing to the USMC’s mission to deter conflict and, when necessary, defeat enemies in complex and evolving scenarios.

These flights were conducted in partnership with the Office of the Under Secretary of Defense for Research and Engineering, the Naval Air Warfare Center Aircraft Division (NAWCAD) AIRWorks, and industry partners. Flight test support was provided by the 40^th Flight Test Squadron, the 46^th Test Squadron, the 96^th Test Wing, and the Marine Operational Test & Evaluation Squadron 1 (VMX-1).

The latest event was witnessed by the USMC Deputy Commandant of Aviation, Lt. Gen. Bradford Gering, as well as officers and civilians from the Marine Corps Cunningham Group, Marine Corps Warfighting Laboratory, Naval Air Systems Command (NAVAIR) Expeditionary and Maritime Aviation-Advanced Development Team (XMA-ADT), and the Office of the Secretary of Defense (OSD).

As the USMC advances towards the operational fielding of a new uncrewed system, Kratos is at the vanguard of technological advancement to ensure the Marines have the best tactical asset to complement their fleet of F-35B aircraft.

Flying alongside four USMC F-35B aircraft from the Marine Fighter Attack Squadron 214 (VMFA-214) and two USAF F-15E/EX aircraft from the 40^th Flight Test Squadron, the USMC XQ-58A operated under vehicle-level autonomy to perform maneuvers in a simulated threat environment. The Valkyrie’s on-board sensors identified and geolocated relevant threats, and simultaneously passed targeting data to collaborating air and ground platforms over tactical networks.

During the exercise, the XQ-58A was also flown by a USMC aviator, and control was passed between air and ground control methods which can command multiple Valkyries simultaneously. This demonstration of the XQ-58A’s ability to support crewed-uncrewed teaming and Expeditionary Advanced Base Operations (EABO) marks a significant milestone in the Marine Air-Ground Task Force Unmanned Aerial System Expeditionary (MUX) Tactical Aircraft (TACAIR) development.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “We’re proud to be leading the industry effort to demonstrate and deliver this critical collaborative uncrewed aircraft capability. The mission capability demonstrated during the latest exercise – enabling Marine Corps pilots to lead a strike package of multiple Valkyries seamlessly transferring C2 between crewed aircraft and expeditionary ground control stations, to autonomously accomplish the mission while reducing risk exposure – will be a force multiplier. Our integrated, autonomous collaborative platform, jet-powered aircraft systems truly validate the DoD’s goal of achieving effective, survivable, affordable mass.”

Flying since 2019, the Kratos XQ-58A Valkyrie is a high-performance, runway-flexible tactical unmanned aerial vehicle capable of long-range flights at high-subsonic speeds. The Valkyrie can serve as a loyal wingman, conduct single unmanned aircraft system operations, or operate in swarms. Combining affordability, survivability, long-range, high-subsonic speeds, maneuverability, and ability to carry flexible mission kit configurations and mix of lethal weapons from its internal weapons bay and wing stations, the XQ-58A provides unmatched operational flexibility at an affordable price for multiple DoD customers.

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

Research News and Market Data on KTOS

Kratos Led Team Will Design, Implement and Operate Ground Infrastructure Supporting Interoperability Across Multi-Vendor LEO Constellations Using its Kratos OpenSpace® Platform

SAN DIEGO, Nov. 13, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced today that it has been awarded a contract valued at a maximum of $116.7 million over five years to create and operate an Advanced Fire Control Ground Infrastructure (AFCGI) for the U.S. Space Development Agency’s (SDA) Advanced Fire Control (AFC) program. The AFC will deliver integrated space and ground elements to demonstrate advanced fire control missions for missile defense.

Advanced fire control brings highly sophisticated systems for space-based sensing. These systems enable precise, real-time coordination for tracking operations in space for effective responses to threats. Among its applications, the AFCGI will support SDA’s Fire-control On Orbit-support-to-the-war Fighter program, also known as FOO Fighter or F2, which is tasked with detecting and tracking advanced missile threats, including hypersonic missiles.

As the AFCGI prime contractor, Kratos will lead a team of partner companies to:

• Deliver and manage ground segment resources, including ground entry points and terrestrial network connections;
• Fit-out and manage a government-owned, contractor-operated (GOCO) facility called the Demonstration Operations Center;
• Manage a government-procured, contractor-operated cloud environment to provide cloud services, including hosting space vehicle mission operations center software and interfacing with mission partner systems; and,
• Provide program management, systems engineering, integration, verification, and operations and maintenance of the AFC ground infrastructure.

Members of the Kratos-led team include ASRC Federal Systems Solutions, LLC, Peraton, Inc., Sphinx Defense, Inc. and Stellar Solutions, Inc.

Core to the AFCGI, Kratos will provide a Ground Resource Manager (GRM) which will be built for the FOO Fighter program and designed to support any future fire control demonstrations. Built upon Kratos’s OpenSpace Ground Platform, the GRM will ensure interoperability to support new space vehicles built by multiple manufacturers from multiple AFC constellations. OpenSpace is an orchestrated, software-defined and cloud-native platform based on accepted industry standards. With it, these satellite manufacturers will be able to synchronize their Command and Control (C2) missions into the AFCGI infrastructure, and new network elements and software applications will integrate seamlessly into the AFCGI. The GRM will act as the hub for the AFC constellations, serving to demonstrate modern capabilities as they evolve to support increasingly sophisticated operational programs.

Phil Carrai, President of Kratos’ Space Division stated, “Advancements in missile technology and hypersonics that can travel at more than 3000 mph present new adversarial threats and will require new defensive capabilities to identify, track and respond to them rapidly. The AFCGI will serve as a standing sandbox for exploring and validating new technologies, solutions and techniques to address these threats with commensurate speed and agility. The GRM will enable the Space Force to capitalize on best of breed technologies from across the most advanced developers, and seamlessly integrate and orchestrate their operations.”

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. The family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable government agencies, commercial satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals and business models. For more information about the OpenSpace family visit www.KratosDefense.com/OpenSpace.

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

Source: Kratos Defense & Security Solutions, Inc.

Research News and Market Data on KTOS

New Zeus Motors are in Production and Ready for Use

SAN DIEGO, Nov. 07, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, today announced that its Zeus 1 and Zeus 2 Solid Rocket Motors (SRMs) completed their first successful flight on October 24, 2024, from the NASA Wallops Flight Facility in Virginia. This milestone launch provides the qualifications necessary to transition the Zeus SRMs to test programs supporting the U.S. Department of Defense, Foreign Allies, NASA, and commercial launch sponsors.

Kratos Zeus Solid Rocket Motors Complete Successful First Flight at Wallops

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/be014809-090a-41a1-8cc5-e1c999c67dfd

The flight test featured a Kratos two-stage Zeus 1 – Zeus 2 suborbital launch vehicle and provided substantial data to support rocket motor evaluation for use by future customers and sponsors who have baselined the Zeus rocket motors as part of their future test plans. Kratos expects to have production motors ready in the first quarter of 2025.

Kratos developed the Zeus family of SRMs in direct response to the need for affordable commercial launch vehicle stages for hypersonic test, ballistic missile targets, scientific research, sounding rocket and special customer missions. Kratos applied its significant rocket launch experience to establish the Zeus 1 and Zeus 2 motor specifications in close coordination with respective customer and user communities. Kratos internally funded development of the Zeus SRMs which are designed and manufactured to Kratos’ specifications by key merchant supplier and partner, L3Harris Technologies. L3Harris is on contract to begin delivering production motors to Kratos in the first quarter of 2025.

George Rumford, Director of the Department of Defense Test Resource Management Center, said, “Advancements in solid rocket motor development are critical to achieving rapid, affordable hypersonic testing.”

Dave Carter, President of Kratos’ Defense & Rocket Support Services Division, said, “I couldn’t be prouder of our whole team. They met the challenge to deliver these robust motors to market as fast as possible and meet the growing demand for rapid, reliable testing. The motors performed exceptionally well against predictions and are ready for immediate use by the broader test and research community.”

The Zeus 1 and Zeus 2 are high-performance, 32.5-inch diameter SRMs providing substantial performance improvements over similar legacy rockets. They are purposely designed to be fully compatible with existing payloads and launch infrastructure to enable rapid integration of new technologies and advanced payloads, including those currently under development by Kratos. These and other key attributes will provide Kratos and our customers with opportunities to fly more often, faster and farther, using fewer stages, and at a substantially reduced cost.

The Zeus SRM family is designed with versatility and affordability in mind as a complement to Kratos’ other internally funded investments such as the Erinyes hypersonic test “flyer” that debuted in June of this year. Kratos’ investments in the hypersonic and other relevant areas create a versatile family of test and evaluation products that offer complete systems. With the Zeus SRMs, the Erinyes, and other Kratos front end systems, Kratos is one of the only companies boasting both launcher and flyer systems within one organization, providing unmatched innovation, disruptive capabilities, mission responsiveness and affordability to the customer.

Eric DeMarco, President & CEO of Kratos Defense & Security Solutions, Inc., said, “Kratos is laser focused on supporting the Department of Defense, U.S. National Security requirements and working with our government partners to reinvigorate our country’s defense industrial base. Zeus’ successful mission is representative of the value Kratos’ strategy delivers to our stakeholders, with Kratos’ internally funded investments allowing us to rapidly develop and be first to market with affordable relevant systems for our partners and customers.”

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

Research News and Market Data on KTOS

Third Quarter 2024 Revenues of $275.9 Million Compared with Third Quarter 2023 Revenues of $274.6 Million

Third Quarter 2024 Unmanned Systems Revenues of $64.2 Million Compared with Third Quarter 2023 Revenues of $56.7 Million

Third Quarter 2024 Consolidated Book to Bill Ratio of 1.0 to 1 and Last Twelve Months Ended September 29, 2024 
Consolidated Book to Bill Ratio of 1.1 to 1

Third Quarter 2024 Consolidated Bookings of $267.2 Million and Last Twelve Months Ended September 29, 2024 Consolidated Bookings of $1.240 Billion

Affirms Full Year 2024 Financial Forecast

SAN DIEGO, Nov. 07, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a Technology Company in the Defense, National Security and Global Markets, today reported its third quarter 2024 financial results, including Revenues of $275.9 million, Operating Income of $6.5 million, Net Income of $3.2 million, Adjusted EBITDA of $24.6 million and a consolidated book to bill ratio of 1.0 to 1.0.

Included in third quarter 2024 Net Income and Operating Income is non-cash stock compensation expense of $7.2 million and Company-funded Research and Development (R&D) expense of $9.9 million.

Kratos reported third quarter 2024 GAAP Net Income attributable to Kratos of $3.2 million and Earnings Per Share of $0.02 compared to a GAAP Net Loss attributable to Kratos of $1.6 million and a GAAP Net Loss per share of $0.01 for the third quarter of 2023. Adjusted EPS was $0.11 for the third quarter of 2024 compared to $0.12 for the third quarter of 2023.

Third quarter 2024 Revenues of $275.9 million increased $1.3 million, or 0.5 percent, from third quarter 2023 Revenues of $274.6 million. Including the impact of the Sierra Technical Services, Inc. (STS) acquisition on a pro forma basis as if acquired at the beginning of 2023, Unmanned Systems reported 8.7 percent organic revenue growth. Kratos Turbine Technologies, Microwave Products, C5ISR, Defense Rocket Support and Training Solutions businesses in KGS also all reported organic revenue growth, offset by the previously reported and expected decline of approximately $24.2 million in the Space and Satellite business, primarily resulting from the industry related impact from OEM delays in the manufacture and delivery of software defined satellites.

Third quarter 2024 Cash Flow Generated from Operations was $6.1 million, which includes working capital requirements for increases in prepaid assets, inventory balances, vendor required deposits and reduction in deferred revenue or customer prepayment balances. Free Cash Flow Used in Operations was $9.2 million after funding of $15.3 million of capital expenditures, including the continued manufacture of two production lots of Kratos Valkyrie unmanned tactical jet drone aircraft prior to contract award.

For the third quarter of 2024, Kratos’ Unmanned Systems Segment (KUS) generated Revenues of $64.2 million, compared to $56.7 million in the third quarter of 2023, with organic revenue growth of 8.7 percent, driven primarily by increased target drone production, and reflects the pro forma impact of the STS acquisition as if acquired at the beginning of 2023. KUS’s Operating Income was $0.4 million in the third quarter of 2024 compared to Operating Income of $2.6 million in the third quarter of 2023, primarily reflecting the mix of revenues and resources.

KUS’s Adjusted EBITDA for the third quarter of 2024 was $3.6 million, compared to third quarter 2023 KUS Adjusted EBITDA of $5.4 million, reflecting the mix of revenues and resources.
        
KUS’s book-to-bill ratio for the third quarter of 2024 was 0.5 to 1.0 and 1.1 to 1.0 for the last twelve months ended September 29, 2024, with bookings of $32.6 million for the three months ended September 29, 2024, and bookings of $295.1 million for the last twelve months ended September 29, 2024. Total backlog for KUS at the end of the third quarter of 2024 was $273.9 million compared to $305.5 million at the end of the second quarter of 2024.

For the third quarter of 2024, Kratos’ Government Solutions Segment (KGS) generated Revenues of $211.7 million compared to $217.9 million in the third quarter of 2023, reflecting aggregate organic revenue increases of $18.0 million generated by the Kratos’ Turbine Technologies, Microwave Products, C5ISR, Defense Rocket Support and Training Solutions businesses in KGS, offset by the previously reported and expected decline of $24.2 million in the Space and Satellite business, as noted above.

KGS reported operating income of $13.5 million in the third quarter of 2024 compared to $15.9 million in the third quarter of 2023, primarily reflecting the revenue volume and mix of revenues and resources. Third quarter 2024 KGS Adjusted EBITDA was $21.0 million, compared to third quarter 2023 KGS Adjusted EBITDA of $22.3 million, reflecting the mix in revenues, revenue volume and resources.

For the third quarter of 2024 and the last twelve months ended September 29, 2024, KGS reported a book-to-bill ratio of 1.1 to 1.0, and bookings of $234.6 million and $945.0 million for the three and last twelve months ended September 29, 2024, respectively. KGS’s total backlog at the end of the third quarter of 2024 was $1.02 billion, as compared to $997.2 million at the end of the second quarter of 2024.

For the third quarter of 2024, Kratos reported consolidated bookings of $267.2 million and a book-to-bill ratio of 1.0 to 1.0, with consolidated bookings of $1.24 billion and a book-to-bill ratio of 1.1 to 1.0 for the last twelve months ended September 29, 2024. Consolidated backlog was $1.294 billion on September 29, 2024 and $1.303 billion on June 30, 2024. Kratos’ bid and proposal pipeline was $12.0 billion at September 29 and June 30, 2024. Backlog at September 29, 2024 was comprised of funded backlog of $1.098 billion and unfunded backlog of $195.4 million.

Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ strategy of making internally funded investments, to be first to market with relevant hardware, software and systems, in coordination with our partners and customers is working, as reflected in our financial results and our $12 billion opportunity pipeline. A recent representative example of this success is the successful flight of Kratos’ Zeus 1 and Zeus 2 system solid rocket motor stack with our customer’s payload, positioning Kratos for potential growth above our current future revenue year over year 10% target beginning in 2026.”

Mr. DeMarco went on, “Consistent with the success of and opportunities from Kratos’ strategy, earlier this year we completed an equity raise to position the Company to ensure successful execution on programs we have received and expect to receive. As an update to the related investments we are making: Kratos is currently manufacturing ~ 165 jet drones a year and we are now positioned to increase to ~400 a year including Valkyrie. Kratos can now produce ~10,000 small jet engines annually for drones and missiles, Kratos Microwave Electronics’ expansion in Israel is on track for a Q2 2025 completion, including an additional new manufacturing facility, an expanded existing manufacturing facility and a space & satellite qualified capability; we have identified the site for our new rocket system production and integration facility including for Zeus, Oriole and Erinyes and plan to break ground by the end of this year; and we have now identified the site for our new turbofan engine facility. Importantly, each of these expansion initiatives have existing programs, customer funded backlog or opportunities, or are in conjunction with a partner.”

Mr. DeMarco continued, “We continue to make progress in Kratos’ tactical drone business, with Kratos’ Apollo drone program now in contract documentation and Kratos’ Athena drone program under contract. Additionally, we have had recent successful Valkyrie flights with the U.S. Marines, Navy and Office of the Secretary of Defense, and Kratos recently has been selected on a new tactical drone opportunity. Importantly, our Ghost Works is on track to fly both a Kratos tactical drone and Kratos target drone in 2025 with Kratos internally funded, developed and manufactured jet engines, which will provide increased performance and electrical power, at reduced cost. Kratos Ghost Works is also expecting to fly the newest version of Kratos Valkyrie in 2025, as we make internally funded investments and continue to expand the Valkyrie families’ capability set and further drive down its operating and overall cost, and our newest 5^th Generation drone is also scheduled for first flight in 2025 in conjunction with our customer.”

Mr. DeMarco concluded, “We are in a generational recapitalization of strategic weapon systems, with Kratos being an industry leader in hardware, software and systems for mission critical National Security and Defense applications. Expected growth drivers for Kratos in 2025 include; Kratos Erinyes, Zeus, Dark Fury, Oriole and other relevant rocket systems; Kratos jet engine and propulsion systems for missiles, drones, supersonic and space systems; microwave electronics and C5ISR products for air defense, CUAS, missile and radar systems and jet target drone systems.”

Financial Guidance

We are providing our initial 2024 fourth quarter financial guidance and affirming our full year 2024 guidance today, which ranges include our current forecasted business mix assumptions and expected contract execution and delivery schedules. Our financial guidance also includes our expectations and assumptions for our supply chain’s execution, and for employee sourcing, hiring, retention and related costs. We have also taken into consideration in our affirmed fiscal 2024 guidance the Federal Fiscal Year 2025 Continuing Resolution Authorization (CRA) which began on October 1, 2024, and under such expected CRA, no new program or contract awards, no increases in existing production contract funding, and no transition from program development to production are expected.

Our fourth quarter and full year 2024 guidance ranges are as follows:

For Kratos’ Fiscal year 2025, we are currently forecasting base case Revenue growth of approximately 10%, and Adjusted EBITDA growth. Our industry is currently operating under a Federal Fiscal Year 2025 CRA, which began October 1, 2024 and which is currently expected to continue into Kratos’ Fiscal 2025. There was also an approximate 6-month Federal Fiscal 2024 CRA, which was previously resolved in March 2024, Kratos’ current 2024 fiscal year. Additionally, the recent election will impact the Administration, House and Senate. Accordingly, we will be providing our detailed 2025 Revenue, Adjusted EBITDA, Cash Flow and other financial forecast information and guidance when we report our Fiscal 2024 results, currently expected to be in late February 2025. This will provide Kratos additional time to assess the impacts of these ongoing and recent events, if any, on National Security priorities, our 2025 business mix, contractual and program funding and timing assumptions and potential fiscal year 2025 fiscal quarter to quarter impacts. Kratos’ base case financial forecast does not assume or include any potential tactical drone program production.

Management will discuss the Company’s financial results, on a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern) today. 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

Notice Regarding Forward–Looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, express or implied statements concerning the Company’s expectations regarding its future financial performance, including the Company’s expectations for its fourth quarter and full year 2024 and fiscal year 2025 revenues, revenue growth, Adjusted EBITDA growth, organic revenue growth rates, R&D, operating income (loss), depreciation, amortization, stock based compensation expense, and Adjusted EBITDA, and full year 2024 operating cash flow, capital expenditures and other investments, and free cash flow, the Company’s future growth trajectory and ability to achieve improved revenue mix and profit in certain of its business segments and the expected timing of such improved revenue mix and profit, including the Company’s ability to achieve sustained year over year increasing revenues, profitability and cash flow, the Company’s expectation of ramp on projects and that investments in its business, including Company funded R&D expenses and ongoing development efforts, will result in an increase in the Company’s market share and total addressable market and position the Company for significant future organic growth, profitability, cash flow and an increase in shareholder value, the Company’s bid and proposal pipeline and backlog, including the Company’s ability to timely execute on its backlog, demand for its products and services, including the Company’s alignment with today’s National Security requirements and the positioning of its C5ISR and other businesses, planned 2024 investments, including in the tactical drone and satellite areas, and the related potential for additional growth in 2025 and beyond, ability to successfully compete and expected new customer awards, including the magnitude and timing of funding and the future opportunity associated with such awards, including in the target and tactical drone and satellite communication areas, performance of key contracts and programs, including the timing of production and demonstration related to certain of the Company’s contracts and control (TT&C) product offerings, the impact of the Company’s restructuring efforts and cost reduction measures, including its ability to improve profitability and cash flow in certain business units as a result of these actions and to achieve financial leverage on fixed administrative costs, the ability of the Company’s advanced purchases of inventory to mitigate supply chain disruptions and the timing of converting these investments to cash through the sales process, benefits to be realized from the Company’s net operating loss carry forwards, the availability and timing of government funding for the Company’s offerings, including the strength of the future funding environment, the short-term delays that may occur as a result of Continuing Resolutions or delays in U.S. Department of Defense (DoD) budget approvals, timing of LRIP and full rate production related to the Company’s unmanned aerial target system offerings, as well as the level of recurring revenues expected to be generated by these programs once they achieve full rate production, market and industry developments, and the current estimated impact of the national election, supply chain disruptions, availability of an experienced skilled workforce, inflation and increased costs, risks related to potential cybersecurity events or disruptions of our information technology systems, and delays in our financial projections, industry, business and operations, including projected growth. Such statements are only predictions, and the Company’s actual results may differ materially from the results expressed or implied by these statements. 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 the Company undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Factors that may cause the Company’s results to differ include, but are not limited to: risks to our business and financial results related to the reductions and other spending constraints imposed on the U.S. Government and our other customers, including as a result of sequestration and extended continuing resolutions, the Federal budget deficit and Federal government shut-downs; risks of adverse regulatory action or litigation; risks associated with debt leverage; risks that our cost-cutting initiatives will not provide the anticipated benefits; risks that changes, cutbacks or delays in spending by the DoD may occur, which could cause delays or cancellations of key government contracts; risks of delays to or the cancellation of our projects as a result of protest actions submitted by our competitors; risks that changes may occur in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks of the availability of government funding for the Company’s products and services due to performance, cost growth, or other factors, changes in government and customer priorities and requirements (including cost-cutting initiatives, the potential deferral of awards, terminations or reduction of expenditures to respond to the priorities of Congress and the Administration, or budgetary cuts resulting from Congressional committee recommendations or automatic sequestration under the Budget Control Act of 2011, as amended); risks that the unmanned aerial systems and unmanned ground sensor markets do not experience significant growth; risks that products we have developed or will develop will become programs of record; risks that we cannot expand our customer base or that our products do not achieve broad acceptance which could impact our ability to achieve our anticipated level of growth; risks of increases in the Federal government initiatives related to in-sourcing; risks related to security breaches, including cyber security attacks and threats or other significant disruptions of our information systems, facilities and infrastructures; risks related to our compliance with applicable contracting and procurement laws, regulations and standards; risks related to the new DoD Cybersecurity Maturity Model Certification; risks relating to the ongoing conflict in Ukraine and the Israeli-Palestinian military conflict; risks to our business in Israel; risks related to our international operations; risks related to contract performance; risks related to failure of our products or services; risks associated with our subcontractors’ or suppliers’ failure to perform their contractual obligations, including the appearance of counterfeit or corrupt parts in our products; changes in the competitive environment (including as a result of bid protests); failure to successfully integrate acquired operations and compete in the marketplace, which could reduce revenues and profit margins; risks that potential future goodwill impairments will adversely affect our operating results; risks that anticipated tax benefits will not be realized in accordance with our expectations; risks that a change in ownership of our stock could cause further limitation to the future utilization of our net operating losses; risks that we may be required to record valuation allowances on our net operating losses which could adversely impact our profitability and financial condition; risks that the current economic environment will adversely impact our business, including with respect to our ability to recruit and retain sufficient numbers of qualified personnel to execute on our programs and contracts, as well as expected contract awards and risks related to increasing interest rates and risks related to the interest rate swap contract to hedge Term SOFR associated with the Company’s Term Loan A; and risks related to natural disasters or severe weather. These and other risk factors are more fully discussed in the Company’s Annual Report on Form 10-K for the period ended December 31, 2023, and in our other filings made with the Securities and Exchange Commission.

Note Regarding Use of Non-GAAP Financial Measures and Other Performance Metrics
This news release contains non-GAAP financial measures, including organic revenue growth rates, Adjusted EPS (computed using income from continuing operations before income taxes, excluding income (loss) from discontinued operations, excluding income (loss) attributable to non-controlling interest, excluding depreciation, amortization of intangible assets, amortization of capitalized contract and development costs, stock-based compensation expense, acquisition and restructuring related items and other, which includes, but is not limited to, legal related items, non-recoverable rates and costs, and foreign transaction gains and losses, less the estimated impact to income taxes) and Adjusted EBITDA (which includes net income (loss) attributable to noncontrolling interest and excludes, among other things, losses and gains from discontinued operations, acquisition and restructuring related items, stock compensation expense, foreign transaction gains and losses, and the associated margin rates). Additional non-GAAP financial measures include Free Cash Flow from Operations computed as Cash Flow from Operations less Capital Expenditures plus proceeds from sale of assets and Adjusted EBITDA related to our KUS and KGS businesses. Kratos believes this information is useful to investors because it provides a basis for measuring the Company’s available capital resources, the actual and forecasted operating performance of the Company’s business and the Company’s cash flow, excluding non-recurring items and non-cash items that would normally be included in the most directly comparable measures calculated and presented in accordance with GAAP. The Company’s management uses these non-GAAP financial measures, along with the most directly comparable GAAP financial measures, in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and investors should carefully evaluate the Company’s financial results calculated in accordance with GAAP and reconciliations to those financial results. In addition, non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. As appropriate, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP are included in this news release.

Another Performance Metric the Company believes is a key performance indicator in our industry is our Book to Bill Ratio as it provides investors with a measure of the amount of bookings or contract awards as compared to the amount of revenues that have been recorded during the period and provides an indicator of how much of the Company’s backlog is being burned or utilized in a certain period. The Book to Bill Ratio is computed as the number of bookings or contract awards in the period divided by the revenues recorded for the same period. The Company believes that the rolling or last twelve months’ Book to Bill Ratio is meaningful since the timing of quarter-to-quarter bookings can vary.

Press Contact:
Yolanda White
858-812-7302 Direct

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

Click Here for Full Report