PDF Version Engine Designed for Next-Gen CCA-type Aircraft
SAN DIEGO, Oct. 31, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, and GE Aerospace (NYSE:GE) today announced the successful completion of altitude testing. The companies also conducted durability and limits testing on its GEK800 engine designed to power the next generation of affordable unmanned aerial systems and CCA-type aircraft. The testing began late September and progressed through a very stringent timeline through altitude tests and concluded this week with testing engine limits.
“Successfully completing altitude testing marks a major milestone in the GEK800 engine program and demonstrates the strength of our partnership with GE Aerospace, AFRL, and Purdue University’s Zucrow Laboratories,” said Stacey Rock, President of Kratos Turbine Technologies. “This collaboration has been instrumental in advancing the engine’s development, validating its performance, and accelerating its path toward production. Together, we’re delivering on our shared commitment to provide high-performance, affordable propulsion systems that can be rapidly produced to meet the demands of our defense customers.”
With the successful completion of altitude testing, the test team – a collaboration between Kratos, GE Aerospace, and Purdue University’s Maurice J. Zucrow Laboratories – has achieved a major milestone this week, pushing boundaries which demonstrate the robustness of this advanced engine design and gaining a clear path towards production in delivering on our nation’s defense readiness with the aid of rapid and affordable testing. This engine test also marks the first at the newly expanded ZL9 test facility at Zucrow Labs.
“Our joint team successfully expanded the altitude testing envelope and identified the engine’s rotor speed limits and compressive system boundaries. This testing further demonstrated the engine’s outstanding performance and durability,” said Mark Rettig, Vice President & General Manager of Edison Works Business & Technology Development at GE Aerospace.
1 Induced Stall Testing Exhaust Flame Durability and Limits Test
The GEK800 is an 800-lb jet engine that could potentially power unmanned aerial systems (UAS), collaborative combat aircraft (CCAs), and missiles. Initially developed and ground tested by Kratos over the course of a decade, Kratos and GE Aerospace began working together in 2023 to complete additional development efforts and testing on the engine and have completed more than 50 engine starts in ground testing at Kratos and GE Aerospace testing facilities. In a collaboration with GE Aerospace, Kratos Defense, and Purdue Zucrow Labs, an aggressive test timeline was met and successfully demonstrated a reliable, durable engine solution. Success in testing has been made possible with the involvement of both the Air Force Research Laboratory (AFRL) and Office of Naval Research (ONR).
“The recent collaboration between GE Aerospace, Purdue University, and the Kratos test teams demonstrated a high level of alignment, efficiency, and technical excellence. The joint team successfully met nearly all test objectives while also validating the capability to conduct this style of testing within a newly commissioned facility. The dedication, expertise, and hard work contributed by each team member were instrumental to the success of this effort and are truly commendable,” said Daniel Fineberg, Kratos GEK800 Test Coordination Lead.
In June, Kratos and GE Aerospace announced the signing of a formal teaming agreement to advance propulsion technologies for the next generation of affordable unmanned aerial systems and CCA-type aircraft. This collaboration strengthens the companies’ ongoing partnership and builds on last year’s Memorandum of Understanding (MOU) to advance the development and production of small, cost-effective engines for unmanned platforms. The new teaming agreement expands on that MOU and provides the framework for the two companies to develop, manufacture, test, and field the GEK800 engine.
Kratos brings more than 25 years of experience developing and producing small, affordable engines for UAS, drones, and missile platforms. GE Aerospace adds a century of expertise in propulsion technology and the ability to scale advanced designs into high-rate production, helping bridge the gap from prototype to deployment.
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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
About GE Aerospace GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 49,000 commercial and 29,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.com.
SAN DIEGO, Oct. 28, 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 third quarter 2025 after the close of market on Tuesday, November 4th. 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
SAN DIEGO, Oct. 27, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading technology company in the defense, national security, and global markets, today announced the formation of a strategic partnership with Korea Aerospace Industries (KAI), a major Korean defense organization to advance Manned-Unmanned Teaming (MUM-T) technologies and capabilities.
The collaboration builds on Kratos’ deep experience in affordable, high-performance tactical unmanned aerial systems—including the XQ-58A Valkyrie, Mako, and Tactical Firejet—and KAI’s aerospace technologies. Together, the organizations will work to integrate complementary systems and expertise to accelerate the development of interoperable, next-generation MUM-T solutions that enhance joint force readiness and operational flexibility.
“This partnership represents the next step in evolving how crewed and uncrewed aircraft operate together in contested environments,” said Steve Fendley, President of Kratos’ Unmanned Systems Division. “By combining Kratos’ proven autonomous jet systems with KAI’s advanced technologies, we are expanding the boundaries of affordable mass and collaborative combat capability for U.S. and allied forces.”
“Kratos has long believed that strategic international partnerships are key to ensuring readiness and deterrence through innovation,” said Eric DeMarco, President and CEO of Kratos. “Our collaboration with KAI, a world-class Korean organization, underscores our shared commitment to developing advanced, interoperable defense technologies that strengthen allied capability, resilience, and industrial cooperation.”
The strategic partnership will focus on joint research, system integration, and evolution of scalable MUM-T applications, including autonomous loyal wingmen, distributed sensing, and collaborative strike missions, all focused on affordable mass. Kratos and KAI will also evaluate opportunities for technology co-development, production, and export in alignment with U.S. and allied defense requirements.
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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
PDF VersionOnce Complete, Kratos’ Arc Jet and Laser Facility’s Multi-Domain Test Capability is Expected to Accelerate Hypersonic Materials Development for Decades, Advancing U.S. Defense Infrastructure
SAN DIEGO, Oct. 23, 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 contract through the Department of War’s Industrial Base Analysis and Sustainment Program to design and build a state-of-the-art mid-tier arc jet and coupled fiber laser facility for hypersonic materials evaluation. Known internally to Kratos as Project Helios, the contract to Kratos for the leading technology facility has a total projected value of $68.3 million.
Once complete, the facility will address current critical gaps in U.S. Defense Industrial Base capabilities by providing essential testing infrastructure for thermal protection systems used in hypersonic vehicles. This capability will complement and enhance the national testing infrastructure, supporting all branches of the U.S. Armed Forces and Department of War and bridging the gap between low-fidelity screening solutions available across both industry and academia and the exquisite, large-scale arc jet facilities at government testing sites. Combining a 20-25 MW arc jet capability with a 200 kW fiber laser system, this innovative facility is expected to dramatically increase opportunities for material evaluation in support of both hypersonic and strategic national defense efforts.
“This new facility will provide a vital capability for advancing hypersonic technology development while alleviating the current testing bottleneck at existing facilities,” said Eric DeMarco, President and CEO of Kratos. “Once the facility is complete, Kratos will offer more cost-effective and readily available testing options, with Kratos also helping accelerate the development of critical defense technologies. Project Helios is a recent example of Kratos’ strategy to make the internal investment and rapidly bring a mission critical capability to the warfighter, while generating multi- year, long term value for all of our stakeholders. The demand for these unique testing capabilities is expected to continue for decades with the need for developing and advancing hypersonic related materials.”
“We are excited to initiate the development of this cutting-edge facility that bridges current testing infrastructure gaps across the nation,” said Dave Carter, President of Kratos Defense and Rocket Support Services Division. “Kratos continues to serve as a cornerstone of affordability, low cost, innovation and readiness in the national defense community. This facility underscores our dedication to proactively address high-priority defense requirements and meeting the technology development needs of each program.”
“The team at Kratos SRE has a history of evaluating high-temperature materials that spans over 80 years,” said Ben Dempsey, Kratos SRE Vice President of Programs. “Our experienced materials experts are excited to collaborate with the highly skilled facility design teams at North Wind and New Horizon 5 to make this new capability available to the defense sector for the evaluation and development of materials in extreme environments.”
Key benefits include:
Material Development: Serve as a natural bridge for material development, transitioning materials from laboratory experiments to fielded system applications more efficiently.
Advancement of National Defense: Support critical needs for national defense through a comprehensive testing infrastructure.
Cost Reduction: Increase throughput while significantly reducing overall program costs.
Collaboration & Innovation: Demonstrates Kratos’ commitment to addressing high-priority defense requirements and providing long-term value.
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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
Projected Initial Ceiling Across Program Phases $175 Million
155,000-Square-Foot Indiana Radar Integration Complex Will Deliver Next-Generation Readiness for Naval Surface Fleet
SAN DIEGO, Oct. 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 Phase 1 to begin developing an organic sustainment capability for the U.S. Navy’s AN/SPY-1 radar systems. Known internally to Kratos as Project Anaconda, the single-award agreement has an initial total projected ceiling of $175 million across multiple phases.
The AN/SPY-1 radar remains one of the most critical assets in the Navy’s fleet, enabling ballistic missile defense, integrated air and missile warfare, and persistent maritime domain awareness across Aegis-equipped cruisers and destroyers. With many systems projected to remain in service through 2065, the Navy has prioritized building long-term, organic sustainment and depot-level support capacity to ensure uninterrupted fleet readiness.
Central to Kratos’ solution is the new, Kratos owned and operated, state-of-the-art Indiana Radar Integration Complex (IRIC), strategically located within 1.5 miles of Naval Surface Warfare Center (NSWC) Crane. The 155,000-square-foot facility is expected to be operational in 2027 providing the U.S. Navy with a dedicated infrastructure for AN/SPY-1 sustainment and modernization.
Under Phase 1, Kratos will lead a cross-industry team to:
Establish the foundation for the IRIC at NSWC Crane, a purpose-built facility to support AN/SPY-1 battle sparing, testing, and prototyping
Develop initial organic repair, overhaul, and modernization processes for AN/SPY-1 transmitter, signal processor, and antenna subsystems
Advance digital engineering, artificial intelligence–enabled data management, and prototype sustainment technologies
Coordinate closely with NSWC Crane, Program Executive Office Integrated Warfare Systems, and Navy fleet stakeholders to ensure alignment with fleet sustainment priorities and readiness
“This strategic award validates Kratos’ proven approach of making significant internal investments in national security-focused infrastructure and capabilities to generate significant value for all Kratos stakeholders, including the United States,” said Eric DeMarco, President and CEO of Kratos. “The AN/SPY-1 program and our new IRIC represent the intersection of Kratos’ core philosophies: rapidly developing affordable, real-world solutions for critical defense needs, while providing true long-term value to our government customers, the U.S. taxpayer, and our entire stakeholder community. We anticipate that the Anaconda program will generate multi-decade value for both the United States Navy and Kratos.”
“Kratos’ MACH-TB contract award, the establishment of Prometheus Energetics LLC, and now the AN/SPY-1 sustainment contract award demonstrate Kratos’ commitment to pursuing business in the Crane region,” said Dave Carter, President of Kratos Defense and Rocket Support Services Division. “Like our investments in Oriole, Zeus, Erinyes, and Prometheus, this initiative will rapidly provide the competency needed to sustain warfighter capabilities. Kratos is proud to be a member of the Indiana Uplands community.”
“Phase 1 at Crane sets the stage for the Navy’s first organic sustainment capability for the AN/SPY-1 radar,” said Roger A. Becker, Indiana site director for Kratos. “By combining advanced prototyping, workforce development, and strong industry-government collaboration, we are building a foundation that will ensure readiness is delivered through 2065.”
The contract will be executed in multiple phases, with additional work authorized as milestones are achieved. This phased approach allows the Navy and Kratos to mitigate risk, accelerate key capabilities, and scale sustainment infrastructure to meet long-term fleet requirements.
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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
PDF VersionManaged Complex Ground Integration Program of Critical Systems with Diverse Partners
SAN DIEGO, Sept. 29, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, has successfully completed the Preliminary Design Review (PDR) for the Space Development Agency’s Advanced Fire Control Ground Integration (AFCGI) system. Kratos’ successful completion of the PDR with zero liens allows the program to advance on an accelerated timeline, aligning with projected launch milestones.
As previously announced, in 2024 Kratos secured a $116.7 million prime contract for the AFCGI program. AFCGI integrates advanced software, resilient ground systems and secure networks into a unified architecture for real-time fire control. It is a complex capability providing the warfighter with immediate, mission-relevant advantages. Achieving zero liens signifies that all design challenges, risks and outstanding items identified during the review for this program were thoroughly addressed and resolved, ensuring no lingering issues remain that could impede the project’s progress. Kratos completed the PDR in April of 2025, only five months from the award date.
Greg Caicedo, Senior Vice President of Kratos Space, said, “Kratos is leading this strategic and complex program with our industry partners to meet SDA’s demand for speed. An advanced software-enabled approach delivered on aggressive timelines enables rapid adaptation and readiness far beyond what legacy hardware-centric systems can achieve.”
Kratos, along with its diverse team, will deliver and manage ground segment resources, operate a government-owned, contractor-operated (GOCO) demonstration center and run a secure cloud environment for mission software and partner system integration. Kratos will also provide program management, engineering, integration, testing and operations for the entire ground structure. Through its OpenSpace® platform, Kratos is integrating virtualized ground functions with advanced orchestration and automation, allowing software-defined scalability to support the complex demands of the program.
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. 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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
Kratos Latest Weapons-Configured Valkyrie will be On-Site
Kratos MAKO Tactical Jet Drone, the First CCA to Demonstrate Manned-Unmanned Teaming in 2015, also to be Displayed
SAN DIEGO, Sept. 25, 2025 (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, will display tactical and target unmanned jet drones, including the latest weapons-configured Valkyrie, at the upcoming Marine Corps Air Station Miramar Air Show September 26-28. Kratos’ tactical family of unmanned jet drones is designed for a range of military operations, including strike, ISR (intelligence, surveillance, and reconnaissance), RF (radio frequency), and communications. This lineup features the latest advancements, including the XQ-58 Valkyrie, UTAP-22 Mako, Tactical Firejet, and BQM-177 target system.
The Miramar Air Show invites both domestic and international visitors to explore full-scale Kratos tactical and target aircraft systems on display. These innovative systems exemplify the future of uncrewed air technology, providing proven and affordable solutions for mass production, deployment, and military engagement. Kratos’ unique approach aligns seamlessly with the Department of Defense’s latest technology initiatives and affordability strategies, enabling systems that can operate effectively from even the most remote locations worldwide.
The XQ-58 Valkyrie is a Collaborative Combat Aircraft (CCA)/ Autonomous Collaborative Platform (ACP) designed to operate with Joint and Allied Forces. Flying since 2019, the XQ-58 continues to pioneer tactical unmanned aerial system (UAS) technology and collaborative manned-unmanned capability.
Steve Fendley, President of Kratos Unmanned Systems Division, said, “We are proud to showcase our latest drone technologies at Miramar, offering attendees a unique opportunity to see these systems in person. Kratos is a recognized leader in unmanned systems, delivering affordable, high-performance aerial platforms like the XQ-58 Valkyrie that support a wide range of national security missions with speed, agility, and innovation. The Miramar Air Show is the ideal venue to highlight Kratos’ game changing systems that represent the future.”
Eric DeMarco, President and CEO of Kratos, said, “We are once again honored to be able to display Kratos’ affordable, leading technology hardware and systems at the Miramar Air Show with our partner, the United States Marine Corps. The Marines are a demonstrated-technology innovation leader, including Kratos’ UTAP 22 Mako, a CCA that began flying manned-unmanned teaming with USMC Harrier manned jet fighters in 2015, through today with Kratos’ Valkyrie flying with USMC F-35s. Kratos will continue to work closely with the Marines, including with certain of our most recent Drone related systems and capabilities.”
Kratos’ Tactical Firejet is designed to affordably meet requirements for fast ingress and egress of tactically denied battle spaces with the ability to deliver significant payloads over long ranges at high speed.
Located in Hangar Three, visitors to Kratos’ display can also learn more about the Spartan Line of turbojet engines, showcasing unique capabilities for expendable engine applications, such as unmanned aerial systems and tactical missiles. Additionally, Kratos’ display will feature Elroy Air’s Chaparral, a hybrid-electric autonomous vertical takeoff-and-landing (VTOL) cargo drone, of which Kratos was recently announced as Elroy Air’s exclusive U.S. manufacturing partner.
Elroy Air’s Chaparral, of which Kratos is the exclusive U.S. manufacturer, is a hybrid-electric Vertical Take-Off and Landing cargo drone designed to autonomously transport 300 pounds of cargo over distances of 300 miles. Engineered for quick turnaround, efficiency, and safety, the Chaparral enables secure, uncrewed cargo delivery at a fraction of the capital and operational cost of piloted helicopters while eliminating risk to personnel in contested or high-risk logistics environments.
The Kratos Mako is a high-speed, highly maneuverable unmanned aerial system (UAS) with open mission-system flexibility and ample payload capacity to make it an affordable and highly effective solution.
Miramar Air Show attendees will have the opportunity to engage with various static displays of advanced aircraft, providing insights into the latest innovations in aviation technology. Held at Marine Corps Air Station Miramar in San Diego, California, the show also features aerial performances and dynamic flight demonstrations with cutting-edge aircraft.
With advanced aerodynamic design, the BQM-177 is a formidable high-performance target for live-fire training scenarios, including sub-sonic, sea-skimming anti-ship cruise missile accurate threat emulation.
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 use of the proceeds from the public offering, the pipeline for opportunities, and Kratos’ success with respect to such opportunities, as well as 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 as well as general economic factors. 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 29, 2024 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
GEK800 Small Engine Designed to Power the Next Generation of Affordable Unmanned Aerial Systems and CCA-type Aircraft
AFRL, GE Aerospace, Kratos Defense, and Purdue Zucrow Labs Collaborating on Extremely Tight Testing Timeline
SAN DIEGO, Sept. 23, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, and GE Aerospace (NYSE: GE) announced that they have started altitude testing on its GEK800 small engine designed to power the next generation of affordable unmanned aerial systems and CCA-type aircraft. The testing began today at an altitude test facility at Purdue University’s Maurice J. Zucrow Laboratories.
“Altitude testing is the next milestone in demonstrating our commitment to delivering high-performance, affordable, jet engines to support our defense customers,” said Stacey Rock, President of Kratos Turbine Technologies. “Our team is uniquely positioned to bring these advanced designs into high-rate production to support the rising demand for propulsion systems for cruise missiles and CCA-type aircraft. The GEK800 has been designed and engineered up front, from conception, to be manufactured in large quantities at a low cost.”
“The GEK800 engine has performed well and exceeded our expectations in its ground testing to date,” said Mark Rettig, Vice President of Edison Works Advanced Programs at GE Aerospace. “During altitude testing, we will collect data on the engine’s performance in a range of altitudes to assess its operability in simulated real-world conditions.”
“We are thrilled that the propulsion test infrastructure of our new lab created the opportunity to test the new GEK800 engine,” said Scott Meyer, Managing Director of Zucrow Laboratories. “The cooperation and comradery between the GE and Kratos teams, and our students and staff at Zucrow Labs, has been amazingly productive and a pleasure to be a part of. We are excited to have a role in the development of this critical new capability for our nation.”
The GEK800 is an 800-lb jet engine that could potentially power unmanned aerial systems (UAS), collaborative combat aircraft (CCAs), and missiles. Initially developed and ground tested by Kratos over the course of a decade, Kratos and GE Aerospace began working together in 2023 to complete additional development efforts and testing on the engine and have completed more than 50 engine starts in ground testing at Kratos and GE Aerospace testing facilities.
The altitude testing will focus on an altitude window between 5,000-35,000 feet and is anticipated to be complete by the end of the year. GE Aerospace, Kratos, and Purdue University have been collaborating for the last few months on the engine testing, which will be the first engine to test at newly expanded ZL9 test facility at Zucrow Labs.
“The collaboration between AFRL, GE Aerospace, Kratos Defense, and Purdue Zucrow Labs on an extremely tight timeline is outstanding. While demonstrating engine technology is clearly significant, the successful development of rapid and affordable altitude test capability is a crucial element in delivering on our nation’s defense readiness,” said Chris Rawlings, Vice President, of Kratos Turbine Technologies Defense Programs.
In June, Kratos and GE Aerospace announced the signing of a formal teaming agreement to advance propulsion technologies for the next generation of affordable unmanned aerial systems and CCA-type aircraft. This collaboration strengthens the companies’ ongoing partnership and builds on last year’s Memorandum of Understanding (MOU) to advance the development and production of small, cost-effective engines for unmanned platforms. The new teaming agreement expands on that MOU and provides the framework for the two companies to develop, manufacture, test, and field the GEK800 engine.
Kratos brings more than 25 years of experience developing and producing small, affordable engines for UAS, drones, and missile platforms. GE Aerospace adds a century of expertise in propulsion technology and the ability to scale advanced designs into high-rate production —helping bridge the gap from prototype to deployment.
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.
About GE Aerospace GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 49,000 commercial and 29,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
SAN DIEGO, Sept. 23, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced that Elroy Air, a leading developer of autonomous aerial cargo systems for middle-mile logistics and military resupply, has selected Kratos as Elroy Air’s exclusive U.S. manufacturing partner for the Chaparral in a new five-year strategic manufacturing agreement to accelerate expected high-volume production of the Chaparral hybrid-electric autonomous vertical takeoff-and-landing (VTOL) cargo drone.
Elroy Air’s Chaparral, shown here in flight, to be manufactured by Kratos
“Kratos is an established and trusted producer of military UAS and is unique in their manufacturing focus on affordability. Kratos has produced and delivered thousands of uncrewed aircraft, with a well-established and reliable supply chain for these systems. Their expanded production capabilities make them the ideal partner to bring Chaparral to market at scale,” said Elroy Air CEO Andrew Clare. “This partnership accelerates our ability to deliver Chaparral systems to the many customers waiting for them, across both defense and commercial markets.”
Kratos, a proven leader in the development and production of affordable, jet-powered composite unmanned aircraft for the U.S. Department of Defense, recently expanded its manufacturing capacity to support next-generation drone production. This new partnership leverages Kratos’ deep expertise and scaled infrastructure to put the Chaparral into high-volume production.
Eric DeMarco, President and CEO of Kratos, said, “Kratos is the recognized industry leader for rapid development, production, and delivery of affordable, leading technology unmanned aerial drone systems, which is a perfect fit with Elroy Air’s UAV roadmap, incredibly large forecasted addressable market and related future high volume production plans, including for the U.S. military. Kratos provides Elroy Air an immediate and unique competitive, customer differentiating, value-multiplier advantage, with Kratos’ up and running manufacturing facilities, qualified and executing supply chain and relevant past performance qualifications. Kratos’ partnership with Elroy Air is a recent example of Kratos delivering relevant products, not promises, power points and renditions, with expected tangible value creation for our stakeholders.”
“We are thrilled to partner with Elroy Air to produce their industry-leading drone for the dual-use market,” said Steve Fendley, President of Kratos Unmanned Systems Division. “Elroy Air’s market opportunity for Chaparral is already large and continuing to grow. With this growth, Kratos is ideally suited to transition the system to production. The Kratos team is the best in the world at establishing UAS production lines and optimizing affordability.”
Chaparral is designed to autonomously transport up to 300 pounds of cargo over 300 miles, affordably bridging critical logistics gaps for military resupply, disaster relief, and commercial express delivery. The vehicle’s unique hybrid-electric powertrain enables rapid refueling, extra power for recharging batteries and powering payloads in cruise flight, and longer-range cargo transport than similar-sized battery-electric aircraft.
Kratos will perform initial production of Chaparral at their Sacramento, California aircraft production facility and over time, transition to high-rate production at Kratos’ facilities in Oklahoma City. These efforts are expected to bring aerospace jobs to both regions and expand the current supply chain infrastructure that includes many other states across our nation. The first production Chaparral aircraft are planned to be built in 2026.
“Kratos’ proven ability to produce large, composite drones in high volumes makes them the perfect partner to help us scale production of the Chaparral,” said Dave Merrill, Elroy Air’s Founder and Executive Chairman. “Our customers are eager to expand their operations with our systems, and Kratos’ deep production expertise and track record will enable us to deliver robust, world-class Chaparral vehicles in high volumes.”
Kratos and Elroy Air will have their unmanned aircraft systems on display together at the upcoming Miramar Air Show held September 26-28 at the Marine Corps Air Station Miramar in San Diego, California.
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 http://www.kratosdefense.com.
About Elroy Air Elroy Air is developing industry-first autonomous aircraft systems and cutting-edge software to revolutionize express shipping. Deploying innovative hybrid-electric and autonomous vehicle technologies, their vertical-takeoff-and-landing (VTOL) aircraft transcend traditional airport limitations, unlocking new frontiers in commercial air cargo, humanitarian aid, and military logistics. From agile, low-risk resupply for troops, to dynamic disaster response and firefighting support, to warehouse-to-warehouse express parcel transport, Elroy Air’s technology reshapes logistics possibilities. With facilities in Byron California, Elroy Air is backed by premier venture capital firms including Diamondstream Partners, Catapult Ventures, Marlinspike Partners, Snowpoint Ventures, and Shield Capital. Strategic investment from industry giants like Lockheed Martin Ventures and support from visionary angel investors including early Uber executives drive the company’s mission to provide same-day shipping to every person on the planet. For more information, visit elroyair.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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
SAN DIEGO, Sept. 22, 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 be added to the S&P MidCap 400 Index, transitioning from the S&P SmallCap 600 Index.
The move reflects Kratos’ continued growth, performance, and market recognition as the company scales its leadership in unmanned systems, hypersonics, space, propulsion, and other national security solutions. Placement in the MidCap 400 highlights Kratos’ trajectory as it executes on key programs and expands its role within the U.S. defense industrial base.
“We are honored to be recognized through our inclusion in the S&P MidCap 400, a milestone that reflects both our financial growth and the confidence in Kratos’ strategy,” said Eric DeMarco, President and CEO of Kratos. “This achievement underscores the hard work of our employees, the trust of our customers and partners, and the company’s commitment to delivering affordable, high-performance systems that support U.S. and allied national security.”
The S&P MidCap 400 Index measures the performance of mid-sized companies across diverse industries in the United States and is widely regarded as a leading benchmark for institutional and retail investors. Companies in the index are selected for their balance of size, liquidity, and representation of the U.S. mid-cap market, making inclusion an important marker of corporate growth and visibility.
Kratos remains focused on delivering cutting-edge defense technologies at an accelerated pace, leveraging its commercial approach to drive affordability and agility in support of the U.S. Department of Defense and allied partners worldwide. For more information about Kratos and its industry-leading solutions, visit www.KratosDefense.com.
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, advanced 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 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
SAN DIEGO, Sept. 17, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets and the National Chung-Shan Institute of Science and Technology (NCSIST) have partnered to introduce the Mighty Hornet IV Attack UAV, a revolutionary transformation of the MQM-178 target drone. This advanced UAV will be showcased at the upcoming Taipei Aerospace & Defense Technology Exhibition (TADTE), held September 18-20 at the Taipei Nangang Exhibition Center.
NCSIST’s collaboration with Kratos, which includes an agreement for Kratos to market the Mighty Hornet IV internationally, highlights the UAV’s potential to meet global defense needs. The modified MQM-178’s high-speed capabilities, including a speed of Mach 0.8, high G maneuvering, and a service ceiling of greater than 35,000 feet, make it an ideal base platform for this transformation.
Steve Fendley, President of Kratos Unmanned Systems Division, said, “The Mighty Hornet IV marks a significant leap in military capability for Taiwan and a natural extension of the aerial target support Kratos has provided Taiwan for the last 15 years. This groundbreaking collaboration truly highlights Kratos’ commitment to innovation and excellence in the defense sector.”
The Mighty Hornet IV not only embodies cutting-edge technology but also benefits from proven performance in collaborative exercises. Recent demonstrations showcased the MQM-178’s reliability and adaptability, reinforcing its role in Manned-Unmanned Teaming (MUM-T) and loitering munition scenarios and validating its impressive flight characteristics.
Don’t miss the chance to witness the unveiling of the Mighty Hornet IV at TADTE 2025. This event will spotlight Taiwan’s commitment to innovation and resilience in defense, underscoring Kratos’s integral role in shaping the future of military technology.
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 use of the proceeds from the public offering, the pipeline for opportunities, and Kratos’ success with respect to such opportunities, as well as 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 as well as general economic factors. 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 29, 2024 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Opportunity Knocks! Virtually every Kratos business unit is forecasting significant future organic growth, including the hypersonic system franchise, small jet engines for drones, missiles, and loitering munitions, the Israeli based microwave electronics business, and the military grade hardware business supporting missile, radar, hypersonic, counter UAS and strategic weapon systems.
2Q25 Results. Kratos reported revenue of $351.5 million, reflecting 17.1% y-o-y growth and 15.2% organic growth. We had projected revenue of $308 million. Adjusted EBITDA was $28.3 million versus $29.9 million a year ago and our $27.5 million estimate. Adjusted net income was $17.1 million, or $0.11/sh, versus $20.8 million, or $0.14/sh, last year and our $18.8 million, or $0.12/sh, estimate.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Second Quarter 2025 Revenues of $351.5 Million Reflect 17.1 Percent Growth and 15.2 Percent Organic Growth Over Second Quarter 2024 Revenues of $300.1 Million
Second Quarter 2025 Consolidated Book to Bill Ratio of 0.7 to 1 and Bookings of $257.0 Million
Last Twelve Months Ended June 29, 2025 Consolidated Book to Bill Ratio of 1.2 to 1 and Bookings of $1.401 Billion
Increases 2025 Full Year Revenue and Adjusted EBITDA Guidance
SAN DIEGO, Aug. 07, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Commercial Markets, today reported its second quarter 2025 financial results, including Revenues of $351.5 million, Operating Income of $3.7 million, Net Income of $2.9 million, Adjusted EBITDA of $28.3 million and a consolidated book to bill ratio of 0.7 to 1.0.
Second quarter 2025 Net Income and Operating Income includes non-cash stock compensation expense of $8.6 million, and Company-funded Research and Development (R&D) expense of $10.2 million, including efforts in our Space, Satellite, Unmanned Systems and Microwave Electronic businesses, and expense to accrue $2.0 million related to settlement of a legal matter, offset partially by non-recurring credits of $1.1 million related to the resolution of a previously recorded contingent liability.
Kratos reported second quarter 2025 GAAP Net Income of $2.9 million and GAAP Net Income per share of $0.02, compared to GAAP Net Income of $7.9 million and GAAP Net Income per share of $0.05, for the second quarter of 2024. Adjusted earnings per share (EPS) was $0.11 for the second quarter of 2025, compared to $0.14 for the second quarter of 2024.
Second quarter 2025 Revenues of $351.5 million increased $51.4 million, reflecting 15.2 percent organic growth from second quarter 2024 Revenues of $300.1 million. Organic revenue growth was reported in our KGS segment of 27.1 percent, with the most notable growth in our Defense Rocket Systems and C5ISR businesses, with organic revenue growth rates of 116.6 percent and 25.4 percent, respectively, compared to the second quarter of 2024.
Second quarter 2025 Cash Flow Used in Operations was $10.6 million, primarily reflecting the working capital requirements related to the revenue growth impacting our receivables, increases in inventories for anticipated future deliveries and ramps in production and investments we are making related to certain development initiatives in our Unmanned Systems (KUS) segment. Free Cash Flow Used in Operations for the second quarter of 2025 was $31.1 million after funding of $20.5 million of capital expenditures.
For the second quarter of 2025, KUS generated Revenues of $73.2 million, compared to $85.8 million in the second quarter of 2024, which included revenues of $17.4 million related to an international target drone shipment made during the second quarter of 2024. KUS’s Operating Loss was $0.3 million in the second quarter of 2025, compared to Operating Income of $3.6 million in the second quarter of 2024. KUS’s Adjusted EBITDA for the second quarter of 2025 was $3.6 million, compared to $7.2 million for the second quarter of 2024, reflecting the impact of the revenue volume and continued impact of increased material and subcontractor and labor costs on multi-year fixed price production contracts under terms which were negotiated in 2020 and 2021 that we are unable to seek recovery and which we are unable to renegotiate until the next multi-year production lot.
KUS’s book-to-bill ratio for the second quarter of 2025 was 0.9 to 1.0 and 1.3 to 1.0 for the twelve months ended June 29, 2025, with bookings of $63.7 million for the three months ended June 29, 2025, and bookings of $359.5 million for the twelve months ended June 29, 2025. Total backlog for KUS at the end of the second quarter of 2025 was $337.6 million, compared to $347.1 million at the end of the first quarter of 2025.
For the second quarter of 2025, Kratos’ Government Solutions (KGS) segment Revenues of $278.3 million increased from Revenues of $214.3 million in the second quarter of 2024, reflecting a 27.1 percent organic growth rate, excluding the impact of the recent acquisition of certain assets of Norden Millimeter, Inc. The increased Revenues includes organic revenue growth across all KGS businesses, with the most notable growth in our Defense Rocket Support business which includes the timing of certain hypersonic missions, and in our C5ISR businesses with organic revenue growth rates of 116.6 percent and 25.4 percent, respectively, over the second quarter of 2024.
KGS reported Operating Income of $12.6 million in the second quarter of 2025 compared to $15.5 million in the second quarter of 2024, primarily reflecting the mix in revenues, particularly impacted by a less favorable mix in our Space, Training and Cyber business. Second quarter 2025 KGS Adjusted EBITDA was $24.7 million, compared to second quarter 2024 KGS Adjusted EBITDA of $22.7 million, primarily reflecting the mix in revenues and resources.
KGS reported a book-to-bill ratio of 0.7 to 1.0 for the second quarter of 2025, a book to bill ratio of 1.2 to 1.0 for the last twelve months ended June 29, 2025 and bookings of $193.3 million and $1.041 billion for the three and last twelve months ended June 29, 2025, respectively. KGS’s total backlog was $1.076 billion at the end of the second quarter of 2025, compared to $1.161 billion at the end of the first quarter of 2025.
Kratos reported consolidated bookings of $257.0 million and a book-to-bill ratio of 0.7 to 1.0 for the second quarter of 2025, and consolidated bookings of $1.401 billion and a book-to-bill ratio of 1.2 to 1.0 for the last twelve months ended June 29, 2025. Consolidated backlog was $1.414 billion on June 29, 2025, as compared to $1.508 billion on March 30, 2025. Kratos’ bid and proposal pipeline was $13.0 billion at June 29, 2025, as compared to $12.6 billion at March 30, 2025. Backlog at June 29, 2025, included funded backlog of $1.125 billion and unfunded backlog of $288.6 million.
Eric DeMarco, Kratos’ President and CEO, said, “A generational recapitalization of strategic weapon systems is underway, with significant global funding being committed by the U.S. and its allies, including as represented by a planned U.S. 2026 National Security spend exceeding $1 trillion, NATO committing 5% of member GDP to defense, and Asian allies looking to do the same. The Global Defense and National Security Market is currently approximately $2.5 trillion, led by the United States “peace through strength” posture and is expected to grow for the foreseeable future. Since our last report to you, President Trump signed the Reconciliation Bill into law, supplementing defense spending by an additional $150 billion, including increased funding for drones, air defense systems, missiles, radars, space and satellites and the Golden Dome initiative, each related to primary Kratos capability areas.”
Mr. DeMarco continued, “In addition to significant increased funding expected for our industry, Secretary of Defense Pete Hegseth recently announced sweeping changes to the way the Pentagon will buy and field unmanned aerial systems, which is related to a June 6, 2025 Presidential Executive order on “Unleashing American Drone Dominance”, both expected to accelerate the acquisition and fielding of drones. Also, further emphasizing the new focus on streamlining defense acquisition, promoting innovation and commercial “ready to go” solutions to deliver capabilities to the warfighter faster and more efficiently, Senator Roger Wicker recently introduced the FORGED Act and House Armed Services Committee Chair Mike Rogers and Ranking Member Adam Smith introduced the related SPEED Act, all of which, if enacted, we expect to benefit Kratos and our “First to Market” strategy.”
Mr. DeMarco added, “We believe that we are seeing direct positive impact from these actions, including Kratos’ Q225 17 percent revenue growth rate, our near record backlog, our record $13 billion opportunity pipeline and LTM book–to–bill ratio of 1.2 to 1.0. Additionally, since the end of the second quarter, we have been informed that we have been successful as prime, on a new, single award, potential total value up to $750 million program, internal code name Poseidon, which we expect to receive a formal contract by the end of this year. Additionally, we were also recently informed that Kratos, with our strategic partner, were down selected on another large, new program of record opportunity we call Deimos”.
Mr. DeMarco went on, “Virtually every Kratos business unit is forecasting significant future organic growth, including our hypersonic system franchise, small jet engines for drones, missiles and loitering munitions, our Israeli based microwave electronics business, and our military grade hardware business supporting missile, radar, hypersonic, counter UAS and strategic weapon systems. We are also expecting increased EBITDA margins beginning in 2026 and continuing thereafter, as new higher margin programs begin, certain lower margin contracts are renegotiated at renewal, and as we reduce costs in certain areas. We expect to continue to make important investments in property, plant, facilities, equipment etc., over the next two years, in conjunction with our funded customers, partners, initiatives and programs, to capture new opportunities, rebuild the industrial base, further grow our business and generate additional value for all Kratos stakeholders.”
Mr. DeMarco concluded, “In 2015, Kratos Mako tactical jet drones flew manned-unmanned teaming with Marine Corps Harrier jet aircraft, establishing Kratos as a first-to-market innovation leader, delivering actual relevant products, not PowerPoints, to the customer. As Kratos invests its own money in research and product development, we are incentivized to move fast, do it right, at a low cost, and always with an eye on being able to produce our military grade products, hardware and software affordably, at scale, and generate an adequate return for our shareholders. We believe that Kratos is in the right places, at the right time, with the right products, and importantly at the right affordable price points, to address our customer and partners requirements, to deliver significant value to Kratos stakeholders today.”
Financial Guidance
We are providing our initial 2025 third quarter guidance and increasing our full year 2025 Revenue and Adjusted EBITDA guidance range, which includes our assumptions, including as related to: current forecasted business mix, employee sourcing, hiring and retention; manufacturing, production and supply chain disruptions; parts shortages and related continued significant cost and price increases in each of these areas, that are impacting the industry and Kratos.
Kratos’ 2025 financial forecast and guidance includes elevated investments for capital expenditures for property, plant and equipment, including the expansion of our manufacturing and production facilities and related inventory builds in our Rocket Systems and Hypersonic businesses, primarily related to the recent MACH-TB 2.0 contract award, the continued manufacture of two production lots of Valkyries prior to contract award, to meet anticipated customer orders and requirements, the expansion and build-out of the Company’s Microwave Products production facilities, the expansion and build-out of our small jet engine production and test cell facilities, and the build-out of additional secure facilities for our federal secured space communications business, in accordance with contract and customer requirements. Kratos’ operating cash flow guidance also assumes consummation of certain investments in our rocket systems and unmanned systems businesses.
Our third quarter and full year 2025 guidance ranges are as follows:
Current Guidance Range
$M
Q325
FY25
Revenues
$315 – $325
$1,290 – $1,310
R&D
$10 – $11
$40 – $42
Operating Income
$3 – $7
$29 – $34
Depreciation
$9 – $10
$35 – $38
Amortization
$3 – $4
$12 – $14
Stock Based Compensation
$8 – $9
$34 – $36
Adjusted EBITDA
$25 – $30
$114 – $120
Operating Cash Flow
$50 – $60
Capital Expenditures
$125 – $135
Free Cash Flow Use
($75 – $85)
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 RegardingForward–LookingStatements 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 third quarter and full year 2025 revenues, R&D, operating income, depreciation, amortization, stock based compensation expense, and Adjusted EBITDA, and full year 2025 operating cash flow, capital expenditures, and free cash flow, forecasted business unit organic revenue growth, EBITDA margins in 2026 and thereafter, future initiation of higher margin programs and negotiation of lower margin contracts which are expected to be renewed in the future, expected future investments in property, plant, facilities, and equipment, 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, ability to successfully compete and expected new customer awards, the impact of the Company’s restructuring efforts and cost reduction measures, the availability and timing of government funding for the Company’s offerings, 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 not 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 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; currently unforeseen risks associated with any public health crisis, 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 29, 2024, 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 before income taxes, 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 excludes, among other things, 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.
1 Induced Stall Testing Exhaust Flame Durability and Limits Test
