Kratos Defense & Sec Solutions (KTOS) Stock News

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced it has received an approximate $35 million National Security-related, military-grade hardware production program award. The hardware and related systems produced and supported under this contract are expected to be in direct support of the warfighter in the field.

According to Kratos, work will be performed at a secure company facility, with no further contract details disclosed due to customer and national security considerations. The award relates to Kratos’ C5ISR business and aligns with the company’s large-scale production activities across hypersonics, counter‑UAS, air defense, missiles, radars, and high-powered directed energy systems in support of U.S. and allied national security priorities.

Kratos Defense (Nasdaq: KTOS) is allocating part of its expanded Spartan engine production capacity to supply TDI-J85 (J85) engines for Boeing’s Joint Direct Attack Munition Long Range (JDAM LR) program. The U.S. Air Force recently awarded Boeing a $75 million Undefinitized Contract Action to acquire the BSU-111/B Payload Delivery Unit JDAM LR, a precision-guided munition capable of traveling over 300 nautical miles with a 500‑pound payload.

Kratos’ J85 engine has been selected as the propulsion source for JDAM LR. The engines are produced at Kratos’ 22,500‑square‑foot Propulsion Manufacturing Facility in Auburn Hills, Michigan, which is fully operational and set up for sustained full‑rate production. Kratos has begun procuring long‑lead components for Spartan engines to support a large multi‑customer production run in 2027 and is executing a three‑phase manufacturing infrastructure plan to further expand capacity and responsiveness for U.S. and allied defense customers.

Kratos Defense & Security Solutions (NASDAQ: KTOS) announced that its newly acquired subsidiary Orbit Communication Systems received multi-million-dollar orders from multiple international customers for GAIA 100 Tri-Band 5.5-meter and 6.1-meter ground station systems. The systems support Earth Observation, New Space and satellite communications missions.

Alongside the orders, Orbit introduced the GAIA 100 Tri-Band 6.1, featuring higher gain, improved link margins and enhanced Ka-band tracking using Auto Track technology and an integrated Radome for low-maintenance, long-term operation. Kratos acquired Orbit in March 2026, which, according to Kratos, expands its SATCOM, tracking and communications management portfolio and strengthens its ability to provide integrated, end-to-end communications and mission solutions for defense, national security and space customers.

Elroy Air, a U.S. developer of autonomous heavy‑cargo drones, announced a $46 million multi‑year contract with the U.S. Army to develop an autonomous hybrid‑electric VTOL uncrewed aircraft system for modular multi‑mission payload delivery.

The program will enhance the Chaparral drone’s payload versatility, delivery mechanisms and battlefield-enabling technologies, including expeditionary mission planning, cyber‑protected communications, GPS‑denied navigation, elevated autonomy and reliable field operation. Elroy Air plans to begin U.S. manufacturing of Chaparral this year via an exclusive partnership with Kratos Defense & Security Solutions (Nasdaq: KTOS). The company has also signed a definitive business combination agreement with Columbus Circle Capital Corp II (Nasdaq: CMII), to be renamed Inflection Point Acquisition Corp VII (Nasdaq: IPXG), under which Elroy Air would become a publicly traded company, with a draft Form S‑4 registration statement confidentially submitted to the SEC.

Kratos Defense (Nasdaq: KTOS) reported that a missionized US Marine Corps Valkyrie Collaborative Combat Aircraft successfully demonstrated electronic warfare and beyond line-of-sight (BLOS) command and control at a U.S. Navy test range in southern California in April 2026. The runway-independent Valkyrie launched from a zero-length launcher, validated a BLOS datalink, and handed off control from a Kratos ground station to an Autonodyne A-GRA-compliant interface, enabling USMC operators to control the aircraft over BLOS while flying with USMC F-35s and an F/A-18.

Kratos said the Valkyrie autonomously returned to its recovery point and that this is the fourth new mission system configuration flown on USMC Valkyries in under three years. The company expects to produce over 150 Group 5 unmanned jets in 2026 and is scaling toward approximately 40 Valkyries annually, supported by significant internally funded investments. Kratos also highlighted its role with Northrop Grumman on the USMC’s MUX TACAIR CCA program, with the first prototype Valkyrie air vehicle on track for completion in summer 2026.

Kratos Defense (NASDAQ: KTOS) and GE Aerospace (NYSE: GE) announced that their jointly developed GEK800 engine has received the U.S. military type designation F143-ZZ-100 and an Engineering, Manufacturing and Development (EMD) contract from the U.S. Air Force as a second-source propulsion system for the Joint Air-to-Surface Standoff Missile (JASSM).

The F143 is an 800‑lb thrust turbofan aimed at long-range missiles and other uncrewed applications. According to Kratos and GE Aerospace, the program combines internal investment with Air Force Research Laboratory support, has completed more than 50 engine starts in ground testing, and achieved altitude testing in 2025 at Purdue University’s Maurice J. Zucrow Laboratories.

Kratos Defense & Security Solutions (Nasdaq: KTOS) reported that its target systems supported the U.S. Missile Defense Agency and Japan Maritime Self-Defense Force during the Japan Flight Test Experiment-01 (JFTX-01), conducted March 17 and 19 off the U.S. East Coast. The mission is described as a key step in testing Japan’s Aegis System Equipped Vessel Shipset 1, helping validate next-generation radar and missile defense capabilities. Kratos provided target vehicles for two live tracking events, enabling the SPY-7 radar to detect, track and generate simulated engagement solutions in complex environments. According to the company, the experiment produced critical datasets for performance evaluation, risk reduction and future ASEV development milestones, and underscores ongoing U.S.–Japan cooperation in missile defense.

Kratos Defense (Nasdaq: KTOS) has received a contract from the U.S. Army Combat Capabilities Development Command (DEVCOM) C5ISR Center to develop an Enhanced Seeker for the Javelin Close Combat Missile System. Kratos will design, build and test a next-generation infrared seeker intended to address obsolescence in the current Javelin guidance section and improve weapon lethality over the next decade.

According to Kratos, development work will take place at its Advanced Manufacturing Center in Birmingham, Alabama, with testing at U.S. Army facilities. The company highlights its decades of missile seeker development experience and vertically integrated manufacturing as enablers for delivering production‑ready hardware. Kratos also states the contract directly supports the Secretary of War's priority to strengthen the U.S. munitions industrial base.

Kratos Defense (NASDAQ: KTOS) reported Q2 2026 revenues of $458.8 million, up 30.5% year over year and 19.1% organically, with GAAP net income of $4.4 million ($0.02 per share), an operating loss of $1.6 million, and Adjusted EBITDA of $38.2 million.

Government Solutions revenues rose to $379.7 million (36.4% total, 22.0% organic growth), while Unmanned Systems reached $79.1 million (8.1% organic growth), driven in part by Valkyrie activity. Consolidated Q2 bookings were $492.2 million, with a book‑to‑bill of 1.1 and total backlog of $2.084 billion; the bid pipeline was $15.0 billion.

Kratos raised full‑year 2026 revenue guidance to $1.75–$1.81 billion with forecast organic growth of about 18–23% versus 2025 and Adjusted EBITDA of $173–$176 million. Guidance includes heavy 2026 investments totaling $250–$275 million, capital expenditures of $125–$135 million, and expected free cash flow use of $85–$105 million.