Kratos Defense & Sec Solutions Stock Price, News & Analysis

Kratos Defense & Security Solutions (NASDAQ: KTOS) has announced a proposed public offering of $500 million worth of common stock, with underwriters having a 30-day option to purchase an additional $75 million in shares. The offering will be conducted through an underwritten offering pursuant to an effective shelf registration statement.

The net proceeds will be used to fund investments and capital expenditures for National Security programs, finance strategic acquisitions, and for general corporate purposes including debt reduction. Baird, RBC Capital Markets, Truist Securities, and Raymond James are serving as joint book-running managers for the offering.

Kratos Defense & Security Solutions (NASDAQ: KTOS) announced plans to open a new advanced manufacturing facility in Bristow, Oklahoma for producing GEK turbojet engines. The 50,000-square-foot facility, situated on 20 acres, will initially focus on the GEK800 engine and is expected to double in size to accommodate up to five production lines with an annual output of 500 engines. The facility will feature three small engine test cells and create 60 initial high-quality jobs, with each additional production line adding approximately 45 new positions. Operations are scheduled to begin in mid-2026 and reach full capacity by Q4 2026, with test cells becoming operational in 2027. The facility will support engine thrust classes from 600 to 6000 pounds, primarily serving defense customers' propulsion needs for cruise missiles and CCA-type aircraft.

Kratos Defense & Security Solutions announced its successful participation in NATO's At-Sea Demonstration/Formidable Shield 25, the largest live-fire exercise in the European theater. The company's Aegis Readiness Assessment Vehicle Type B (ARAV-B) medium-range ballistic missile target was successfully launched on May 20, 2025, and intercepted by U.S. guided missile destroyers USS Bulkeley and USS Thomas Hudner using Standard Missile 3. The exercise, involving 6,900 NATO personnel, demonstrated Kratos' commitment to providing affordable threat representative targets. The company emphasized its strategy of investing in real hardware development rather than stock buybacks or dividends, focusing on cost-effective solutions for national security. Kratos has been supporting the biennial Formidable Shield Exercise since 2017, contributing to NATO's integrated air and missile defense capabilities.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has secured a $25 million task order from the U.S. Space Force's Space Systems Command for the Evolved Strategic SATCOM (ESS) program. The 34-month contract, running from March 2025 to November 2027, is part of the larger C-SAR IDIQ contract valued at $579 million. The project will utilize Kratos' OpenSpace Platform to support Nuclear Command, Control, and Communications missions. The scope includes developing infrastructure for ESS telemetry and command capabilities, linking ground system solutions, creating roadmaps for Mission Unique Software, and implementing CCS-C micro-services. The system will enhance military satellite communications across Wideband and Strategic systems, supporting various satellite programs including DSCS, Milstar, WGS, and AEHF satellites.

Kratos Defense & Security Solutions (KTOS) and GE Aerospace (GE) have signed a teaming agreement to develop next-generation propulsion technologies for unmanned aerial systems and Collaborative Combat Aircraft. The partnership expands on their previous MOU and focuses on developing two new engines: the GEK800 and GEK1500. These engines are designed to be cost-effective solutions for various defense applications. The collaboration combines Kratos' 20-year experience in developing affordable engines for UAS, drones, and missiles with GE Aerospace's century-long expertise in propulsion technology and mass production capabilities. The initiative aims to meet critical U.S. National Security requirements by delivering enhanced capabilities at lower costs.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has announced it will webcast its 2025 Annual Meeting of Shareholders on Wednesday, May 14, 2025, at 9:00 a.m. PDT. The event will feature a special presentation from President and CEO Eric DeMarco, who will provide a comprehensive business-wide update.

The presentation will cover the company's strategic priorities, operational highlights, and market outlook across all divisions, with particular focus on hypersonic systems, unmanned platforms, propulsion, space-based capabilities, and dual-use technologies. While shareholders of record as of March 17, 2025, can participate and submit questions, non-shareholders can view the meeting through the virtual platform at www.virtualshareholdermeeting.com/KTOS2025.

Kratos Defense & Security Solutions (KTOS) reported strong Q1 2025 financial results with revenues of $302.6 million, up 9.2% from Q1 2024, including 7.4% organic growth. The company achieved a book-to-bill ratio of 1.2 to 1 with bookings of $365.6 million. Net income was $4.5 million ($0.03 per share), up from $1.3 million in Q1 2024. Key highlights include:

• Adjusted EBITDA of $26.7 million with adjusted EPS of $0.12
• Strong organic growth in Defense Rocket Systems, Microwave Products, and C5ISR (13.1-18.7%)
• Total backlog increased to $1.508 billion
• Bid and proposal pipeline at $12.6 billion

The company maintained its FY2025 guidance, projecting 10% organic revenue growth for 2025 and 14% for 2026, with Q3 and Q4 2025 expected to be particularly strong.

Capella Space has achieved Cybersecurity Maturity Model Certification (CMMC) Level 2, becoming one of the first aerospace companies to meet this standard. The certification, validated by Kratos Defense & Security Solutions (NASDAQ: KTOS), authorizes Capella to store, process, and transmit US government Controlled Unclassified Information (CUI). This achievement verifies compliance with 110 NIST SP 800-171 Revision 2 security requirements.

The certification is crucial for contractors handling sensitive, unclassified DoD information and is a prerequisite for certain contract awards. Capella collaborated with Summit7 for IT support and implementation of the program, utilizing their CMMC L2 Implementation for Office 365 GCC High and Azure Government services.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has announced its upcoming first quarter 2025 earnings conference call scheduled for Wednesday, May 7th. The company will release its financial results after market close, followed by a management discussion at 2:00 p.m. Pacific (5:00 p.m. Eastern).

Interested participants can access the call through the company's website at www.kratosdefense.com and must register using an Online Form to receive the dial-in number and a unique PIN. For those unable to attend the live broadcast, a replay will be made available on Kratos' website.