Kratos Awarded $48 Million Contract for Geolocation Global Support Services

Rhea-AI Summary

Kratos Defense & Security Solutions (KTOS) has secured a significant $48 million Geolocation Global Support Services (GGSS) contract. The company will provide electromagnetic interference (EMI) resolution services to Space Forces Space electromagnetic interference managers and supporting elements in Colorado Springs, Colorado, with work scheduled for completion by October 31, 2029.

The company operates a global RF sensor network that delivers intelligence across SDA missions through various services, including bandwidth monitoring, geolocation, signal characterization, interference mitigation, and tracking and maneuver detection. Kratos manages a 24/7 network operations center covering L, S, C, X, and Ku bands, utilizing more than 21 worldwide sites with over 190 fixed and steerable sensors and antennas. This internally funded, world-wide Space Domain Awareness network serves both U.S. government and major commercial satellite operators.

Positive

• Secured new $48 million contract
• Contract extends through October 2029, providing long-term revenue visibility
• Operates extensive global network with 190+ sensors across 21+ sites
• Diverse customer base including U.S. government and major commercial satellite operators

Negative

• None.

Insights

Defense Technology Analyst

The $48 million GGSS contract represents a strategic win in Kratos' space domain awareness portfolio. The 5-year contract strengthens the company's position in electromagnetic interference management, leveraging their extensive global RF sensor network infrastructure. With over 190 sensors across 21 sites, Kratos' proprietary network provides critical capabilities in signal monitoring and characterization that are essential for national security operations.

The contract's focus on Space Force support aligns perfectly with increasing government investment in space security infrastructure. The timing is particularly relevant given the growing concerns about satellite interference and space-based threats. The infrastructure's multi-band coverage (L, S, C, X and Ku) positions Kratos as a key player in space domain awareness, a sector experiencing rapid growth due to increased satellite deployments and space-based operations.

Financial Analyst

The contract value of $48 million over approximately 4.75 years translates to roughly $10.1 million in annual revenue. While this represents only about 1% of Kratos' annual revenue, the strategic importance lies in the contract's relationship to their proprietary global RF sensor network, which has significant barriers to entry and provides recurring revenue opportunities. The self-funded nature of their space awareness network demonstrates strong ROI potential, particularly as commercial satellite operations continue to expand.

For a company with a $4.4 billion market cap, this contract reinforces their competitive moat in space domain awareness and signals potential for similar contract wins. The customer base, including both government and major commercial satellite operators, provides diverse revenue streams and growth opportunities in both sectors.

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

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

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

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

FAQ

What is the value and duration of KTOS's new Geolocation Global Support Services contract?

The contract is valued at $48 million and extends through October 31, 2029, approximately 4.5 years.

Where will KTOS perform the work for the new GGSS contract?

The work will be performed in Colorado Springs, Colorado.

How many global RF sensor sites does KTOS operate?

Kratos operates more than 21 worldwide sites with over 190 fixed and steerable sensors and antennas.

What frequency bands does KTOS's network operations center cover?

The network operations center covers L, S, C, X, and Ku bands.

What services does KTOS's RF sensor network provide?

The network provides bandwidth monitoring, geolocation, signal characterization, interference mitigation, tracking and maneuver detection, and other capabilities.