Kratos Awarded $49 Million NSWC PHD Contract for Oriole™ Rocket Motor and Thrust Vector Control Systems to Support Navy Missile and Test Programs
Rhea-AI Summary
Kratos (Nasdaq: KTOS) was awarded a contract from Naval Surface Warfare Center, Port Hueneme Division on March 26, 2026 to produce and deliver up to 36 Oriole solid rocket motors and 3 Thrust Vector Control (TVC) nozzle kits.
The award includes a funded base for Oriole solid rockets of $39,077,237 and an option for TVC kits valued at $10,136,009, for a combined potential value of about $49.2 million. The systems support Navy suborbital target and hypersonic test requirements with rapid delivery.
Positive
- Contract value up to $49.2M including options
- Production commitment for up to 36 Oriole solid rocket motors
- Option for 3 Thrust Vector Control nozzle kits valued at $10,136,009
- Supports Navy hypersonic test and suborbital target programs
Negative
- None.
News Market Reaction – KTOS
On the day this news was published, KTOS declined 5.15%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KTOS gained 3.21% while key peers were mixed: DRS rose 3%, but AVAV, ERJ, HII, and TXT all declined modestly, pointing to a stock-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | 5G NTN partnership | Positive | -1.1% | Selected by SKY Perfect JSAT for 5G NTN satellite ground system work. |
| Mar 13 | Valkyrie integration | Positive | -2.2% | Preparing two Valkyries with Airbus MARS mission system for German Air Force. |
| Mar 3 | Counter-UAS contract | Positive | -1.9% | Approximate $7 million production contract for Counter-UAS system. |
| Mar 2 | OpenSpace deployment | Positive | +5.3% | SSC Space deploys OpenSpace platform for new LEO mission service. |
| Feb 26 | Equity offering | Negative | -6.5% | Public offering of 14,285,714 shares at $84.00 per share. |
Recent contract and partnership wins often saw mixed reactions, with some positive news selling off and one software-platform win aligning with a price gain.
Over the last month, Kratos announced multiple wins, including a $7 million Counter-UAS order on Mar 3, 2026 and a strategic 5G NTN partnership with SKY Perfect JSAT on Mar 23, 2026. A notable OpenSpace deployment for SSC Space Go on Mar 2, 2026 coincided with a 5.27% gain, while other positive updates saw modest declines. A late-February equity offering at $84.00 per share led to a -6.47% move. Today’s Navy rocket-motor contract extends this run of defense and space-related awards.
Regulatory & Risk Context
An effective Form S-3ASR shelf dated 2026-02-26 permits Kratos to offer common stock, preferred stock, debt securities, warrants, rights and units from time to time. The shelf has been utilized via 424B5 prospectus supplements filed on 2026-02-26 and 2026-02-27.
Market Pulse Summary
The stock moved -5.2% in the session following this news. A negative reaction despite this Navy contract could fit prior patterns where positive operational news occasionally coincided with declines, such as after recent defense wins. The award totals $49 million for Oriole rockets and TVC kits, supporting suborbital and hypersonic tests. Investors might contextualize any weakness against the February equity offering under the S-3ASR shelf and broader aerospace and defense sentiment when assessing longer-term implications.
Key Terms
thrust vector control technical
hypersonic technical
suborbital technical
ballistic missile defense technical
AI-generated analysis. Not financial advice.
SAN DIEGO, March 26, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology, products, system and software company in defense, national security, and global markets, announced today that it has been selected by the Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD) for production and delivery of up to 36 Oriole™ solid rocket motors and three Thrust Vector Control (TVC) nozzle kits. The contract includes a funded base award for Oriole with options that, if fully exercised, bring the total contract value for solid rockets to
The Oriole rocket system is an affordable, mission-relevant flight test solution, supporting the Navy’s critical suborbital target and experimental hypersonic test requirements with rapid delivery and fielding. Kratos’ proven capability and flawless track record delivering Oriole rocket systems and vehicle hardware components enables customers to maintain robust test and evaluation schedules in support of emerging national security requirements.
“Kratos continues to provide the Department of War with proven, affordable, and rapid turn-key launch vehicle solutions,” said Dave Carter, President of Kratos Defense & Rocket Support Services. “Our Oriole rocket motor and TVC kit systems deliver critical capability to our Navy and DoW customers, supporting operational needs and test objectives on accelerated timelines.”
This award continues Kratos’ long-standing partnership with NSWC PHD in support of ballistic missile defense, hypersonic research, and other test programs. With repeated program successes and regular technology refreshes, Kratos continues to reinforce its industry leading position in the design, production, and sustainment of mission-critical solutions for national security applications.
“Kratos is honored to support our Navy and defense customers with real, existing, mission-relevant products and systems, rapidly fielded to address today’s most pressing challenges,” said Eric DeMarco, President and CEO of Kratos Defense & Security Solutions. “Our approach—making internal investments to deliver affordable, first-to-market national security hardware—remains central to our growth and our commitment to our customers’ evolving needs.”
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 28, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
Press Contact:
Claire Cantrell
claire.cantrell@kratosdefense.com
Investor Information:
877-934-4687
investor@kratosdefense.com
Source: Kratos Defense & Security Solutions, Inc.
FAQ
What did Kratos (KTOS) announce on March 26, 2026 regarding an NSWC PHD contract?
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