Kratos Awarded Contract to Streamline Hypersonic Material’s Development
Rhea-AI Summary
Kratos (Nasdaq: KTOS) announced it was awarded a contract on Feb 18, 2026 by the Department of War’s Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles.
Kratos will develop standardized hypersonic test setpoints, establish test methodologies, and run material test campaigns to accelerate materials development and validate procedures for the hypersonic testing community.
Positive
- Contract awarded Feb 18, 2026 to support hypersonic thermal protection system testing
- Standardized test methodologies to accelerate materials development and facility baselines
- Material test campaigns planned to validate methodology and mature material solutions
Negative
- None.
News Market Reaction
On the day this news was published, KTOS gained 5.70%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.8% during that session. Our momentum scanner triggered 63 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $923M to the company's valuation, bringing the market cap to $17.11B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KTOS gained 3.27% alongside several aerospace/defense peers: DRS +2.57%, AVAV +3.15%, TXT +1.6%, HII +0.33%, while ERJ slipped 0.54%. Momentum scanner flagged AVAV and RKLB moving up, but scanner still marks this as stock-specific (is_sector_move=false).
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Satellite ground contract | Positive | +3.3% | Multi-million dollar Airbus ground segment contract for OmanSat-1. |
| Feb 13 | Autonomy deployment | Positive | +2.3% | Expansion of automated truck platooning for NASCAR logistics. |
| Feb 13 | Earnings call scheduled | Neutral | +2.3% | Announcement of Q4 and FY 2025 earnings release and conference call date. |
| Feb 10 | Drone program selection | Positive | -5.4% | Selection for Phase 1 Gauntlet of Drone Dominance Program. |
| Feb 05 | UAV system test | Positive | -6.7% | Successful Mighty Hornet IV integration test with Taiwan's NCSIST. |
Recent contract and program wins often saw positive next-day moves, but some technically positive defense updates drew negative reactions, indicating mixed follow-through on good news.
Over recent weeks, Kratos has reported multiple defense and autonomy wins, including a multi-million dollar Airbus ground system contract for OmanSat-1 on Feb 17 and expansion of automated truck platooning for NASCAR logistics on Feb 13, both with positive price reactions. Other technically positive milestones, like selection for the Drone Dominance Phase 1 Gauntlet on Feb 10 and the successful Mighty Hornet IV test on Feb 5, were followed by notable declines. Today’s hypersonic materials testing contract fits the pattern of continued defense-related awards.
Market Pulse Summary
The stock moved +5.7% in the session following this news. A strong positive reaction aligns with Kratos’ pattern of contract-driven gains, as seen after prior awards where moves like +3.27% followed defense wins. The hypersonic materials testing contract adds to a string of recent program successes, but investors have previously reacted negatively to some positive updates. Insider selling activity and ongoing resale registrations could add supply over time, so sustainability would depend on continued execution and contract flow rather than one announcement.
Key Terms
hypersonic technical
thermal protection system technical
aerothermal technical
AI-generated analysis. Not financial advice.
In-Depth Modeling, Simulation of Hypersonic Environments Will Lead to a Robust Set of Hypersonic Test Setpoints to Enable Rapid Evaluation, Transition of Various Thermal Protection System Materials
SAN DIEGO, Feb. 18, 2026 (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 Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles. For this program, Kratos will leverage decades of expertise in hypersonics to analyze various missions and flight environments to understand appropriate testing conditions. Kratos will establish standard test conditions and techniques to accelerate materials development and can be used as a baseline for other similar aerothermal test facilities.
“The Kratos team is committed to advancing materials for hypersonics through testing and evaluation,” said Ben Dempsey, Kratos SRE Vice President of Programs. “Our focus is on accelerating the development of systems for our warfighter. This begins with increased throughput of our nation’s testing infrastructure, and by making investments in new infrastructure, like the recently awarded Project Helios.”
The test methodologies developed under this program will serve as a model for the hypersonic testing community, accelerating the advancement and deployment of next-generation U.S. hypersonic vehicle technologies. Additionally, Kratos will execute a series of material test campaigns leveraging these procedures that will validate the methodology and mature material solutions.
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.
Press Contact:
Claire Cantrell
claire.cantrell@kratosdefense.com
Investor Information:
877-934-4687
investor@kratosdefense.com
FAQ
What did Kratos (KTOS) announce on Feb 18, 2026 about hypersonic testing?
How will the KTOS contract affect development of thermal protection system materials?
Which government office awarded the KTOS hypersonics contract on Feb 18, 2026?
What specific deliverables did Kratos (KTOS) say it will provide under the hypersonics contract?
Does the KTOS announcement indicate operational or infrastructure investment plans?
