Kratos Continues U.S. Defense Industrial Base Build Out with Expansion of Birmingham Operations with New 40,000-Square-Foot Facility
Rhea-AI Summary
Kratos (NASDAQ: KTOS) announced on January 12, 2026 an expansion of its Birmingham, Alabama operations with a new 40,000-square-foot facility for offices and electro-mechanical systems integration, increasing its Oxmoor Valley campus footprint to approximately 150,000 square feet.
The facility will support growth across Kratos’ products sector including HORUS (high-altitude ISR imaging), CRADLE (mobile bistatic radar communications) and UltraSpec (non-destructive composite inspection). Kratos said it has doubled the Birmingham workforce since acquiring Southern Research Engineering in May 2022 and now owns 52 acres in Oxmoor Valley.
Positive
- Added a new 40,000 sq ft facility in Birmingham
- Oxmoor Valley footprint expanded to ~150,000 sq ft
- Workforce in Birmingham has doubled since May 2022 acquisition
- Facility supports HORUS, CRADLE, UltraSpec product lines
Negative
- None.
News Market Reaction
On the day this news was published, KTOS gained 3.66%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KTOS rose 9.28%, while key peers DRS (+3.76%), AVAV (+3.97%), HII (+1.58%) and TXT (+2.04%) were up more modestly and ERJ fell (-0.54%). The outsized KTOS move versus mixed peer action points to a stock-specific reaction to the Birmingham expansion rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 08 | Capital policy focus | Positive | +13.8% | Reinvestment-first capital strategy to expand defense capabilities and capacity. |
| Jan 08 | Program partnership win | Positive | +13.8% | Marine Corps CCA effort pairing Northrop systems with Kratos Valkyrie UAS. |
| Dec 30 | System test milestone | Positive | -1.9% | EPOCH C2 factory acceptance test with Airbus OneSat accepted for delivery. |
| Dec 29 | Defense contracts | Positive | -0.3% | Approximately $30 million in national-security air defense and C5ISR contracts. |
| Dec 23 | Hypersonic LOI | Positive | +0.9% | Letter of intent for 60 Zeus hypersonic rocket motors to support testing. |
Recent operational and contract announcements have generally been followed by positive share reactions, though a few strong execution updates saw mild pullbacks, indicating investors sometimes take profits after good news.
Over the past few weeks, Kratos has reported several defense-focused milestones. On Dec 23, 2025, it issued a letter of intent for 60 Zeus hypersonic rocket motors, complementing a prior order of 60 Oriole SRMs. On Dec 29, it disclosed about $30 million in air defense and C5ISR production contracts. A successful EPOCH C2 factory acceptance test with Airbus followed on Dec 30. On Jan 8, 2026, Kratos highlighted a reinvestment-first capital policy and a Marine Corps CCA effort using its Valkyrie UAS. Today’s facility expansion fits this ongoing build-out of capacity and capabilities.
Market Pulse Summary
This announcement details further build‑out of Kratos’ Oxmoor Valley campus, adding a 40,000‑square‑foot facility and bringing the site to about 150,000 square feet. The expansion supports systems like HORUS, CRADLE and UltraSpec and aligns with earlier moves such as hypersonic motor orders and new contracts. Investors may watch how this added capacity translates into future production, program awards and integration work across missiles, space, ISR and hypersonic platforms.
Key Terms
bistatic radar technical
non-destructive inspection technical
intelligence, surveillance and reconnaissance technical
hypersonic platforms technical
microelectronics technical
anti–tamper technology technical
AI-generated analysis. Not financial advice.
The New Facility Supports Continued Growth in Kratos’ Products Sector, including HORUS, a High-Altitude Intelligence Surveillance Reconnaissance Imaging System, CRADLE, a Mobile Bistatic Radar Communications Platform, and UltraSpec, a Non-Destructive Inspection Technology for Advanced Composite Materials
SAN DIEGO, Jan. 12, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, today announced its continued build out to support the United States Defense Industrial Base with the expansion of operations in Birmingham, Alabama, with the addition of a new 40,000-square-foot facility, housing office and electro-mechanical systems and integration space, bringing Kratos’ total footprint at its Oxmoor Valley campus to approximately 150,000 square feet.
The Birmingham expansion reflects continued growth in demand across Kratos’ defense and national security programs and reinforces the company’s long-term commitment to Alabama’s skilled workforce, advanced manufacturing base, and role in supporting U.S. defense readiness. Kratos is the industry leader in making internally funded investments to rapidly design, develop and field relevant military grade hardware, software and systems, and in investing in new and additional infrastructure, facilities and equipment, all in support of U.S. National Security and the warfighter.
Michael Johns, Senior Vice President of Kratos SRE, said, “We are excited to continue our rapid expansion in the Birmingham area since the acquisition by Kratos three years ago. We have doubled the workforce in that time and will continue to position ourselves for additional growth by adding state-of-the-art facilities to match the top talent we are hiring.”
The new facility will support continued growth in Kratos’ products sector including HORUS, a high-altitude intelligence surveillance reconnaissance imaging system, CRADLE, a mobile bistatic radar communications platform, and UltraSpec, a non-destructive inspection technology for advanced composite materials—activities aligned with Kratos’ core mission areas.
Formerly Southern Research Engineering, Kratos acquired the business in May 2022 and now owns 52 acres in the Oxmoor Valley area where the company operates state-of-the-art laboratory facilities for the development of strategic deterrence systems, missiles, space and satellite communications, exotic material test and analysis, intelligence, surveillance and reconnaissance, hypersonic platforms, trusted and assured microelectronics, anti–tamper technology and other platforms and systems.
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, advanced 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 January 12, 2026 about Birmingham operations?
Which Kratos products will the new Birmingham facility support for KTOS investors?
When did Kratos acquire the Birmingham business now part of KTOS and how big is the site?
How has Kratos’ Birmingham workforce changed since the KTOS acquisition?
How does the KTOS expansion relate to U.S. defense support and manufacturing?
