Kratos, NCSIST Team Successfully Test Integrated Mighty Hornet IV System
Rhea-AI Summary
Kratos (NASDAQ: KTOS) and Taiwan's NCSIST successfully tested integration of the Mighty Hornet IV attack UAV, converted from the MQM-178 Firejet. The NCSIST payload/mission system validated operational compatibility with the aircraft without design revisions, establishing a baseline for flight testing later in 2026.
The MQM-178 base delivers Mach 0.8 speeds, high-G maneuvering and a service ceiling of >35,000 feet. The partners aim to produce a large quantity of affordable systems for Taiwan to provide deterrence and operational deployment readiness.
Positive
- Payload integration validated without design revisions
- Baseline established for flight testing later in 2026
- MQM-178 base platform supports Mach 0.8 top speed
- Service ceiling greater than 35,000 feet confirmed
- Short timeline from concept to functional system
- Intended large-quantity deployment in Taiwan for affordable mass
Negative
- None.
News Market Reaction
On the day this news was published, KTOS declined 6.66%, reflecting a notable negative market reaction. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $1.10B from the company's valuation, bringing the market cap to $15.42B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KTOS fell 11.65% while several defense peers also declined (e.g., AVAV -10.03%, DRS -7.26%, HII -3.14%), but no names appeared on the momentum scanner, so this move is treated as stock-specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Contract awards | Positive | +7.5% | Announced aviation and warfighter simulators contracts totaling potential <b>$65 million</b>. |
| Jan 13 | Facility opening | Positive | +1.6% | Opened <b>55,000-square-foot</b> hypersonic manufacturing and payload integration facility. |
| Jan 12 | Capacity expansion | Positive | +3.7% | Expanded Birmingham operations with new <b>40,000-square-foot</b> facility for systems integration. |
| Jan 08 | Capital allocation | Positive | +13.8% | Reiterated reinvestment-first capital policy to fund defense and unmanned capabilities. |
| Jan 08 | Program collaboration | Positive | +13.8% | Highlighted Valkyrie UAS role in Marine Corps CCA effort with Northrop Grumman. |
Recent positive operational and contract news has generally coincided with positive next-day price reactions for KTOS.
Over the past month, KTOS has reported multiple growth-focused updates, including aviation and warfighter contract awards with potential value of $65 million on Feb 3, 2026 and new facilities to expand hypersonic and systems integration capacity in January. These announcements were followed by positive price reactions. Today’s Mighty Hornet IV test success continues that theme of execution and capability expansion, but the pre-news setup shows the stock pulling back sharply from a prior run-up.
Market Pulse Summary
The stock moved -6.7% in the session following this news. A negative reaction despite constructive news fits a scenario where KTOS had already rallied sharply toward its 52-week high of 134 and then experienced profit-taking. The Mighty Hornet IV milestone extends a series of positive contract and facility updates, yet the stock traded at 91.33, down 11.65% pre-news. Historically, similar updates have coincided with gains, so a sharp decline could reflect positioning or expectations rather than an obvious shift in fundamentals.
Key Terms
uav technical
manned-unmanned teaming (mum-t) technical
loitering munition technical
uncrewed aircraft system technical
payload technical
AI-generated analysis. Not financial advice.
Ultimate Objective is High Quantity Fleet of Mighty Hornet IV Systems Ready in Taiwan – Affordable Mass
SAN DIEGO, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, and the National Chung-Shan Institute of Science and Technology (NCSIST) today announced the successful test of the integrated Mighty Hornet IV Attack UAV, a revolutionary transformation of the MQM-178 Firejet target drone.
Following the months of planning, design, and subsystem tests in their respective facilities, the team successfully tested and validated the NCSIST-provided payload/mission system to confirm its operational capability with the Mighty Hornet IV aircraft without revisions to the design. This milestone established the baseline for flight testing later this year, for which the NCSIST technical team traveled to Kratos’ Oklahoma City design and production facility to finalize the requirement set and design this week.
Might Hornet IV with the NCSIST Technical Team
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/48229005-23f3-4261-a047-e77ccb8e94c9
Steve Fendley, President of Kratos Unmanned Systems Division, said, “The success of this testing by the two organizations represents a significant milestone which enables progression to flight testing. It validates the technical approach, and possibly even more significantly, validates the value of collaborative effort of the technical organizations working together to realize the new system. This is a springboard for not only the Mighty Hornet IV effort, but also potential additional collaborative efforts with other Kratos aircraft and NCSIST systems and technologies.”
Kratos and NCSIST Team with the new Mighty Hornet IV in the foreground, and Valkyrie behind
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/16f2b8a7-9afd-4168-b889-b84fac86c9e1
The modified MQM-178’s high-speed capabilities, including a speed of Mach 0.8, high G maneuvering, and a service ceiling of greater than 35,000 feet, make it an ideal base platform for this transformation. The Mighty Hornet IV not only embodies cutting-edge technology but also benefits from proven performance in collaborative exercises. Recent demonstrations showcased the MQM-178’s reliability and adaptability, reinforcing its role in Manned-Unmanned Teaming (MUM-T) and loitering munition scenarios and validating its impressive flight characteristics.
Ultimately, the objective is to have a large quantity of Mighty Hornet IV systems in Taiwan, delivering affordable mass, both as a deterrent, and ready for operational deployment. The collaboration and combination of the U.S. baseline uncrewed aircraft system, the Kratos Firejet, with the Taiwan NCSIST payload marks the collaboration between the two nations and organizations. By taking advantage of mature Kratos technologies, the timeline from concept to functional system has been unconventionally short; establishing this strategy as a key enabler for realization of practical near term tactical UAS and affordable mass.
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) and NCSIST test with the Mighty Hornet IV on February 5, 2026?
What performance specs of the Mighty Hornet IV were highlighted by Kratos and NCSIST?
When will flight testing of the Mighty Hornet IV occur for KTOS and NCSIST?
What is the strategic objective of the Kratos and NCSIST Mighty Hornet IV collaboration for Taiwan?
Does the Mighty Hornet IV program change Kratos development timelines or methods for KTOS products?
