Kratos Opens New 10,000 Sq Ft Facility for Engine Overhaul Business in British Colombia
Rhea-AI Summary
Kratos (NASDAQ: KTOS) opened a new 10,000 square foot engine overhaul facility in Vancouver, British Columbia on December 5, 2025 to support PT6A and PT6T maintenance, repair and overhaul (MRO).
The facility is intended to boost operational efficiency, increase capacity for Canadian operators, and strengthen Kratos’ Consolidated Turbines capability alongside its Bristow, Oklahoma operations. This marks the business’s third expansion in under ten years and highlights plans to add PT6A fixed‑wing support in the near term.
Positive
- 10,000 sq ft new MRO facility in Vancouver
- Third expansion in under 10 years for local PT6 support
- Expanded support for both PT6T and planned PT6A services
- Stronger operational link to Bristow, Oklahoma capabilities
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
KTOS gained 7.13% on the facility expansion, outpacing peers: AVAV rose 6.24%, DRS 1.18%, HII 2.33% while ERJ and TXT declined modestly. Moves are mixed across aerospace & defense, indicating a company-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 17 | Facility expansion | Positive | -3.0% | Opened new 60,000 sq ft Jerusalem microwave electronics facility. |
| Nov 13 | Facility expansion | Positive | -6.5% | Opened 22,500 sq ft Auburn Hills propulsion manufacturing facility. |
| Nov 12 | Program milestone | Positive | +0.1% | Indiana hypersonic payload facility on track, >$50M project and new jobs. |
| Nov 04 | Acquisition deal | Positive | -1.0% | Agreed to acquire Orbit Technologies for $356.3M in cash. |
| Nov 04 | Earnings release | Positive | -1.0% | Q3 2025 revenue growth, raised 2025 guidance and multi-year targets. |
Recent positive operational and financial announcements have often seen negative or muted next-day price reactions, with only one of the last five events showing a modestly positive move.
Over the last several months, Kratos has emphasized capacity expansion and growth. On Nov 4, it reported strong Q3 2025 results with higher revenue and raised guidance, yet the stock dipped. The company then announced a $356.3M Orbit Technologies acquisition, an on-track $50M+ hypersonic facility, and new manufacturing space in Michigan and 60,000 sq ft in Jerusalem. Today’s 10,000 sq ft engine overhaul facility in British Columbia extends that footprint-focused strategy.
Market Pulse Summary
This announcement adds another piece to Kratos’ expansion story, with a new 10,000 sq ft engine overhaul facility in British Columbia supporting PT6A and PT6T markets and strengthening Oklahoma operations. It follows recent investments in hypersonics, propulsion, and microwave electronics capacity, plus an announced Orbit Technologies acquisition. Investors may want to track utilization of these new sites, integration progress, capital spending levels, and whether future earnings updates reflect improving margins and returns on these growth initiatives.
AI-generated analysis. Not financial advice.
SAN DIEGO, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, today announced the opening of its new state‑of‑the‑art 10,000 square foot facility for PT6A and PT6T engine overhaul in Vancouver, British Colombia—a significant milestone in the company’s continued growth and innovative support of the PT6A and PT6T engine market. This modern space has been designed to enhance operational efficiency, foster collaboration, and provide the infrastructure needed to meet the evolving demands of the industry. The expansion underscores Kratos’ commitment to delivering cutting‑edge solutions and ensuring that its teams have the resources required to drive excellence across all areas of operation.
Kratos MRO Canada
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c11db7da-a974-40f8-91f2-635ac42662dd
The new facility also strengthens Kratos’ Bristow, Oklahoma operations, enabling expanded capabilities and improved service delivery for Canadian operators. By investing in advanced technology and increased capacity, Kratos’ Consolidated Turbines divisions in Canada and Oklahoma are better positioned to support its partners with greater responsiveness, reliability, and scalability. This move reflects the company’s dedication to building strong international relationships and providing unmatched support to operators across North America, reinforcing its role as a trusted leader in the PT6T and PT6A industry.
“This move will create seemingly endless possibilities with regards to expansion, employment and in-house capabilities. We are fortunate to have many long-standing Bell Medium customers in Canada, which operate the PT6T model engines. Our goal is to add the fixed wing version (PT6A models) to our quiver in the near future,” said Dave Wark, Director of Kratos MRO Canada.
Kratos MRO Canada’s New Facility
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/30d7c652-f958-4302-a1b9-d782e597794d
CTS Canada started 20 years ago to support PT6 maintenance, repair, and overhaul in Langley, BC. Now a Kratos business, the company has grown significantly with its third expansion in less than ten years that provides the opportunity to support customers better than ever before, a testament to Kratos’ great team that works tirelessly to keep customers flying.
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 announce on December 5, 2025 about KTOS operations in Canada?
How will the new KTOS Vancouver facility affect service for Canadian PT6 operators?
Does the KTOS announcement mention connections to other US operations?
What engines will Kratos support at the new KTOS Vancouver site?
How long has the business supporting PT6 maintenance operated in British Columbia under Kratos?
