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Kratos Opens New 167,000-Square-Foot Manufacturing Facility in Pennsylvania, Expanding Existing Footprint in the State

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Kratos Defense & Security Solutions (Nasdaq: KTOS) has opened a new 167,000-square-foot advanced manufacturing facility in York, Pennsylvania, expanding its state operations to three sites with more than 440 employees. The company also plans over $7 million of new state-of-the-art equipment purchases to increase production capacity.

According to Kratos, its Pennsylvania operations engineer, manufacture and test mission-critical, military-grade hardware for high-priority air defense, missile, radar, hypersonic and counter-unmanned aircraft system (C-UAS) programs, including directed energy weapons, missile transporters, mobile launchers and strategic system radar platforms.

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Positive

  • New 167,000-square-foot York facility expands manufacturing footprint
  • Pennsylvania operations now span three facilities and 440+ employees
  • Planned investment of over $7 million in new manufacturing equipment
  • Expanded capacity to support hypersonic, C-UAS, radar and air defense programs

Negative

  • None.

News Market Reaction – KTOS

-1.35%
10 alerts
-1.35% Session close to close
+3.4% Peak Tracked
-11.6% Trough Tracked
$9.44B Market Cap
0.6x Rel. Volume

In the Jul 15 session, KTOS declined 1.35%, reflecting a mild negative market reaction. Argus tracked a peak move of +3.4% during that session. Argus tracked a trough of -11.6% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This Pennsylvania build-out sits against an active S-3 shelf and recent net insider selling over the...
Analysis

This Pennsylvania build-out sits against an active S-3 shelf and recent net insider selling over the last 90 days, while short interest is characterized as low. Investors may watch how new capacity translates into contracts before additional shelf usage.

Key Figures

New facility size: 167,000 square feet Pennsylvania facilities: 3 facilities Pennsylvania workforce: More than 440 employees +1 more
4 metrics
New facility size 167,000 square feet Advanced manufacturing facility in York, Pennsylvania
Pennsylvania facilities 3 facilities Total Kratos facilities in Pennsylvania after expansion
Pennsylvania workforce More than 440 employees Employment across Kratos’ Pennsylvania operations
Equipment investment Over $7 million Planned purchase of new state-of-the-art manufacturing equipment

Historical Context

5 past events · Latest: Jul 14 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 14 Hypersonic funding Positive +4.7% Approximately $400 million Department of War funding for hypersonic and other programs.
Jul 13 Space contract award Positive -2.5% Approximate $100 million sole source prime contract for space domain awareness system.
Jul 06 Oklahoma facility expansion Positive -3.3% Expansion of Oklahoma City campus by over 100,000 square feet for drone production.
Jul 02 Air defense contract Positive +4.4% Approximate $36 million sole-source contract for new air defense missile system.
Jun 17 Autonomy logistics demo Positive -0.3% Cross-country autonomous truck deployment supporting NASCAR equipment logistics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Kratos’ contract wins and capacity expansions have drawn mixed price reactions, with several positive operational updates followed by flat or negative trading.

Key Terms

c-uas, high power microwave (hpm), high energy laser (hel)
3 terms
c-uas technical
"supporting certain of the nation's highest-priority air defense, missile, radar and counter-unmanned aircraft system (C-UAS) initiatives"
c‑UAS (counter‑unmanned aircraft system) are integrated tools and procedures used to detect, track, and stop unauthorized drones—like a security system that sees and disables an intruder in the sky. Investors watch c‑UAS because rising drone use and tighter rules create demand for hardware, software, and services, which can drive sales growth and affect regulatory risk for companies in defense, airports, utilities, and event security.
high power microwave (hpm) technical
"solutions for both High Power Microwave (HPM) and High Energy Laser (HEL) programs"
A high power microwave (HPM) is a directed-energy device that emits intense bursts of radio-frequency energy to disrupt, degrade, or damage electronic systems and communications. Think of it as a focused electronic “blast” that can overload circuits much like a localized, concentrated radio signal; it matters to investors because development, production, testing, regulation, and countermeasures for HPMs affect defense suppliers, electronics manufacturers, cybersecurity and infrastructure firms, and related supply chains and export controls.
high energy laser (hel) technical
"solutions for both High Power Microwave (HPM) and High Energy Laser (HEL) programs"
A high energy laser (HEL) is a device that generates an intense, focused beam of light with enough power to heat, damage, or cut a target at a distance; think of a laser pointer or magnifying glass scaled up to military and industrial strength. It matters to investors because HEL technology drives markets for defense contracts, aerospace and industrial manufacturing, supply chains for specialized components, and regulatory or safety considerations that affect companies’ costs and revenue opportunities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Kratos’ Pennsylvania Operations Engineer, Manufacture and Test Mission-Critical, Military-Grade Hardware Supporting Certain of the Nation's Highest-Priority Hypersonic, Air Defense, Missile, Radar and Counter-Unmanned Aircraft System (C-UAS) Programs

Kratos’ Expanded Pennsylvania Operations Accelerate Development and Large-Scale Mass Production of Mil-Spec Hardware to Strengthen National Security

SAN DIEGO, July 15, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company specializing in defense, national security and global markets, today announced the opening of a 167,000-square-foot advanced manufacturing facility in York, Pennsylvania. The plant expands Kratos' existing Pennsylvania operations, which now span three facilities and employ more than 440 people, supporting a growing portfolio of critical national security programs. Additionally, Kratos announced plans to purchase new state-of-the-art equipment, totaling over $7 Million, to further expand production capability.

The new facility and planned investments in manufacturing equipment significantly increase Kratos' production capacity to meet accelerating customer demand for advanced defense systems while reinforcing the company's commitment to strengthening the U.S. defense industrial base through rapid innovation and mission-speed production.

Kratos’ Pennsylvania operations engineer, manufacture and test mission-critical, military-grade hardware supporting certain of the nation's highest-priority air defense, missile, radar and counter-unmanned aircraft system (C-UAS) initiatives. Including the new facility, Kratos' Pennsylvania operations actively support C-UAS initiatives by delivering complex equipment for directed energy weapons, missile transporters, mobile missile launcher systems, hypersonic systems and strategic system radar platforms.

Tom Mills, President of Kratos C5ISR Division, said, “Leveraging proven manufacturing methodologies and advanced production technologies, Kratos’ Pennsylvania operations recently completed delivery of highly engineered solutions for both High Power Microwave (HPM) and High Energy Laser (HEL) programs. These efforts included the design, manufacture and testing of specialty structures and components that enhance system mobility and survivability, along with system integration involving custom mechanical assemblies, actuators, thermal management and electrical subsystems. This new Kratos facility and investment will both expand and accelerate our capabilities in additional mission critical national security programs, including strategic systems”.

“Kratos is committed to building the Arsenal of Freedom by investing in the people, facilities and manufacturing capabilities needed to deliver critical systems, at scale, to our customers faster than ever before,” said Eric DeMarco, President and CEO of Kratos. “This expansion marks another important milestone in continuing to grow Kratos’ capability to provide mil-spec hardware for national defense and mission critical programs. Pennsylvania has proven to be an exceptional manufacturing hub, including a highly skilled workforce, and this investment positions Kratos to continue delivering affordable, high-performance, leading technology systems that address our nation's most pressing security challenges. Kratos' ability to manufacture highly complex hardware at production scale—where quality, precision and reliability are mission-critical—continues to differentiate our Company as a trusted partner to the U.S. Department of War and allied customers.”

The new facility and related manufacturing equipment provides expanded space and capabilities for advanced manufacturing, systems integration and testing, enabling Kratos to scale production while meeting increasing customer requirements for speed, affordability and performance.

Kratos’ expansion in Pennsylvania represents the company’s continued investment in American manufacturing and its commitment to delivering warfighter-ready capabilities that outpace evolving threats while strengthening the nation's defense industrial base.

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 and follow Kratos on LinkedIn and X.

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

Kratos Investor Information:
877-934-4687
investor@kratosdefense.com


FAQ

What did Kratos (KTOS) announce about its new Pennsylvania manufacturing facility on July 15, 2026?

Kratos announced the opening of a new 167,000-square-foot advanced manufacturing facility in York, Pennsylvania. According to Kratos, this site expands its state footprint to three facilities, supporting mission-critical hardware for air defense, missile, radar, hypersonic and C-UAS programs.

How does the new York, Pennsylvania facility impact Kratos (KTOS) manufacturing capacity?

The new York facility significantly increases Kratos’ production capacity for advanced defense systems. According to Kratos, added space for manufacturing, systems integration and testing helps meet accelerating customer requirements for speed, affordability, performance and large-scale mass production of mil-spec hardware.

How many facilities and employees does Kratos (KTOS) now have in Pennsylvania?

Kratos reports that its Pennsylvania operations now span three facilities employing more than 440 people. According to Kratos, this expanded footprint supports critical national security programs, including hypersonic systems, C-UAS initiatives, missile transporters and strategic system radar platforms.

How much is Kratos (KTOS) investing in new equipment for the Pennsylvania expansion?

Kratos plans to invest over $7 million in state-of-the-art manufacturing equipment for its Pennsylvania operations. According to Kratos, these upgrades are intended to further expand production capability and support rapid, mission-speed delivery of advanced defense systems for U.S. and allied customers.

Which defense programs will Kratos’ expanded Pennsylvania operations support?

Kratos’ expanded Pennsylvania operations support high-priority air defense, missile, radar, hypersonic and C-UAS programs. According to Kratos, work includes complex equipment for directed energy weapons, missile transporters, mobile missile launchers, strategic system radar platforms and related mission-critical subsystems.

Why is the Pennsylvania expansion important for Kratos (KTOS) investors?

The expansion increases capacity to deliver complex, military-grade hardware at production scale. According to Kratos, this supports growing customer demand and reinforces its role as a trusted provider of affordable, high-performance national defense systems, potentially strengthening its competitive position in key defense markets.