Kratos Opens New 55,000-Square-Foot State-of-the-Art Hypersonic System Manufacturing and Payload Integration Facility in Princess Anne, Maryland
Rhea-AI Summary
Kratos (Nasdaq: KTOS) opened a new 55,000-square-foot hypersonic system manufacturing and payload integration facility in Princess Anne, Maryland on Jan. 13, 2026.
The site will support launch operations and hypersonic testing for the $1.4 billion MACH-TB 2.0 contract and customers including the U.S. Navy, Air Force, DARPA, and Missile Defense Agency, with proximity to NASA Wallops to optimize logistics.
Positive
- $1.4B MACH-TB 2.0 program support
- New 55,000 sq ft manufacturing and integration capacity
- Increased hypersonic test cadence and lower flight-test costs
- Proximity to NASA Wallops for logistics efficiencies
- Expected creation of new high-skilled jobs locally
Negative
- None.
News Market Reaction
On the day this news was published, KTOS gained 1.58%, reflecting a mild positive market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $302M to the company's valuation, bringing the market cap to $19.40B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KTOS was up 3.66% while peers showed mixed moves: HII up 2.12 (also in momentum scanner with change_percent 5.959999933838844), AVAV slightly higher and DRS, ERJ, TXT lower. The mixed peer tape and scanner data point to a stock-specific move around KTOS rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 08 | Capital allocation stance | Positive | +13.8% | Reiterated reinvestment-first policy to expand defense and hypersonic capabilities. |
| Jan 08 | CCA partnership | Positive | +13.8% | Northrop Grumman selected Valkyrie UAS for Marine Corps CCA program. |
| Dec 30 | Satellite C2 milestone | Positive | -1.9% | EPOCH C2 system passed factory acceptance test with Airbus’ OneSat platform. |
| Dec 29 | New defense contracts | Positive | -0.3% | Announced about $30M in national-security hardware production awards. |
| Dec 23 | Hypersonic motors LOI | Positive | +0.9% | LOI for 60 Zeus hypersonic solid rocket motors to support test missions. |
Recent KTOS news on defense programs and hypersonics has more often led to positive price reactions, though some contract and technical milestones have seen muted or negative next-day moves.
Over the past few weeks, KTOS has reported multiple defense and hypersonic-related milestones. On Dec 23, 2025, it issued a letter of intent for 60 Zeus hypersonic rocket motors, followed by about $30 million in air defense and C5ISR hardware contracts on Dec 29, 2025. A successful EPOCH® command-and-control factory acceptance test with Airbus was announced on Dec 30, 2025. On Jan 8, 2026, KTOS highlighted its reinvestment-first capital policy and a collaborative CCA effort with Northrop Grumman, both aligning with today’s capacity-expansion news.
Market Pulse Summary
This announcement highlights KTOS’s continued build-out of hypersonic test and manufacturing capability, adding a 55,000-square-foot facility in Princess Anne that supports the $1.4 billion MACH-TB 2.0 program and other U.S. defense customers. It follows recent contract wins and hypersonic rocket motor commitments. Investors may track how quickly this site ramps production, the flow of related contract awards, and ongoing insider trading activity, which has shown net selling over the past 90 days.
AI-generated analysis. Not financial advice.
Kratos Continues to Demonstrate Commitment to Growing the U.S. Defense Industrial Base with this Announcement of Its Sixth New Facility in a Year
SAN DIEGO, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, announced today the grand opening of its new 55,000-square-foot state-of-the-art hypersonic and “Other” system manufacturing and payload integration facility in Princess Anne, Maryland.
The advanced facility will significantly enhance Kratos’ capabilities to support launch operations and hypersonic testing for the Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) 2.0 program and other customers from agencies including the U.S. Navy, US Air Force, DARPA, and the Missile Defense Agency.
“This strategic investment in Princess Anne represents Kratos’ commitment to expanding our nation’s hypersonic testing infrastructure and capabilities,” said Dave Carter, President of Kratos Defense & Rocket Support Services Division. “The new facility enables us to increase production capacity, streamline payload integration processes, and respond even more rapidly to the growing demand for affordable hypersonic flight testing. The Princess Anne facility will play a crucial role in supporting our
The Princess Anne facility features advanced manufacturing capabilities, specialized integration areas, and enhanced testing equipment designed to support Kratos’ expanding role in hypersonic testing and launch operations. The location was strategically chosen for its proximity to NASA Wallops Flight Facility, optimizing logistics and operational efficiencies.
“We are excited to welcome Kratos to Princess Anne and look forward to the opportunities it will bring. Kratos’ contributions will help strengthen our local economy and business community,” stated Jay Prouse, Princess Anne Town Manager.
Danny Thompson, Executive Director for the Somerset County Economic Development Commission (EDC), remarked, “We are thrilled that Kratos will be locating to the Princess Anne Industrial Park. The collaboration efforts between Kratos, the Town of Princess Anne, and Somerset County EDC, continues to foster expansion in the Aerospace Engineering field and provide job retention and economic growth.”
Eric DeMarco, President and CEO of Kratos, said, “This new facility is another example of Kratos’ strategy of making upfront commitments to rapidly develop and field relevant national security hardware, products and systems, and invest in growing the U.S. defense industrial base. Similar to other Kratos facilities, Princess Anne is directly tied to either customers, programs, contracts, partners and specific hardware, products and systems, resulting in a tailored, efficient, manufacturing, integration or production facility, resulting in low cost, efficient rapid execution and delivery to the warfighter.”
The Princess Anne facility is expected to create new high-skilled jobs in the region and further strengthen Kratos’ capabilities to support the Department of War’s initiatives to accelerate hypersonic technology development and testing.
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 announce on Jan. 13, 2026 about Princess Anne, MD (KTOS)?
How does the Princess Anne facility affect Kratos' role on the MACH-TB 2.0 program (KTOS)?
Which government customers will the new KTOS Princess Anne site support?
Will the Princess Anne location improve Kratos launch operations near Wallops (KTOS)?
Does the new KTOS facility create local jobs and economic impact?
