Kratos Providing Spartan J85 Engines to Support Boeing JDAM LR Production Contract
Rhea-AI Summary
Kratos Defense (Nasdaq: KTOS) is allocating part of its expanded Spartan engine production capacity to supply TDI-J85 (J85) engines for Boeing’s Joint Direct Attack Munition Long Range (JDAM LR) program. The U.S. Air Force recently awarded Boeing a $75 million Undefinitized Contract Action to acquire the BSU-111/B Payload Delivery Unit JDAM LR, a precision-guided munition capable of traveling over 300 nautical miles with a 500‑pound payload.
Kratos’ J85 engine has been selected as the propulsion source for JDAM LR. The engines are produced at Kratos’ 22,500‑square‑foot Propulsion Manufacturing Facility in Auburn Hills, Michigan, which is fully operational and set up for sustained full‑rate production. Kratos has begun procuring long‑lead components for Spartan engines to support a large multi‑customer production run in 2027 and is executing a three‑phase manufacturing infrastructure plan to further expand capacity and responsiveness for U.S. and allied defense customers.
Positive
- Allocation of Spartan J85 capacity to support Boeing’s JDAM LR production program
- U.S. Air Force awarded Boeing a $75 million UCA tied to JDAM LR acquisition
- Auburn Hills propulsion facility 22,500 sq ft, fully operational for full‑rate engine production
- Procurement of long‑lead Spartan components for a large 2027 production run
- Three‑phase manufacturing infrastructure plan to expand Spartan family production capacity
Negative
- None.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 19 | Orbit order announcement | Positive | -2.3% | Multi-million-dollar Orbit orders were followed by a 2.31% 24-hour decline. |
| Aug 18 | Elroy contract announcement | Positive | -2.0% | A $46 million Army contract and Kratos manufacturing partnership preceded a 2.05% decline. |
| Aug 18 | Valkyrie demonstration | Positive | -2.0% | Successful electronic-warfare and command demonstrations preceded a 2.05% decline. |
| Aug 17 | JASSM engine award | Positive | -2.0% | Engine designation, testing, and an EMD contract announcement preceded a 2% decline. |
| Aug 10 | Missile defense test | Positive | +2.7% | Successful U.S.-Japan missile-defense testing was followed by a 2.72% 24-hour gain. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Of five recent positive Kratos announcements, four were followed by negative 24-hour reactions, while one had a positive reaction.
Key Terms
undefinitized contract action regulatory
payload delivery unit technical
precision-guided munition technical
turbojet technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Kratos Recently Ordered Long-lead Components for Spartan Engines
SAN DIEGO, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, today announced an allocation of its expanded Spartan engine production capacity to support Boeing’s Joint Direct Attack Munition Long Range production program with TDI-J85 (J85) engines.
This month, the U.S. Air Force awarded Boeing a
“National security priorities demand affordable mass and resilient, domestic supply chains,” said Steve Fendley, President of Kratos Unmanned Systems. “Kratos’ internally funded and proactive supply-chain investments ensure we are not just preparing for future demand, and we are actively manufacturing the high-volume propulsion systems our customers require today.”
The J85 engines are produced in Kratos’ advanced 22,500-square-foot Propulsion Manufacturing Facility in Auburn Hills, Michigan, which is fully operational and optimized to sustain full-rate production.
To bolster and stabilize the defense industrial base supply chain, Kratos has initiated procurement of long-lead components for Spartan engines to support a large production run for a number of customers and applications in 2027, Boeing JDAM LR being key as the engine was originally designed to support this application. The large run enables economies of scale for cost and to address the published need by the Department of War to expand the U.S. industrial base and especially key technologies such as jet engines. Kratos is also executing a three-phase manufacturing infrastructure plan designed to expand production capacity, enabling rapid responsiveness to emerging customer requirements.
“The operational readiness of our Auburn Hills facility marks a pivotal transition from engineering development to high-rate tactical manufacturing,” said Joseph Kovasity, Senior Vice President of Kratos TDI. “Integrating the Spartan turbojet family into Boeing’s JDAM LR program provides a reliable, scalable, domestically sourced propulsion solution that meets urgent national defense needs.”
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 global 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, 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' primary business areas include virtualized ground systems for satellites and space vehicles; jet-powered unmanned aerial drone systems; advanced vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, 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 and 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 29, 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
Investor Relations:
877-934-4687
investor@kratosdefense.com
