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Kratos Receives $35 Million National Security Related Military-Grade Hardware Production Program Award

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Kratos Defense & Security Solutions (Nasdaq: KTOS) announced it has received an approximate $35 million National Security-related, military-grade hardware production program award. The hardware and related systems produced and supported under this contract are expected to be in direct support of the warfighter in the field.

According to Kratos, work will be performed at a secure company facility, with no further contract details disclosed due to customer and national security considerations. The award relates to Kratos’ C5ISR business and aligns with the company’s large-scale production activities across hypersonics, counter‑UAS, air defense, missiles, radars, and high-powered directed energy systems in support of U.S. and allied national security priorities.

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Positive

  • New $35 million award for military-grade hardware and systems production
  • Work performed at secure Kratos facility, supporting sensitive national security programs
  • Award tied to C5ISR business, a core segment highlighted by management as strategically important

Negative

  • None.

Market Context

An active S-3ASR shelf dated February 26, 2026 adds financing context to the award, while recent ins...
Analysis

An active S-3ASR shelf dated February 26, 2026 adds financing context to the award, while recent insider activity was net selling. The announcement’s limited contract disclosure remains the key information gap.

Key Figures

Award value: $35 million
1 metrics
Award value $35 million National Security-related military-grade hardware production program

Historical Context

5 past events · Latest: Aug 24 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Aug 24 Engine supply announcement Positive -7.2% Kratos supplied engines supporting Boeing’s JDAM LR production contract.
Aug 19 Ground station orders Positive -2.3% Newly acquired Orbit received multi-million-dollar international ground station orders.
Aug 18 Partner contract award Positive -2.0% Elroy Air received a $46 million Army contract involving Kratos manufacturing.
Aug 18 Flight demonstration Positive -2.0% USMC Valkyrie demonstrated beyond-line-of-sight command and control.
Aug 17 Engine contract award Positive -2.0% GEK800 received military designation and an Air Force EMD contract.

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

Pattern Detected

All five selected prior positive announcements were followed by negative 24-hour price reactions.

Key Terms

c5isr, mil-spec, counter-uas, directed energy
4 terms
c5isr technical
"Kratos’ C5ISR Business is a crown jewel of Kratos and a national asset"
C5ISR stands for Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance — a bundle of technologies and services that let militaries and governments collect information, protect networks, and make fast decisions. Think of it as a city’s emergency response system that links cameras, radios, maps and analysts so responders see what’s happening and act quickly. For investors, C5ISR work often means large, long-term government contracts, steady technology spending, and exposure to defense budget shifts and export rules.
mil-spec technical
"technical capability and past performance qualifications to successfully complete the mission and engineer and build mil-spec hardware"
A mil-spec is a military specification that sets strict technical and quality standards for products or components used by armed forces, like a blueprint for durability and performance under harsh conditions. For investors, a mil-spec label signals that a product meets government procurement requirements, which can open stable contract opportunities, imply higher production costs and margins, and create barriers to competitors — all of which affect a company’s revenue and risk profile.
counter-uas technical
"C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter-UAS"
Counter-UAS (counter-unmanned aircraft systems) are tools and tactics used to detect, track, and disable or divert drones that pose a threat to people, property, or operations. Think of them as a combination of a security camera, alarm system, and net that can find an unwanted flying device and stop it before it causes harm. Investors care because demand, regulation, and deployment of these systems affect revenue, contract opportunities, legal risk, and the valuation of companies that build or use them.
directed energy technical
"high-powered directed energy and other initiatives"
Directed energy describes weapons or tools that send concentrated beams of energy—such as lasers, microwaves, or particle streams—toward a target to heat, disable, or disrupt it rather than using conventional projectiles. Like using a magnifying glass to focus sunlight on a single spot, these systems can deliver effects at speed and with precision. Investors watch directed energy because it drives defense and high-tech spending, influences regulatory and export rules, and carries long development timelines and maintenance costs that affect company value.

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

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SAN DIEGO, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, today announced that it recently received an approximate $35 million National Security-related military-grade hardware production program award. It is expected that the hardware and related systems being produced and supported under this recent award will be in direct support of the warfighter in the field.

Kratos is an industry leader in the engineering, design, development and production of military grade hardware and systems in support of the United States and its Allies’ mission critical national security priorities. Kratos is currently in large-scale production in support of multiple national security related systems and programs of record, including in the areas of hypersonics, counter-unmanned aerial systems, air defense, missiles, radars, and high-powered directed energy and other initiatives.

Tom Mills, President of Kratos C5ISR, said, “Kratos is a recognized industry leader in the engineering and large-scale production of military grade hardware in support of certain of the United States’ and its allies’ most important National Security programs and initiatives. If a customer wants its product or system engineered correctly up front, for successful, on-schedule, on-budget production, we believe that we are the preferred, go to partner.”

Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ C5ISR Business is a crown jewel of Kratos and a national asset for our country. Kratos has the workforce, infrastructure, technical capability and past performance qualifications to successfully complete the mission and engineer and build mil-spec hardware and weapon systems correctly the first time for our partners and customers.”

Work under this program award will be performed at a secure Kratos facility. Due to customer, National Security related and other considerations, no additional information will be provided related to this contract award.

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


FAQ

What contract did Kratos (KTOS) announce on August 31, 2026?

Kratos announced an approximate $35 million National Security-related military-grade hardware production program award. According to Kratos, the contract covers hardware and related systems expected to directly support the warfighter in the field, performed at a secure Kratos facility.

How large is the new military-grade hardware contract for Kratos (KTOS)?

The new contract is valued at approximately $35 million. According to Kratos, the award involves producing and supporting military-grade hardware and systems for National Security missions, with work performed at a secure facility and focused on direct support to the warfighter.

Which Kratos (KTOS) business unit is involved in the $35 million award?

The contract is associated with Kratos’ C5ISR business. According to Kratos, this unit is a key part of its portfolio and supports major National Security programs, including systems for missiles, radars, air defense, counter‑UAS, and directed energy.

How will the new Kratos (KTOS) contract support national security and warfighters?

The award funds production and support of military-grade hardware and systems expected to directly support warfighters. According to Kratos, these systems back mission-critical National Security priorities for the United States and its allies, across multiple advanced defense domains and programs of record.

Will Kratos (KTOS) disclose more details about the $35 million contract?

Kratos does not plan to release additional details about this contract. According to Kratos, customer requirements, National Security considerations, and other factors limit further disclosure beyond the approximate value, mission support role, and secure-facility performance.

What defense areas does Kratos (KTOS) support alongside this new award?

Kratos is in large-scale production for hypersonics, counter‑UAS, air defense, missiles, radars, and high-powered directed energy. According to Kratos, these efforts, including the new contract, support critical National Security systems and programs of record for the U.S. and allied nations.