Kratos Receives Approximately $30 Million in Air Defense and C5ISR System National-Security-Related Hardware Production Contracts

Rhea-AI Summary

Kratos (NASDAQ: KTOS) announced on Dec 29, 2025 that it has received approximately $30 million in national‑security‑related production contracts for Air Defense and C5ISR system military‑grade custom hardware.

Work will be performed in secure Kratos manufacturing facilities and supports missile, radar, counter‑UAS, hypersonic, directed energy, satellite communications, and other complex systems. Management said the awards reflect ongoing high‑volume production and program momentum across multiple mil‑spec hardware lines. Due to competitive and security considerations, no further contract details were disclosed.

Positive

• $30 million in awarded national‑security hardware production contracts
• Work to be performed in secure Kratos manufacturing facilities
• Company reports high‑volume mass production across multiple systems

Negative

• Company disclosed no additional contract details due to security and competitive reasons

Key Figures

Contract value approximately $30 million Air Defense and C5ISR hardware production contracts

Market Reality Check

$79.29 Last Close

Volume Volume 1,586,878 vs 20-day average 2,063,099 (relative volume 0.77 pre-news). normal

Technical Price 77.70 is trading above 200-day MA at 58.80 ahead of this contract news.

Peers on Argus

KTOS was down 2.84% pre-news. Key peers in Aerospace & Defense also traded lower: AVAV -2.60%, HII -1.10%, DRS -0.92%, TXT -0.72%, ERJ -0.54%. The direction broadly matched sector softness, but momentum scanners did not flag a coordinated sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 23	Hypersonic motors order	Positive	+0.9%	Letter of intent for 60 Zeus hypersonic solid rocket motors.
Dec 05	MRO facility expansion	Positive	-1.9%	Opening of 10,000 sq ft engine overhaul facility in Vancouver.
Nov 17	Microwave facility launch	Positive	-3.0%	New 60,000 sq ft Jerusalem microwave electronics facility opening.
Nov 13	Engine plant expansion	Positive	-6.5%	New 22,500 sq ft Spartan propulsion manufacturing facility in Michigan.
Nov 12	Hypersonic facility update	Positive	+0.1%	Progress update on $50M Indiana hypersonic payload facility build-out.

Pattern Detected

Recent operational and expansion announcements have often seen mixed-to-negative next-day reactions, even when strategically positive.

Recent Company History

Over the last two months, Kratos has focused on capacity expansion and hypersonic-related capabilities, including a letter of intent for 60 Zeus rocket motors on Dec 23 and multiple new or expanded facilities in British Columbia, Jerusalem, and Auburn Hills. These events generally supported growth in hypersonic, engine, and microwave electronics production but produced varied 24-hour price moves, with several declines after seemingly positive updates. Today’s ~$30 million air defense and C5ISR hardware contracts fit this pattern of operational wins against uneven short-term trading responses.

Market Pulse Summary

This announcement highlights Kratos’ position in military-grade hardware with approximately $30 million in new air defense and C5ISR production contracts. Against a backdrop of recent investments in hypersonic facilities and engine manufacturing capacity, it reinforces demand for the company’s systems. Investors evaluating this type of news often track follow-on contract flow, integration with existing high-volume production lines, and any subsequent regulatory filings or insider activity to gauge how operational momentum interacts with the current share-price level relative to the 52-week range.

Key Terms

c5isr technical

"Air Defense and C5ISR system national-security-related, military-grade custom hardware"

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.

counter-uas technical

"systems for missile, radar, counter-UAS, hypersonic, directed energy"

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.

hypersonic technical

"systems for missile, radar, counter-UAS, hypersonic, directed energy"

Hypersonic describes vehicles or weapons that travel at speeds greater than about five times the speed of sound (roughly over 3,800 mph), moving so fast they behave differently from ordinary aircraft. For investors it matters because development and deployment drive demand for specialized materials, engines, guidance systems and testing services, shaping defence and aerospace spending, supply chains and company valuations; think of it as the difference between a car and a supersonic bullet in terms of technical challenge and cost.

directed energy technical

"systems for missile, radar, counter-UAS, hypersonic, directed energy"

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. Not financial advice.

SAN DIEGO, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, announced today that it has recently received approximately $30 million in Air Defense and C5ISR system national-security-related, military-grade custom hardware production contracts. Kratos is an industry leader in the development, engineering, design, and large-scale production of military-grade hardware and integrated systems for missile, radar, counter-UAS, hypersonic, directed energy, satellite communication, and other complex systems. Work performed under the recent contract awards will be performed in secure Kratos manufacturing facilities.

Tom Mills, President of Kratos’ C5ISR Division, said, “Our entire team is honored to have our customers’ confidence in our ability to engage early in the systems’ design phase to collaborate with our customers on system-level engineering and design, provide highly engineered custom systems and solutions, large-scale manufacturing, at an affordable cost, for these urgent, relevant, and mission critical systems. Kratos is the recognized industry leader in delivering military-grade hardware and systems in direct support of America’s National Security requirements.”

Eric DeMarco, President and CEO of Kratos, said, “Delivering relevant, military-grade hardware on time, on schedule, and that works every time is hard, and Kratos’ demonstrated capability to continuously do so is a differentiator for our Company to our customers and partners. Kratos is currently in high volume, mass production on multiple hypersonic, counter-UAS, missile, radar and other systems, and we are proud to be the clear industry leader in our mil-spec hardware areas of expertise.”

Due to competitive, security related and other considerations, no additional information will be provided.

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 (KTOS) announce on December 29, 2025?

Kratos announced it received approximately $30 million in Air Defense and C5ISR national‑security hardware production contracts.

Which Kratos business areas do the Dec 29, 2025 contracts support for KTOS?

The contracts support military‑grade hardware for missile, radar, counter‑UAS, hypersonic, directed energy, and satellite communications.

Where will the work for the KTOS $30 million awards be performed?

Work under the recent awards will be performed in secure Kratos manufacturing facilities.

Does Kratos (KTOS) provide detailed contract terms for the Dec 29, 2025 awards?

No; Kratos said no additional information will be provided because of competitive and security considerations.

How did Kratos management describe the company’s production position in the Dec 29, 2025 announcement?

Management said Kratos is in high‑volume, mass production on multiple hypersonic, counter‑UAS, missile, radar and other systems.