Kratos Recently Received Aviation System and Related Warfighter Contract Awards with Total Potential Value of Approximately $65 Million
Rhea-AI Summary
Kratos (Nasdaq: KTOS) announced contract awards with a total potential value of approximately $65 million to design, develop and deliver simulators and training solutions for aviation and other warfighter platforms.
Awards come from the U.S. Department of War and allied nations and include the MBRAT multimode avionics maintenance simulator. Kratos said 2025 saw growth across air-based platforms and continued deliveries for ground, naval and unmanned systems.
Positive
- $65 million total potential contract value for simulators and training solutions
- Contracts include purchases by the U.S. Department of War and allied nations
- MBRAT offers multi-platform avionics maintenance training on a single device reducing training investment
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
KTOS fell 6.65% while key peers like DRS, AVAV, ERJ and TXT showed modest mixed moves between roughly flat and slightly negative. Only RKLB appeared in the momentum scan, moving up, reinforcing that KTOS’s move looks stock-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 13 | Facility expansion | Positive | +1.6% | Opened new 55,000-square-foot hypersonic manufacturing and integration facility. |
| Jan 12 | Facility expansion | Positive | +3.7% | Expanded Birmingham operations with new 40,000-square-foot integration facility. |
| Jan 08 | Strategic policy | Positive | +13.8% | Reaffirmed reinvestment-first capital allocation to grow defense capabilities. |
| Jan 08 | Program partnership | Positive | +13.8% | Northrop Grumman CCA award leveraging Kratos’ Valkyrie uncrewed aerial system. |
| Dec 30 | Technical milestone | Positive | -1.9% | Completed factory acceptance test of EPOCH C2 with Airbus OneSat. |
Recent operational and facility expansion news has generally aligned with positive price reactions, with only one divergence on a technical milestone update.
Over the past months, Kratos has reported several growth-focused developments, including new facilities in Birmingham and a 55,000-square-foot hypersonic manufacturing site tied to a $1.4 billion MACH-TB 2.0 contract. Strategic partnership news involving the Valkyrie UAS and successful testing of the EPOCH® C2 system also featured. Most of these announcements were followed by positive 24-hour price reactions, suggesting the market has often rewarded expansion and capability wins. Today’s new approximately $65 million aviation training awards extend this growth narrative in defense training systems.
Market Pulse Summary
This announcement highlights new aviation and warfighter training contracts with a total potential value of approximately $65 million, reinforcing Kratos’ role across air and unmanned systems. It follows recent facility expansions and hypersonic manufacturing tied to a $1.4 billion MACH-TB 2.0 contract, suggesting continued operational build-out. Investors may watch how these awards convert into revenue, the pace of related backlog growth, and any further disclosures on contract mix and margin impact.
Key Terms
augmented reality technical
mixed reality technical
AI-generated analysis. Not financial advice.
Contracts Include Awards from the U.S. Department of War and Allied Nations
SAN DIEGO, Feb. 03, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, today announced that Kratos has been awarded contracts valued in total at approximately
The Kratos-built training systems support a wide variety of knowledge sets across numerous aircraft, including the Army’s CH47F Chinook and UH-60M Blackhawk helicopters, the Airforce’s UH-1 Huey and more. Contracts include awards from the U.S. Department of War as well as allied nations, including purchases of Kratos’ MBRAT simulator, a unique system that enables avionics maintenance training for multiple platforms on a single device, requiring a substantially lower financial investment while achieving training goals and proficiencies.
According to Jose Diaz, SVP of Kratos Training Solutions, “2025 was another growth year for Kratos, particularly in the domain of air-based system platforms. Our customers deeply appreciate our successful delivery of cost-effective solutions that produce highly effective training outcomes. Proven experience incorporating all immersive reality technologies on simulators—from augmented reality to fully virtual—and incorporating Kratos’ advanced Mixed Reality technology enables us to apply the most suitable options to each training challenge.”
In addition to aviation training systems, throughout 2025, the company continued to deliver simulation and training solutions in support of ground combat systems, subsurface naval combat vessels, surface navy combat systems, naval weapon systems and unmanned combat aerial systems to customers.
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 February 3, 2026 about new contracts?
Which aircraft platforms are supported by the Kratos training systems mentioned in the KTOS release?
What is the MBRAT system Kratos referenced and why does it matter for KTOS shareholders?
How did Kratos describe its 2025 performance and relevance to the KTOS business outlook?
