Northrop Grumman to Rapidly Develop Marine Corps CCA with Kratos’ Valkyrie UAS
Rhea-AI Summary
Kratos (NASDAQ: KTOS) said Northrop Grumman (NYSE: NOC) was competitively awarded the U.S. Marine Corps' MUX TACAIR Collaborative Combat Aircraft (CCA) effort, pairing Northrop Grumman mission systems with Kratos' Valkyrie uncrewed aerial system.
The program will combine Northrop Grumman's Advanced Mission Kit and Prism open-architecture autonomy software with Valkyrie's modular airframe, payload bays, and runway-flexible conventional takeoff and landing design. The partners cite more than 20 successful flight demonstrations and describe a low-risk, expedited path to fielding persistent joint crewed-and-uncrewed expeditionary operations for the Marine Corps.
Positive
- Competitive award links Kratos Valkyrie to Northrop Grumman's MUX TACAIR CCA
- Integration uses Northrop Grumman Prism open-architecture autonomy software
- Partners cite >20 successful flight demonstrations in operationally relevant environments
- Design emphasizes cost-effective Advanced Mission Kit for scalable deployments
Negative
- None.
News Market Reaction
On the day this news was published, KTOS gained 13.78%, reflecting a significant positive market reaction. Argus tracked a peak move of +18.0% during that session. Our momentum scanner triggered 72 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $2.36B to the company's valuation, bringing the market cap to $19.49B at that time. Trading volume was elevated at 2.4x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers AVAV (+9.589999914169312%), HII (+6.179999932646751%), and DRS (+6.129999831318855%) also moved up, and scanner data flags a broader Aerospace & Defense upswing.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 30 | Satellite C2 milestone | Positive | -1.9% | EPOCH C2 software passed factory acceptance test with Airbus’ OneSat platform. |
| Dec 29 | Defense contracts | Positive | -0.3% | Announced about $30M in national-security air defense and C5ISR hardware contracts. |
| Dec 23 | Hypersonic systems LOI | Positive | +0.9% | Letter of intent for 60 Zeus hypersonic solid rocket motors from L3Harris. |
| Dec 05 | Engine MRO expansion | Positive | -1.9% | Opened new 10,000 sq ft PT6 engine overhaul facility in Vancouver. |
| Nov 17 | Microwave facility open | Positive | -3.0% | Opened 60,000 sq ft Jerusalem facility for microwave electronics division. |
Recent positive operational and contract news often saw negative or muted next-day moves, suggesting a pattern of weak immediate price follow-through on good news.
Over the past two months, Kratos reported several operational milestones and capacity expansions, including satellite command-and-control validation, approximately $30 million in air defense and C5ISR hardware contracts, hypersonic rocket motor procurement, and new facilities in Vancouver and Jerusalem. Despite broadly positive strategic developments across satellites, hypersonics, and microwave electronics, the stock’s 24-hour reactions were often negative. Today’s Marine Corps CCA collaboration with Northrop Grumman adds to this pattern of defense-related growth initiatives.
Market Pulse Summary
The stock surged +13.8% in the session following this news. A strong positive reaction aligns with Kratos’ role in a high-profile Marine Corps CCA program leveraging the Valkyrie UAS. Prior defense wins and facility expansions often saw mixed short-term price follow-through, highlighting the risk that initial enthusiasm could fade. Investors may watch contract scaling, execution milestones, and broader defense-sector momentum, as well as the company’s ability to convert demonstrations into sustained production revenue.
Key Terms
collaborative combat aircraft technical
uncrewed aerial system technical
open architecture autonomy software technical
AI-generated analysis. Not financial advice.
SAN DIEGO, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, today announced that Northrop Grumman (NYSE: NOC) was competitively awarded the U.S. Marine Corps’ Marine Air-Ground Task Force Uncrewed Expeditionary Tactical Aircraft (MUX TACAIR) Collaborative Combat Aircraft (CCA). This award combines Northrop Grumman’s uncrewed capabilities and autonomous leadership with Kratos’ Valkyrie uncrewed aerial system to work alongside crewed fighters to provide air dominance in high-threat environments.
Northrop Grumman will develop and rapidly deliver platforms that include:
- Advanced Mission Kit: Northrop Grumman's cost-effective mission kit is inclusive of sensors and software-defined technologies designed specifically for uncrewed aircraft. The mission kit’s flexible technology can perform various kinetic and non-kinetic effects, making the platform a combat-ready asset.
- Open Architecture Autonomy Software: Northrop Grumman’s open architecture autonomy software package – known as Prism – will manage the aircraft’s operations autonomously.
- Valkyrie Uncrewed Aerial System from Kratos Defense and Security Solutions: Fully equipped for a variety of missions that will include conventional takeoff and landing capabilities, enhanced runway flexibility with a modular airframe and payload bays for customizable effects.
This agile solution integrates Northrop Grumman’s proven mission systems with Kratos’ mature Valkyrie. (Photo Credit: U.S. Marine Corps)
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b9b85fff-eb05-4d27-a20b-38d91f791f17
Experts:
Krys Moen, vice president, advanced mission capabilities, Northrop Grumman: “Northrop Grumman remains at the forefront of advanced sensing capabilities, delivering innovative solutions that meet the needs of the warfighter with unmatched speed and reliability. This enhanced capability set ensures optimal performance for both crewed and uncrewed platforms.”
Steve Fendley, president Kratos Unmanned Systems Division: “The integration of the Kratos Valkyrie aircraft system configured with the world’s best multifunction mission systems from Northrop Grumman results in a high-capability CCA at a price point that enables the uncrewed systems to be deployed in mass with crewed aircraft.”
Details:
Northrop Grumman has packaged its sensors and other mission capabilities into a smaller envelope, resulting in a more cost-effective solution that is compatible with an uncrewed platform. Combining existing product lines and proven capabilities, Northrop Grumman, Kratos, and commercial partners developed a missionized CCA that includes survivability, connectivity, lethality and supportability elements. With more than 20 successful flight demonstrations in operationally relevant environments, Northrop Grumman and Kratos are offering the U.S. Marine Corps a low risk, expedited path to MUX TACAIR mission capability and persistent joint crewed and uncrewed expeditionary operations.
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 about the Marine Corps MUX TACAIR CCA on January 8, 2026?
How will Northrop Grumman and Kratos integrate systems for the MUX TACAIR CCA program?
Does the announcement provide evidence of prior testing for the Valkyrie and mission systems?
What operational capabilities does the Valkyrie CCA configuration claim to offer for the Marine Corps?
Will the Kratos (KTOS) and Northrop Grumman CCA approach be considered low risk and rapid to field?
