Kratos Defense & Sec Solutions Stock Price, News & Analysis

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced a potential value contract worth approximately $13 million for electronic warfare systems. This contract will be incrementally funded and performed at secure facilities. Kratos specializes in national security technologies, including unmanned systems, missile defense, and cyber warfare. Yonah Adelman, President of Kratos Microwave Electronic Division, emphasized the significance of this contract in supporting national security. The company focuses on innovative, affordable technology for defense and commercial markets.

Kratos Defense & Security Solutions (Nasdaq: KTOS) has secured an initial funding of $30 million for a potential $250 million program related to Command, Control, Communication, Computing, Combat System Intelligence, Surveillance and Reconnaissance (C5ISR). This single award represents the largest program in the history of the Kratos Microwave Electronic Division (KMED). The company has a backlog of approximately 2X revenue and anticipates sustained organic growth into 2023.

CEO Eric DeMarco emphasized Kratos' strategy of delivering advanced technology affordably, positioning the company for further awards in various sectors.

Boom Supersonic has introduced Symphony, a new propulsion system for its Overture supersonic airliner, collaborating with industry leaders like FTT, GE Additive, and StandardAero. Symphony aims to provide an economically and environmentally sustainable supersonic experience, achieving net zero carbon emissions and compliance with Chapter 14 noise levels. The new engine is projected to enhance operating efficiency, increasing time on wing by 25% and reducing maintenance costs by 10%. Overture is on schedule for type certification in 2029, with production starting in 2024.

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced its subsidiary, Florida Turbine Technologies (FTT), will lead engine design for Boom Supersonic's Symphony propulsion system, targeted for the Overture supersonic airliner. The Symphony system aims for net zero carbon emissions and compliance with Chapter 14 noise standards, enhancing efficiency by 10% and increasing lifespan by 25%. FTT will apply its expertise from military engines and collaborate with GE Additive and StandardAero. This partnership is viewed as strategically significant for attracting top engineering talent.

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced the launch of its OpenSpace Channelizer and Combiner, a virtual solution for satellite ground operations. This innovation enables effective signal management for software-defined satellites and LEO constellations, allowing rapid configuration changes that traditional hardware cannot match. With applications in SATCOM, Earth Observation, and more, notable user Intelsat plans to leverage these tools to enhance service provisioning. Kratos positions the OpenSpace Platform as a digital transformation tool for modern satellite operations.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has secured a subcontract for the Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) program, awarded by the Naval Surface Warfare Center. This initiative aims to enhance the U.S. capacity for hypersonic flight testing through a cost-effective test bed platform. By leveraging commercial infrastructure, the program will enable rapid technology maturation for various military hypersonic projects. Kratos will apply its expertise from its recent acquisition of Southern Research Engineering to support this endeavor effectively.

Kratos Defense & Security Solutions (KTOS) reported Q3 2022 revenues of $228.6 million, up 14% year-over-year. Despite this growth, the company faced an operating loss of $3.6 million and a net loss of $8.0 million, including a non-recoverable cost charge of $6.4 million. The book-to-bill ratio stands at 1.1. Ongoing challenges include supply chain disruptions and labor shortages, impacting revenue recognition. Management revised fiscal guidance due to expected delays and inflation pressures, forecasting 10% revenue growth for 2023.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has successfully completed a flight of its XQ-58A Valkyrie aircraft as part of the Block 2 Valkyrie Maturation Program. This test demonstrated the aircraft's enhanced capabilities, including higher flight, longer range, and heavier mission weight. Key advancements include autonomous landing in a simulated loss of communication and secure encrypted communications during missions. The flight marks a significant milestone in supporting the Air Force Research Laboratory’s Autonomous Collaborative Enabling Technologies portfolio. Kratos continues to focus on affordable, high-performance unmanned systems.