Kratos Defense & Sec Solutions Stock Price, News & Analysis

Kratos Defense (NASDAQ:KTOS) and GE Aerospace (NYSE:GE) have initiated altitude testing of their GEK800 small engine at Purdue University's Maurice J. Zucrow Laboratories. The 800-lb jet engine is designed for next-generation unmanned aerial systems (UAS), collaborative combat aircraft (CCAs), and missiles.

The testing will evaluate engine performance at altitudes between 5,000-35,000 feet and is expected to complete by year-end. The companies have already completed over 50 engine starts in ground testing. This collaboration, formalized in June 2025, builds upon their 2024 MOU to develop and produce cost-effective engines for unmanned platforms.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has secured an exclusive five-year strategic manufacturing agreement with Elroy Air to produce the Chaparral hybrid-electric autonomous VTOL cargo drone in the United States. The Chaparral can transport up to 300 pounds of cargo over 300 miles, serving both military and commercial logistics needs.

Production will initially begin at Kratos' Sacramento facility before transitioning to high-volume manufacturing in Oklahoma City, with the first units expected in 2026. The partnership leverages Kratos' established expertise in military drone production and supply chain management, aiming to accelerate the delivery of Chaparral systems to waiting customers across defense and commercial markets.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has promoted Brian Shepard to the position of Chief Information Officer (CIO). Shepard, who has been with Kratos since 2006, will oversee all information technology operations, including information security, compliance, and data communications.

With over 30 years of IT experience, Shepard previously served as Vice President of Information Technology since 2021. His background includes serving as Director of Infrastructure at Haverstick Consulting before its acquisition by Kratos, and four years of service in the U.S. Marine Corps. Shepard holds a bachelor's degree in management information systems from Marymount University.

Kratos Defense & Security Solutions (NASDAQ: KTOS) announced its upcoming addition to the S&P MidCap 400 Index, upgrading from the S&P SmallCap 600 Index. This transition reflects the company's significant growth and market recognition in unmanned systems, hypersonics, space, propulsion, and national security solutions.

The inclusion in the MidCap 400, a benchmark index for mid-sized U.S. companies, validates Kratos' financial growth and strategic direction. CEO Eric DeMarco highlighted this achievement as a testament to employee dedication and customer trust, while emphasizing the company's commitment to delivering affordable, high-performance defense systems.

Kratos Defense & Security Solutions (NASDAQ: KTOS) and the National Chung-Shan Institute of Science and Technology (NCSIST) have unveiled the Mighty Hornet IV Attack UAV, a transformed version of the MQM-178 target drone. The advanced unmanned aerial vehicle will be showcased at the Taipei Aerospace & Defense Technology Exhibition (TADTE) from September 18-20, 2025.

The Mighty Hornet IV features impressive capabilities including Mach 0.8 speed, high G maneuvering, and a service ceiling exceeding 35,000 feet. Under the partnership agreement, Kratos will market the UAV internationally. The platform has demonstrated success in Manned-Unmanned Teaming (MUM-T) and loitering munition scenarios, building on Kratos's 15-year history of providing aerial target support to Taiwan.

Kratos Defense & Security Solutions (NASDAQ: KTOS) and the Aerospace Industries Association (AIA) hosted a strategic roundtable at Kratos' Oklahoma City aircraft facility with Chairman Tom Cole and Senator James Lankford. The event focused on aerospace and defense supply chain policy priorities.

The facility currently produces two major drone systems in rate production: the XQ-58A Valkyrie, a collaborative combat aircraft, and the MQM-178 Firejet target system. The facility manufactures approximately 150 high-performance, jet-powered tactical and target drone systems annually, with capacity for rapid production increase. A third high-performance tactical drone system is currently in prototype production.

Kratos Defense & Security Solutions (NASDAQ: KTOS) has launched its redesigned corporate website and introduced a new brand tagline, "Readiness Delivered." The new digital platform showcases Kratos' evolution as an agile defense technology leader focused on delivering high-performance-per-cost systems.

The website redesign features improved navigation, an upgraded resource library, and expanded career opportunities section. It highlights Kratos' core capabilities in hypersonics, unmanned systems, propulsion, and microwave solutions. CEO Eric DeMarco emphasized the company's commitment to execution and delivery of affordable defense technologies at speed and scale.

Kratos Defense & Security Solutions (NASDAQ:KTOS) reported strong Q2 2025 financial results with revenues of $351.5 million, representing a 17.1% growth and 15.2% organic growth compared to Q2 2024. The company posted net income of $2.9 million and adjusted EBITDA of $28.3 million.

Key highlights include a consolidated book-to-bill ratio of 0.7 to 1.0 for Q2 2025 and 1.2 to 1.0 for the last twelve months, with total bookings of $1.401 billion. The company's bid pipeline reached $13.0 billion, up from $12.6 billion in Q1. Kratos increased its 2025 full-year revenue guidance to $1,290-$1,310 million and adjusted EBITDA guidance to $114-$120 million.

Management announced a potential new $750 million prime contract (Project Poseidon) expected by year-end, and highlighted significant growth opportunities in hypersonic systems, small jet engines, and military hardware sectors.

Kratos Defense & Security Solutions (NASDAQ:KTOS) and hiSky have announced a strategic partnership to integrate hiSky's satellite network services with Kratos' OpenSpace® software-defined ground system. The collaboration aims to deliver Industrial Internet of Things (IoT) capabilities through cloud-enabled network architecture.

The partnership comes as the global IoT market is projected to grow from $277 billion in 2024 to $606 billion by 2030. The integration will virtualize hiSky's hub within the OpenSpace platform, enabling cloud-based operations that eliminate the need for on-site hardware and reduce operational costs while increasing scalability.