Track market-moving stories before they get noisy

Drone stocks have left many investors underwater. The REX Drone ETF NASDAQ: DRNZ is down approximately 23% this year. But some individual names, such as Red Cat NASDAQ: RCAT, are down much more. Those investors who haven't already taken a loss are wondering if they'll ever recoup their investment.

One option is to stay the course on the belief that future growth is a case of when, not if. Another strategy is to look at companies that make the components more than the finished product. But first, it's important to understand the state of the drone industry.

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Drone Dominance Is ComplicatedDrone stocks began to soar in June 2025 when President Donald Trump signed an executive order titled "Unleashing American Drone Dominance." It doesn't get more bullish than that. The U.S. was going all in on domestic drone manufacturing.

But spending from the U.S. government hasn't materialized as expected. And now, the government is taking steps to limit the presence of foreign competition in the drone space.

That's due to a second executive order signed by President Trump titled "Restoring American Airspace Sovereignty." That means the U.S. Government, which is the drone industry's largest customer, is now also directly dictating the breadth of the competitive landscape.

Why Drone Stocks Answer to Their Biggest CustomerWhat's happening in the drone trade is similar, but different, to the "regulate AI" debate. In that case, some of the same companies that are creating/refining the technology are asking for regulation. In the case of drone manufacturers, the calls for regulation are coming from their largest customer. That is, the U.S. government and specifically, the Pentagon.

That's terrible news for pure-play drone stocks like Kratos NASDAQ: KTOS, which is down over 47% in 2026. But there's still hope for the drone trade if you look at where the money is flowing. Here are four stocks to consider.

Axon: A Counter-Drone Stock Hiding in Plain SightAxon Enterprise Today

$397.28 +4.64 (+1.18%)

As of 09:37 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$339.01▼

$764.02164.00

$707.07

Axon Enterprise Inc. NASDAQ: AXON is best known for products such as TASERS and body cameras in the public safety space.

However, the company has a significant presence in the drone sector, including in the counter-drone space, which will be in demand.

Revenue from the company's Dedrone platform exceeded $100 million in Q2 2026. That was a key line item in the company's overall quarterly revenue, exceeding $804 million, a 35% year-over-year (YOY) increase.

AXON shares are down about 30% in 2026, but that decline seems to be more about higher component and memory costs. Demand remains solid.

AXON carries a consensus Moderate Buy rating and a consensus price target of $707.07.

AeroVironment: A Drone Leader Priced for Bad NewsAeroVironment Today

$118.80 +1.17 (+1.00%)

As of 09:37 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$116.30▼

$408.25$225.80

AeroVironment Inc. NASDAQ: AVAV is the closest thing the drone trade has to a blue chip. Its Switchblade loitering munitions and Puma reconnaissance drones are already in the field. The BlueHalo acquisition added counter-drone, space, and electronic warfare capabilities.

None of that has protected the stock. AVAV opened 2026 at $241.89. It now trades near $118, a drop of more than 51%. That’s a steeper decline than Kratos.

But this looks like a perception problem more than a fundamentals problem. AeroVironment reported fiscal 2027 first-quarter earnings of 59 cents per share on Sept. 9, far exceeding the consensus estimate of 22 cents per share. Revenue grew 5.7% YOY. That’s not explosive growth, but the business isn’t broken.

The company is also looking beyond Washington. In mid-October, it signed non-binding agreements with partners in Spain and Taiwan to support local production and sustainment. That diversifies its customer base just as U.S. spending is in question.

Analysts are cautious, not bearish. AVAV carries a consensus Moderate Buy rating from 26 analysts and a consensus price target of $225.80.

Swarmer: A High-Risk Bet on Drone Swarm SoftwareSwarmer Today$9.28 +0.26 (+2.90%)

As of 09:37 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$8.62▼

$83.30If drones are the hardware, autonomy software is the brain. That’s where Swarmer Inc. NASDAQ: SWMR plays. Its platform lets a single operator coordinate large groups of drones. The company says its software has supported more than 100,000 combat missions in Ukraine since April 2024.

This is the most speculative name on the list. Swarmer went public in March and traded as high as $31 per share on March 17. Since then, the stock has fallen roughly 70%. Q2 revenue was just $216,413, against a net loss of $7.3 million. It's also important to note that Swarmer is based in Ukraine and may not benefit from future U.S. defense spending.

So why consider it? First, its software is vendor-agnostic. Swarmer doesn’t need to win a hardware contract. It can ride on top of whoever does. Its SkyKnight licensing deal recently expanded to $3.9 million. It’s also partnered with Oak Grove Technologies to bring swarming to a platform built for U.S. Special Operations.

Second, Swarmer is buying scale. In September, it agreed to acquire Ukrainian ground robotics maker Ratel Robotics for up to $224 million in cash and stock. Ratel has secured $86 million in contracts this year. The stock plunged on dilution fears after the announcement.

Wall Street isn’t buying the story yet. Only one analyst covers SWMR, and that analyst rates it a Sell. Investors buying here are betting on execution, not current numbers.

Unusual Machines: Picks and Shovels for Drone MakersUnusual Machines Today

UMAC

Unusual Machines

$17.01 +0.63 (+3.85%)

As of 09:03 AM Eastern

$7.24▼

$34.93$37.00

Unusual Machines Inc. NYSEAMERICAN: UMAC is the purest expression of the components strategy. The company makes NDAA-compliant motors, cameras, flight controllers, and other parts for drone makers. As Washington squeezes out foreign suppliers, domestic component makers become harder to replace.

The numbers back that up. Q2 revenue came in at $16.72 million, crushing analyst estimates of $9.2 million. That was a 687% YOY increase. Enterprise customers accounted for about 95% of sales.

Management is tempering near-term expectations, though. It’s targeting $12 million to $14 million in Q3 revenue while it installs a high-speed motor line. The Q4 target jumps to $25 million. Neither figure is formal guidance, so the Nov. 5 earnings report will be a key test.

UMAC is up about 30% in 2026, the only stock on this list in positive territory. But it’s well off its 50-day high of $34.06. That pullback gives investors a second chance. UMAC carries a consensus Buy rating from six analysts. The consensus price target of $37 implying significant potential upside.

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Kratos Defense (KTOS -0.79%) is betting that militaries will pay more for autonomous aircraft when range, payload, and mission flexibility matter. The Valkyrie has demonstrated its technology, but the bigger question is whether Kratos can turn that validation into enough funded production orders to justify its expanding capacity.

Stock prices used were the market prices of Sept. 28, 2026. The video was published on Oct. 15, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kratos Defense & Security Solutions. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Key Takeaways Kratos successfully tested its TDI-J85 turbojet engine across multiple launch configurations.KTOS targets production of over 3,000 engines in 2027 and annual capacity exceeding 10,000 by 2029.KTOS shares are trading at a discount, with its forward 12-month Price/Sales being 3.55X. Kratos Defense & Security Solutions (KTOS - Free Report) is strengthening its position in the defense propulsion market as demand grows for affordable engines used in unmanned aircraft, cruise missiles and decoy systems. The company recently completed successful flight tests of its TDI-J85 turbojet engine across multiple launch configurations, demonstrating its flexibility and reliability.

The tests covered lugged launch, palletized launch and surface-to-surface applications. These results highlight the engine’s ability to support different deployment methods while providing efficient performance. The J85 is designed to offer reliable ignition, improved fuel efficiency and extended operating range, making it suitable for low-cost defense platforms.

Kratos is also expanding its Spartan engine family to support growing demand for affordable, high-performance propulsion systems. The company has placed component orders to support production of more than 3,000 engines in 2027 and is working toward annual manufacturing capacity exceeding 10,000 engines by 2029.

The production expansion reflects increasing military interest in cost-effective weapons and unmanned systems that can be deployed in large numbers. Kratos’ focus on scalable manufacturing and affordable propulsion technologies could strengthen its position in next-generation defense programs.

With successful engine testing and expanding manufacturing capabilities, Kratos is positioned to benefit from rising investment in unmanned aircraft, cruise missiles and other advanced defense platforms. Continued execution of its production plans could support long-term growth.

Defense Stocks to Keep on the RadarGrowing demand for affordable propulsion systems and unmanned defense platforms could also benefit other aerospace and defense contractors.

RTX Corporation (RTX - Free Report) : RTX develops advanced propulsion technologies through its Pratt & Whitney business, supporting military aircraft and next-generation defense platforms. Its expertise in engine development positions it to benefit from continued investment in advanced propulsion systems.

Northrop Grumman (NOC - Free Report) : Northrop Grumman develops propulsion technologies and unmanned systems for defense applications. Its portfolio includes advanced missile propulsion and autonomous platforms, supporting demand for next-generation military capabilities.

KTOS’ Price Performance, Valuation and EstimatesShares of KTOS have lost 18.8% in the past year compared with the industry’s 15.9% decline.

Image Source: Zacks Investment Research

The company shares are trading at a discount, with its forward 12-month Price/Sales being 3.55X compared with its industry’s average of 6.84X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KTOS’ 2026 and 2027 earnings has remained the same over the past 60 days.

Image Source: Zacks Investment Research

KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Wall Street Investor News Commentary - The global hypersonic flight market is projected to grow from $782 million in 2023 to $1,154 million by 2030, a compound annual growth rate of 5.7%, according to MarketsandMarkets, which points to defense modernization and demand for rapid response and precision strike capabilities as leading drivers. Every one of those programs has to be tested, and the hardware that flies at these speeds needs time in real atmospheric conditions, not just seconds-long runs in a ground facility. Active Companies from around the markets with current developments this week include: Starfighters Space, Inc. (NYSE American: FJET), Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), L3Harris Technologies, Inc. (NYSE: LHX), Northrop Grumman Corporation (NYSE: NOC), and Lockheed Martin Corporation (NYSE: LMT).

The money is already moving into the programs that need that testing. Missile and missile-defense work is filling order books across the defense industry, from multi-year interceptor production contracts to new glide-phase defense awards, and the largest contractors are reporting record backlogs. Each new system brings sensors, materials, avionics and propulsion that have to be proven at speed before they can be fielded.

That is where flight-test capacity becomes a constraint. Traditional ground wind tunnels remain essential, but their test runs typically last seconds. Airborne platforms that can hold Mach 2+ conditions for minutes, carry hardware in real weather and vibration, and fly again the next day offer a complementary way to compress development timelines, and one Space Coast operator just moved that capability from concept to hardware.

Starfighters Space Completes First Flight Hardware for Wind Tunnel in the Sky™ Program

First flight hardware completed under a production agreement with Italian engineering company Robby Moto Engineering S.R.L. ("RME"), now en route to Kennedy Space Center

Components to be assembled into two modular underwing flight articles for reusable Mach 2+ testing in real atmospheric conditions

Flight articles measure 3.65 meters long and 178 millimeters in diameter, based on a proven military air-launch vehicle form factor compatible with existing F-104 underwing pylons

Interchangeable nose sections, tail assemblies, fin configurations and payload compartments allow rapid adaptation for different customer missions

Hardware supports future STARLAUNCH™ missions

Starfighters Space, Inc. (NYSE American: FJET), the space company operating the world's only commercial fleet of flight-ready Mach 2+ supersonic aircraft, has completed the first flight hardware for its reusable airborne testing platform, Wind Tunnel in the Sky™. The precision-manufactured components were built by RME under a production agreement and are now on their way to the Company's base at NASA's Kennedy Space Center, where they will be assembled into two modular underwing flight articles.

The hardware is part of Starfighters Space's phased plan to expand what its F-104 aircraft can do for customers: testing hypersonic technologies, designs and advanced materials; testing advanced sensors, avionics, communications equipment and electronic warfare systems; and providing extended-duration microgravity conditions for scientific payloads. Because the flight articles share a form factor with a proven military air-launch vehicle, they fit the Company's existing F-104 underwing pylon systems, while the modular internals let the same flight body be reconfigured mission to mission.

"Completing our first flight hardware represents an important step toward building the capabilities that support our long-term commercial strategy," said Tim Franta, CEO of Starfighters Space. "Our Wind Tunnel in the Sky is designed to enable testing of advanced technologies through sustained Mach 2+ flight, extending testing beyond the seconds-long runs typical of traditional wind tunnels. The flight data and operational experience generated through this program will also support our continued development of the STARLAUNCH air launch system."

Following assembly in Florida, the hardware will go through ground handling and processing workflows, aircraft integration tests and captive-carry flight evaluations before supporting customer missions. "Using a proven aerodynamic configuration allows us to focus on payload integration, flight testing and mission execution rather than developing an entirely new external flight body," said Piercarlo Ciacchi, Director of Flight Operations and Chief Pilot of Starfighters Space. "The modular design gives us the flexibility to support a wide range of customer requirements while maintaining predictable flight characteristics throughout our development program."

The work builds on a long relationship with RME and with Italy. RME's AVIO Division in Casalmaggiore produces precision components for high-performance aircraft, urban air mobility systems and motorsport vehicles, and previously developed a fuselage-mounted video and telemetry system for Starfighters' in-flight payloads. Several aircraft in the Starfighters fleet were previously operated by the Italian Air Force, where Ciacchi flew F-104s on active duty.

Starfighters Space, Inc. (NYSE American: FJET) operates its fleet of F-104 aircraft at Kennedy Space Center and the Midland International Air & Space Port in Texas, making it the only company in the world with the commercial capability to fly at sustained Mach 2+ speeds. The aircraft are configurable as a platform for air-launched payloads, pilot and astronaut training, and research, development, test and evaluation for hypersonic technologies, advanced materials, missile defense systems, microgravity science, spaceflight hardware validation and defense electronic systems. More information is available at starfightersspace.com.

CONTINUED... Read this and more news from the sector at: wsi.news

In other industry developments and happenings in the market this week include:

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS)

Kratos, whose hypersonic and rocket systems business supports flight-test programs including the Multi-Service Advanced Capability Hypersonics Test Bed ("MACH-TB"), reported second quarter 2026 revenue of $458.8 million, up 30.5%, with 19.1% organic growth. Backlog reached $2.084 billion, its bid and proposal pipeline stood at $15.0 billion, and the company raised full-year 2026 revenue guidance to between $1.750 billion and $1.810 billion.

"Kratos' second quarter results are reflective of the execution of the Kratos team and that our strategy, including making internally funded investments to be first-to-market with relevant hardware and software, that is engineered up front for affordable mass production, at scale, is aligned with the Department of War's priorities," said Eric DeMarco, President and CEO.

L3Harris Technologies, Inc. (NYSE: LHX)

L3Harris reported second quarter 2026 revenue of $5.9 billion, up 8%, and orders of $7.3 billion for a 1.2 book-to-bill, lifting backlog to a record $42 billion. Missile Solutions segment revenue rose 14%, driven by Propulsion Systems with higher production on key missile and munitions programs, and the company raised its full-year revenue guidance to between $23.2 billion and $23.7 billion.

"Our purpose-built portfolio and focus on execution drove outstanding second quarter results. Strong orders, record backlog and double-digit first half growth reinforce our multi-year track record of delivering on our financial commitments," said Christopher Kubasik, Chair and CEO.

Northrop Grumman Corporation (NYSE: NOC)

Northrop Grumman reported second quarter 2026 sales of $10.9 billion, up 5%, and a record backlog of $104.7 billion. Notable awards in the quarter included $0.8 billion for the Glide Phase Interceptor, a program designed to defend against hypersonic threats, and the company raised its full-year sales guidance to between $43.75 billion and $44.25 billion.

"We are raising our sales and EPS guidance for the year based on our confidence in our team and the demand for our technologies," said Kathy Warden, Chair, CEO and President.

Lockheed Martin Corporation (NYSE: LMT)

Lockheed Martin reported second quarter 2026 sales of $20.1 billion, up 11%, and diluted earnings per share of $7.94. Backlog reached a record $230 billion, supported by a $35 billion multi-year THAAD interceptor production contract with the Missile Defense Agency.

The company raised its full-year 2026 sales guidance to between $79.75 billion and $81.75 billion and now projects free cash flow of more than $7 billion, up from its prior range of $6.5 billion to $6.8 billion.

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References to Kratos Defense & Security Solutions, Inc., L3Harris Technologies, Inc., Northrop Grumman Corporation and Lockheed Martin Corporation are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of Starfighters Space, Inc., none of them is involved in this article, and their contracts, results, scale and share performance are not indicative of Starfighters Space, Inc.'s prospects. No partnership, affiliation, customer relationship, or endorsement is implied. Market-size figures cited are third-party projections for the market as a whole and do not represent revenue addressable by, or attributable to, any company named in this article.

Cautionary Note Regarding Development-Stage Programs. Wind Tunnel in the Sky™ and STARLAUNCH™ are programs in development. The flight hardware described in this article has been manufactured but has not yet been assembled, integrated with an aircraft or flown, and remains subject to ground processing, aircraft integration testing and captive-carry flight evaluations. Statements regarding planned capabilities, missions and customer deployments are the Company's own and are forward-looking. Readers should review the risk factors in the Company's most recent Form 10-K and other filings with the SEC at www.sec.gov.

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Ondas has stacked up hundreds of millions in fresh defense orders and snapped up three businesses in a single month, yet its shares keep sliding while a key rival moves the opposite direction. Something in that gap deserves a closer…

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Fresh defense orders and a string of acquisitions haven’t been enough to lift Ondas (NASDAQ:ONDS) shares. Ondas stock is at $6.86, down 5% in afternoon trading. Year to date, Ondas stock is down 29%.

Meanwhile, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is at $137.08, down 1%, a softer slide than Ondas. Notably, Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is at $42.12, up 0.4%, bucking the drop in its peers. That split in direction among drone-focused peers shows where the pressure is concentrated.

The Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI), which holds Ondas, AeroVironment and Kratos with Ondas among its larger positions, is at $23.74, down 3%. For a broad-market gauge, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) trades at $775.58, down 0.2%. With Kratos inching higher and the broad market down modestly, the heaviest selling sits with Ondas, pointing to company-specific concerns.

Order Wins Pile Up as Ondas Keeps Buying Capability Ondas has secured more than $270 million in total orders since June 30, a tally that counts awards announced through the start of October alongside those disclosed on its August earnings call. Those wins span counter-drone systems and long-endurance autonomous aircraft for Ondas, and they include an award tied to a European loitering munition program, and together the awards push Ondas beyond counter-drone defense alone and into aircraft and munitions work, widening the range of customers the company can serve.

In September, Ondas acquired three defense technology businesses with consideration payable in cash or stock and performance-based earn-outs. Eric Brock spoke on the company’s August earnings call. He was Ondas chairman and chief executive at the time, and he stated, “Our focus now is execution, converting backlog, delivering on major programs, integrating our capabilities across the platform, and realizing the operating leverage inherent in the model.”

Established Contractors Offer Steadier Timing Ondas builds unmanned aircraft and counter-drone systems, assembling much of that capability through acquisitions, so its cash and share count move with each transaction, and its order book has grown faster than the manufacturing base needed to fill it.

AeroVironment and Kratos operate as established defense contractors with large funded backlogs and convert them through government programs on customer-set schedules. Such predictability separates an order book investors can time from one they can’t, and Ondas falls on the muddier side.

Ondas bulls argue that an order book this size against a share price this low is the clearest signal the business has produced, with counter-drone demand early in a long adoption cycle. On that reading, the stock’s decline this year has left it out of step with the company’s order momentum.

Skeptics point out that an order only counts toward Ondas’s results once the company ships it. Scaling production is the step where small defense suppliers most often disappoint, and Ondas paying for acquisitions in its own shares spreads any eventual profit across more of them while investors wait. Until Ondas shows that its manufacturing can keep pace, the gap between orders and revenue stays the central risk.

What to Watch Next Whether Ondas ships against its new orders at a pace that shows up in revenue is worth watching, with delivery progress on the European loitering munition award one concrete test of that execution.

Future deal terms matter too, and shareholders could look for signs that Ondas favors cash when the company buys its next business, which would ease pressure on its share count. Traders comparing the group can use Kratos as a yardstick, since a widening gap between Kratos stock and Ondas stock would suggest that the pressure is confined to Ondas.

Contact [email protected] for any questions or corrections.

Using multiple vendors across Kratos’ OpenSpace’s fully virtualized platform proves that space can support terrestrial-level interoperability and scale  | Source: Kratos Defense & Security Solutions, Inc.

SAN DIEGO, Oct. 08, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company specializing in defense, national security, and global markets, today announced that it has successfully demonstrated end-to-end connectivity across a native, multi-vendor 5G NR NTN (New Radio Non-Terrestrial Network) using Kratos’ OpenSpace®, the industry’s first fully virtualized and software-defined satellite ground system platform. This demonstration showcased the benefits of virtualization in supporting the level of interoperability and scale necessary for satellite operators to provide seamless 5G services.

A virtualized ground system offers the most advantageous path forward for operators seeking flexibility and scalability. OpenSpace’s software-defined architecture allows satellite systems to behave more like terrestrial 5G infrastructure, enabling operators to dynamically scale services, reduce hardware dependencies and adopt multi‑vendor solutions that best support mission, performance and cost requirements. Multi-vendor support gives operators the ability to choose the best software for a service and the best cost-performance option for a given beam or region and more.

In this demonstration with Korea-based satellite operator KT SAT and other partners, Kratos proved connectivity across a native 5G NR Non-Terrestrial Network consisting of an OpenSpace RAN (Radio Access Network), Druid Software’s Raemis 5G Core and GCT Semiconductor Holding’s (NYSE: GCTS) GDM7275X-based 5G UE (User Equipment). This integrated system performed cell search and successfully registered with the Druid Raemis core to establish two-way communication and validate multi-vendor interoperability.

“KT SAT is committed to advancing 5G NTN solutions in the satellite industry,” said Sungho Choi, KT SAT CTO. “By bringing partners together and supporting this demonstration, we’re accelerating the ecosystem and proving that interoperable, multi‑vendor 5G systems are not just theoretical, they are happening now.”

“Our goal with OpenSpace has always been to give satellite operators the flexibility and interoperability that 5G promises,” said Jennifer Barber, Senior Director of Product Management 5G NTN Solutions at Kratos. “This collaboration is an important step toward open, multi‑vendor 5G NTN deployments. We’re pleased to work with KT SAT and our partners in driving 5G development forward in the industry.”

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, hypersonic 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 and follow Kratos on LinkedIn and X.

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 28, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Cantrell
[email protected]

Investor Information:
877-934-4687
[email protected]

AeroVironment's accounting restatement looks like an easy explanation for a brutal year, until you notice that peers with clean books fell just as hard. The real story behind the drone sector's collapse is more complicated than one company's error.

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A restatement at AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) is the easiest explanation for a hard year. However, two drone and defense peers that never restated anything have fallen right alongside the company. AeroVironment stock is at $138.45, down 43% so far this year.

Likewise, Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is at $41.81, down 45% year to date. Red Cat (NASDAQ:RCAT) shares are at $6.11, down 23% so far this year.

At the same time, the Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is at $24.50, up 0.9% this year, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $777.50, up 14% over the same stretch. That gap points to a devaluation across small and mid-cap defense names, one that occurred inside a market that kept climbing. AeroVironment shareholders still face the question of how much of the decline belongs to the company and how much belongs to the group.

A Goodwill Error and a Lawsuit Weigh on AeroVironment In late June, AeroVironment disclosed an $89 million goodwill calculation error tied to its space unit. The error forced the company to revise previously reported financial results and raised questions about AeroVironment’s financial controls during a stretch of acquisition-driven growth. A securities class action followed.

Meanwhile, Kratos stock fell further than AeroVironment stock over the same stretch with no restatement of its own, which cuts against reading this year as one company’s accounting story. Red Cat declined too, while the drone and modern warfare fund sits close to flat and major indexes are well higher. That pattern suggests the disclosure explains part of the damage to AVAV stock, with a devaluation across small and mid-cap defense names driving a larger share.

Weighing the Bull and Bear Cases for AeroVironment AeroVironment’s upside argument starts with the nature of the problem: the restatement traces to an accounting error, and customer demand looks intact. AeroVironment holds a $117 million U.S. Defense Department contract to supply unmanned aircraft systems, a sign that customers are still buying. With AeroVironment shares down more than two fifths this year, the price already reflects a great deal of bad news.

On the bearish side, restatements invite litigation, and lawsuits tend to attach a discount to AeroVironment stock that can survive the error itself. A company growing through acquisitions needs its controls trusted more than most, and AeroVironment’s pending class action keeps that question open. Kratos stock falling further without any of that trouble is the detail that undermines a single-company reading of AVAV stock’s slide.

What to Watch Next Whether the class action against AeroVironment settles is worth watching, since a settlement or dismissal could ease the discount tied to the restatement. Any rebound in Kratos and Red Cat shares would also be telling, because a group-wide recovery would point to sector sentiment as the larger force behind AeroVironment stock’s decline.

Signs that fresh contract awards keep arriving at the pace the valuation of AVAV stock now assumes will be worth watching. Both the upside and downside scenarios carry weight, and the outlook for AeroVironment stock could hinge on whether the company’s controls earn back trust. Position sizes should be calibrated carefully given the open litigation and a defense group that has trailed the broad market this year.

Contact [email protected] for any questions or corrections.

KTOS advances in space, cyber, communications and propulsion, but supply-chain risks and lower ROE temper its growth prospects.

SAN DIEGO, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, today announced multiple contract awards totaling over $100 million to develop prototype mission applications and cyber capabilities providing space intelligence data in support of joint operations across the space and cyberspace domains.

Work under the contracts will provide warfighters with capabilities to collect and process complex radio frequency (RF) signals, develop intelligence on the operational environment and support the joint targeting cycle – the process used to identify, prioritize and target assets. The prototype systems will support electronic warfare and offensive cyber operations, including capabilities for access and battle damage assessment.

The work leverages the KnownSpace® Network, Kratos’ global RF collection infrastructure consisting of more than 190 strategically placed sensors around the world, along with RF data and capabilities provided by KnownSpace Recon+™, Kratos’ field-portable space domain awareness (SDA) terminals. In addition, the contracts will leverage Kratos’ software products, analytics and expertise in RF, signal processing, cybersecurity and software development, establishing a proven technology base that can be adapted and integrated to meet emerging space and cyber mission requirements.

“Kratos brings decades of space experience together with proven commercial technology and agile engineering to solve some of today’s most complex mission challenges,” said Greg Caicedo, Senior Vice President at Kratos. “Our systems, software and hardware support missions across SDA, command & control, satellite operations and cybersecurity. By building on proven technology and rapidly adapting it to emerging mission needs, we can deliver new capabilities faster and keep pace as the space environment changes.”

The Kratos KnownSpace family of SDA products and services which support these awards provide deep insights for global, sovereign, and tactical operations. Built on more than 30 years of satellite monitoring and RF expertise, the KnownSpace family combines global RF sensing, software, managed operations and deployable systems to detect, characterize and understand satellite and terrestrial activity. Solutions include enterprise software applications, portable form factors that can be deployed anywhere and persistent global RF signal monitoring and geolocation through its KnownSpace Network of over 20 locations and 190 sensors worldwide—the largest commercially owned, commercially operated (COCO) RF sensor network.

Due to security related, competitive 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, hypersonic 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 and follow Kratos on LinkedIn and X.

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, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Cantrell
[email protected]

Kratos Investor Information:
877-934-4687
[email protected]

Key Takeaways Kratos' Prometheus venture plans SRM production in 2027 at a roughly 500-acre Indiana campus.Kratos and RAFAEL committed up to $175 million for facilities, property, equipment and personnel.Kratos expects its Prometheus investment to ramp up in 2026 as manufacturing infrastructure is developed. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is expanding its solid rocket motor capabilities through Prometheus Energetics, a joint venture focused on producing solid rocket motors (SRMs) and other energetics. The venture is being established on an approximately 500-acre site near the U.S. Navy and Army facility in Crane, IN.

Prometheus is designed to develop a state-of-the-art energetics manufacturing campus and related facilities. Kratos Defense and RAFAEL have committed up to $175 million in capital for the venture, covering the manufacturing facilities, property, equipment and personnel needed for the planned operations.

The project is expected to add production capacity for SRMs as the facility moves toward operations. Following construction and completion of RAFAEL’s technology transfer and certification, Prometheus is expected to begin SRM production in 2027. Kratos also expects its investment in the venture to ramp up during 2026, supporting the development of the planned manufacturing infrastructure.

The new capacity could strengthen Kratos’ position in propulsion and rocket systems by adding another manufacturing base for solid rocket motors. The company already highlights Zeus solid rocket motors among its technology offerings, while its broader investment program includes facilities and equipment aimed at supporting future program requirements. As Prometheus progresses toward production, the new campus could expand Kratos’ ability to support solid rocket motor demand and future defense programs.

Companies Expanding Solid Rocket Motor CapabilitiesThe growing focus on solid rocket motor capacity is encouraging defense companies to expand propulsion manufacturing capabilities. Northrop Grumman Corporation (NOC - Free Report) and Lockheed Martin Corporation (LMT - Free Report) are also involved in solid rocket motor development and production.

Northrop Grumman is expanding solid rocket motor manufacturing capacity across its U.S. facilities, supporting defense and space propulsion programs.

Lockheed Martin is advancing solid rocket motor production through new manufacturing capacity and development efforts focused on strengthening the domestic propulsion supply chain.

Earnings Estimates for KTOS StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 50.91% and 37.06%, respectively.

Image Source: Zacks Investment Research

KTOS Stock Is Trading at a DiscountKratos is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 3.87X compared with the industry average of 7.12X.

Image Source: Zacks Investment Research

KTOS Stock Price PerformanceOver the past three months, Kratos shares have fallen 18.9% compared with the industry’s 20.5% decline.

Image Source: Zacks Investment Research

KTOS’ Zacks RankKratos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Kratos Defense's Unmanned Systems revenues reached $79.1 million in Q2 2026, with $374.6 million backlog.KTOS targets roughly 10% organic growth in 2026 and plans to expand Valkyrie output by early 2028.DPRO secured an FAA exemption for heavier-payload missions, expanding potential commercial and defense uses. Both Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Draganfly (DPRO - Free Report) have exposure to the rapidly expanding defense drone, unmanned systems and counter-unmanned aircraft systems (C-UAS) markets. Rising defense spending, growing demand for autonomous systems, and the increasing importance of low-cost unmanned platforms are creating opportunities for companies developing next-generation military technologies.

The similarities between KTOS and DPRO therefore come primarily from their exposure to the same broad structural trend: the increasing use of unmanned and autonomous systems in modern warfare. The difference is the stage at which each company is participating in that opportunity. Kratos Defense is a much larger, more diversified defense technology company with established programs and significant revenue. Draganfly represents a smaller, more speculative play on the potential expansion of low-cost tactical drones.

Let's compare the stocks' fundamentals to determine which is the better investment option right now.

Factors Acting in Favor of KTOS StockKratos Defense’s Unmanned Systems business is expanding as demand grows for tactical drones and autonomous defense systems. In second-quarter 2026, revenues increased to $79.1 million, driven primarily by XQ-58A Valkyrie activity, while the segment turned profitable with $1.2 million in operating income and ended the quarter with $374.6 million in backlog. KTOS is also developing programs such as Athena and Air Wolf and plans to expand Valkyrie production to 35-40 aircraft annually by early 2028. With management targeting roughly 10% organic growth in 2026, increased production capacity and international opportunities could make Unmanned Systems a larger contributor to KTOS’ overall growth.

Beyond unmanned systems, Kratos is expanding in hypersonics, rocket systems, propulsion and microwave electronics. The company continues to cite orders for hypersonic vehicles and ongoing development work within its Ghost Works organization. In second-quarter 2026, Kratos highlighted organic growth in parts of Kratos Government Solutions such as Defense Rocket Systems, Turbine Technologies and Microwave Products, which grew 50.2%, 43.3% and 29.5%, respectively.

Factors Acting in Favor of DPRO StockDraganfly is focused more directly on commercial and defense drone platforms and autonomous systems. The company has increased its focus on defense applications as military customers seek lower-cost, rapidly deployable unmanned systems. Its recent Canadian Armed Forces opportunities are particularly significant because they could provide a pathway toward larger-scale production and demonstrate demand for its tactical ISR drone capabilities.

Recently, Draganfly secured an FAA Section 44807 exemption for its Heavy Lift drone platform. The exemption allows the Heavy Lift drone to operate in the United States at takeoff weights above the standard 55-pound Part 107 limit, opening the door to commercial missions that require substantially heavier payloads. For Draganfly, this could expand the addressable market beyond smaller drones into defense logistics, emergency response, medical supply delivery, infrastructure inspection, and industrial applications, where customers may need to carry heavier equipment, sensors, or supplies.

How Do Zacks Estimates Compare for KTOS & DPRO?The Zacks Consensus Estimate for Kratos Defense’s 2026 and 2027 earnings per share (EPS) indicates an increase of 50.91% and 37.06%, respectively, year over year.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Draganfly’s EPS indicates year-over-year growth of 17% in 2026 and 7.23% in 2027.

Image Source: Zacks Investment Research

Valuation for KTOS & DPROKTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 4.23X compared with DPRO’s 1.37X.

Image Source: Zacks Investment Research

Debt Position of KTOS & DPROCurrently, both Kratos Defense and Draganfly have a total debt-to-capital ratio of zero.

The time-to-interest earned ratio for Kratos Defense at the end of second-quarter 2026 was negative, while that for Draganfly was 31.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

KTOS & DPRO’s Price PerformanceIn the past year, shares of Kratos Defense and Draganfly have lost 45.6% and 16.7%, respectively.

Image Source: Zacks Investment Research

KTOS or DPRO: Which Is the More Compelling Stock Now?Kratos Defense is expanding across unmanned systems, hypersonics, rocket systems, propulsion and advanced defense technologies, supported by growing demand and increasing production opportunities. Draganfly is expanding its defense and commercial drone opportunities through military contracts and regulatory approval for heavier-payload operations across multiple applications.

Our current choice is Kratos Defense, given its strong near-term earnings growth and better debt management than Draganfly. KTOS carries a Zacks Rank #3 (Hold) and DPRO has a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) SVP Marie Mendoza sold 1,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $48.50, for a total value of $48,500.00. Following the sale, the senior vice president directly owned 61,200 shares of the company’s stock, valued at approximately $2,968,200. This represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Marie Mendoza also recently made the following trade(s):

On Monday, August 17th, Marie Mendoza sold 1,513 shares of Kratos Defense & Security Solutions stock. The stock was sold at an average price of $64.37, for a total value of $97,391.81. Kratos Defense & Security Solutions Price Performance KTOS stock opened at $47.46 on Friday. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a one year low of $43.09 and a one year high of $134.00. The firm has a market capitalization of $8.91 billion, a PE ratio of 279.18 and a beta of 1.11. The firm has a 50-day moving average of $51.75 and a two-hundred day moving average of $60.66.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The business had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. During the same period last year, the firm posted $0.11 earnings per share. The firm’s quarterly revenue was up 30.5% compared to the same quarter last year. On average, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year. Wall Street Analysts Forecast Growth A number of analysts have recently issued reports on the company. Wedbush initiated coverage on Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They issued an “outperform” rating and a $85.00 target price for the company. Guggenheim initiated coverage on Kratos Defense & Security Solutions in a research report on Monday, September 14th. They set a “buy” rating and a $74.00 price target on the stock. Piper Sandler raised Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a research note on Wednesday, August 5th. Canaccord Genuity Group raised their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, BTIG Research lifted their target price on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $98.06.

Check Out Our Latest Report on KTOS

Hedge Funds Weigh In On Kratos Defense & Security Solutions Institutional investors and hedge funds have recently modified their holdings of the stock. New Age Alpha Advisors LLC grew its stake in Kratos Defense & Security Solutions by 435.1% in the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company’s stock valued at $3,265,000 after purchasing an additional 34,973 shares in the last quarter. BNP Paribas Financial Markets raised its stake in shares of Kratos Defense & Security Solutions by 245.2% during the 4th quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company’s stock worth $45,673,000 after purchasing an additional 427,396 shares in the last quarter. Paradigm Capital Management Inc. NY purchased a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter worth about $34,842,000. Bamco Inc. NY acquired a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter valued at about $53,746,000. Finally, Principal Financial Group Inc. lifted its holdings in shares of Kratos Defense & Security Solutions by 48.0% during the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock valued at $74,520,000 after buying an additional 342,789 shares during the last quarter. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Kratos Defense & Security Solutions Here are the key news stories impacting Kratos Defense & Security Solutions this week:

Positive Sentiment: Guggenheim upgraded KTOS to “strong buy,” adding a favorable analyst signal and reinforcing optimism about Kratos’ exposure to missile defense, hypersonics, unmanned systems and other defense technologies. Guggenheim upgrade report Positive Sentiment: Kratos completed another ARAV-B ballistic missile target mission during Pacific Dragon 2026, bringing the system’s total completed target flights to 43. The milestone may improve the company’s credibility with government customers and support future missile-defense demand. Kratos missile test article Positive Sentiment: Manufacturing expansion in propulsion, hypersonics and unmanned systems is designed to increase Kratos’ capacity to produce affordable defense technologies. This could position KTOS to benefit from rising demand for lower-cost weapons and autonomous systems, although no specific new contract was announced. Kratos manufacturing expansion article Neutral Sentiment: Kratos’ latest quarter showed 30.5% year-over-year revenue growth, $458.8 million in revenue and EPS of $0.21, beating the $0.14 consensus estimate. However, a price-to-earnings ratio near 280 leaves limited room for execution disappointments. Negative Sentiment: Insiders disclosed sales totaling 7,500 shares: Phillip D. Carrai sold 6,500 shares for approximately $310,895, while SVP Marie Mendoza sold 1,000 shares for $48,500. Both trades were made under pre-arranged Rule 10b5-1 plans, which reduces their significance, but the transactions may still weigh on investor sentiment. KTOS insider selling report Negative Sentiment: The shares have recently decreased and remain below their 50-day and 200-day moving averages, suggesting continued technical pressure despite the company’s favorable defense-industry catalysts. Kratos Defense & Security Solutions Company Profile (Get Free Report)

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.

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Concurrent Investment Advisors LLC raised its stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Free Report) by 232.2% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,404 shares of the aerospace company’s stock after purchasing an additional 14,261 shares during the period. Concurrent Investment Advisors LLC’s holdings in Kratos Defense & Security Solutions were worth $1,017,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new position in shares of Kratos Defense & Security Solutions during the 4th quarter worth approximately $25,000. Atlantic Union Bankshares Corp raised its holdings in shares of Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after acquiring an additional 380 shares during the last quarter. Murphy & Mullick Capital Management Corp raised its position in shares of Kratos Defense & Security Solutions by 115.4% in the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock valued at $32,000 after buying an additional 225 shares during the last quarter. Vision Retirement LLC lifted its position in Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after buying an additional 317 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new position in shares of Kratos Defense & Security Solutions during the 4th quarter worth about $37,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

Insiders Place Their Bets In other news, insider Phillip Carrai sold 26,500 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $63.25, for a total value of $1,676,125.00. Following the transaction, the insider directly owned 182,084 shares of the company’s stock, valued at approximately $11,516,813. This represents a 12.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,513 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $64.37, for a total value of $97,391.81. Following the sale, the senior vice president owned 61,976 shares of the company’s stock, valued at approximately $3,989,395.12. This represents a 2.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 389,688 shares of company stock valued at $24,397,492 over the last quarter. 1.50% of the stock is owned by insiders.

Kratos Defense & Security Solutions Trading Down 0.6% Shares of KTOS stock opened at $46.69 on Friday. Kratos Defense & Security Solutions, Inc. has a 1 year low of $43.09 and a 1 year high of $134.00. The firm has a market capitalization of $8.76 billion, a PE ratio of 274.65 and a beta of 1.11. The stock has a fifty day moving average of $52.02 and a two-hundred day moving average of $62.16. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The firm had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. During the same period last year, the company posted $0.11 EPS. The firm’s quarterly revenue was up 30.5% on a year-over-year basis. As a group, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on KTOS shares. Stifel Nicolaus lowered their target price on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and cut their target price for the company from $99.00 to $82.00 in a research note on Friday, June 12th. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, July 28th. Truist Financial cut their price objective on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Finally, Jefferies Financial Group set a $105.00 target price on Kratos Defense & Security Solutions in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of “Moderate Buy” and an average target price of $99.47.

Get Our Latest Stock Report on Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Company Profile (Free Report)

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.

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Photo: U.S. Navy https://www.navy.mil/Press-Office/News-Stories/display-news/Article/4575192/us-allies-partners-executed-pacific-dragon-2026-exercise/

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fbcb4b4c-7855-4d5e-a594-3a8e193cab9b

SAN DIEGO, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, today announced the successful mission of its Aegis Readiness Assessment Vehicle Type B (ARAV-B) ballistic missile target from the Pacific Missile Range Facility in Hawaii. The vehicle was fired on August 6 during Pacific Dragon 2026, a premier multinational ballistic missile defense (BMD) exercise led by the U.S. 3rd Fleet.

Photo: U.S. Navy https://www.dvidshub.net/image/9880612/arav-b-launch-during-pacific-dragon-2026

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e2c17ce8-d415-4f9b-95a6-a9f92ed3f8b7

The biennial exercise, which took place in the waters around the Hawaiian Islands from August 6-15, was designed to improve the ability of allied and partner forces to track and intercept ballistic missiles together. The multi-mission event combined coordinated missile defense operations with tactical data-link information sharing across forces from the United States, Australia, Chile, Italy, Japan, the Republic of Korea, and Spain, in conjunction with the U.S. Missile Defense Agency.

Kratos’ ARAV-B is part of the broader ARAV family of configurable short- and medium-range ballistic missile targets that can accurately emulate diverse and evolving threats. The ARAV Type B is a two-stage, spin-stabilized target featuring Kratos’ commercial Oriole rocket motor as the upper stage. The ARAV-B has now flown 43 successful target missions supporting the Naval Surface Warfare Center, Port Hueneme Division, White Sands Detachment and the Missile Defense Agency. Kratos’ commercially developed Oriole rocket motor, along with the larger Zeus family of rockets and the Erinyes hypersonic testbed vehicle demonstrate Kratos’ continuing commitment to investing in technologies and capabilities to serve the warfighter today.

Dave Carter, President of the Kratos Defense & Rocket Support Services (DRSS) Division, said, "Kratos is proud to support the U.S. 3rd Fleet and our allied partners in this critical demonstration of integrated air and missile defense capabilities. The successful launch of our ARAV-B target during Pacific Dragon 2026 highlights our team's ability to rapidly develop and field affordable, threat-representative systems. By providing highly reliable target solutions, we ensure that advanced combat systems, such as the Baseline 10 and AN/SPY-6 radar on the USS Jack H. Lucas, are tested against the most realistic and demanding scenarios possible."

The Kratos Ballistic Missile Defense target family includes multiple configurations beyond the Type B, such as the two-stage Type C vehicle and the three-stage Type TTO (Terrier-Terrier-Oriole). With their built-in modularity, these flight-proven Kratos systems can be rapidly reconfigured to support a range of missions including low-apogee, long duration hypersonic testing at speeds exceeding Mach 10.

Eric DeMarco, President and CEO of Kratos, said, "At Kratos, we are focused on delivering real, mission-relevant products and systems to our customers, not PowerPoints or concepts. We fundamentally believe that affordability is a technology, and we utilize our internal investments to bring national security relevant hardware to the field faster. By integrating existing assets and proven technologies, Kratos is first to market with cost-effective solutions that save our government customers and the U.S. taxpayer significant time and money. Our successful participation in Pacific Dragon 2026 is another testament to Kratos’ ability to execute on our strategy and deliver mission-critical solutions for global security."

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, hypersonic 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 and follow Kratos on LinkedIn and X.

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, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact: 
Claire Cantrell
[email protected]

Investor Relations: 
877-934-4687
[email protected]

It has been about a month since the last earnings report for Kratos (KTOS - Free Report) . Shares have lost about 13.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kratos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Kratos Defense Q2 Earnings and Revenues Outpace Estimates

Kratos Defense & Security Solutions, Inc. reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents.

Kratos Defense reported GAAP earnings of 2 cents per share, which came in line with the year-ago quarter.

KTOS’ Revenue Growth AcceleratesRevenues of $458.8 million beat the consensus estimate of $412 million by 11.4% and increased 30.5% year over year. Kratos Government Solutions led the growth, while total organic revenues advanced 19.1%.

Product sales climbed 33.5% year over year to $289.1 million. Service revenues increased 25.8% to $169.7 million.

Operational Update of Kratos DefenseSelling, general and administrative expenses jumped 35.5% to $73.3 million. Research and development expenses rose 33.3% to $13.6 million.

Amortization of intangible assets increased to $10.1 million from $2.8 million, while depreciation rose to $3.9 million from $3 million.

Kratos recorded an operating loss of $1.6 million against the operating income of $3.7 million a year earlier.

KTOS’ Segmental PerformanceUnmanned Systems: Revenues from this segment totaled $79.1 million compared with $73.2 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.

Kratos Government Solutions: Revenues from this segment amounted to $379.7 million compared with $278.3 million in the year-ago quarter. This rise was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2%, 43.3%, 29.5% and 8.7%, respectively, year over year.

Financial Details of KTOSAs of June 28, 2026, cash and cash equivalents totaled $1.44 billion, up from $0.56 billion as of Dec. 28, 2025.

The company reported other current liabilities of $19.9 million as of June 28, 2026 compared with $9 million recorded as of Dec. 28, 2025.

The net cash used in operating activities amounted to $38.4 million during the first six months of 2026 compared with $40.9 million in the same period of 2025.

KTOS’ Backlog Supports Demand VisibilityConsolidated bookings totaled $492.2 million in the second quarter, resulting in a book-to-bill ratio of 1.1. The last-12-month book-to-bill ratio was 1.3, with bookings of $1.99 billion.

Backlog increased to $2.08 billion as of June 28, 2026 from $2.05 billion at the end of the first quarter. Funded backlog was $1.57 billion, while unfunded backlog totaled $512.7 million. The bid and proposal pipeline expanded to $15 billion from $14.3 billion.

Kratos Defense’s GuidanceKTOS projects third-quarter 2026 revenues to be in the range of $460-$480 million. The Zacks Consensus Estimate for revenues is pegged at $460.3 million, which is at the lower end of the company’s guided range.

Kratos raised its full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion. The Zacks Consensus Estimate for revenues is pegged at $1.75 billion, which is at the lower end of the company’s guided range.

Kratos Defense now expects operating cash flows to be in the range of $30-$50 million and free cash flow to be in the band of $85-$105 million for 2026.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 21.43% due to these changes.

VGM ScoresCurrently, Kratos has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kratos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Kratos Defense secured major awards across satellite communications and mission-critical defense hardware.KTOS' 2026 and 2027 EPS estimates rise 50.91% and 37.06%, respectively, year over year.Supply-chain disruptions and a 4.54% ROE remain key headwinds despite KTOS' discounted valuation. Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) shares have lost 37% year to date compared with the Zacks Aerospace-Defense Equipment industry’s decline of 4.5%. Kratos Defense is the primary unmanned aerial target drone system provider for the U.S. Air Force, Navy, Army and several allied defense agencies. The company is also expanding in hypersonics, rocket systems, propulsion and microwave electronics.
 

Image Source: Zacks Investment Research

Other defense equipment stocks like Teledyne Technologies (TDY - Free Report) and AeroVironment (AVAV - Free Report) have delivered mixed performance in the said time frame. Shares of Teledyne Technologies have risen 18.7% while those of AeroVironment have lost 39.9%. Teledyne Technologies is benefiting from strong demand in the space market, particularly for infrared detectors, imaging sensors and specialty semiconductors. AeroVironment is benefiting from the growing adoption of unmanned systems by securing major global defense contracts and expanding its portfolio of tactical drones, smart munitions and control software.

Given Kratos Defense’s underperformance, investors may be wondering what lies ahead for the stock. Let’s examine the key factors and assess its investment prospects to help make an informed decision.

Tailwinds for KTOS StockKratos Defense serves the defense industry with products spanning target drones, rocket systems and SRMs, hypersonic vehicles, jet engines for drones and missiles, and virtualized ground systems for satellites. Management noted that defense funding priorities continue to include areas tied to Kratos programs. In second-quarter 2026, consolidated bookings totaled $492.2 million, implying a 1.1 book-to-bill, while the last 12-month book-to-bill was 1.3.

On Sept. 1, 2026, Kratos Defense secured a $20 million-plus contract from an Asian defense customer to provide mobile satellite communications gateways, highlighting growing demand for resilient communications infrastructure in contested environments. For Kratos Defense, the award provides both near-term revenues and a strategic opportunity to expand its Space and communications business in the Asia-Pacific region.

In August 2026, Kratos Defense received an approximately $35 million award for a national security-related military-grade hardware production program, with the hardware and related systems expected to directly support warfighters in the field. The award reinforces its role as a supplier of mission-critical defense hardware across areas such as hypersonics, counter-drone systems, air defense, missiles, radars and directed-energy systems. The contract provides incremental revenues while validating the company’s ability to move advanced defense technologies into large-scale production.

Kratos Defense is expanding production of its Spartan TDI-J85 turbojet engines to support Boeing’s Joint Direct Attack Munition Long Range (JDAM LR) program, following the U.S. Air Force’s recent $75 million production award to Boeing. The JDAM LR is a long-range precision weapon designed to carry a 500-pound-class payload more than 300 nautical miles, with KTOS’ J85 engine providing the propulsion needed to significantly extend the weapon’s range. This moves the Spartan engine from development into higher-volume production and gives the company exposure to a potentially scalable weapons program.

Headwinds for KTOSKratos Defense continues to cite supply-chain disruptions and parts availability as industry issues that can delay material receipts and deliveries. Management’s 2026 outlook explicitly assumes potential manufacturing and supply-chain disruptions, parts shortages and continued cost increases. Inventoried costs increased to $235.9 million as of June 28, 2026, from $188.2 million as of 2025-end, consistent with larger lot purchases and long-lead items. Persistently higher input costs or further supply friction could pressure margins and keep cash conversion below investor expectations.

Estimates for KTOS StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 50.91% and 37.06%, respectively, year over year. 
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Teledyne Technologies’ 2026 and 2027 EPS implies an increase of 12.32% and 8.9%, respectively, year over year. The consensus estimate for AeroVironment’s fiscal 2027 EPS indicates a decrease of 1.8% year over year.  

KTOS’ Earnings Surprise HistoryThe company beat on earnings in each of the trailing four quarters, delivering an average surprise of 32.47%.

Image Source: Zacks Investment Research

KTOS’ Return on Equity Lower Than IndustryThe company’s trailing 12-month return on equity of 4.54% is lower than the industry average of 15.35%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

Image Source: Zacks Investment Research

KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price/sales (P/S) is 4.35X, a discount to the industry’s average of 7.50X.

Image Source: Zacks Investment Research

What Should an Investor Do Now?Kratos Defense is benefiting from sustained defense spending across unmanned systems, hypersonics, propulsion, space communications, and mission-critical defense hardware, with recent awards strengthening its position in these high-growth markets.

Given its current price performance and lower ROE, new investors should wait and look for a better entry point. Investors who already own this stock may continue holding it, given its strong earnings growth. KTOS has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SAN DIEGO, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security and global markets, announced today that it has been awarded a contract valued at more than $20 million to deliver mobile satellite communication (SATCOM) gateways for a defense customer in Asia.

Around the world, fixed communications infrastructure is becoming increasingly vulnerable to emerging threats. Recent conflicts and contested environments have shown that stationary SATCOM facilities can be easily targeted or disrupted, and modern operations often face denied spectrum and damaged public networks. These conditions highlight a critical need for defense organizations to deploy mobile SATCOM gateways that can maintain secure, reliable connectivity when traditional systems fail. With this capability, warfighters gain access to real‑time situational awareness and mission‑critical data where and when it matters most.

As part of the system, Kratos will deliver its rapid‑deployable, truck‑mounted Trifold® transportable antennas that can be deployed without any special tools and ready to discretely transport at a moment’s notice. These Trifold® antennas are integrated into the mobile SATCOM hub that provides high‑throughput, dependable communications in dynamic field environments.

The turnkey system also incorporates a shelter containing baseband platforms and advanced monitoring software, including Kratos’ Compass® product for complete monitor‑and‑control (M&C) of mission‑critical networks, and Kratos’ Monics® product for spectrum monitoring and interference detection, forming a cohesive and resilient mobile gateway tailored for defense operations.

This award strengthens Kratos’ position as a leader in transportable antennas and ground system technologies. The program also expands Kratos’ presence in the Asia-Pacific region and reinforces the company’s role as a trusted provider of advanced, resilient communications systems for defense applications worldwide.

“This capability is ultimately about giving operators on the ground what they need most: dependable communications they can count on in the middle of fast-moving missions,” said John Chay, Vice President of Business Development in Asia, at Kratos. “When fixed infrastructure is compromised, this mobile gateway lets warfighters stay connected, aware, and supported wherever the mission takes them.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing 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 and telemetry, tracking and control, jet powered unmanned aerial drone systems, hypersonic 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 unmanned aircraft systems, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com and follow Kratos on LinkedIn and X.

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 because 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 28, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the Security and Exchange Commission by Kratos.

Press Contact: 
Claire Cantrell
[email protected]

Investor Relations: 
877-934-4687
[email protected]

Bamco Inc. NY purchased a new stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 1,077,941 shares of the aerospace company’s stock, valued at approximately $53,746,000. Bamco Inc. NY owned about 0.57% of Kratos Defense & Security Solutions as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of KTOS. Mcguire Capital Advisors Inc. bought a new position in shares of Kratos Defense & Security Solutions during the fourth quarter worth approximately $25,000. Atlantic Union Bankshares Corp boosted its holdings in shares of Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock valued at $29,000 after purchasing an additional 380 shares in the last quarter. Murphy & Mullick Capital Management Corp grew its position in Kratos Defense & Security Solutions by 115.4% in the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock valued at $32,000 after acquiring an additional 225 shares during the last quarter. Vision Retirement LLC grew its holdings in shares of Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 317 shares during the last quarter. Finally, Kemnay Advisory Services Inc. bought a new position in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $37,000. 75.92% of the stock is owned by institutional investors.

Kratos Defense & Security Solutions Stock Performance KTOS stock opened at $52.93 on Thursday. The firm has a market cap of $9.94 billion, a PE ratio of 311.35 and a beta of 1.08. The stock has a 50-day moving average price of $52.54 and a 200-day moving average price of $65.73. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 1-year low of $43.09 and a 1-year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The firm had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. During the same period in the prior year, the business earned $0.11 EPS. The company’s revenue for the quarter was up 30.5% compared to the same quarter last year. As a group, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year. Wall Street Analysts Forecast Growth A number of brokerages have issued reports on KTOS. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. UBS Group reissued a “neutral” rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Canaccord Genuity Group boosted their price target on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Piper Sandler raised Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a research note on Wednesday, August 5th. Finally, Truist Financial dropped their price objective on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $99.47.

Get Our Latest Stock Analysis on KTOS

Insiders Place Their Bets In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 26,500 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $63.25, for a total value of $1,676,125.00. Following the transaction, the insider owned 182,084 shares in the company, valued at approximately $11,516,813. This represents a 12.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 10,000 shares of Kratos Defense & Security Solutions stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total transaction of $635,000.00. Following the completion of the sale, the director directly owned 65,123 shares of the company’s stock, valued at approximately $4,135,310.50. The trade was a 13.31% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 433,688 shares of company stock valued at $26,990,882. 1.50% of the stock is currently owned by corporate insiders.

(Free Report)

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.

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Key Takeaways Kratos Defense grew Unmanned Systems revenues to $79.1 million in Q2 2026, driven by Valkyrie activity.Elbit Systems' C4I, ISTAR and Land Systems revenues rose 11%, 22% and 32%, respectively, in Q2 2026.KTOS is expanding across hypersonics, rocket systems, propulsion and advanced microwave technologies. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Elbit Systems (ESLT - Free Report) share a strong strategic commonality as technology-focused defense companies positioned around the modernization of military capabilities. Unlike traditional defense contractors that primarily build large, complex platforms such as fighter aircraft, tanks and naval vessels, KTOS and ESLT have a significant presence in high-technology, mission-critical systems. Their expertise extends across unmanned systems, electronic warfare, intelligence and surveillance, communications, precision strike and advanced defense electronics.

This positioning is increasingly relevant as militaries shift toward more distributed, autonomous and software-enabled warfare. Governments are looking for systems that can improve situational awareness, accelerate decision-making, enhance targeting precision and operate effectively in increasingly contested environments. At the same time, defense budgets are facing pressure to deliver greater capability at lower cost, creating demand for systems that are scalable, rapidly deployable and easier to upgrade than traditional large platforms.

Let's compare the stocks' fundamentals to determine which one is a better investment option at present.

Factors Acting in Favor of KTOS StockKratos Defense is the primary unmanned aerial target drone system provider for the U.S. Air Force, Navy, Army and several allied defense agencies. This position has led to multiple recent contracts and partnerships that are expanding its presence in the global UAS market, including activity tied to the XQ-58A Valkyrie. In second-quarter 2026, Unmanned Systems revenues increased to $79.1 million from $73.2 million a year earlier, driven primarily by Valkyrie-related activity. Bookings in the segment were worth $78.4 million in the quarter, implying a 1.0 book-to-bill. Backlog totaled $374.6 million as of June 28, 2026.

Beyond unmanned systems, KTOS is expanding in hypersonics, rocket systems, propulsion and microwave electronics. The company continues to highlight orders for hypersonic vehicles and ongoing development efforts within its Ghost Works organization. KTOS witnessed strong organic growth across several Kratos Government Solutions businesses in second-quarter 2026, with Defense Rocket Systems, Turbine Technologies and Microwave Products growing 50.2%, 43.3% and 29.5%, respectively.

Factors Acting in Favor of ESLT StockElbit Systems has a broader portfolio spanning unmanned systems, electronic warfare, electro-optics, command-and-control, communications and precision-guided systems. In the second quarter of 2026, revenues from C4I & Cyber, ISTAR & Electronic Warfare, Land Systems and Elbit Systems of America grew 11%, 22%, 32% and 17%, respectively. Aerospace was the only major area to decline, falling 8% mainly due to an unfavorable project mix. A key positive is the company’s record $32 billion backlog, which provides strong long-term revenue visibility. International customers account for about 73% of the backlog, while 42% is expected to be executed through the remainder of 2026 and 2027.

The quarter underscores ESLT’s continued benefits from rising global defense spending and growing demand for advanced defense technologies. The combination of double-digit sales growth, expanding margins, record backlog, stronger cash flow and growing international demand provides a strong foundation for continued growth.

How Do Zacks Estimates Compare for KTOS & ESLT?The Zacks Consensus Estimate for Kratos Defense’s 2026 and 2027 earnings per share (EPS) indicates an increase of 50.91% and 37.06%, respectively, year over year.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Elbit Systems’ 2026 and 2027 EPS implies an improvement of 26.51% and 17.05%, respectively, year over year.

Image Source: Zacks Investment Research

ESLT’s Valuation More Attractive Than KTOSKTOS’ shares trade at a forward 12-month Price/Sales (P/S F12M) of 4.84X compared with ESLT’s 3.24X, making ESLT relatively more attractive from a valuation standpoint.

Image Source: Zacks Investment Research

Debt Position of KTOS & ESLTCurrently, KTOS’s total debt-to-capital ratio is zero, whereas ESLT’s is 5.72%.

The time-to-interest earned ratio for Kratos Defense at the end of second quarter of 2026 was negative, while that for Elbit Systems was 6.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

KTOS & ESLT’s Price PerformanceIn the past year, shares of Elbit Systems have risen 48.9%, while those of Kratos Defense have lost 22.7%.

Image Source: Zacks Investment Research

KTOS or ESLT: Which Is a Better Choice Now?Kratos Defense is strengthening its position in next-generation defense through leadership in unmanned aerial systems while expanding across hypersonics, rocket systems, propulsion, and advanced microwave technologies. Elbit Systems benefits from broad exposure to advanced defense technologies, with strong demand across electronic warfare, unmanned systems, land systems, communications, and precision-guided solutions, supported by a large international backlog and rising global defense spending.

Our choice at the moment is Elbit Systems, given its better price performance and more attractive valuation than Kratos Defense. ESLT carries a Zacks Rank #2 (Buy), while KTOS holds a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kratos Recently Ordered Long-lead Components for Spartan Engines  | Source: Kratos Defense & Security Solutions, Inc.

SAN DIEGO, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, today announced an allocation of its expanded Spartan engine production capacity to support Boeing’s Joint Direct Attack Munition Long Range production program with TDI-J85 (J85) engines.

This month, the U.S. Air Force awarded Boeing a $75 million Undefinitized Contract Action (UCA) to acquire the BSU-111/B Payload Delivery Unit (PDU) Joint Direct Attack Munition Long Range (JDAM LR), a precision-guided munition that can travel over 300 nautical miles with a 500-pound class (226-kilogram) payload. The Kratos J85 engine has been selected as the engine source to power the munition, enhancing the affordable precision-strike capability with our high-volume, low-cost, military-grade propulsion systems for the U.S. military and allied partners.

“National security priorities demand affordable mass and resilient, domestic supply chains,” said Steve Fendley, President of Kratos Unmanned Systems. “Kratos’ internally funded and proactive supply-chain investments ensure we are not just preparing for future demand, and we are actively manufacturing the high-volume propulsion systems our customers require today.”

The J85 engines are produced in Kratos’ advanced 22,500-square-foot Propulsion Manufacturing Facility in Auburn Hills, Michigan, which is fully operational and optimized to sustain full-rate production.

To bolster and stabilize the defense industrial base supply chain, Kratos has initiated procurement of long-lead components for Spartan engines to support a large production run for a number of customers and applications in 2027, Boeing JDAM LR being key as the engine was originally designed to support this application. The large run enables economies of scale for cost and to address the published need by the Department of War to expand the U.S. industrial base and especially key technologies such as jet engines. Kratos is also executing a three-phase manufacturing infrastructure plan designed to expand production capacity, enabling rapid responsiveness to emerging customer requirements.

“The operational readiness of our Auburn Hills facility marks a pivotal transition from engineering development to high-rate tactical manufacturing,” said Joseph Kovasity, Senior Vice President of Kratos TDI. “Integrating the Spartan turbojet family into Boeing’s JDAM LR program provides a reliable, scalable, domestically sourced propulsion solution that meets urgent national defense needs.”

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 global 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, 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' primary business areas include virtualized ground systems for satellites and space vehicles; jet-powered unmanned aerial drone systems; advanced vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, 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 and augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com and follow Kratos on LinkedIn and X.

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, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact: 
Claire Cantrell
[email protected]

Investor Relations: 
877-934-4687
[email protected]

Key Takeaways Kratos Defense's backlog reached $2.08B, while Q2 bookings totaled $492.2M and the pipeline hit $15B.Kratos Defense plans 3,000 small jet engines in 2027 and about 40 Valkyrie aircraft annually from 2028.Heavy investments may pressure cash flow as KTOS manages supply constraints, hiring and production ramps. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is entering an important stage of its growth story as rising defense demand begins translating into higher production volumes.

The bigger opportunity is Kratos Defense’s expanding backlog and pipeline. Consolidated backlog increased to $2.08 billion, while bookings reached $492.2 million in the second quarter. Over the last 12 months, bookings totaled $1.99 billion, resulting in a 1.3x book-to-bill ratio. Its bid and proposal pipeline also increased to $15 billion, providing a substantial opportunity set beyond current contracted revenues.

Kratos Defense is now investing ahead of expected demand. The company plans to ramp production to 3,000 small jet engines in 2027 and approximately 40 Valkyrie aircraft annually beginning in 2028. It is also expanding facilities for hypersonics, advanced manufacturing, microwave electronics, engines, space and unmanned systems.

These investments are pressuring near-term cash generation, with Kratos Defense forecasting $125-$135 million of 2026 capital expenditures and $250-$275 million of total investments. However, management expects higher production volumes to create operating leverage as fixed infrastructure is utilized more efficiently.

The main risk is execution: Kratos Defense must manage significant investments, supply-chain constraints, parts shortages, hiring and production ramps. Still, the second-quarter results indicate that the company is increasingly transitioning from a defense technology developer into a scaled production platform, creating a potentially attractive multi-year growth opportunity.

Defense Companies Benefiting From Similar TrendsOther defense companies positioned to benefit from rising spending on autonomous systems, missile defense, propulsion, hypersonics and next-generation military technologies include:

Lockheed Martin (LMT - Free Report) remains one of the largest U.S. defense contractors, with significant exposure to missile defense, advanced aircraft, hypersonic systems and space programs.

RTX Corporation (RTX - Free Report) has strong exposure to missile systems, propulsion, radar and air-defense technologies, areas that remain important as military modernization priorities evolve.

KTOS Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share indicates an increase of 50.91% year over year.

Image Source: Zacks Investment Research

KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price-to-sales (P/S) is 5.15X, a discount to the industry’s average of 8.64X.

Image Source: Zacks Investment Research

KTOS Stock’s Price PerformanceIn the past month, the company’s shares have risen 17.3% compared with the industry’s 2.8% growth.

Image Source: Zacks Investment Research

KTOS’ Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KTOS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Engine selected as a second-source propulsion system for the Joint Air-to-Surface Standoff Missile (JASSM), advancing the program to deliver small, low-cost, high-performance engines for missiles and uncrewed platforms  | Source: Kratos Defense & Security Solutions, Inc.

SAN DIEGO, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, and GE Aerospace (NYSE: GE) today announced that the GEK800 engine, which received the U.S. Military Engine Type Designation F143-ZZ-100, has been awarded a contract with the United States Air Force for the Engineering, Manufacturing and Development (EMD) of the turbofan as a second-source propulsion system for the Joint Air-to-Surface Standoff Missile (JASSM).

The designation and contract mark advancement of the program designed to provide small, low-cost, high-performance engines for use in cruise missiles, collaborative combat-type aircraft, and other uncrewed aerial vehicles.

“The F143-ZZ-100 designation and EMD award are a testament to the strong performance and capability of the GEK800 engine and the strength of our partnership with Kratos. This reflects years of disciplined engineering to deliver propulsion systems that meet the evolving, mission-critical requirements of our military customers,” said Amy Gowder, President and CEO of GE Aerospace Defense & Systems.

“Kratos has been working with our outstanding partner GE Aerospace and the United States Air Force to support the Department of War in reindustrializing U.S. manufacturing capacity and capability in the area of low cost, rapidly manufacturable, in large quantities, jet engines for drones, cruise missiles and other systems. Kratos and GE Aerospace are making significant investments with our government partners, to support U.S. National Security priorities,” said Eric DeMarco, President and CEO of Kratos.

The GEK800, now designated the F143, is an 800-lb thrust turbofan engine designed to power long-range missiles and other uncrewed applications. With a combination of internal investment plus support and funding from the Air Force Research Laboratory (AFRL), Kratos and GE Aerospace began working together in 2023 to complete a Technology Maturation and Risk Reduction (TMRR) phase including testing of the engine. The joint team has completed more than 50 engine starts in ground testing at Kratos and GE Aerospace testing facilities, and in 2025 successfully completed altitude testing at Purdue University’s Maurice J. Zucrow Laboratories.

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 C2 and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic 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 and follow Kratos on LinkedIn and X.

About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 49,000 commercial and 29,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.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 28, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Kratos Press Contact:
Claire Cantrell
[email protected]

Kratos Investor Information:
877-934-4687
[email protected]

GE Aerospace Press Contact:
Deb Case
[email protected]