KTOS
Kratos Defense & Security Solutions, Inc.73.13
-1.13-1.52%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Hypersonics, Valkyrie details emerge
Q&A zeroed in on hypersonics as prime growth engine, with Indiana facility 90% done and $1B sole-source hypersonic award eyed by year-end, while Valkyrie fetches $10M Kratos content per jet as Northrop sub, cementing merchant drone supplier role. Space verbally won ~$500M program; microwave posted 17% organic growth in 2025; Nomad brings $75M LTM revenue for mobile C2 synergies. CapEx at $135M-$145M gross, but Title III-style offsets anticipated. No roll-offs or recompetes loom. Growth tilts to KGS. Analysts grilled CapEx; management stressed balanced returns. Q&A largely amplified prepared remarks. Watch engine LRIP, drone awards.
Key Stats
Market Cap
12.35BP/E (TTM)
562.54Basic EPS (TTM)
0.13Dividend Yield
0%Recent Filings
8-K
Kratos closes $352.7M Orbit buyout
Kratos Defense completed its $352.7 million cash acquisition of Orbit Technologies on March 2, 2026, via merger, delisting Orbit from the Tel Aviv Stock Exchange and folding it into a wholly owned subsidiary. Funded from balance sheet cash at $13.725 per share, the deal cancels all Orbit options with cash payouts. Acquisition bolsters capabilities.
8-K
Kratos raises $1.17B in stock offering
Kratos closed a public offering of 16,428,571 shares at $84.00 per share on March 2, 2026, raising ~$1.17B net after underwriters fully exercised their option. Funds target capex for National Security scaling, product development, balance sheet strength, Nomad and Orbit acquisitions, yet forward-looking uses carry market risks. Cash bolsters M&A firepower.
8-K
Kratos Q4 revenues surge 20%
Kratos crushed Q4 2025 with $345.1M revenues, up 20% organically from $283.1M, fueled by 22.2% KGS growth and Valkyrie ramps. Full-year hit $1.347B, 16.6% organic rise; backlog soared to $1.573B. Fiscal 2026 guides $1.595B-$1.675B revenues, $157M-$167M Adjusted EBITDA. Cash investments ramp production.
10-K
FY2025 results
Kratos Defense & Security Solutions delivered FY2025 ended December 28, 2025 with revenues up 18.5% y/y to $1,346.8 million, driven by 21.8% growth in Kratos Government Solutions and 7.9% in Unmanned Systems, fueled by hypersonic, space, and tactical drone momentum. Backlog swelled 8.8% to $1,573.4 million (78% funded), signaling robust Q4 contract wins including the record $1.45 billion MACH-TB 2.0 hypersonic deal. Gross margins slipped to 22.9% from 25.3% amid labor/material inflation and fixed-price pressures, yet operating leverage held as SG&A fell to 17.8% of sales. Debt-free with $560.6 million cash after retiring Term Loan A, Kratos funds aggressive capex ($95.3 million) for Valkyrie production and hypersonic facilities. Q4 accelerated backlog conversion. Government funding delays risk quarterly momentum.
8-K
Kratos agrees to buy Orbit
Kratos signed a merger agreement on November 4, 2025, to acquire Orbit Technologies for $356.3 million in cash, at $13.725 per share. Orbit, publicly traded on the Tel Aviv Stock Exchange, will merge into a Kratos subsidiary, subject to majority shareholder approval, Israel Competition Authority clearance, and Israeli Ministry of Defense consent by the 270-day termination date. FIMI funds locked in supportive votes. Deal faces superior proposal risks.
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