
Kratos Defense & Security Solutions, Inc.
NASDAQ•KTOS
CEO: Mr. Eric M. DeMarco
Sector: Industrials
Industry: Aerospace & Defense
Listing Date: 1999-11-05
Kratos Defense & Security Solutions, Inc. operates as a technology company that addresses the defense, national security, and commercial markets. It operates through two segments, Kratos Government Solutions and Unmanned Systems. The company offers ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet-powered unmanned aerial drone systems, hypersonic vehicles, and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, and launch systems; command, control, communication, computing, combat, intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence agencies and classified agencies, international government agencies, and commercial customers. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.
Contact Information
10680 Treena Street, 6th Floor, San Diego, CA, 92131, United States
858-812-7300
Market Cap
$22.07B
P/E (TTM)
1137.3
111.4
Dividend Yield
--
52W High
$132.00
52W Low
$23.90
52W Range
Rank64Top 94.9%
1.7
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Weak • 1.7 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025
Financial Dashboard
Q3 2025 Data
Revenue
$347.60M+25.99%
4-Quarter Trend
EPS
$0.05+142.86%
4-Quarter Trend
FCF
-$41.30M+348.91%
4-Quarter Trend
2025 Q3 Earnings Highlights
Key Highlights
Nine Month Revenue Growth Revenue $1.002B, up 17.4% for nine months. Driven by KGS growth and Norden acquisition contribution.
Net Income Improvement Nine month net income $16.1M, up from $12.4M. Improvement linked to reduced interest expense post debt payoff.
Strong Financing Cash Flow Financing cash flow provided $360.2M. Result of $555.9M net proceeds from June 2025 common stock offering.
Backlog Reaches $1.480B Total backlog reached $1.480B, increasing from $1.294B. Driven by Space, Satellite, and Unmanned Systems contract awards.
Risk Factors
Gross Margin Compression Nine month gross margin fell to 22.4% from 25.5%. Impacted by unfavorable revenue mix and increased labor costs.
Government Shutdown Risk Extended U.S. government shutdown risk noted. Potential delay in customer payments could materially affect cash flow results.
Negative Operating Cash Flow Operating cash flow used $(54.2M) for nine months. Primarily due to changes in net working capital accounts usage.
Macroeconomic Cost Pressures Adverse macroeconomic conditions. Supply chain disruptions and rising labor costs adversely impact profit margins.
Outlook
Orbit Acquisition Agreement Definitive merger agreement signed to acquire Orbit Technologies Ltd. Expected closing in the first half of fiscal 2026.
Prometheus JV Advancing Prometheus JV with RAFAEL advancing. SRM production projected to commence in 2027 after technology transfer completion.
Capital Deployment Strategy Net proceeds fund scaling National Security priorities. Focus on large programs, targeted acquisitions, and strengthening balance sheet.
Debt Structure Simplified Term Loan A debt extinguished July 2, 2025. Undrawn $200M revolving credit facility remains active and available.
Peer Comparison
Revenue (TTM)
TXT$14.24B
$13.76B
EXPD$11.17B
Gross Margin (Latest Quarter)
JOBY55.4%
37.4%
WWD27.9%
Key Metrics
Symbol | Market Cap | P/E (TTM) | ROE (TTM) | Debt to Assets |
|---|---|---|---|---|
| KTOS | $22.07B | 1137.3 | 1.2% | 5.5% |
| EXPD | $22.04B | 26.2 | 37.6% | 11.7% |
| WWD | $19.98B | 45.1 | 18.5% | 5.3% |
Long-Term Trends
Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
7.1%
Steady Growth
4Q Net Income CAGR
30.7%
Profitability Improved
Cash Flow Stability
25%
Cash Flow Needs Attention
Research & Insights
Next earnings:Feb 25, 2026
EPS:$0.14
|Revenue:$327.69M
Reports
All Years
Form 10-Q - Q3 2025
Period End: Sep 28, 2025|Filed: Nov 4, 2025|Revenue: $347.60M+26.0%|EPS: $0.05+142.9%MissForm 10-Q - Q2 2025
Period End: Jun 29, 2025|Filed: Aug 7, 2025|Revenue: $351.50M+17.1%|EPS: $0.02-61.5%MissForm 10-Q - Q1 2025
Period End: Mar 30, 2025|Filed: May 7, 2025|Revenue: $302.60M+9.2%|EPS: $0.03+214.0%MissForm 10-K - FY 2024
Period End: Dec 29, 2024|Filed: Feb 26, 2025|Revenue: $1.14B+9.6%|EPS: $0.11+257.1%BeatForm 10-Q - Q3 2024
Period End: Sep 29, 2024|Filed: Nov 7, 2024|Revenue: $275.90M+0.5%|EPS: $0.02-270.7%MissForm 10-Q - Q2 2024
Period End: Jun 30, 2024|Filed: Aug 7, 2024|Revenue: $300.10M+16.8%|EPS: $0.05-348.8%MissForm 10-Q - Q1 2024
Period End: Mar 31, 2024|Filed: May 7, 2024|Revenue: $277.20M+19.6%|EPS: $0.01-117.0%MissForm 10-Q/A - Q1 2023
Period End: Mar 26, 2023|Filed: Feb 21, 2024|Revenue: $231.80M+18.1%|EPS: $-0.05-54.5%Miss