Kratos Defense & Security Solutions(NASDAQ) KTOS

Kratos Defense & Security Solutions, Inc. builds high-tech defense gear. The company makes unmanned drones and satellite tools. These products help protect countries and improve communication.

Drones, Space, and Defense Tools

• Kratos Government Solutions: Provides microwave electronics and modular systems for defense; generated $379.7 million in revenue for the three months ended June 28, 2026.
• Unmanned Systems: Develops autonomous aerial, ground, and maritime platforms; accounted for $79.1 million in revenue for the three months ended June 28, 2026.
• Space and Satellite: Offers virtualized ground systems for controlling satellites and tracking space vehicles.
• Rocket and Hypersonic: Builds rocket systems and vehicles for ballistic missile defense and hypersonic flight missions.
• Propulsion Systems: Manufactures small jet engines for missiles, loitering munitions, and unmanned aircraft.

Expanding Production and Partnerships

• Acquired Nomad Global Communication Solutions on Feb. 11, 2026, to expand mobile communication capabilities.
• Acquired Orbit Technologies on March 2, 2026, adding $21.4 million to revenue during the second quarter.
• Established the Prometheus Energetics joint venture with RAFAEL Advanced Defense Systems to manufacture rocket motors.
• Partnered with GE Aerospace to build a new jet engine production facility in Oklahoma.
• Expanded microwave electronics manufacturing and established a space-qualified facility in Israel.

Designing for Rapid Manufacturing

Kratos differentiates itself by treating affordability as a primary technology. The company designs systems up front for rapid, large-quantity, and low-cost manufacturing to meet urgent national security needs.

Financial Results and Backlog

• Total revenues reached $458.8 million for the three months ended June 28, 2026, up 30.5% year over year.
• Total backlog rose to $2.084 billion on June 28, 2026, including $1.572 billion in funded orders.
• The P/E ratio was 586.9 in Q2 2026, up 1.1% year over year.
• Market cap grew 18.6% to $8.6 billion in Q2 2026.
• Days sales outstanding decreased to 114 days at June 28, 2026, from 124 days at Dec. 28, 2025.

Evolution and Modernization

Kratos has transformed into a technology-driven manufacturer that prioritizes cost-effective and rapidly deployable defense solutions. Its focus on unmanned systems and space communications positions the company to address the rising demand for global defense modernization.