Kratos Defense & Security Solutions Inc

KTOS

Equity

ISIN null / Valor 10548656

NASDAQ (2025-12-22)

USD 81.53+8.14%

Kratos Defense & Security Solutions Inc
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About company

Kratos Defense & Security Solutions Inc is a specialized company that plays a significant role in the defense and security sector by developing and deploying innovative, cost-effective systems, platforms, and products designed to meet the national security and communications requirements of its clients. Leveraging commercial technology methodologies, Kratos emphasizes rapid delivery of its solutions to the market, underpinned by proactive research and efficient development practices. The company operates in critical areas where technological advancements can significantly enhance operational capabilities, including unmanned systems, satellite communications, command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance (C5ISR), as well as warfighter training and combat systems. Through its focus on these strategic domains, Kratos aims to provide a technological edge to its clients, primarily in the defense and national security sectors, by offering solutions that act as force multipliers in their respective fields.

Summarized from source with an LLMView SourceSector: Industrials

Key Financials

Q3 2025 revenues: $347.6M; Operating Income: $7.1M; Net Income: $8.7M; Adjusted EBITDA: $30.8M. GAAP EPS $0.05 (vs $0.02 in Q3 2024); Adjusted EPS $0.14 (vs $0.11).

Revenue Growth

Consolidated revenue rose 26.0% year-over-year (23.7% organic). Unmanned Systems (KUS) revenues were $87.2M (+35.8% organic) and Kratos Government Solutions (KGS) revenues were $260.4M (+20.0% organic).

Segment Profitability

KUS: Operating Income $2.7M and Adjusted EBITDA $6.4M (impacted by fixed‑price contract cost pressures). KGS: Operating Income $13.7M and Adjusted EBITDA $24.4M (benefiting from revenue mix).

Bookings, Book‑to‑Bill and Backlog

Q3 2025 consolidated bookings $414.1M with book-to-bill 1.2x; LTM bookings $1.471B with book-to-bill 1.1x. Consolidated backlog $1.480B (funded $1.234B, unfunded $246.3M). KUS backlog $302.5M; KGS backlog $1.178B.

Cash Flow and CapEx

Q3 2025 cash flow used in operations: $13.3M (working capital pressure from growth); Free Cash Flow used: $41.3M after $28.0M of capital expenditures.

One‑Time and Non‑Cash Items

Q3 includes $9.1M of non‑cash stock compensation, $10.0M of company‑funded R&D (Space, Satellite, Unmanned Systems, Microwave Electronic) and a $0.7M settlement accrual.

Bookings Detail by Segment

KUS bookings Q3: $52.1M (book‑to‑bill 0.6x for quarter, 1.1x LTM, LTM bookings $313.2M). KGS bookings Q3: $362.0M (book‑to‑bill 1.4x for quarter, LTM bookings $1.158B).

Outlook and Guidance

Kratos increased its 2026 organic revenue growth target to 15%–20% above its updated 2025 revenue forecast and projects a ~100 basis point improvement in adjusted EBITDA margin vs. 2025. Preliminary 2027 organic revenue target is 18%–23% above 2026 with another ~100 bp margin improvement projected.

Market Position

Kratos reported a $13.5B bid and proposal pipeline at Sept. 28, 2025, and management highlighted strategic investments and program ramps (Anaconda, Helios, Poseidon) to support multi‑year growth and margin expansion.

Summarized from source with an LLMView Source

Key figures

215%1Y

786%3Y

213%5Y

Performance

56.3%1Y

46.1%3Y

47.5%5Y

Volatility