Kratos Defense & Security Solutions, Inc. KTOS
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Full analysis: 12 Aug 2026
Latest news check: 6 Jun 2026
General analysis — not personal advice.
HOLD
7/10
Confidence
Existing position can be maintained; new exposure appears appropriate only after confirmation in the next report.
Strong growth and backlog support a neutral stance while execution risk and cash flow warrant caution.
Market sentiment
8/10
↑
Trend: Improving
The market reacts positively to order intake and raised guidance following the Q2 report.
Price context
The stock trades at 62.42 USD after +12.8 % in one week but remains 52 % below its 52-week high, indicating that significant growth is already priced in while technical room exists if execution continues.
Risk assessment
5/10
Dilution:
Low
Strong net cash position covers expansion plans
Jurisdiction:
Low
Operations mainly in USA and allied countries
Execution:
Medium
Massive production ramp required in coming years
About the company
Kratos Defense develops and manufactures unmanned aerial systems, hypersonic solutions, jet engines and related defense technology. The company focuses on affordable autonomous systems for asymmetric warfare with two main segments: Government Solutions and Unmanned Systems. Operations are in a high-growth phase with record backlog.
Sector:
Aerospace & Defense, unmanned systems
Type:
Industrial
Next report
3 Nov 2026
Q3
Catalysts
Nov 2026
Q3 report and updated guidance
High
Dec 2026
New hypersonics and C-UAS contracts
High
2027
Valkyrie and jet engine production ramp
Medium
Horizon:
Bull case
Strong organic growth, raised guidance and record backlog drive momentum after the Q2 report.
Bear case
Negative free cash flow, production scaling challenges and history of dilution limit upside.
Sensitivity analysis
| Factor | If it weakens | If it strengthens |
|---|---|---|
| Hypersonics and drone contracts | Reduced allocation of major system contracts → lower revenue growth and slower margin improvement. | Additional large hypersonics or CCA orders → accelerated revenue growth and higher backlog conversion. |
| Valkyrie and jet engine production ramp | Delays in new facilities → continued negative cash flow and lower profitability. | Successful scaling → improved margins and positive free cash flow. |
We monitor these factors. Follow the company to get email when any of them hit.
Signal rationale (informational)
Strong growth and backlog support a neutral stance while execution risk and cash flow warrant caution.
Recent news
- Kratos reported strong Q2 2026 with 19.1 % organic growth and raised full-year guidance. The company recently won a 156 MUSD contract for mobile counter-drone systems and a development agreement for Javelin seekers.
Key figures
Revenue
Q2 2026
USD 459M
EBITDA
Q2 2026
USD 38.2M
Net income
Q2 2026
USD 4.4M
Cash
Q2 2026
USD 1.4B
Gross margin
Q2 2026
21.8%
Shares outstanding
Q2 2026
188M
EPS
Q2 2026
USD 0.02
Price & valuation
Last close
USD 63.73
Market Cap
USD 12.0B
1 week
+15.2 %
3 months
+21.4 %
12 months
-7.8 %
From 52w high
-51.2 %
From 52w low
+45.2 %
Exchange
NASDAQ
Type
Industrials
Sector
Aerospace & Defense, unmanned systems
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Firelda provides general information and analysis, not personal investment advice. Content does not consider your financial situation or goals. Investments can rise and fall in value. Always do your own research.