Kratos Receives $35 Million Military-Grade Hardware Production Award

Kratos Defense & Security Solutions, Inc. (KTOS ) announced on August 31, 2026 that it recently received an approximately US$35 million national security-related military-grade hardware production program award.

The San Diego-based company said it expects the hardware and related systems produced and supported under the award to be in direct support of the warfighter in the field. Work under the program award will be performed at a secure Kratos facility. Citing customer, national security-related and other considerations, Kratos said no additional information related to the contract award will be provided.

Kratos described itself as an industry leader in the engineering, design, development and production of military-grade hardware and systems in support of the United States’ and its allies’ mission-critical national security priorities. The company said it is currently in large-scale production in support of multiple national security-related systems and programs of record, including in the areas of hypersonics, counter-unmanned aerial systems, air defense, missiles, radars, and high-powered directed energy, among other initiatives.

Tom Mills, President of Kratos C5ISR, said in the announcement: “Kratos is a recognized industry leader in the engineering and large-scale production of military grade hardware in support of certain of the United States’ and its allies’ most important National Security programs and initiatives. If a customer wants its product or system engineered correctly up front, for successful, on-schedule, on-budget production, we believe that we are the preferred, go to partner.”

Eric DeMarco, Kratos’ President and CEO, said: “Kratos’ C5ISR Business is a crown jewel of Kratos and a national asset for our country. Kratos has the workforce, infrastructure, technical capability and past performance qualifications to successfully complete the mission and engineer and build mil-spec hardware and weapon systems correctly the first time for our partners and customers.”

Kratos is a technology, products, system and software company addressing the defense, national security, and global markets. Its primary business areas include virtualized ground systems for satellites and space vehicles; jet-powered unmanned aerial drone systems; advanced vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, and launch systems; C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter-UAS, directed energy, communication, and other systems; and virtual and augmented reality training systems for the warfighter.

The company said it makes internally funded research, development, capital and other investments to rapidly develop, produce and field solutions addressing customer mission-critical needs, and that its approach uses proven rather than unproven technology, with up-front engineering designed to reduce cost, schedule and risk in rapid, large-quantity, low-cost manufacturing.

Segment Bookings and Facility Plans

The award follows Kratos’ second-quarter 2026 financial results, reported on August 4, 2026, in which the company posted consolidated revenues of $458.8 million, net income of $4.4 million, and a consolidated book-to-bill ratio of 1.1 to 1.0 for the quarter ended June 28, 2026.

Within those results, the Kratos Government Solutions segment generated revenues of $379.7 million, up from $278.3 million in the second quarter of 2025, an increase the company reported as 36.4 percent, with 22.0 percent organic growth excluding the impact of the Nomad Global Communication Solutions and Orbit Technologies Ltd acquisitions. The segment reported operating income of $14.3 million for the quarter, compared to $12.6 million in the second quarter of 2025.

Kratos Government Solutions reported bookings of $413.8 million for the three months ended June 28, 2026, a quarterly book-to-bill ratio of 1.1 to 1.0, and bookings of $1.636 billion with a book-to-bill ratio of 1.4 to 1.0 for the twelve months ended June 28, 2026. The segment’s total backlog stood at $1.710 billion at the end of the second quarter of 2026, compared to $1.676 billion at the end of the first quarter of 2026. On a consolidated basis, Kratos reported second-quarter bookings of $492.2 million and a total backlog of $2.084 billion as of June 28, 2026, which the company said included funded backlog of $1.572 billion and unfunded backlog of $512.7 million.

The company’s forecasted full-year 2026 capital expenditures of $125 million to $135 million include $3 million to $5 million allocated to C5ISR facility and machinery, which the company’s investment table ties to various air defense programs. In the same August release, Kratos increased its full-year 2026 revenue guidance to a range of $1.750 billion to $1.810 billion.

Kratos noted that certain statements in the August 31, 2026 announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and directed readers to the risk disclosures in its Annual Report on Form 10-K for the year ended December 29, 2025, and in subsequent Forms 10-Q and 8-K filed with the SEC.