KTOS stock is moving. See the chart and price action here. $61 Million ModificationThe $61.1 million agreement covers the full-rate production of 70 BQM-177A Subsonic Aerial Targets and underscores the company’s expanding influence within the Department of Defense's procurement pipeline. The BQM-177A serves as the Navy's primary Subsonic Aerial Target (SSAT). These drones replicate the flight characteristics and radar signatures of modern enemy subsonic cruise missiles. The Kratos tech enables the Navy to c ...

Industry Overview - Escalating global tensions, particularly in Europe and the Middle East, have heightened national security risks, prompting governments to increase defense budgets [1] - The U.S. and its allies are enhancing military expenditures to improve preparedness and develop advanced defense capabilities [1] U.S. Defense Spending Proposal - In January 2026, President Trump proposed increasing U.S. defense spending to approximately $1.5 trillion by 2027, up from about $901 billion for fiscal 2026 [2] - This increase supports major contractors like Lockheed Martin and Kratos Defense, driving higher revenues through expanded procurement orders [2] Lockheed Martin (LMT) Insights - Lockheed Martin is a leading U.S. defense contractor with a focus on large-scale programs, including the F-35, which accounted for nearly 27% of total net sales in 2025 [5] - The company has delivered 1,293 F-35 airplanes, with a backlog of 368 jets as of December 31, 2025, indicating strong future sales potential [5] - The proposed budget increase suggests a favorable long-term funding outlook for defense programs, which could enhance order visibility and revenue growth for Lockheed Martin [6] Kratos Defense (KTOS) Insights - Kratos Defense specializes in unmanned aerial systems and has secured multiple contracts with the U.S. military, leading to revenue growth in its Unmanned Systems segment, which generated $68.5 million in Q4 2025 [7][8] - The company benefits from a shift towards modern, autonomous technologies, with key wins in drone production and hypersonic testing contracts driving substantial government funding [8] Earnings Growth Estimates - The Zacks Consensus Estimate indicates Lockheed Martin's EPS will increase by 28.94% in 2026 and 8.53% in 2027 [9] - In contrast, Kratos Defense's EPS is expected to grow by 32.73% in 2026 and 47.52% in 2027, reflecting stronger growth potential [12] Valuation and Debt Comparison - Lockheed Martin's shares trade at a forward Price/Sales ratio of 1.94X, while Kratos Defense trades at 9.35X [13] - Kratos Defense has no debt, while Lockheed Martin has a total debt to capital ratio of 76.35%, indicating better debt management for Kratos [14] Stock Performance - Over the past year, Lockheed Martin's shares have risen by 50.5%, while Kratos Defense has seen a significant increase of 263.3% [15] Investment Recommendation - Kratos Defense is favored due to its superior earnings growth, better debt management, and strong stock performance compared to Lockheed Martin [18]

SAN DIEGO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, announced today that it has been awarded a $61,068,139 modification to a previously awarded firm-fixed-price contract (N0001923C0021) by the U.S. Navy. This contract modification exercises options to procure full-rate production Lot Seven for 70 of the BQM-177A Subsonic Aerial Targets, along with 70 Rocket-Assisted Takeoff (RATO) attachment kits an ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS ) reported its fourth quarter and full-year earnings as well as guidance for 2026, which seemingly has disappointed investors, as the stock is now down 8.7%. The stock price is still up over 1 ...

Revenue came in at $345.1 million, versus estimates of $327.79 million. Adjusted EPS came in at 18 cents, versus estimates of 16 cents."Kratos is positioned to achieve our previously communicated 2026 and 2027 financial targets, and similar to 2025, for 2026 we expect our business to accelerate throughout the year, with increasing Revenue volume and Adjusted EBITDA margins, as several new programs, contracts and initiatives begin, ramp and expand," said Eric DeMarco, president and CEO of Kratos.Kratos expec ...

Kratos Defense & Security (NASDAQ: KTOS) stock tumbled 7.5% through 10:05 a.m. ET Tuesday after despite beating on both sales and earnings last night. Heading into Kratos's Q4 report, analysts forecast Kratos would earn $0.017 per share on sales of $327.6 million. In fact, Kratos earned $0.18 per share and reported quarterly sales of $345.1 million. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See th ...

Key Takeaways KTOS reported Q4 adjusted EPS of 18 cents, up 38.5% year over year, topping estimates.Kratos Defense posted 21.9% revenue growth, with book-to-bill at 1.3-1 and backlog of $1.212B.KTOS ended 2025 with $560.6M cash, no long-term debt, and guided 2026 revenues of $1.595-$1.675B.Kratos Defense & Security Solutions, Inc. (KTOS) reported fourth-quarter 2025 adjusted earnings of 18 cents per share, which beat the Zacks Consensus Estimate of 14 cents by 28.6%. The bottom line also increased 38.5% fro ...

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] Stock Selection Criteria - The investor screens thousands of stocks, primarily in the US, looking for those that have undergone recent sell-offs, particularly when insiders are purchasing shares at lower prices [1] - Professional background checks are conducted on insiders who buy shares post-sell-off, adding a layer of due diligence to the investment process [1] Technical Analysis - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts, employing multicolor lines for clarity [1] - Trend lines are drawn in multicolor patterns, indicating a systematic approach to technical analysis [1]

Core Insights - Kratos (KTOS) reported revenue of $345.1 million for Q4 2025, a year-over-year increase of 21.9%, with an EPS of $0.18 compared to $0.13 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Breakdown - Product sales reached $230.8 million, surpassing the average estimate of $201.65 million, reflecting a year-over-year increase of 30.7% [4] - Unmanned Systems generated $68.5 million, slightly below the estimated $73.19 million, but still showing a 12.1% increase year-over-year [4] - Kratos Government Solutions reported $276.6 million, exceeding the estimate of $256.58 million, with a year-over-year growth of 24.6% [4] - Service revenues totaled $114.3 million, below the average estimate of $123.97 million, but still representing a 7.3% increase year-over-year [4] Profitability Metrics - Gross profit from service revenues was $31.6 million, slightly below the estimate of $31.85 million [4] - Gross profit from product sales was $51.8 million, exceeding the estimate of $47.65 million [4] - Operating income for Unmanned Systems was $1.9 million, above the average estimate of $1.69 million [4] - Operating income for Kratos Government Solutions was $17.3 million, slightly below the estimate of $17.98 million [4] Stock Performance - Kratos shares have returned -13% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change, but the stock holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Kratos (KTOS) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +28.57%. A quarter ago, it was expected that this military contractor would post earnings of $0.12 per share when it actually produced earnings of $0.14, delivering a surprise of +16.67%.Over the last four quarters, the com ...