GEK800 Small Engine Designed to Power the Next Generation of Affordable Unmanned Aerial Systems and CCA-type Aircraft AFRL, GE Aerospace, Kratos Defense, and Purdue Zucrow Labs Collaborating on Extremely Tight Testing Timeline SAN DIEGO, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, and GE Aerospace (NYSE: GE) announced that they have started altitude testing on its GEK800 small engine d ...

SAN DIEGO, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced that Elroy Air, a leading developer of autonomous aerial cargo systems for middle-mile logistics and military resupply, has selected Kratos as Elroy Air’s exclusive U.S. manufacturing partner for the Chaparral in a new five-year strategic manufacturing agreement to accelerate expected high-volume production of the C ...

Core Points - Kratos Defense & Security Solutions, Inc. has appointed Brian Shepard as Chief Information Officer, responsible for all information technology aspects including security and compliance [1][2] - Eric DeMarco, President and CEO, highlighted Shepard's integral role since 2006 and his leadership in IT and cybersecurity initiatives, emphasizing the importance of his vision for the company's growth [2] - Shepard has over 30 years of IT experience, with 20 years at Kratos, where he previously served as Vice President of Information Technology [2][3] - Shepard expressed his commitment to modernizing systems and enhancing cybersecurity resilience to align technology investments with Kratos' mission [3] Company Overview - Kratos Defense & Security Solutions, Inc. focuses on technology, products, systems, and software for defense, national security, and commercial markets [4] - The company emphasizes affordability in technology and aims to utilize proven approaches to reduce costs and risks, enabling rapid market entry with cost-effective solutions [4] - Kratos is recognized as an innovative change agent in the industry, specializing in designing products for successful rapid manufacturing, which serves as a competitive differentiator [4] - The primary business areas include virtualized ground systems, unmanned aerial drone systems, hypersonic vehicles, propulsion systems, and various electronic products for defense applications [4]

Core Points - Kratos Defense & Security Solutions, Inc. has been added to the S&P MidCap 400 Index, transitioning from the S&P SmallCap 600 Index, indicating the company's growth and market recognition [1][2] - The inclusion in the MidCap 400 reflects Kratos' leadership in unmanned systems, hypersonics, space, propulsion, and national security solutions, highlighting its expanding role in the U.S. defense industrial base [2][3] - Eric DeMarco, President and CEO of Kratos, emphasized that this milestone showcases the company's financial growth and the confidence in its strategy, attributing the achievement to the hard work of employees and trust from customers and partners [3] Company Overview - Kratos Defense & Security Solutions, Inc. focuses on technology, products, systems, and software for defense, national security, and commercial markets, making internally funded investments to develop solutions that meet mission-critical needs [5] - The company aims to deliver affordable, high-performance systems and is recognized as an innovative change agent in the industry, specializing in rapid, large quantity, low-cost manufacturing [5] - Kratos' primary business areas include virtualized ground systems for satellites, unmanned aerial drone systems, propulsion systems, C5ISR products, and virtual & augmented reality training systems [5]

Group 1 - The core viewpoint is that U.S. small and mid-sized defense stocks have significantly outperformed large competitors due to increased demand for cost-effective and adaptable military systems driven by global conflicts and Pentagon priorities [1] - The NYSE Arca Defense Index rose by 34% in 2025, compared to a 12% increase in the S&P 500, highlighting the strong performance of companies like Kratos Defense & Security Solutions (KTOS.US), AeroVironment (AVAV.US), Astronics (ATRO.US), and Mercury Systems (MRCY.US) [1] - The Pentagon's proposed budget of $892.6 billion for fiscal year 2026 allocates nearly $6 billion for drone and counter-drone systems, nearly double the amount from the previous year, indicating a shift away from traditional projects like warships and fighter jets [1] Group 2 - Mergers and venture capital are increasingly flowing into the aerospace and defense sector, with U.S. startups in this field raising over $14 billion in 2025, the highest amount in at least a decade, as investors are optimistic about companies providing next-generation systems for modern battlefields [2]

Group 1: Ark Invest Trades - Ark Invest executed significant trades involving Bullish, Kratos Defense, Pony AI, and Robinhood [1] - Ark Invest added 36,328 shares of Bullish, valued at nearly $1.97 million, with the stock closing at $54.35, up 5.82% after positive Q2 earnings [2] - Ark Invest sold 131,177 shares of Kratos Defense, valued at nearly $9.9 million, with the stock closing at $75.74, down 0.8% [3] - Ark Invest purchased 88,335 shares of Pony AI, valued at $1.5 million, with the stock closing at $17.47, up 1.98% [4] - Ark Invest acquired 33,783 shares of Robinhood, valued at approximately $4 million, with the stock closing at $118.64, up 1.07% [6] Group 2: Company Highlights - Kratos Defense is collaborating with Taiwan's NCSIST to unveil the Mighty Hornet IV Attack UAV, enhancing Taiwan's military capabilities [4] - Pony AI is making rapid progress in its robotaxi business, with Goldman Sachs projecting a target price of $24.50, indicating over 50% upside potential [5] - UBS estimates that China's robotaxi market could reach $183 billion by the late 2030s, with global opportunities adding nearly $400 billion [5] - Robinhood recently released positive operating data for August and announced a new fund aimed at democratizing private market access [6]

Core Insights - The drone industry is gaining significant investor interest, particularly in defense and logistics sectors, with Kratos Defense & Security Solutions being a major player in this space [1][2] - Kratos is recognized as a leading company in pure-play drone technology, specializing in unmanned aerial systems and related technologies [2][3] Company Overview - Kratos Defense & Security Solutions operates in national security markets through two main segments: Kratos Government Solutions and Unmanned Systems [3] - The company develops a range of advanced technologies, including satellite ground control systems, jet-powered unmanned drones, hypersonic vehicles, and propulsion systems for missiles and spacecraft [3][4] - Kratos also produces microwave electronics for radar and missile defense, counter-drone systems, and virtual reality training platforms, serving various defense and space applications [4] Financial Performance - Kratos has a market capitalization of $12.88 billion and has seen its stock price increase by 236% over the past year [5] - In the second quarter, Kratos reported revenue of $351.5 million, surpassing its guidance of $305 million, with organic revenue growth of 15% [6] - The company raised its full-year revenue guidance to $1.3 billion, reflecting strong momentum in global defense spending [6] - Adjusted EBITDA for the quarter was $28.3 million, exceeding estimates, and full-year EBITDA guidance was increased to $117 million, with expectations for margin expansion by at least 100 basis points by 2026 [7]

Core Insights - Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has reached a new all-time high, driven by positive investor sentiment following the US government's relaxed export restrictions on military drones [1][3]. - The stock hit a 52-week high of $76.62 during trading, closing up 7.93% at $76.35 [2]. Group 1: Policy Changes - The US government has adjusted its export control policies, allowing military drones to be classified similarly to fighter jets, such as the F-16, rather than missile systems [4]. - This policy change enables easier sales of drones to countries like the United Arab Emirates and various European nations that have faced challenges in acquiring US unmanned aerial vehicles [4]. Group 2: Business Implications - The new export policy is expected to drive sales growth for Kratos Defense, as its products can now be categorized as "foreign military sales," facilitating international sales [5].

Core Viewpoint - Kratos Defense & Security Solutions, Inc. has partnered with the National Chung-Shan Institute of Science and Technology to launch the Mighty Hornet IV Attack UAV, a significant advancement from the MQM-178 target drone, which will be showcased at the Taipei Aerospace & Defense Technology Exhibition [1][2][4] Group 1: Product Development and Features - The Mighty Hornet IV is based on the MQM-178 target drone, featuring high-speed capabilities with a speed of Mach 0.8, high G maneuvering, and a service ceiling exceeding 35,000 feet, making it suitable for global defense needs [2] - The UAV has demonstrated reliability and adaptability in recent exercises, reinforcing its role in Manned-Unmanned Teaming (MUM-T) and loitering munition scenarios [3] Group 2: Strategic Importance - This collaboration emphasizes Kratos' commitment to innovation in the defense sector and marks a significant enhancement in military capabilities for Taiwan [3] - The unveiling of the Mighty Hornet IV at TADTE 2025 highlights Taiwan's dedication to innovation and resilience in defense technology [4] Group 3: Company Overview - Kratos Defense & Security Solutions focuses on technology, products, systems, and software for defense, national security, and commercial markets, emphasizing affordability and rapid development [5][7] - The company aims to leverage proven technologies to reduce costs and risks, positioning itself as a disruptive change agent in the industry [7]

Core Viewpoint - The U.S. government is facilitating the export of drone technologies, which is positively impacting Kratos Defense & Security Solutions' stock performance, with shares rising by 7.7% [1][5]. Group 1: Company Overview - Kratos Defense & Security Solutions is a manufacturer of defense electronics and drones, focusing on the development of the Valkyrie "loyal wingman" drone, which is intended to operate alongside piloted F-35s, enhancing combat capabilities while minimizing risk to human lives [3][4]. - The company's stock has surged nearly 200% year-to-date, indicating strong market interest and potential for future growth, although such rapid growth may not be sustainable [6]. Group 2: Market Opportunities - The U.S. Department of State is revising its export review process for unmanned aerial systems (UAS), treating them similarly to piloted aircraft rather than missile systems. This change is expected to streamline foreign defense sales requests and open new markets for the U.S. UAS industry [5][8]. - The potential for Kratos to access international markets is seen as a significant opportunity, particularly if the Valkyrie secures a full production contract, which would substantially boost revenue [6]. Group 3: Stock Performance and Investor Sentiment - Kratos shares have experienced significant gains this year, reflecting positive sentiment in the defense sector, particularly regarding drone technology [4][8]. - Despite the current rally, there is an acknowledgment of potential volatility in Kratos' stock, with historical trends suggesting that the stock may experience fluctuations based on sales performance [7].