Revenue Growth - Full Year 2024 Revenues reached $1.136 billion, reflecting a 9.6% growth compared to $1.037 billion in 2023, with 9.1% organic growth[1] - Unmanned Systems Revenues for 2024 were $270.5 million, representing a 27.5% increase from $212.2 million in 2023, with 25.1% organic growth[1] - KGS Revenues for 2024 totaled $865.8 million, showing a 5.0% organic growth from $824.9 million in 2023[1] - Fourth Quarter 2024 Revenues were $283.1 million, a 3.4% increase from $273.8 million in Q4 2023[1] - Total revenues for the twelve months ended December 29, 2024, reached $1,136.3 million, up from $1,037.1 million in 2023, reflecting a year-over-year growth of 9.6%[35] Cash Flow and Expenditures - Fourth Quarter 2024 Cash Flow from Operations was $45.6 million, with Free Cash Flow of $32.0 million after $13.6 million in capital expenditures[1] - Total capital expenditures for FY 2025 are forecasted to be between $125 million and $135 million[26] - The company plans to invest approximately $89 million in various facilities and programs, including $28 million for the Valkyrie second production lot[26] - Operating cash flow guidance for FY 2025 is estimated to be between $50 million and $60 million[25] - The company anticipates a free cash flow use of $75 million to $85 million for FY 2025[25] Profitability and Income - Net income attributable to Kratos for the three months ended December 29, 2024, was $3.9 million, compared to $2.4 million in the same period of 2023, indicating a 62.5% increase[35] - Adjusted EBITDA for the twelve months ended December 29, 2024, was $105.7 million, an increase from $95.4 million in 2023, representing a growth of 10.8%[49] - Operating income is expected to range from $2 million to $4 million for Q1 2025 and $34 million to $39 million for FY 2025[25] - Net income from consolidated operations increased to $16.3 million for the twelve months ended December 29, 2024, up from $2.4 million in 2023[56] - Non-GAAP Adjusted net income for the twelve months ended December 29, 2024, was $73.9 million, up from $54.2 million in 2023, reflecting a 36.4% growth[60] Book to Bill Ratio - Consolidated Book to Bill Ratio for Q4 2024 was 1.5 to 1, with bookings of $434.2 million[1] - KUS segment reported a book-to-bill ratio of 1.3 to 1 for Q4 2024, with total backlog increasing to $295.2 million[1] - KGS segment achieved a book-to-bill ratio of 1.6 to 1 for Q4 2024, with total backlog at $1.150 billion[1] - The Book to Bill Ratio is highlighted as a key performance indicator, measuring the amount of bookings compared to revenues recorded[32] Future Projections - The company forecasts 10% organic revenue growth for 2025 and 13-15% growth for 2026 based on recent program awards[2] - The company forecasts Q1 2025 revenues between $285 million and $295 million, and full year 2025 revenues between $1,260 million and $1,285 million[25] Research and Development - Research and Development (R&D) expenses are projected to be $10 million to $11 million for Q1 2025 and $42 million to $45 million for FY 2025[25] - Research and development expenses for the twelve months ended December 29, 2024, totaled $40.3 million, compared to $38.4 million in 2023, an increase of 4.9%[35] Financial Health - Cash and cash equivalents significantly increased to $329.3 million as of December 29, 2024, compared to $72.8 million at the end of 2023[54] - Total current assets rose to $872.1 million as of December 29, 2024, compared to $594.2 million in 2023, indicating strong liquidity[54] - Long-term debt decreased to $174.6 million as of December 29, 2024, down from $219.3 million in 2023, reflecting improved financial health[54] - The company’s total assets increased to $1,950.9 million as of December 29, 2024, compared to $1,632.5 million in 2023, indicating growth in the asset base[54] - The company’s accumulated deficit improved to $(663.9) million as of December 29, 2024, from $(680.2) million in 2023, showing progress in profitability[54] Segment Performance - Service revenues for the three months ended December 29, 2024, increased to $106.5 million from $100.8 million in the same period of 2023, representing a growth of 6.9%[35] - Product sales rose to $176.6 million for the three months ended December 29, 2024, compared to $173.0 million in the prior year, marking an increase of 2.1%[35] - Revenues from Unmanned Systems for the three months ended December 29, 2024, were $61.1 million, up from $55.4 million in the same period of 2023, a growth of 10.3%[51] - Kratos Government Solutions generated revenues of $222.0 million for the three months ended December 29, 2024, compared to $218.4 million in the prior year, reflecting a 1.6% increase[51] - Operating income for Kratos Government Solutions for the three months ended December 29, 2024, was $11.0 million, down from $17.5 million in the same period of 2023, a decrease of 37.1%[51] Shareholder Metrics - Diluted earnings per common share increased to $0.11 for the twelve months ended December 29, 2024, compared to a loss of $0.07 in 2023[60] - Non-GAAP Adjusted income from consolidated operations per diluted common share for the twelve months ended December 29, 2024, was $0.49, compared to $0.42 in 2023, representing a 16.7% increase[60] - The weighted average diluted common shares outstanding increased to 154.7 million for the three months ended December 29, 2024, from 134.4 million in the same period of 2023[60] Depreciation and Amortization - Amortization of intangible assets for the twelve months ended December 29, 2024, was $8.6 million, compared to $6.8 million in 2023, indicating a 26.5% increase[60] - Depreciation expenses for the twelve months ended December 29, 2024, rose to $31.7 million, up from $26.4 million in 2023, a 19.9% increase[60] - Stock-based compensation for the twelve months ended December 29, 2024, was $29.8 million, compared to $25.3 million in 2023, reflecting a 17.8% increase[60] Strategic Focus - The company emphasizes its focus on affordability and rapid development to meet mission-critical needs in defense and national security markets[27] - The company aims to achieve sustained year-over-year revenue growth and improved profitability through strategic investments and partnerships[28]

Core Insights - Kratos Defense & Security Solutions reported full year 2024 revenues of $1.136 billion, reflecting a 9.6% growth compared to 2023 revenues of $1.037 billion, with 9.1% organic growth [17] - The company achieved full year 2024 net income of $16.3 million, with GAAP EPS of $0.11 per share, a significant improvement from a net loss of $8.9 million in 2023 [16][22] - The fourth quarter of 2024 saw revenues of $283.1 million, representing a 3.4% increase from $273.8 million in the fourth quarter of 2023 [5][14] Financial Performance - Full year 2024 Unmanned Systems revenues reached $270.5 million, marking a 27.5% increase from $212.2 million in 2023, with 25.1% organic growth [19] - Government Solutions segment (KGS) revenues for 2024 were $865.8 million, reflecting a 5.0% organic growth from $824.9 million in 2023 [20] - Fourth quarter 2024 cash flow from operations was $45.6 million, with free cash flow of $32.0 million after capital expenditures of $13.6 million [6][18] Book to Bill Ratio and Backlog - The consolidated book to bill ratio for the fourth quarter of 2024 was 1.5 to 1, with bookings of $434.2 million [13] - KGS reported a book to bill ratio of 1.6 to 1 for the fourth quarter of 2024, with total backlog at $1.150 billion, up from $988 million at the end of 2023 [12] - The total backlog for Kratos at the end of 2024 was $1.445 billion, compared to $1.227 billion at the end of 2023 [13] Future Outlook - The company forecasts a 10% organic revenue growth for 2025, with an initial revenue growth forecast of 13% to 15% for 2026 based on recent program awards [2][22] - Management emphasized the alignment with U.S. government objectives, anticipating increased bookings and profitability due to recent contract awards in various sectors [22] - The bid and proposal pipeline was reported at $12.4 billion as of December 29, 2024, indicating strong future growth potential [13]

Core Viewpoint - Kratos Defense & Security Solutions, Inc. (KTOS) is expected to report its fourth-quarter 2024 results on February 26, with strong revenue growth anticipated across its business segments despite higher personnel-related costs [1][2]. Group 1: Revenue Performance - The Unmanned Systems Unit is projected to show solid sales growth, driven by increased international target drone production and contributions from the STS acquisition, with quarterly revenues estimated at $66.5 million, reflecting a 20.1% increase year-over-year [3]. - The Government Unit is also expected to report strong revenue growth, particularly from C5ISR and microwave electronics products, with fourth-quarter revenues estimated at $223.4 million, indicating a 2.3% rise from the previous year [4][6]. - Overall, the Zacks Consensus Estimate for KTOS's total fourth-quarter revenues is pegged at $288.3 million, suggesting a 5.3% increase from the year-ago quarter [7]. Group 2: Earnings Expectations - Despite solid revenue projections, the company's earnings are expected to decline, with the Zacks Consensus Estimate for fourth-quarter earnings at 9 cents per share, a decrease of 25% from the prior year [8]. - The combination of increased bid and proposal costs, along with higher personnel-related expenses, may negatively impact the operating margin, affecting overall earnings performance [8]. Group 3: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for KTOS this quarter, as the Earnings ESP stands at 0.00%, indicating uncertainty in surpassing earnings expectations [9]. - Currently, KTOS holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks in the sector [10].

Core Viewpoint - Kratos Defense and Security Solutions Inc (NASDAQ:KTOS) is experiencing a decline, with a 0.7% drop to $26.97, moving away from its recent high of $35.66, but a potential short-term bounce is indicated by bullish signals on the charts [1] Group 1 - The stock has pulled back to its ascending 128-day moving average, being within 0.75 of the trendline's average true range for the first time in at least eight of the past ten trading days [2] - KTOS has shown five similar bullish signals in the past three years, with the stock rising 100% of the time one month later, averaging a 13.6% increase [3] - The current 14-day relative strength index (RSI) of 20.5 indicates that the stock is in "oversold" territory, suggesting a potential short-term bounce [4] Group 2 - Despite a 19.3% decline since the start of the month, KTOS shares have a year-over-year gain of approximately 30% [4]

Core Insights - Kratos Defense & Security Solutions, Inc. successfully conducted a flight of its Erinyes™ Hypersonic Test Bed in January 2025, supporting the Missile Defense Agency and Naval Sea Systems Command [1][2] - The flight, part of the Hypersonic Test Bed-2 exercise, demonstrated new onboard technologies and facilitated valuable data collection for future technology validation [2][3] - The company emphasizes its role in making hypersonic capabilities affordable and rapidly deployable, enhancing U.S. national security readiness [3] Company Overview - Kratos Defense & Security Solutions focuses on technology, products, systems, and software for defense, national security, and commercial markets, aiming to address mission-critical needs [4][5] - The company is recognized for its innovative and disruptive approach, prioritizing affordability and rapid development to deliver cost-effective solutions [4][5] - Kratos engages in various business areas, including virtualized ground systems, unmanned aerial drone systems, hypersonic vehicles, propulsion systems, and advanced training systems for military applications [5]

Core Viewpoint - Kratos Defense & Security Solutions, Inc. successfully conducted a flight test of its Erinyes™ Hypersonic Test Bed, demonstrating its capabilities as a low-cost, rapidly configurable platform for hypersonic experimentation in support of U.S. Department of Defense initiatives [1][3]. Group 1: Flight Test and Technology Development - The flight test, designated Hypersonic Test Bed-2 (HTB-2), took place in January 2025 at NASA Wallops Flight Facility and aimed to validate new onboard technologies while collecting valuable data for future design evaluations [2]. - The successful flight expanded the performance envelope of the Erinyes™ vehicle, showcasing its utility in advancing hypersonic research and development [1][2]. Group 2: Company Strategy and Market Position - Kratos positions itself as a leader in U.S. hypersonic research by providing affordable and repeatable flight test opportunities, which help researchers enhance their products' Technology Readiness Levels [3]. - The company emphasizes its commitment to affordability and rapid development, aiming to support U.S. national security through innovative hypersonic products and flight-testing capabilities [3][4]. Group 3: Business Focus and Offerings - Kratos specializes in various defense and security solutions, including virtualized ground systems for satellites, unmanned aerial drone systems, hypersonic vehicles, and missile defense technologies [5]. - The company aims to pursue prime contractor opportunities when the probability of winning is high and to collaborate with larger system integrators when necessary [5].

SAN DIEGO, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a Technology Company in the Defense, National Security and Global Markets, announced today that it will publish financial results for the fourth quarter and fiscal year 2024 after the close of market on Wednesday, February 26th. Management will discuss the Company's operations and financial results in a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern). The call will be available at www.kra ...

SAN DIEGO, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, announced today that it will publish financial results for the fourth quarter and fiscal year 2024 after the close of market on Wednesday, February 26th. Management will discuss the Company’s operations and financial results in a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern). The call will be available at www.kr ...

Kratos Defense & Security Solutions (KTOS) is a Zacks Rank #1 (Strong Buy) that has a F for Value and a F for Growth.  The company is a supplier of mission critical products and services for the US national security.  The company has beat the Zacks Consensus Estimate in each of the last 15 quarters.  Let’s explore more about why this stock is the Bull of the Day.Description                       Kratos Defense & Security Solutions, Inc. engages in the provision of mission critical products, services and sol ...

Kratos (KTOS) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock ma ...