Kratos & RAFAEL Establish Prometheus Energetics Joint Venture, a U.S.-Based Merchant Supplier of Solid Rocket Motors

Core Viewpoint - Kratos Defense & Security Solutions, Inc. and RAFAEL Advanced Defense Systems Ltd. have formed a joint venture named Prometheus Energetics to establish a U.S.-based supplier of solid rocket motors and other energetics, with a capital commitment of up to $175 million [1][2][5] Company Overview - Kratos is a leader in advanced systems, including hypersonic technologies, ballistic missile targets, and solid rocket motors, serving the U.S. defense community for decades [4] - RAFAEL is a major Israeli defense contractor known for systems like the Iron Dome and TROPHY APS, with a focus on vertically integrated facilities for the development of solid rocket motors and warheads [3][6] Joint Venture Details - Prometheus Energetics will be headquartered on a 500-acre site in Crane, Indiana, and is projected to begin production of solid rocket motors in 2027 after technology transfer and certification [1][2] - The joint venture aims to strengthen the U.S. defense industrial base and provide tens of thousands of solid rocket motors and casted warheads to support U.S. national security and allies [5][8] Financial Implications - Kratos will account for approximately 50% of Prometheus' net income and free cash flow in its financial statements, reflecting the joint venture's impact on Kratos' overall financial performance [5]