Kratos Defense & Security Solutions (KTOS) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the Kratos Defense and Security First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone. You will then hear an automated message advising you ...

Core Viewpoint - Kratos Defense & Security Solutions, Inc. (KTOS) is expected to report strong first-quarter 2025 results, driven by solid revenue growth across its business segments despite challenges from higher costs [1][7]. Group 1: Revenue Performance - The Unmanned Systems business segment is anticipated to show solid revenue growth due to increased domestic and international target drone production, with quarterly revenues estimated at $65.6 million, reflecting a 10.4% increase year-over-year [2]. - The Government Solutions business segment is expected to benefit from revenue growth in C5ISR, microwave electronics, hypersonic and ballistic missile target businesses, and turbine technologies [3]. - However, the Space and Satellite business within the Government segment is projected to experience lower revenues due to OEM delays in software-defined satellite manufacturing, negatively impacting the deployment of commercial satellite ground equipment [4]. - The overall revenue estimate for the Government segment is $227 million, indicating a 4.2% rise from the previous year [5]. - The total revenue estimate for KTOS in the first quarter is $292.2 million, representing a 5.4% increase from the year-ago quarter [7]. Group 2: Earnings Expectations - The consensus estimate for KTOS' first-quarter earnings is nine cents per share, which indicates an 18.2% decline from the prior-year figure [8]. - Despite solid revenue projections, higher bid and proposal costs, along with increased subcontractor and material costs on certain contracts, are expected to adversely affect overall earnings [7]. Group 3: Market Position and Predictions - The Zacks model indicates that KTOS does not conclusively predict an earnings beat this time, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [9][10].