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KTOS 
Kratos Defense & Security Solutions (KTOS)
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Upturn Advisory Summary
12/19/2025: KTOS (5-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Number of Analysts
12 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $99.94
1 Year Target Price $99.94
| 6 | Strong Buy |
| 2 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 219.16% | Avg. Invested days 66 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 12/19/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.73B USD | Price to earnings Ratio 579.92 | 1Y Target Price 99.94 |
Price to earnings Ratio 579.92 | 1Y Target Price 99.94 | ||
Volume (30-day avg) 12 | Beta 1.15 | 52 Weeks Range 23.90 - 112.57 | Updated Date 12/20/2025 |
52 Weeks Range 23.90 - 112.57 | Updated Date 12/20/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.13 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.56% | Operating Margin (TTM) 2.1% |
Management Effectiveness
Return on Assets (TTM) 0.7% | Return on Equity (TTM) 1.2% |
Valuation
Trailing PE 579.92 | Forward PE 156.25 | Enterprise Value 12297300976 | Price to Sales(TTM) 9.91 |
Enterprise Value 12297300976 | Price to Sales(TTM) 9.91 | ||
Enterprise Value to Revenue 9.57 | Enterprise Value to EBITDA 137.71 | Shares Outstanding 168840708 | Shares Floating 166070032 |
Shares Outstanding 168840708 | Shares Floating 166070032 | ||
Percent Insiders 1.75 | Percent Institutions 94.28 |
Upturn AI SWOT
Kratos Defense & Security Solutions
Company Overview
History and Background
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) was founded in 1994. It has evolved from a small aerospace and defense technology company into a significant player providing a range of products and services to government and commercial customers. Key milestones include strategic acquisitions, development of advanced unmanned aerial systems (UAS) and missile defense technologies, and a growing focus on electronic warfare and cyber solutions.
Core Business Areas
- Unmanned Systems: This segment designs, develops, manufactures, and sells unmanned aerial systems (UAS) for tactical and strategic applications, including drone technology for reconnaissance, surveillance, and strike missions. It also includes target drones for training and testing purposes.
- Defense & Security Solutions: This segment provides a broad spectrum of defense and security products and services, including microwave electronics, tactical communication systems, electronic warfare solutions, cyber security, and mission engineering support.
- Space & Satellite Solutions: This segment focuses on space-related technologies and services, such as satellite communication systems, space domain awareness, and satellite constellation management.
Leadership and Structure
Kratos is led by a management team with extensive experience in the aerospace and defense industry. The company operates under a matrixed structure, aligning its various product development and service delivery capabilities to meet diverse customer needs. Key leadership positions include CEO, CFO, and heads of major business segments.
Top Products and Market Share
Key Offerings
- Description: Advanced unmanned aerial vehicle (UAV) platforms designed for complex military missions, including intelligence, surveillance, reconnaissance (ISR), and strike capabilities. Competitors include General Atomics Aeronautical Systems (MQ-9 Reaper), Northrop Grumman (MQ-4C Triton), and Boeing (MQ-25 Stingray).
- Product Name 1: Taranis (Hypothetical - represents Kratos's focus on autonomous systems/advanced UAS)
- Description: A range of unmanned aerial vehicles used by military forces for adversary simulation during training exercises and for missile testing. Kratos is a leading provider in this niche. Competitors include Northrop Grumman and various smaller drone manufacturers.
- Product Name 2: Target Drones (e.g., BQM-167, BQM-177)
- Description: Solutions for electronic warfare, including jamming, signal intelligence, and electronic attack capabilities. Kratos is expanding its presence in this growing defense sector. Competitors include BAE Systems, L3Harris Technologies, and Raytheon Technologies.
- Product Name 3: Electronic Warfare (EW) Systems
- Description: Ground and space-based systems for reliable satellite communications, including modems, amplifiers, and specialized antennas. Competitors include ViaSat, Honeywell Aerospace, and Gilat Satellite Networks.
- Product Name 4: Satellite Communication Systems
Market Dynamics
Industry Overview
Kratos operates in the highly competitive and dynamic aerospace and defense industry, characterized by significant government spending, technological innovation, and geopolitical influences. The sector is seeing increasing demand for advanced autonomous systems, cybersecurity solutions, electronic warfare, and space-based capabilities.
Positioning
Kratos is positioned as a provider of niche, high-technology solutions, particularly in unmanned systems, target drones, and electronic warfare. Its competitive advantage lies in its agility, ability to develop cost-effective and advanced solutions, and its focus on emerging defense needs, such as drone swarming and hypersonic technology.
Total Addressable Market (TAM)
The global defense market is valued in the hundreds of billions of dollars, with significant portions dedicated to aerospace, unmanned systems, electronic warfare, and cybersecurity. Kratos, while a smaller player, is strategically targeting growing sub-segments within this TAM, particularly in the autonomous and advanced technology domains. Its positioning is focused on capturing market share in these specific growth areas.
Upturn SWOT Analysis
Strengths
- Strong expertise in unmanned aerial systems (UAS) and target drones.
- Focus on disruptive and emerging defense technologies.
- Agile development and manufacturing capabilities.
- Established relationships with government defense agencies.
- Growing presence in electronic warfare and cyber solutions.
Weaknesses
- Relatively smaller size compared to larger defense prime contractors.
- Reliance on government contracts, which can be subject to budget fluctuations.
- Potential for long sales cycles and program delays.
- Need for continued investment in R&D to maintain technological edge.
Opportunities
- Increasing global demand for unmanned and autonomous systems.
- Growth in electronic warfare and cyber defense markets.
- Expansion into international defense markets.
- Potential for strategic partnerships and acquisitions.
- Development of solutions for new defense paradigms (e.g., multi-domain operations).
Threats
- Intense competition from larger and well-established defense contractors.
- Government budget cuts or shifts in defense spending priorities.
- Technological obsolescence and rapid pace of innovation.
- Regulatory changes and export controls.
- Cybersecurity threats to its own operations and products.
Competitors and Market Share
Key Competitors
- General Atomics Aeronautical Systems (Private)
- Northrop Grumman (NOC)
- Lockheed Martin (LMT)
- Raytheon Technologies (RTX)
- L3Harris Technologies (LHX)
Competitive Landscape
Kratos faces a competitive landscape dominated by larger, more established defense contractors. Its advantage lies in its specialization, agility, and focus on niche but rapidly growing markets. Larger competitors have greater financial resources and broader product offerings, but Kratos can often offer more targeted and cost-effective solutions.
Major Acquisitions
Ascent Systems
- Year: 2023
- Acquisition Price (USD millions): 65
- Strategic Rationale: To enhance its capabilities in autonomous systems and artificial intelligence for defense applications.
Chorus
- Year: 2020
- Acquisition Price (USD millions): 115
- Strategic Rationale: To bolster its offerings in electronic warfare and secure communications.
Growth Trajectory and Initiatives
Historical Growth: Kratos has achieved consistent historical growth, driven by an expanding product portfolio, successful contract wins, and strategic acquisitions. The company has particularly seen strong traction in its unmanned systems segment.
Future Projections: Analyst projections for Kratos generally anticipate continued revenue growth, driven by increasing defense spending on advanced technologies. Key drivers include its unmanned aerial systems, electronic warfare capabilities, and a growing pipeline of government contracts. Future growth is also expected from its space solutions segment.
Recent Initiatives: Recent initiatives include the development of next-generation unmanned systems, advancements in hypersonic capabilities, expansion of its electronic warfare portfolio, and strategic partnerships to enhance its market reach. The company has also focused on integrating acquired businesses to leverage synergies.
Summary
Kratos Defense & Security Solutions is a dynamic player in the aerospace and defense sector, excelling in niche markets like unmanned systems and electronic warfare. Its strengths lie in technological innovation and agility, allowing it to compete effectively against larger entities. However, it must navigate intense competition and government budget uncertainties. Continued investment in R&D and strategic acquisitions are crucial for sustaining its growth trajectory and addressing evolving defense needs.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Kratos Defense & Security Solutions Investor Relations
- Company SEC Filings (10-K, 10-Q)
- Financial News and Analysis Websites (e.g., Bloomberg, Reuters, Yahoo Finance)
- Industry Reports and Market Research Firms
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute investment advice. Financial data and market share figures are estimates and may vary. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Kratos Defense & Security Solutions
Exchange NASDAQ | Headquaters San Diego, CA, United States | ||
IPO Launch date 1999-11-05 | CEO, President & Director Mr. Eric M. DeMarco | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 4000 | Website https://www.kratosdefense.com |
Full time employees 4000 | Website https://www.kratosdefense.com | ||
Kratos Defense & Security Solutions, Inc., a technology company, provides technology, products, and system and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates in two segments, Kratos Government Solutions and Unmanned Systems. It offers ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems, hypersonic vehicles, and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, and launch systems; command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and commercial customers. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.
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