Kratos Defense & Security Solutions, Inc. KTOS

IndustrialsAerospace & DefenseUnited States of America

Last close 40.23 USD on Nov 2, 2026, −47.0% year to date

Quant rating

Quant rating C Rank 212 of 486 in Industrials

Growth A 34 of 486
Valuation D 345 of 486
Quality C 261 of 486
Revisions A 37 of 486
Momentum D 353 of 486

Wall Street consensus Buy (1.68)Average target 89.59 USD +122.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 7.6B
Enterprise value: 6.3B
52-week range: 36.38 – 133.87
3-year range: 16.93 – 133.87
Dividend yield: –
Beta (5 years): 1.17
Shares outstanding: 188M
Next earnings: Nov 5, 2026

About the company

Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,347	1,136	1,037	898	812	–
Revenue growth	18.5%	9.6%	15.5%	10.7%	8.5%	12.5%
EPS (basic, normalized)	0.55	0.49	0.42	0.31	0.36	–
EPS growth	12.2%	16.7%	35.5%	−13.9%	–	–
Gross margin	22.9%	25.3%	25.9%	25.2%	27.7%	25.4%
Net margin	1.6%	1.4%	−0.9%	−4.2%	0.0%	−0.4%
ROE	1.3%	1.4%	−1.0%	−4.0%	0.0%	−0.4%

Balance sheet, last quarter
Cash & short-term investments (mil)	1,438
Current ratio	5.54x
Long-term debt (mil)	135
Net debt (mil)	−1,298
Total equity (mil)	3,427
Net debt / equity	−0.38x
Net debt / EBITDA	−10.82x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,347	+18.5%	4.6x	120	+14.1%	52.2x	0.55	+12.2%	73.1x
2026	1,795	+33.2%	3.5x	175	+45.9%	35.7x	0.84	+51.9%	48.2x
2027	2,219	+23.7%	2.8x	240	+37.0%	26.1x	1.13	+35.1%	35.6x
2028	2,712	+22.2%	2.3x	312	+30.1%	20.1x	1.39	+22.9%	29.0x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	1,795	0.0%	+2.6%	+6.5%	0.84	+0.2%	+9.9%	+7.6%
2027	2,219	0.0%	+2.5%	+6.8%	1.13	+1.4%	+6.1%	+7.3%
2028	2,712	+1.0%	+3.0%	+9.3%	1.39	+1.5%	+5.6%	+0.5%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	277	300	276	283	303	352	348	345	371	459
Sales mean (mil)	250	276	277	287	293	306	322	328	340	410
Surprise	+10.7%	+8.6%	−0.5%	−1.3%	+3.3%	+14.9%	+7.9%	+5.3%	+9.2%	+11.8%
EPS reported	0.11	0.14	0.11	0.13	0.12	0.11	0.14	0.18	0.16	0.21
EPS mean	0.05	0.08	0.08	0.10	0.09	0.09	0.12	0.16	0.13	0.14
Surprise	+116.8%	+64.9%	+31.7%	+28.3%	+29.4%	+18.2%	+12.4%	+14.3%	+19.1%	+48.6%

Peer comparison Aerospace & Defense

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
KTOS Kratos Defense & Security Solutions, Inc.	7.6B	−10.82x	1.6%	2.20x	48.2x	35.6x	35.7x	26.1x
GE General Electric Company	326.3B	1.05x	19.0%	18.62x	38.7x	33.8x	27.6x	24.4x
RTX RTX Corporation	273.7B	1.90x	7.6%	3.95x	26.2x	25.1x	17.8x	16.7x
BA Boeing Co	139.0B	4.05x	2.1%	21.22x	−86.6x	211.9x	50.2x	29.3x
LMT Lockheed Martin Corporation	148.6B	1.54x	6.7%	14.70x	21.0x	19.3x	14.5x	13.4x
GD General Dynamics Corp	100.9B	0.42x	8.0%	3.70x	21.7x	19.9x	15.1x	13.9x
Mean		−0.31x	7.5%	10.73x	11.5x	57.6x	26.8x	20.6x
Median		1.30x	7.1%	9.33x	24.0x	29.5x	22.7x	20.5x

Technical analysis

1M−6.6%
3M−13.7%
1Y−55.6%
3Y+124.1%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Kratos Defense & Security Solutions, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,347	1,136	1,037	898	812	748
Cost of revenue	1,039	849	768	672	586	544
Gross profit	308	287	269	226	225	203
Selling, general & administrative expenses	231	205	191	175	156	138
Research & development	40.0	40.3	38.4	38.6	35.2	27.0
Depreciation/amortization	9.6	8.6	6.8	7.4	4.7	6.8
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	2.1	3.9	1.3	20.5	1.8	2.4
Other operating expenses	0	0	0	0	0	0
Operating income	25.6	29.0	31.1	−15.6	27.9	29.3
Net interest income (expense)	5.9	−3.0	−20.5	−17.7	−23.4	−22.8
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	2.5	0.5	0.5	0.6	−0.1	0.3
Net income before taxes	34.0	26.5	11.1	−32.7	4.4	6.8
Provision for taxes	12.0	10.2	8.9	1.4	3.9	−73.5
Minority interest	0	0	−11.3	−3.7	−0.4	0.2
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	22.0	16.3	−9.1	−37.8	0.1	80.5
Extraordinary items	–	–	0.2	0.9	−2.1	−0.9
Net income	22.0	16.3	−8.9	−36.9	−2.0	79.6
EBIT, normalized	27.7	32.9	32.4	4.9	29.7	31.7
EBITDA, normalized	74.8	73.2	65.6	35.4	55.4	56.3
Basic EPS, normalized	0.55	0.49	0.42	0.31	0.36	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Kratos Defense & Security Solutions, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	561	329	72.8	81.3	349	381
Receivables	457	324	329	328	285	272
Total inventory	188	162	156	126	91.7	81.2
Prepaid expenses	12.9	18.0	16.0	11.9	9.8	12.0
Other current assets	43.8	38.9	20.0	35.4	22.5	18.5
Total current assets	1,263	872	594	583	758	765
Property, plant & equipment	405	326	289	260	207	187
Goodwill	596	569	569	558	494	484
Intangibles	53.9	53.8	62.4	55.2	43.2	43.0
Long-term investments	5.0	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	144	130	118	95.0	87.5	84.4
Total assets	2,467	1,951	1,632	1,552	1,590	1,563
Liabilities
Accounts payable	69.6	82.0	63.1	57.3	50.4	55.4
Payable/accrued	–	–	–	–	–	–
Accrued expenses	156	122	114	98.3	86.1	93.2
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	3.4	1.9	1.3	1.7	1.2	0.9
Other current liabilities	82.4	90.8	114	76.9	83.4	48.1
Total current liabilities	311	297	292	234	221	198
Long-term debt	95.8	239	270	300	340	340
Minority interest	–	0	22.5	11.2	15.2	14.8
Other liabilities	64.1	62.0	71.3	69.7	68.2	85.3
Total liabilities	471	598	656	615	644	638
Shareholders' equity
Preferred stock	0	0	0	0	0	0
Common stock	0.2	0.2	0.1	0.1	0.1	0.1
Additional paid-in capital	2,636	2,017	1,654	1,608	1,579	1,556
Retained earnings (accumulated deficit)	−642	−664	−680	−671	−634	−632
Treasury stock	–	–	–	–	–	–
Other equity	2.1	−0.5	1.6	−0.9	0.5	1.3
Total equity	1,996	1,353	976	936	945	925
Total liabilities & shareholders' equity	2,467	1,951	1,632	1,552	1,590	1,563

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Kratos Defense & Security Solutions, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	22.0	16.3	2.4	−33.2	−1.6	79.4
Depreciation, depletion & amortization	47.1	40.3	33.2	30.5	25.7	24.6
Deferred taxes	8.1	4.4	2.5	−3.1	−0.4	−78.2
Non-cash items	48.7	42.1	38.3	55.0	33.2	34.2
Changes in working capital	−168	−53.4	−11.2	−74.9	−26.1	−13.4
Cash from operations	−42.1	49.7	65.2	−25.7	30.8	46.6
Investing activities
Capital expenditures	−95.3	−58.2	−52.4	−45.4	−46.5	−35.9
Other investing cash flows	7.0	−11.5	8.6	−132	−5.6	−51.4
Cash from investing	−88.3	−69.7	−43.8	−177	−52.1	−87.3
Financing activities
Financing cash flow items	−18.3	−17.4	−3.7	−15.8	−9.1	0
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	379	295	−27.0	−47.5	−0.2	248
Cash from financing	361	278	−30.7	−63.3	−9.3	248
Foreign exchange effects	1.0	−1.1	0.8	−1.7	−1.5	1.9
Net change in cash	231	256	−8.5	−268	−32.1	209
Free cash flow	−137	−8.5	12.8	−71.1	−15.7	10.7

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.