SEGMENT 05, DEFENCE & GOVERNMENT · Last updated 28 September 2026

Kratos Defense & Security Solutions

Diversified US defence supplier whose unmanned-aircraft business includes jet-powered target drones and the Valkyrie tactical aircraft.

HQ
Round Rock, Texas, USA
Status
Public · NASDAQ: KTOS
NDAA
unknown

Compliance status not publicly verified.

Key Facts

Full Year 2025 Revenue$1.347 billionUp $210.5 million year over year[1]
Unmanned Systems Segment Revenue$292.0 millionKratos Unmanned Systems (KUS) full year 2025, against $270.5 million in 2024[1]
Full Year 2025 Adjusted EBITDA$119.9 millionOperating income $25.6 million, net income $22.0 million[1]
Book-to-Bill Ratio1.1 to 1.0Consolidated, full year 2025[1]
Fiscal 2026 Revenue Forecast$1.595 billion to $1.675 billionBase case announced February 2026, with adjusted EBITDA forecast of $157.0 million to $167.0 million[1]
Valkyrie Production PlanUp to approximately 40 Valkyries annually by end of 2027Plan announced February 2026, based on expected customer delivery schedules[1]
Principal Executive OfficesRound Rock, TexasPer the FY2025 Form 10-K cover page (filed February 2026)[3]
Valkyrie Programme SelectionUS Marine Corps MUX TACAIR CCATeammate Northrop Grumman competitively awarded the programme, pairing its capabilities with the Valkyrie[3]

PRODUCTS

Valkyrie[3]

Jet-powered tactical unmanned aircraft; the aircraft in Northrop Grumman's US Marine Corps MUX TACAIR collaborative combat aircraft award.

Jet target drones[3]

Jet-powered aerial targets including the BQM-167 for the US Air Force, the BQM-177 for the US Navy and the MQM-178 for the US Army, also sold to allied countries.

Drone Intelligence Assessment

Kratos reported $1.347 billion of revenue and $25.6 million of operating income in 2025, a low single-digit operating margin. Most revenue came from Kratos Government Solutions ($1.055 billion); Kratos Unmanned Systems reported $292.0 million, a segment that includes target drones and tactical aircraft, and the disclosures do not separately quantify Valkyrie revenue. The company has invested in Valkyrie aircraft ahead of anticipated orders and in expanded production facilities, and in February 2026 announced a plan to reach a production rate of up to approximately 40 Valkyries a year by the end of 2027, alongside a 2026 base-case revenue forecast of $1.595 billion to $1.675 billion. Delivering that plan will require further execution and investment; the Marine Corps MUX TACAIR award won by teammate Northrop Grumman, with Valkyrie as the aircraft, is the programme anchor to watch.

INDEPENDENT ASSESSMENT

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Drone Intelligence, Company Profile. Compiled from public filings, company disclosures and specialist reporting. Last updated 28 September 2026.

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