Kratos Defense & Security Solutions, Inc. (KTOS)

In the past six months, Kratos's stock experienced analyst upgrades, a substantial jump after President Trump announced plans for a significant increase in the military budget for 2027, and new contracts. The company's expansion of facilities also contributed to positive sentiment. However, there has been significant insider selling. In February 2025, the stock fell after the company forecast first-quarter revenue below Wall Street's estimates, though adjusted earnings per share exceeded expectations. Despite this, the stock has shown remarkable resilience and growth.

While seasonal patterns exist for KTOS stock performance, specific details regarding the seasonality of demand for Kratos's products and services were not provided. However, the company operates in a market with strong demand tailwinds due to global defense spending increases. Kratos's focus on "attritable mass" and the "roboticization" of the military also positions it in high-demand segments of the defense industry. The company's record backlog of $1.48 billion entering 2026 provides high visibility for demand over the next 24 months.

Kratos Defense & Security Solutions, Inc. is an American technology company headquartered in San Diego, California, specializing in advanced defense and national security solutions. The company develops and fields transformative, affordable technology, platforms, and systems for U.S. national security customers, allies, and commercial enterprises. Kratos's major products and areas of expertise include unmanned aerial systems (UAS), directed-energy weapons, electronics, satellite communications, cybersecurity/warfare, microwave electronic products, missile defense, hypersonic systems, rocket support systems, training solutions, and next-generation turbojet and turbofan engine development. The company is structured around two primary business segments: Kratos Government Solutions (KGS) and Unmanned Systems (US).

Kratos's primary market is the United States, accounting for approximately 85% of its total revenue, while international sales contribute approximately 15%. The company has expanded its operational footprint with new facilities, including a hypersonic and payload integration facility in Princess Anne, Maryland, and an expanded campus in Birmingham, Alabama. Kratos also has a presence in other North American regions, Asia Pacific, the Middle East, and Europe.

Kratos Defense & Security Solutions maintains a strong brand reputation, positioning itself as an "innovation partner" to the Pentagon and a "disruptive prime" in the defense sector. The company is recognized for its focus on developing affordable, high-performance, and rapidly deployable solutions. Successful collaborations and Kratos's strategy of reinvesting capital into research, development, and production further bolster its standing. There have been no specific events in the past year that have negatively impacted Kratos's brand reputation.

Kratos Defense & Security Solutions, Inc. has a high level of institutional ownership, with institutions holding between 82% and 86% of the company's shares. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, State Street Corp, Geode Capital Management, Llc, Franklin Resources Inc, and ARK Investment Management LLC. Significant individual shareholders include Bandel L. Carano, Masood Tayebi, and Eric DeMarco.