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| Program / Domain | FY 2023 Status | FY 2024 Status + Direction | FY 2025 Status + Direction |
|---|---|---|---|
| Valkyrie XQ-58A (USAF + USMC Collaborative Combat Aircraft) | Continued USMC + USAF test flights; not yet in LRIP | USMC selected Valkyrie for Penetrating Affordable Autonomous Collaborative Killer (PAACK) test; CCA Increment 1 contracts awarded to Anduril Fury + General Atomics XQ-67A (not Kratos) but Increment 2 still open | Won a CCA production path via Northrop Grumman MUX TACAIR (Valkyrie airframe + Northrop mission systems); plans to ramp Valkyrie output to ~40 units/year by end of 2027 |
| Mako (Navy + USAF jet target) | Production ramping for Navy + USAF target drone programs | Continued production for high-performance threat representation training | Continued production for Navy + USAF threat-representation training |
| Apollo + Athena training drones | Steady production for USAF aerial-target programs | Continued multi-year contract execution; consistent program of record revenue | Continued multi-year contract execution |
| Phantom hypersonic test vehicles | Hypersonic test infrastructure for DoD Mach 5+ programs | Continued growth in hypersonic test launches for Air Force + Navy programs | Continued hypersonic test-launch activity for Air Force + Navy programs |
| Space + Satellite systems | Small satellite bus contracts for IC + DoD missions | Continued small-sat work; partnership with hyperscaler + space prime customers | Continued small-satellite work for IC + DoD missions |
| Total Unmanned Systems segment revenue | ~$280M | ~$310M+ | ~$292M (+7.9% organic) |
| Editorial. Why this matters | Strategic context | Kratos is the cleanest US public-equity exposure to the Collaborative Combat Aircraft (CCA) thesis + the broader unmanned-aerial-combat-vehicle market. Marquee question: does Kratos win meaningful CCA Increment 2 contracts (next decision point 2025-2026) that scale UAS revenue from ~$310M today toward $500M+ by FY2028? | 2025 delivered the thesis catalyst: Valkyrie captured a CCA production path via Northrop Grumman's MUX TACAIR win, with output targeted at ~40 units/year by end of 2027. Unmanned Systems revenue reached ~$292M (+7.9% organic), keeping the $500M+ by FY2028 trajectory in play |
Founded as Wireless Facilities Inc (WFI) in San Diego providing cellular network deployment services. IPO 1999.
Pivots to defense via 2007 Integral Systems and 2010 Composite Engineering acquisitions; renamed Kratos Defense & Security Solutions Sep 2010. Eric DeMarco becomes CEO.
BQM-167 Skeeter / Firejet target drone platform for Air Force; affordable subsonic targets foundation of Kratos UAS business.
XQ-58A Valkyrie unmanned combat air vehicle first flight Mar 5 2019; Loyal-Wingman concept demonstration; ~$3M unit cost target.
Wins Off-Board Sensing Station (OBSS) prototype contract; Skyborg-affordable airframe development
USMC selects XQ-58A for Penetrating Affordable Autonomous Collaborative Killer (PAACK); first ops use case for Valkyrie
Hypersonic test bed contracts ramp; MACH-TB (Multi-Service Advanced Capability Hypersonic Test Bed) participation provides flight test infrastructure for hypersonic primes.
Loses Air Force CCA Increment 1 to Anduril/General Atomics Apr 2024; OBSS/Valkyrie remain in service for sub-CCA roles
Apollo + Athena hypersonic vehicle programs ramp; first-stage Solid Rocket Motor delivery from new West Virginia facility.
Air Force Replicator awards: tactical drones for Indo-Pacific deterrence; revenue inflects with Group 3-4 UAS
Backlog hits record $1.5B; hypersonic test demand + Replicator awards drive 30%+ growth trajectory
XQ-58A Valkyrie selected for Marine Corps Aerial Logistics Connector role; Kratos secures recurring Group 5 production volume.