Kratos Defense
Compare Kratos Defense…Affordable unmanned systems + hypersonics + microwave electronics. XQ-58A Valkyrie loitering UCAV; MQM-178 Firejet target drone; OBSS prototype. Hypersonic test airframe provider.
SectorsDefense
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Kratos DefenseAffordable unmanned systems + hypersonics + microwave electronics. XQ-58A Valkyrie loitering UCAV; MQM-178 Firejet target drone; OBSS prototype. Hypersonic test airframe provider.
Q1 2023-Q3 2025
| Program / Domain | FY 2023 Status | FY 2024 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 |
| Mako (Navy + USAF jet target) | Production ramping for Navy + USAF target drone programs | Continued production for high-performance threat representation training |
| Apollo + Athena training drones | Steady production for USAF aerial-target programs | Continued multi-year contract execution; consistent program of record revenue |
| Phantom hypersonic test vehicles | Hypersonic test infrastructure for DoD Mach 5+ programs | Continued growth in hypersonic test launches 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 |
| Total Unmanned Systems segment revenue | ~$280M | ~$310M+ |
| 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? |
2021-Q2-2026-Q1
2021-Q2-2026-Q1
1999-2025
$KTOS
Affordable unmanned systems + hypersonics + microwave electronics. $1.13B FY2024 revenue. XQ-58A Valkyrie loitering UCAV; MQM-178 Firejet target drone; OBSS (Off-Board Sensing Station) prototype. Hypersonic test airframe provider. C5ISR product portfolio.
Key Milestones
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.
