Latest news with #EricDeMarco
Yahoo
21-07-2025
- Business
- Yahoo
XQ-58 Valkyrie Heading To European Market With Kratos-Airbus Team-Up
Airbus Defense and Space has teamed up with Kratos Defense and Security Solutions to provide the stealthy XQ-58A Valkyrie drone to the German Luftwaffe. The development could see the Valkyrie being offered to a range of other European nations, alongside Germany, potentially filling an emerging niche for 'loyal wingman'-type drones, along with other roles, with a number of air forces. The partnership between Airbus and Kratos will see the European firm equip the XQ-58A with a new mission system, details of which otherwise remain scarce, other than the fact that it will feature a 'platform-agnostic system architecture,' meaning that it can be integrated into the U.S.-made drone and others more easily. TWZ approached Kratos for more details on what the changes would involve, as well as the broader aims of the program, and was told that the new partnership aimed to achieve 'an affordable, low-risk, high-capability Collaborative Combat Aircraft optimized for German/European defense applications.' Eric DeMarco, CEO of Kratos, described the new version of the Valkyrie as being 'tuned' for the European mission, suggesting that it will feature specific modifications for operators in the region. In a statement, Mike Schoellhorn, CEO of Airbus Defense and Space, doesn't refer explicitly to a German plan involving the XQ-58A, but notes that 'our customers have expressed an urgent demand for both attritable and non-attritable Collaborative Combat Aircraft.' By teaming up with Kratos, Airbus will be able to 'deliver crucial capabilities for our warfighters in Europe before the end of the decade.' Airbus says that the plan is for the 'Europeanized' drone to be ready for the Luftwaffe by 2029. At this stage, it's not clear if the German Ministry of Defense has a specific requirement to buy the XQ-58A, but there are certainly signs that it wants to introduce a similar platform in the future. It should also be recalled that Kratos has, in the past, said that it was developing two new drone designs, Apollo and Athena, with a particular focus on collaborative operations with other crewed and uncrewed aircraft, and an eye toward sales in Europe. The modular Apollo and Athena designs are smaller than the XQ-58A and could be configured to carry weapons, electronic warfare systems, or additional sensors, as you can read about here. However, Kratos told TWZ that the new partnership with Airbus is not related to Apollo and Athena. Meanwhile, last summer, Airbus unveiled a stealthy CCA-like concept of its own, known as Wingman. At the time, Schoellhorn said that the Luftwaffe had 'expressed a clear need' for a drone that would be able to operate in conjunction with crewed fighters before the arrival in service of the pan-European Future Combat Air System (FCAS). The FCAS program is aiming for service entry in the 2040s, with a crewed New Generation Fighter (NGF) as its centerpiece. Schoellhorn noted that the Wingman would be expected to enter service in the 2030s timeframe. Somewhat larger than the XQ-58A, the Wingman currently exists only as a concept aircraft, while the Valkyrie has been flying since 2019. Potentially, Germany might be looking to acquire the XQ-58A as an interim platform pending the arrival of the Wingman, although the company's plans suggest it will be looking to find a market for the 'Europeanized' drone with NATO members across the continent. Germany, for its part, would certainly seem to be a candidate for a CCA-type drone, especially as an uncrewed companion that it wants to have work alongside its forthcoming Eurofighter EK electronic warfare jets. However, an Airbus official told Breaking Defense that, at this point, the XQ-58A is not being pitched for this Electronic Combat Wingman program. That is somewhat surprising, especially considering the fact that the Valkyrie has previously been tested in an electronic warfare capacity, and an EW version of the drone exists as a program of record for the U.S. Marine Corps. Regardless, the potential of a drone of this kind could also be harnessed by other German Eurofighters, which undertake a range of air defense and air-to-ground missions, as well as the F-35A stealth jets it also has on order. Noteworthy is the fact that the F-35 is slated to work together with CCAs, as well, with the combination of the stealth jet and complementary drones being a key facet of the planned future U.S. Air Force force posture. Airbus describes the XQ-58A as a runway-independent rail-launched drone, which could also be especially interesting for European air forces, allowing them to conduct dispersed operations and to forward-launch the drones close to NATO's eastern border. The drones can even be launched from forward locations out of shipping containers, to maximize range and loiter time, with crewed fighters joining up with them from deeper, more protected bases. At the same time, it remains possible that the new version of the drone might at least be offered with built-in landing gear. Kratos first announced that a version of the drone with tricycle-type wheeled landing gear was in the works last year, and this might present certain advantages over the original runway-independent design. Meanwhile, there also exists the ability to launch the Valkyrie from a wheeled launch trolley, if required. It's notable that, before the Wingman concept, Airbus worked on other advanced uncrewed aircraft programs. Chief among these is the Barracuda, work on which began in 2003, initially as a 'black program.' After six test campaigns, the Barracuda — which has a striking resemblance to the XQ-58A — was retired. Experience and data from the drone have been fed into FCAS, which is also planned to include interaction of crewed and uncrewed aircraft, with 'remote carrier' drones of different sizes being among the latter. Whatever Germany's plans for the Valkyrie, the partnership with Airbus appears very well timed to bring a relatively proven 'loyal wingman'-type drone to the European market. With increasing tensions between NATO and Russia, air forces are paying much more attention to more affordable ways of usefully boosting combat mass. This could be a real boost for the XQ-58A, especially since it was absent from the first tranche of the U.S. Air Force's Collaborative Combat Aircraft (CCA) program. Ultimately, General Atomics and Anduril were selected to build flying prototypes of their designs, now designated YFQ-42A and YFQ-44A, respectively, under CCA's Increment 1, but the Valkyrie could well still have a chance for follow-on tranches. Meanwhile, the U.S. Marine Corps has been testing the Valkyrie extensively and, earlier this year, Kratos confirmed that it was close to final configurations of the drone for the service. It's unclear what the Marine Corps variants will be, but Kratos has previously said it was working on at least five XQ-58 variants, including one that was optimized for electronic attack. For many years, defense spending across Europe — and not just in Germany — saw air forces reduced in size and lose some of their previous capabilities. A renewed emphasis on defense and the potential of uncrewed assets could open significant new markets for the XQ-58A, especially as air forces look for lower-cost ways of rebuilding combat mass. Contact the author: thomas@ Solve the daily Crossword
Yahoo
07-07-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Kratos's Q1 Earnings Call
Kratos' first quarter results were met with a negative market reaction, as investors focused on slower organic revenue growth and ongoing margin constraints despite sales and adjusted profit coming in above Wall Street expectations. Management pointed to strong demand in its Microwave Products, C5ISR, and Rocket Support businesses as key contributors to the revenue increase. However, CEO Eric DeMarco cited persistent cost pressures in the company's Unmanned Systems segment, especially on long-term fixed price contracts, as a factor limiting profitability. DeMarco acknowledged, 'Any contractor that had a fixed price contract in this non-normal environment, we have to either absorb these costs or we have to manage our way through it.' Is now the time to buy KTOS? Find out in our full research report (it's free). Revenue: $302.6 million vs analyst estimates of $291.2 million (9.2% year-on-year growth, 3.9% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.09 (32.8% beat) Adjusted EBITDA: $26.7 million vs analyst estimates of $23.12 million (8.8% margin, 15.5% beat) The company reconfirmed its revenue guidance for the full year of $1.27 billion at the midpoint EBITDA guidance for the full year is $115 million at the midpoint, below analyst estimates of $117.8 million Operating Margin: 2.2%, in line with the same quarter last year Organic Revenue rose 7.4% year on year (19.4% in the same quarter last year) Market Capitalization: $7.52 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Peter Arment (Baird) asked about Kratos' role in the Golden Dome missile defense initiative; CEO Eric DeMarco explained that Kratos' ground systems and software are positioned for growth as satellite and defense infrastructure expands. Mike Crawford (B. Riley Securities) inquired about the scale of jet engine production and contract revenue recognition; CFO Deanna Lund clarified that revenue is recognized upon contract award and delivery of completed aircraft. Ken Herbert (RBC Capital Markets) questioned the profitability outlook for the Unmanned Systems segment given ongoing cost pressures; Lund and DeMarco pointed to ongoing mitigation efforts and expected relief in future contract cycles. Joe Gomes (NOBLE Capital) asked about competitive threats in tactical drones and commercial technology repurposing; DeMarco stated Kratos faces no disruptive competition and outlined efforts to commercialize defense technologies in autonomous trucking and rocket engines. Michael Ciarmoli (Truist Securities) pressed for clarity on the mix of growth drivers; DeMarco identified hypersonics as the clear leader, followed by propulsion systems and microwave electronics, with tactical drones seen as a potential upside catalyst. In the coming quarters, our analysts will be tracking (1) the ramp-up of hypersonic and propulsion program deliveries, (2) the operational transition and output recovery of the Israeli microwave facility following its move, and (3) the pace and composition of new contract awards, particularly in tactical drones and C5ISR segments. Execution on margin improvement initiatives and expanding commercial applications will be additional performance indicators. Kratos currently trades at $45.25, up from $36.09 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Kratos Expands U.S. Jet Engine Production Footprint with New Advanced Manufacturing Facility, Test Cells in Bristow, Oklahoma
New 50,000-Square-Foot Facility, Located on 20 acres, is Expected to Expand to 100,000 Square Feet and House up to Five GEK Engine Production Lines PARIS, June 16, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced plans to open a new advanced manufacturing facility in Bristow, Oklahoma to produce its GEK (GE Aerospace-Kratos) family of turbojet engines, with an initial focus on the GEK800. The announcement was made during the Oklahoma Breakfast in Paris ahead of the 2025 Paris Air Show, with Kratos CEO Eric DeMarco, Kratos Turbine Technologies (KTT) President Stacey Rock, and Oklahoma Governor Kevin Stitt in Manufacturing Facility in Bristow, OK A photo accompanying this announcement is available at The 50,000-square-foot facility, located on 20 acres, is expected to expand to 100,000 square feet and house up to five GEK engine production lines and initial output of 500 engines annually, supporting thrust classes from 600 to 6000 pounds. Occupancy is expected in mid-2026, with operations fully ramped by Q4 2026. The facility will include three small engine (200-2000 lbf thrust) test cells, which are expected to be operational in 2027, thanks to approved grant funding from the State of Oklahoma. The initial engine line is expected to create 60 high-quality jobs at the site, with key positions beginning recruitment in late 2025 and general hiring in Q1 2026. Each additional production line is expected to add approximately 45 new jobs. 'This facility underscores Kratos' strategy of delivering affordable, high-performance, made-in-America propulsion systems at scale,' said Stacey Rock, President of Kratos Turbine Technologies. 'Bristow will be a critical site for delivering mass to the mission and meeting the growing propulsion needs of our defense customers.'The GE Aerospace – Kratos GEK800 A photo accompanying this announcement is available at Governor Kevin Stitt of Oklahoma, said, 'This is a big win for American workers, for our military, and for every Oklahoman who believes in freedom, innovation, and strength. Kratos could've gone anywhere in the world, but they choose to continue investing in Oklahoma because it is the best place to build, grow, and do business. Oklahoma is proud to be a hub for national defense that is leading the way in rebuilding America's industrial base and powering the technologies that keep our country safe.' Eric DeMarco, President and CEO of Kratos Defense & Security Solutions, said, 'Kratos is truly honored to expand our presence in Oklahoma with this new, state-of-the-art propulsion production facility in Bristow. This new Kratos investment reflects our continued commitment to delivering high-performance, affordable jet engine technology to support the Department of Defense and our allies and answers the rising demand for propulsion systems for cruise missiles and CCA-type aircraft, while being targeted and optimized for cost reduction. The Bristow facility will play a critical role in accelerating production of the GEK family of engines, including the GEK800, and strengthening America's industrial base in this decisive era. We thank Governor Stitt and the State of Oklahoma for their partnership in helping us build the future of high-performance propulsion right here in the heartland.' 'Oklahoma is proud to be home to Kratos and all they do to provide cutting-edge defense technologies to our warfighters from target drones and unmanned combat aircraft to state-of-the-art turbine engines. Their investment in our state is an investment in our workforce, our warfighters, and our national security.' – 'Kratos' expansion in Oklahoma is further proof that Oklahoma is a hub for innovative defense technology and high-quality manufacturing jobs. I am proud of all Kratos does day-to-day, providing our servicemembers with the best technology in the world, and ensuring our national security.' – 'Kratos' decision to grow in Oklahoma highlights Oklahoma's strong workforce and unwavering support for our nation's defense mission. Kratos continues to excel and I look forward to seeing the positive impact this facility will have on our state and national security.' - About Kratos Defense & Security SolutionsKratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers' mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos' approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos' comfort level. Kratos' primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit Notice Regarding Forward-Looking StatementsCertain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos. Press Contact:Claire Information:877-934-4687investor@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
KTOS Q1 Earnings Call: Product Expansion and Margin Investments Shape Outlook
Aerospace and defense company Kratos (NASDAQ:KTOS) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 9.2% year on year to $302.6 million. On the other hand, next quarter's revenue guidance of $305 million was less impressive, coming in 3.3% below analysts' estimates. Its non-GAAP profit of $0.12 per share was 32.8% above analysts' consensus estimates. Is now the time to buy KTOS? Find out in our full research report (it's free). Revenue: $302.6 million vs analyst estimates of $291.2 million (9.2% year-on-year growth, 3.9% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.09 (32.8% beat) The company reconfirmed its revenue guidance for the full year of $1.27 billion at the midpoint EBITDA guidance for the full year is $115 million at the midpoint, below analyst estimates of $117.8 million Organic Revenue rose 7.4% year on year (19.4% in the same quarter last year) Market Capitalization: $6.03 billion Kratos' first quarter results reflected ongoing momentum in its core defense and aerospace markets, as management credited growth to strong order activity and continued execution across hypersonic systems, microwave electronics, and unmanned systems. CEO Eric DeMarco highlighted that 'Kratos is currently bidding on a number of large multi-hundred million dollar single award opportunities,' and noted that a record $12.6 billion opportunity pipeline underscores the breadth of market demand. The quarter saw meaningful organic revenue growth in microwave products and C5ISR (command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance), driven by new contracts and elevated demand for military-grade systems. Looking ahead, Kratos' full-year outlook is supported by recent U.S. defense appropriations and a strong backlog, but management acknowledged operational headwinds, including cost pressures on certain fixed-price contracts and a planned facility move in Israel. CFO Deanna Lund explained, 'Our second quarter forecasted financial performance takes into consideration the expected several week downtime related to our Microwave Products facility move in Israel.' Management expects the hypersonics franchise, jet engines, and microwave electronics to be primary growth drivers, while tactical drone programs remain a potential upside. DeMarco cautioned that some revenue timing could shift due to government contracting delays but expressed confidence in the company's ability to manage supply chain and labor sourcing challenges throughout the year. Management attributed first quarter performance to robust demand for national security programs, expansion in hypersonics, and strategic investments in production capacity. Hypersonic systems ramp: Kratos is expanding its hypersonic franchise, with CEO Eric DeMarco citing successful initial flights of the Dark Fury vehicle and strong customer interest in operational hypersonic systems like Zeus and Erinyes. These programs are positioned as key future contributors given their lower production costs and readiness for deployment. Microwave electronics growth: International and domestic demand for microwave products, especially from Israeli and U.S. defense customers, drove record backlog and prompted investments in expanded manufacturing. Management noted that these components are increasingly critical for air defense and missile systems globally. C5ISR segment performance: The C5ISR business, which provides vital electronics for missile, radar, and defense systems, experienced notable contract wins and is supporting a wide range of U.S. and allied programs. Management emphasized this segment's unique position as a merchant supplier to multiple defense primes, enabling broader market access. Unmanned and tactical drones: While target drone demand remains strong due to global air defense needs, tactical drone programs (such as Valkyrie and Thanatos) continue to develop, with management opting not to count on these as near-term revenue drivers until contracts are secured. The company is producing Valkyrie aircraft ahead of potential awards to speed up customer delivery. Facility and supply chain investments: Kratos made substantial investments in expanding production capacity, particularly in microwave electronics and hypersonics. The planned move of its Israeli microwave facility is expected to temporarily impact margins next quarter, but management believes the action positions the company for long-term growth and higher-margin opportunities. Kratos' outlook is shaped by the scaling of hypersonics, engine production, and ongoing investments in manufacturing expansion, balanced against supply chain and contract cost headwinds. Hypersonics and jet engines lead: Management expects the hypersonic franchise to be the largest growth driver for the foreseeable future, with new operational rocket motors and flight vehicles in production and customer-funded programs ramping up. Jet engines and propulsion systems are also set to expand, as Kratos is designed into new missile and drone platforms. Margin and supply chain management: The company faces headwinds from elevated material and subcontractor costs, particularly in legacy fixed-price contracts for target drones. Management is actively working to qualify alternative suppliers and expects some cost relief, but significant margin improvement is projected for 2026 when new contracts reflect current cost structures. Production facility transitions: The move and expansion of the Israeli microwave electronics facility will cause temporary operational disruption in the next quarter. However, management anticipates regaining momentum as production ramps back up, with microwave products expected to deliver high-margin growth as global air defense demand persists. In the coming quarters, the StockStory team will be watching (1) the ramp of hypersonic and jet engine programs as new customer-funded contracts move into production, (2) margin recovery and cost management efforts in legacy fixed-price contracts as supply chain strategies unfold, and (3) the operational impact and post-move performance of the Israeli microwave electronics facility. Progress on tactical drone contract awards and commercial technology repurposing will also be important markers. Kratos currently trades at a forward P/E ratio of 72.4×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Kratos to Webcast Annual Shareholders Meeting Featuring CEO Business-Wide Update
Kratos Defense & Security Solutions, Inc. SAN DIEGO, May 07, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced it will webcast a special presentation from President and CEO Eric DeMarco as part of its 2025 Annual Meeting of Shareholders. The webcast will be open to the public and will take place on Wednesday, May 14, 2025, at 9:00 a.m. PDT. During the webcast, Mr. DeMarco will provide a comprehensive business-wide update covering Kratos' strategic priorities, operational highlights, technology initiatives, and market outlook across all divisions. The presentation will also highlight the company's progress in hypersonic systems, unmanned platforms, propulsion, space-based capabilities, and dual-use technologies. Shareholders who have logged into the meeting with their 16-digit Control Number will have the opportunity to submit questions relevant to the matters properly addressed during the meeting after the formal business of the meeting has been conducted. Instructions for submitting questions will be provided to shareholders once logged into the meeting. The Annual Meeting is open to shareholders of record as of March 17, 2025 (Record Date) and/or their designated representatives. Interested persons who were not shareholders as of the close of business on the Record Date may view, but not participate in, the Annual Meeting at Webcast Details: Date: Wednesday, May 14, 2025 Time: 9:00 a.m. PDT Registration Link: Open to: All interested parties About Kratos Defense & Security Solutions Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers' mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos' approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos' comfort level. Kratos' primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit
