Latest news with #Kratos'
Yahoo
3 days ago
- Automotive
- Yahoo
Kratos, Champion Tire & Wheel Launch Industry-First Automated Truck Platoon to Support NASCAR Brickyard 400 Logistics
SAN DIEGO, July 29, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, today announced its collaboration with Champion Tire & Wheel to deploy an automated truck platoon to the Brickyard 400 at Indianapolis Motor Speedway. This milestone marks the first-ever use of driverless trucking technology in motorsports logistics supporting NASCAR teams with automated delivery of wheels, tires, and pit Champion Tire & Wheel's Industry-First Automated Truck Platoon Successfully Deploys to Support the NASCAR Brickyard 400 A photo accompanying this announcement is available at Two tractor-trailers, outfitted with premium Goodyear commercial truck tires, will travel along the I-70 corridor between Ohio and Indiana in the automated platoon configuration, with one human-driven lead truck paired to an automated follower. Equipped with advanced Vehicle-to-Vehicle (V2V) communications, onboard sensors, and automated control systems, the automated follower truck maintains coordinated speed, braking, and steering with the lead. Originally developed for defense applications, Kratos' dual-use technologies demonstrate a transformative approach to fleet logistics using automation to address challenges facing commercial logistics, agriculture, energy, and mining sectors vital to national security. 'Deploying automation in a fast-moving, time-critical logistics environment like NASCAR gave us a unique opportunity to show how seamlessly Kratos' technology fits into real-world operations,' said Maynard Factor, VP of Business Development at Kratos. 'Even outside of core industries, we demonstrated that commercial fleets can adopt Kratos' autonomous systems without overhauling their workflows or disrupting day-to-day business proving how practical and scalable this technology is.' Champion Tire & Wheel, a longtime innovator in motorsports logistics, became the first to use automated platooning to deliver equipment to a global racing event. Operating within the NASCAR supply chain, this deployment underscores how automation can strengthen business continuity and drive efficiency across commercial logistics environments. 'This technology provides us options to better manage spikes in the schedule where distance and timing are a challenge,' said Kevin Mahl, President & CEO of Champion Tire & Wheel. 'By pairing a human-driven lead truck with an autonomous follower, we can keep the fleet moving efficiently to the next race venue. With Kratos autonomous systems as a tool to use when needed, we're able to move more equipment, more efficiently, and give ourselves more flexibility in our logistics planning.' With a legacy of delivering high-performance tires and trusted fleet solutions, Goodyear joined the collaboration to demonstrate how advanced tire and vehicle systems can enable next-generation logistics. Goodyear's long-standing presence at the Brickyard 400—dating back to 1994—underscores a dedication to precision and performance across every terrain. 'Goodyear has long stood at the intersection of driving performance and vehicle intelligence—from the racetrack to autonomous innovation,' said Rich Cottrell, Senior Director, Commercial Marketing, Goodyear. 'This deployment connects Goodyear's racing legacy with our premium commercial tire technology and fleet solutions—helping advance performance and uptime for modern logistics. We're proud to support this milestone with Kratos and Champion Tire & Wheel.' The Brickyard 400 deployment also builds on the I-70 Truck Automation Corridor (TAC) program, an active multi-state effort to accelerate the safe integration of automated trucking along key Midwest freight corridors. Led by DriveOhio (Ohio Department of Transportation), the Indiana Department of Transportation, the U.S. Department of Transportation, and other stakeholders, the I-70 TAC program uses Kratos' auto-platooning systems deployed with EASE Logistics to support freight movements along I-70 between Columbus, OH, and Indianapolis, IN with safety riders in each vehicle. The Kratos dual-use technology strategy of leveraging defense-developed technology for commercial applications maximizes the value of internal research and development investments across sectors. By demonstrating this technology in motorsports logistics, Kratos continues to drive innovation that delivers immediate, real-world impact. 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. About Champion Tire & WheelChampion Tire & Wheel is the leader in race tire and wheel logistics, serving NASCAR teams across the U.S. with precision handling, transportation, and support services. Champion's innovative tracking systems, inspection technology, and logistics operations help ensure teams receive race-ready equipment wherever the schedule takes them. 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. Such statements relate to a variety of matters including, without limitation, Kratos' expectations regarding the use of the proceeds from the public offering, the pipeline for opportunities, and Kratos' success with respect to such opportunities, as well as other statements that are not purely statements of historical fact. 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 including, but not limited to: risks and uncertainties related to market conditions as well as general economic factors. 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 Investor Information:877-934-4687investor@ in to access your portfolio
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
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
Metro
04-06-2025
- Entertainment
- Metro
New God Of War game is 'smaller scale' 2D Metroidvania claim insiders
The next God Of War game might revolve around Kratos' brother, as rumours escalate ahead of Sony's State Of Play. There have been rumours around a new God Of War game, set in Ancient Greece, since earlier this year, but new details have come to light ahead of Sony's State Of Play presentation on Wednesday night. Previous rumours described it as a 'side story' prequel starring young Kratos, although it's never been clear if the gameplay would be similar to God Of War Ragnarök or the original Greek trilogy which began on the PlayStation 2. According to several insiders, it seems this spin-off might be something completely different and more comparable to a game like Prince Of Persia: The Lost Crown, in terms of scale and gameplay. The information comes from Insider Gaming's Tom Henderson, who previously claimed the new project would be set in Ancient Greece. Following the announcement of Sony's State Of Play, a user on X asked him if the rumoured God Of War project might appear. In response, Henderson wrote: 'Hearing a lot of scuttlebutt about the 2.5D/Metroidvania game or whatever it will be, yeah. Seems to be much smaller in scale than what I initially thought.' Fellow insider Jeff Grubb also appeared to corroborate these claims, by posting a 'Yeah' in agreement. Hearing a lot of scuttlebutt about the 2.5D/metroidvania game or whatever it will be, yeah. Seems to be much smaller in scale than what I initially thought. — Tom Henderson (@_Tom_Henderson_) June 3, 2025 As posted on Reddit, a number of other rumours have emerged around the title. According to Xbox Era's Nick Baker, Kratos' brother Deimos will be playable, although it's unclear if he'll be the main protagonist. The game is also rumoured to be developed by Mega Cat Studios (Five Nights At Freddy's: Into The Pit), under the supervision of Sony's Santa Monica Studio, who have developed all the mainline God Of War games. The project has also been compared to 2019's Blasphemous, although it's unclear if that's because of the Metroidvania element or the visual style. More Trending While it's unclear if this project will be announced during Sony's State Of Play later tonight, the acceleration of rumours certainly suggests it could be. This isn't the only rumour which has emerged following the State Of Play announcement. Bloomberg's Jason Schreier appeared to hint on Bluesky that a 'remaster' of Final Fantasy Tactics might show up. As others have noted, the game's director Yasumi Matsuno also retweeted the State Of Play post, before swiftly deleting it. A PlayStation 5 port of Gravity Rush Remastered has been rumoured too, based on a prior database listing, but this appears to have been debunked. While it's always worth taking such rumours with a pinch of salt, Sony is promising a 40+ minute show, so it should be pretty substantial. The State Of Play broadcast kicks off later today (June 4) at 10pm BST across YouTube and Twitch. Email gamecentral@ leave a comment below, follow us on Twitter. To submit Inbox letters and Reader's Features more easily, without the need to send an email, just use our Submit Stuff page here. For more stories like this, check our Gaming page. MORE: Nintendo Switch 2 updates for over 12 Switch games live now including Pokémon Scarlet and Violet MORE: Games Inbox: When will there be Nintendo Switch 2 console reviews? MORE: New Nintendo Switch 2 bundles can be paid for in instalments
Yahoo
09-05-2025
- Business
- Yahoo
Two Secretive Loyal Wingman Drones Aimed At European Market In Development From Kratos
Two new drone designs, Apollo and Athena, are in development at Kratos 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 company's XQ-58 Valkyrie, and could be configured to carry weapons, electronic warfare systems, or additional sensors. Steve Fendley, President of Kratos' Unmanned Systems Division, shared details about Apollo and Athena in an interview with TWZ's Howard Altman on the sidelines of the annual Modern Day Marine exposition last week. In December 2024, Kratos confirmed to us that it secured contracts for both drones, but said it could not provide any additional information. During a quarterly earnings call in August 2024, Kratos CEO Eric DeMarco had disclosed the Apollo contract and said one for Athena was expected in the coming months. The company has yet to release imagery of either design. 'I can't say too much, but there they are high-subsonic systems,' Fendley told TWZ. 'They're quite a bit smaller than the [XQ-58] Valkyrie. So, much smaller footprint.' Fendley also said that Kratos was targeting a sub-$5 million unit price for both Apollo and Athena, which have highly modular designs to allow them to be configured for multiple mission sets. Per Kratos' website at the time of writing, the company says the Valkyrie is 30 feet long, has a 27-foot wingspan, a dry weight of 2,500 pounds, and a maximum takeoff weight of 6,000 pounds. The drone also has a stated cruising speed of 0.72 Mach, a maximum speed of 0.85 Mach, and a maximum range of 3,000 nautical miles. In 2022, the company also announced it had developed a Block 2 version with a heavier overall weight, but did not provide a specific weight figure. A number of additional variants have been developed since then, but specific details about their configurations remain limited. Kratos has also said in the past that its goal is to eventually drive down Valkyrie's unit cost to around $2 million. However, last year, the company told TWZ that the price tag for a single XQ-58 was still between $4 and $6 million, depending on the exact configuration. In general, Kratos has historically focused on lower-cost designs and ones that can be manufactured relatively quickly. Apollo and Athena 'are designed to be hard to detect,' Fendley added, but did not elaborate on. There are various ways to reduce an aircraft's radar cross-section, as well as its infrared, auditory, and visual signatures. For instance, the external moldline, the shape and position of the engine intake and exhaust, and other features of the XQ-58 contribute to that design's low-observability (stealthiness). 'The big focus' with both of the new drones 'is interactive collaboration of multiple aircraft at the same time,' Fendley explained. 'So multiple uncrewed aircraft at the same time, collaborating, [and] performing' missions with, 'basically, any fighter or attack aircraft in the inventory, that's that's the intent.' 'So joining those [Apollo and Athena] aircraft, or even Valkyrie, up with a fifth-gen[eration stealth] fighter, you have some capability to get to go out in front. You have some capability to basically light up the enemy,' he continued. 'But what's really interesting, when you combine it with a [non-stealthy] fourth-gen or even a third-gen system – which, of course, the U.S. doesn't do much of that anymore, but the international customers do – what you really do is you substantially increase the capability of that third or fourth-gen system because now it has off-board capability that's not adding risk to that system.' 'So let's pick an F-16. The F-16 can have a Valkyrie or an Athena or Apollo doing part of a mission that it normally would do, but it would have to be within a risk area to be able to conduct that part,' he added. Speaking in more general terms about drones with the kinds of capabilities that Athena and Apollo are expected to offer, 'one use case is a system that's hard to detect … can, from a, let's say, from an EW [electronic warfare] perspective, can detect potential threats or potential targets of interest without being detected itself, which again, brings a capability that you can't do with a third or fourth-gen fighter system,' Fendley said. 'The other use case is if you have a group of them [the drones] and a handful of them are configured for EW, and a handful of them are carrying actual weapons – either air-to-surface, air-to-ground, or air-to-air – the sensor system can identify the target, can point out the target, basically pass the coordinates, and then the weapons aircraft can conduct the termination mission.' 'One of the other things that allows us to be more cost-effective than others is we don't put all that on one aircraft,' he continued. 'Let's just talk in rough numbers. Let's say there are six useful mission systems. And, again, rough numbers. Let's call three of them sensor-type systems, three of them weapon-type systems. We won't put all six on any one aircraft. We'll distribute that. It allows each aircraft to be much less expensive. It also allows you in a large mission, it allows you to distribute your risk and make it very hard for the enemy to decide 'do I want to shoot down a sensor airplane or a weapons airplane?'' For years now, TWZ has been highlighting the inherent benefits of distributing systems and associated roles among individual drones in a fully networked swarm or other collaborative environment. Beyond helping to reduce the cost of each uncrewed aircraft, including just by allowing them to be smaller and less complex, this also offers valuable operational flexibility since different drones can be performing multiple tasks simultaneously. It also means that the loss of some number of drones is less likely to immediately render the entire group ineffective. That stealthy 'loyal wingman' drones that also feature high degrees of autonomy and collaborative capabilities could be especially valuable force multipliers when paired with fourth-generation crewed combat jets is something TWZ has noted in the past, as well. This was a particular key point in a detailed case we previously laid out for how the trilateral Australia-United Kingdom-United States (AUKUS) defense cooperation agreement could offer an ideal framework for the shared development of loyal wingmen-type drones. In speaking with TWZ, Fendley also talked about out how the modularity of the Apollo and Athena drones could allow them to be better tailored to a customer's particular needs from a regional perspective. 'The European market is very different than the Pacific markets. The European market is more interested in, let's call it, … sensor capability, weapons capability doesn't need the long legs, the long endurance that you do for the Pacific,' he explained. 'What that allows you to do is that allows you to really load that airplane up with more weapons, for example, than you would for an aircraft that's going to the Pacific, but has to fly a long way, so it's carrying fuel. So that's kind of the trade there.' Right now, Kratos is working on Apollo and Athena configurations 'to focus more on that European market,' he added. There is already extensive work ongoing on various tiers of drone 'wingmen' across Europe, including in the United Kingdom, France, Germany, Poland, and Turkey. This reflects a global trend, as well. However, if Kratos can offer a particularly low-cost option that is readily adaptable to multiple mission sets, it could be very attractive to smaller air forces looking to bolster their airpower capabilities and overall capacity, and that cannot afford more exquisite crewed or uncrewed platforms. The core attributes of Apollo and Athena could be of interest to larger air arms, as well. The U.S. Air Force has indicated that it may now be leaning toward cheaper and simpler designs for the second iterative development phase, or Increment 2, of its Collaborative Combat Aircraft (CCA) program. Kratos, which was notably absent from the CCA program's Increment 1 competition, has said on several occasions that it is interested in taking part in Increment 2. General Atomics and Anduril are currently developing designs, now designated YFQ-42A and YFQ-44A, respectively, under Increment 1. The Air Force has also previously said that Increment 2 could be the first phase of the CCA program to weave in foreign participation. The U.S. Marine Corps has separately said it is looking into whether certain roles and missions that are typically associated with larger, more exquisite drones, could be performed, at least in part, by smaller designs. It's worth noting here that the Air Force and the Marine Corps are also currently the only two known operators of Kratos' XQ-58. The U.S. Navy has also outlined a vision for future carrier-capable CCA-type drones that would be low-cost enough to be 'consumable,' and then expended as one-way attack munitions, or as targets in training or testing, at the end of relatively short service lives. CCA-related work across the Air Force, Marine Corps, and Navy is directly intertwined via a joint service agreement. With Kratos now having secured contracts for both Apollo and Athena, more details about both of these specific designs may begin to emerge. Contact the author: joe@
