Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS)

Kratos Defense & Security Solutions, Inc. is a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets. The company focuses on affordability as a technology and seeks to utilize proven, leading edge approaches to rapidly develop, produce and field relevant solutions that address customers’ mission critical needs and requirements. Kratos positions itself as an innovative disruptive change agent in the industry, designing products and systems up front for successful rapid, large quantity, low cost future manufacturing.

Kratos generates revenue through the sale of its hardware, software, products, systems and services to government and commercial customers. Primary offerings include virtualized ground systems for satellites and space vehicles, jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems, command control communication computing combat intelligence surveillance and reconnaissance (C5ISR) systems, microwave electronic products, and virtual and augmented reality training systems. Revenue is derived from contracts with the U. S. Government, foreign military sales, and commercial customers including major defense contractors and technology firms.

The company operates through the following segments: Kratos Government Solutions (“KGS”) and Unmanned Systems (“US”).

• Kratos Government Solutions (KGS): This segment is comprised of an aggregation of operating segments including microwave electronics products, space, satellite and cyber, training solutions, C5ISR/modular systems, turbine technologies, and defense and rocket support services. The segment provides virtualized ground systems for satellites and space vehicles, software for command & control (C2) and telemetry, tracking and control (TT&C), propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, and C5ISR and microwave electronic products for missile, radar, air defense, missile defense, space, satellite, counter unmanned aircraft systems (CUAS), directed energy, communication and other systems. KGS also offers virtual & augmented reality training systems for the warfighter, including mixed, virtual and synthetic reality technology for aircraft, combat and other vehicles.

• Unmanned Systems (US): This segment is comprised of an aggregation of operating segments including unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system businesses. The segment provides jet powered unmanned aerial drone systems such as the BQM-167, BQM-177, and MQM-178 target drones, as well as tactical drones including Mako, Valkyrie, Thanatos, Apollo, Athena, and Air Wolf. It also develops hypersonic flight vehicles like Erinyes and Dark Fury, and solid rocket motor systems including Zeus 1 and Zeus 2 SRMs for ballistic missile defense and hypersonic missions.

Kratos holds a competitive position in the defense technology industry as a first-to-market innovator focused on affordability and rapid development of mission critical systems. The company competes with large traditional defense contractors such as Northrop Grumman, Lockheed Martin, General Dynamics, Raytheon Technologies, BAE Systems, and L3Harris, as well as emerging defense technology firms like Anduril, Shield AI, and Ursa Major. Its competitive advantages include internally funded research and development, rapid prototyping, designed-in positioning in customer platforms, and a reputation for delivering affordable, high-performance solutions that meet evolving National Security priorities.

Kratos serves a diverse customer base including the U. S. Air Force, U. S. Army, U. S. Navy, U. S. Marine Corps, U. S. Space Force, U. S. Space Command, Missile Defense Agency, NASA, AFRL, DARPA, DIU, SCO, STRATCOM, the Office of the Secretary of War, and the U. S. intelligence community. Non-government customers include major defense contractors such as Northrop Grumman, Lockheed Martin, General Dynamics, Raytheon Technologies, BAE Systems, L3Harris, GE Aerospace, Rolls Royce, Boom Supersonic, Airbus, Siemens, Microsoft, Amazon, and commercial entities like Intelsat and Blue Halo.