Kratos Defense & Security Solutions' Q4 revenue rises 21.9%, beats estimates

Overview

• Defense technology firm's Q4 revenue rose 21.9%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

Outlook

• Kratos forecasts fiscal 2026 revenue of $1.595 bln to $1.675 bln

• Company expects fiscal 2026 adjusted EBITDA of $157 mln to $167 mln

• Kratos anticipates stronger second half of fiscal 2026 due to contract awards

Result Drivers

• GOVERNMENT SOLUTIONS GROWTH - Kratos' Government Solutions segment saw 22.2% organic revenue growth, driven by Defense Rocket Systems, Microwave Products, and Space, Training and Cyber businesses

• UNMANNED SYSTEMS GROWTH - Unmanned Systems segment grew 12.1% organically, driven by Valkyrie-related activities

• STRONG BOOKINGS - Kratos reported a consolidated book-to-bill ratio of 1.3 to 1 and bookings of $438.3 million, indicating strong future demand

Company press release: ID:nGNX4cFPGq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Kratos Defense and Security Solutions Inc is $120.00, about 24.9% above its February 20 closing price of $96.08

• The stock recently traded at 125 times the next 12-month earnings vs. a P/E of 126 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.