Kratos Reports Third Quarter 2026 Financial Results

Eric DeMarco, President and CEO of Kratos Defense & Security Solutions

“Kratos third quarter results reflect our position as a leading defense technology, hardware, software and systems company, aligned with the Department of War’s priorities and reindustrialization efforts. Kratos’ Q3 report includes a consolidated revenue growth rate of 35.7 percent, organic growth of 23.2 percent, bookings of $1.037 billion, a book to bill ratio of 2.2 to 1.0, a record backlog of $2.6 billion and an increased opportunity pipeline of $15.5 billion, reflecting the continued acceleration of Kratos’ business with notable strength in our hypersonic and space businesses. Also importantly, we reported an Adjusted EBITDA profit and margin in the third quarter of $50.9 million or 10.8 percent, demonstrating leverage of the business as production quantities increase and as Kratos continues to scale, which we expect to continue into 2027.”

Eric DeMarco, President and CEO of Kratos Defense & Security Solutions

“We have provided our initial full fiscal year 2027 financial forecast, including revenue of $2.1 to $2.2 billion and Adjusted EBITDA of $230 to $240 million, reflecting growth of approximately 18 percent to 22 percent over our current increased 2026 financial guidance revenue range with forecasted increased 2027 margins, consistent with our previous expectations. Our 2027 financial forecast considers that U.S. defense funding is currently operating under an extended Continuing Resolution, and, similar to 2026 and other prior years, we expect Kratos’ third and fourth quarters of fiscal 2027 to reflect substantially greater revenue and Adjusted EBITDA assuming annual appropriations are then in place, with Q1 2027 currently expected to be our lightest fiscal quarter as a result of the CR.”

Eric DeMarco, President and CEO of Kratos Defense & Security Solutions

“There is a generational recapitalization of the U.S. and its allies’ military industrial base underway, with a limited number of global companies like Kratos qualified to address it. The world threat environment is real and increasing, and I believe that there is bipartisan conviction and support for an increased U.S. National Security spend and a whole of nation effort to deter and if necessary defeat our enemies and preserve our freedom and way of life.”