Defense firm Kratos falls after boosted $1.2 bln stock sale

Kratos Defense & Security Solutions

27/02/2026 11:59

** Kratos Defense & Security Solutions' KTOS.O shares down 6.2% at $86.40 before the bell after upsized $1.2 bln follow-on priced

    ** San Diego, California-based KTOS late Thurs sold ~14.3 mln shares at $84

    ** Offering size boosted from $1 bln, priced at 8.8% discount to stock's last sale

    ** Co said it expects to use net offering proceeds for capex to scale operations, invest in new product, system and software product development, strengthen balance sheet for strategic pipeline opportunities, fund recent acquisition of Nomad, among other purposes

** Baird, Raymond James, RBC and Truist joint bookrunners

          ** KTOS has ~170.3 mln shares outstanding

          ** Through Thurs, stock

      up 21% YTD. Shares closed at $26.27 a year ago

      ** Avg rating of 21 analysts is "buy"; median PT $121, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))