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

Kratos Defense & Security Solutions

23/02/2026 21:09

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$345.10 mln
$327.79 mln (18 Analysts)
Q4 Adjusted EPS
Beat
$0.18
$0.16 (16 Analysts)
Q4 EPS
$0.03
Q4 Net Income
$5.90 mln
Q4 Adjusted EBITDA
Beat
$34.10 mln
$32.36 mln (17 Analysts)
Q4 Operating Income
$8.20 mln


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.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)