Kratos Q2 adjusted profit beats analyst estimates

Kratos Defense & Security Solutions

07/08/2025 21:15

Overview

Kratos Q2 revenue rises 17.1% to $351.5 mln, beating analyst expectations, per LSEG data

Adjusted EPS of $0.11 beats estimates, per LSEG data

Adjusted EBITDA of $28.3 mln exceeds analyst estimates, per LSEG data

Outlook

Kratos raises full-year 2025 revenue guidance to $1.29 bln - $1.31 bln

Company expects Q3 2025 revenue between $315 mln and $325 mln

Kratos anticipates 2025 adjusted EBITDA of $114 mln - $120 mln

Company foresees increased EBITDA margins starting in 2026

Result Drivers

GOVERNMENT SOLUTIONS GROWTH - Kratos reports 27.1% organic revenue growth in Government Solutions segment, driven by Defense Rocket Systems and C5ISR businesses

UNMANNED SYSTEMS CHALLENGES - Unmanned Systems segment faced decreased revenues and operating losses due to increased costs on fixed-price contracts

WORKING CAPITAL IMPACT - Cash flow used in operations reflects working capital requirements related to revenue growth, inventory increases for future deliveries

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$351.50 mln
$305.80 mln (13 Analysts)
Q2 Adjusted EPS
Beat
$0.11
$0.09 (13 Analysts)
Q2 EPS
$0.02
Q2 Net Income
$2.90 mln
Q2 Adjusted EBITDA
Beat
$28.30 mln
$23.80 mln (11 Analysts)
Q2 Operating Income
$3.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "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 $60.00, about 1.8% above its August 6 closing price of $58.93

The stock recently traded at 95 times the next 12-month earnings vs. a P/E of 59 three months ago

Press Release: ID:nGNX9dxTVt

(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.)