Kratos Q3 revenue rises 26%, beats estimates

Kratos Defense & Security Solutions

04/11/2025 21:10

Overview

Kratos Q3 2025 revenue up 26% yr/yr, beating analyst expectations

Adjusted EPS for Q3 2025 beats consensus

Company raises full-year 2026 organic revenue growth forecast to 15%-20% above 2025

Outlook

Kratos raises full-year 2025 revenue guidance to $1.320 mln - $1.330 mln

Company forecasts 2026 organic revenue growth of 15% to 20% over 2025

Kratos targets 2027 organic revenue growth of 18% to 23% over 2026

Result Drivers

UNMANNED SYSTEMS GROWTH - Driven by tactical Valkyrie shipments to an international customer, Unmanned Systems segment revenue rose 35.8%

GOVERNMENT SOLUTIONS GROWTH - KGS segment revenue increased 20% with strong performance in Defense Rocket Systems and Space, Training and Cyber businesses

BOOK-TO-BILL RATIO - Consolidated book-to-bill ratio of 1.2 to 1 indicates strong demand and future growth potential

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$347.60 mln
$322.27 mln (15 Analysts)
Q3 Adjusted EPS
Beat
$0.14
$0.12 (14 Analysts)
Q3 EPS
$0.05
Q3 Net Income
$8.70 mln
Q3 Adjusted EBITDA
Beat
$30.80 mln
$28.27 mln (14 Analysts)
Q3 Operating Income
$7.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "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 $101.00, about 9.8% above its November 3 closing price of $91.10

The stock recently traded at 127 times the next 12-month earnings vs. a P/E of 95 three months ago

Press Release: ID:nGNX1vssxy

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