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Kratos Defense Reports Strong Q1 2025 Growth

Kratos Defense & Security ( (KTOS) ) has released its Q1 earnings. Here is a breakdown of the information Kratos Defense & Security presented to its investors.

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Kratos Defense & Security Solutions, Inc. is a technology company operating in the defense, national security, and commercial markets, known for its innovative and cost-effective solutions in areas such as unmanned systems, hypersonic vehicles, and C5ISR systems.

In its first quarter of 2025, Kratos reported a revenue increase to $302.6 million, reflecting a 9.2% growth compared to the same period in 2024. The company also achieved a consolidated book-to-bill ratio of 1.2 to 1, indicating strong demand for its products and services.

Key financial highlights include a net income of $4.5 million, an increase from $1.3 million in the previous year, and an adjusted EBITDA of $26.7 million. The Government Solutions segment saw a notable revenue increase of 7.8%, driven by growth in the C5ISR and Microwave Products businesses. However, the Unmanned Systems segment faced challenges with an operating loss of $1.7 million due to increased costs.

Looking forward, Kratos remains optimistic about its financial performance for the remainder of 2025 and into 2026, with expectations of continued revenue growth and strong market demand. The company is focused on expanding its production capabilities and capitalizing on strategic opportunities in the defense industry.

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