Kratos Defense & Security ( (KTOS) ) has released its Q2 earnings. Here is a breakdown of the information Kratos Defense & Security presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kratos Defense & Security Solutions, Inc., a technology company operating in the defense, national security, and commercial markets, is known for its innovative and cost-effective solutions in areas such as unmanned aerial systems, hypersonic vehicles, and satellite communications.
In its second quarter of 2025, Kratos reported revenues of $351.5 million, marking a 17.1% increase compared to the same period in 2024. The company also noted a 15.2% organic growth, with significant contributions from its Government Solutions segment, particularly in the Defense Rocket Systems and C5ISR businesses.
Key financial metrics for the quarter included a net income of $2.9 million and an adjusted EBITDA of $28.3 million. Despite a decrease in net income compared to the previous year, Kratos experienced substantial revenue growth in its Government Solutions segment, which saw a 27.1% increase. However, the Unmanned Systems segment faced challenges, with a decline in revenue and operating income due to increased costs and contract terms set in previous years.
Looking ahead, Kratos has increased its full-year 2025 revenue and adjusted EBITDA guidance, reflecting optimism in its strategic initiatives and market positioning. The company remains focused on capturing new opportunities and expects to benefit from increased defense spending and streamlined acquisition processes.
Kratos’ management anticipates continued growth across its business units, with expectations of improved EBITDA margins starting in 2026. The company is poised to leverage its strategic positioning and innovative capabilities to deliver value to stakeholders in the evolving defense and security landscape.