Kratos Defense reports Q1 adjusted EPS 12c, consensus 9c

Reports Q1 revenue $302.6M, consensus $292.25M. DeMarco said, “Since our last report to you, the Defense and National Security Funding and priorities environment for the industry and for Kratos has become clearer, including a government full year fiscal 2025 CRA and funding now being put in place, a potential additional $150 billion defense related 2025 Reconciliation Bill progressing and the potential for a $1 trillion fiscal 2026 U.S. National Security Budget, all increasing our confidence in Kratos’ 2025 and 2026 full year financial forecasts, including approximately 10 percent and 14 percent year over year, organic revenue growth, respectively. With funding, programmatic, contractual and schedule clarity also now in place, and a 1.2 to 1.0 Q125 and last twelve months book to bill ratio, Kratos’ 2025 Q3 and Q4 are forecasted to be particularly strong, as customer related predictability is expected to return. Also, importantly, Kratos being a military quality hardware and software company, with substantially all of our vendor base and supply chain being U.S. located and sourced, we expect little impact from existing or any currently contemplated tariffs.”