Kratos Defense reports Q4 adjusted EPS 18c, consensus 15c

Reports Q4 revenue $345.1M, consensus $327.46M. Kratos reported consolidated bookings of $438.3M and a book-to-bill ratio of 1.3 to 1.0 for Q4. Eric DeMarco, Kratos’ president and CEO, said, “We finished 2025 exceeding our financial objectives for the fourth quarter, generating approximately 20 percent Q4 year- over-year organic Revenue growth, generating a 1.3 to 1.0 book to bill ratio on top of this 20 percent organic growth, having a record backlog of $1.573 billion, and a record opportunity pipeline of $13.7 billion, with the opportunity set for Kratos having never been stronger and continuing to increase. Kratos is positioned to achieve our previously communicated 2026 and 2027 financial targets, and similar to 2025, for 2026 we expect our business to accelerate throughout the year, with increasing Revenue volume and Adjusted EBITDA margins, as several new programs, contracts and initiatives begin, ramp and expand.”