Kratos Defense sees Q2 revenue $400M-$410M, consensus $412.63M

Sees Q2 adjusted EBITDA $30M-$35M. The company said, “We are providing our initial second quarter and increased full year 2026 guidance, which includes the estimated impact of the recent Nomad and Orbit acquisitions, and our assumptions, including as related to: current forecasted business mix, expected employee sourcing, hiring and retention; potential manufacturing, production and supply chain disruptions; potential parts shortages and related continued significant cost and price increases in each of these areas, which are impacting the industry and Kratos. We are making significant investments in bid, proposal and other new program opportunity areas, and increasing staffing to enable us to ramp production levels, all of which is currently adversely impacting our profit margins and free cash flow generation. We are also making significant investments in inventory, property, plant, equipment and facilities, consistent with the Department of War’s National Security Strategy and its stated expectations of U.S. National Security government contractors. These investments are expected to continue at least into Kratos’ fiscal year 2027, as our opportunity pipeline continues to increase.”