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Kratos Defense & Security (KTOS)
NASDAQ:KTOS
Earnings Data
Report Date
May 06, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.13Last Year’s EPS
0.12Same Quarter Last Year
Strong Buy
Based on 16 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call was constructive and optimistic: management reported a quarter that beat revenue and EBITDA expectations, delivered record backlog and pipeline metrics, and outlined several high-growth engines (hypersonics, space/satellite, engines, microwave electronics) supported by facility investments, partnerships and program wins. Near-term risks include working capital strain (DSO rise and receivables), margin pressure on certain fixed-price contracts in Unmanned Systems, elevated capex and the timing sensitivity of government funding. Management provided clear guidance and emphasized line-of-sight growth drivers with the expectation that operating cash flow and free cash flow will improve as production ramps in 2027-2028.Company Guidance
Q4 Revenue Beat and Strong Organic Growth
Q4 revenue of $345.1 million vs. guidance $320M-$330M; Q4 organic revenue growth ~20% year-over-year (above prior estimates of ~14%-15%); company generated a 1.3:1 overall book-to-bill ratio in Q4.
Record Backlog and Large Opportunity Pipeline
Record consolidated backlog of $1.573 billion and a record opportunity pipeline of $13.7 billion; space & satellite backlog reached a record ~$600 million at quarter end.
Adjusted EBITDA and Guidance
Q4 adjusted EBITDA $34.1 million, slightly above prior high-end guidance ($29M-$34M); company provided FY-2026 revenue guidance of $1.595B to $1.675B (organic growth of 12.7% to 18.5%) and Q1-2026 revenue guidance of $335M-$345M with adjusted EBITDA guidance $25M-$30M.
Hypersonics Franchise Ramping Rapidly
120 Kratos Zeus and Oriole solid rocket motors on order with deliveries beginning in Q3; company expects to roughly double hypersonic revenues in 2026 to approximately $400M and then increase ~75% in 2027 to approximately $700M.
Space & Satellite Technology Wins
Successful factory acceptance test of Kratos Epic C2 with Airbus OneSat software-defined satellite; management stated selection for an initial program award of ~ $500M (recently informed); space business reported strong pipeline and a 12-month book-to-bill of 1.2:1.
Engine & Propulsion Momentum
Spartan family jet engines flying and in production; company expects low-rate initial production of small engines in H2 2026 and noted a customer rough-order-magnitude request for ~15,000 engines; new 40,000 engines-per-year capacity facility in Michigan to support scale.
Manufacturing & Facility Investments
Multiple new/expanded facilities coming online (Maryland hypersonic, Indiana hypersonic integration, Birmingham advanced manufacturing, Michigan engine capacity); Prometheus solid rocket motor JV groundbreaking completed with partner Rafael.
Strategic Awards, Partnerships and M&A
Initial MUX TACAIR award (~$230M split ~50/50 with Northrop over ~24 months); Drone Dominance Plan Phase 1 gauntlet award; Nomad Global Communications tuck-in acquisition closed (LTM revenue ~ $75M); Orbit Technologies acquisition expected to close in Q1 and will be added to forecasts post-close.
Strong Market Backdrop and Industry Tailwinds
Management emphasized improving defense funding environment (2026 NDAA and FY-26 appropriations signed, discussions of additional reconciliation funding) and highlighted positioning to address demand for affordable, fieldable military systems.
Cash Flow & CapEx Transparency
Q4 operating cash flow generated $12.1M and free cash flow used ~$0.1M after $24.2M capex (net of $12M Valkyrie sale proceeds); management provided FY-2026 capex guidance of $135M-$145M and identified expected investments (Prometheus ~$50M in 2026, facility buildouts, engine and hypersonic programs).
KTOS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KTOS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 23, 2026 | $94.31 | $90.68 | -3.85% |
Nov 04, 2025 | $90.22 | $77.41 | -14.20% |
Aug 07, 2025 | $59.08 | $63.88 | +8.12% |
May 07, 2025 | $36.06 | $34.22 | -5.10% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kratos Defense & Security (KTOS) report earnings?
Kratos Defense & Security (KTOS) is schdueled to report earning on May 06, 2026, After Close (Confirmed).
What is Kratos Defense & Security (KTOS) earnings time?
Kratos Defense & Security (KTOS) earnings time is at May 06, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KTOS EPS forecast?
KTOS EPS forecast for the fiscal quarter 2026 (Q1) is 0.13.