Kratos Defense & Security Solutions Company Profile

Background

Kratos Defense & Security Solutions, Inc., headquartered in San Diego, California, is a leading provider of advanced defense and national security technologies. The company specializes in developing and delivering mission-critical products and services for the U.S. government, allied nations, and commercial customers. Kratos focuses on unmanned systems, satellite communications, cybersecurity, and advanced defense technologies, aiming to enhance national security through innovative and cost-effective solutions.

Key Strategic Focus

Kratos emphasizes the rapid development and deployment of high-performance, cost-effective defense solutions. The company's core objectives include:

Unmanned Systems: Development of unmanned aerial vehicles (UAVs) and autonomous systems, such as the XQ-58 Valkyrie, designed to support various military operations.

Space and Satellite Communications: Provision of satellite communication systems and space-related technologies to ensure secure and reliable communication for defense and commercial applications.

Cybersecurity and Electronic Warfare: Offering advanced cybersecurity solutions and electronic warfare systems to protect critical infrastructure and information systems.

Missile Defense and Hypersonic Systems: Development of missile defense systems and hypersonic technologies to address emerging threats.

Financials and Funding

As of 2024, Kratos reported annual revenues of approximately $1.1 billion, reflecting a 9.6% increase from the previous year. The company's market capitalization stood at $4.5 billion. Kratos has secured significant government contracts, including a $59.3 million contract in March 2025 for 70 BQM-177A Subsonic Aerial Target aircraft.

Pipeline Development

Kratos is actively engaged in several key development programs:

XQ-58 Valkyrie: An experimental stealth unmanned combat aerial vehicle (UCAV) designed for the U.S. Air Force's Low Cost Attritable Strike Demonstrator program. The Valkyrie completed its first flight on March 5, 2019, and continues to undergo testing and evaluation.

Thanatos Drone: A stealthy drone that completed its first flight in late 2024, validating its design and capabilities.

Short/Medium Range Sub-Orbital Vehicle (SSOV) II: In March 2025, Kratos secured a contract from the Naval Surface Warfare Center for the design and delivery of suborbital vehicles, including ground test hardware and launch support services.

Technological Platform and Innovation

Kratos distinguishes itself through several proprietary technologies and innovative methodologies:

Unmanned Systems: Development of cost-effective, high-performance UAVs like the XQ-58 Valkyrie, designed for rapid deployment and attritable missions.

Satellite Communications: Provision of advanced satellite communication systems ensuring secure and reliable data transmission for defense and commercial applications.

Cybersecurity Solutions: Offering comprehensive cybersecurity services to protect critical infrastructure and information systems from emerging threats.

Hypersonic and Missile Defense Technologies: Engagement in the development of hypersonic weapons and missile defense systems to address advanced threats.

Leadership Team

Eric DeMarco: President, Chief Executive Officer, and Director since 2004.

Deanna Lund: Executive Vice President, Chief Financial Officer, and Director.

Steven Fendley: President of the Unmanned Systems Division.

Thomas Mills: President of the C5ISR Systems Division.

Dave Carter: President of the Defense and Rocket Support Services Division.

Leadership Changes

In February 2025, Kratos and RAFAEL Advanced Defense Systems formed a 50:50 joint venture, Prometheus Energetics, to supply solid rocket motors and energetics in the U.S.

Competitor Profile

Market Insights and Dynamics

The defense sector is characterized by rapid technological advancements and evolving security threats, leading to increased demand for innovative and cost-effective solutions. Kratos operates in a competitive landscape alongside major defense contractors and specialized firms.

Competitor Analysis

Key competitors include:

Lockheed Martin Corporation: A leading global security and aerospace company offering a wide range of defense, space, and security solutions.

Northrop Grumman Corporation: Specializes in aerospace and defense technologies, including unmanned systems and cyber solutions.

Raytheon Technologies Corporation: Provides advanced systems and services for defense and commercial markets, including missile defense and cybersecurity.

General Dynamics Corporation: Offers a broad portfolio of products and services in defense, aerospace, and information technology.

BAE Systems Inc.: Focuses on defense, security, and aerospace sectors, providing a range of advanced technology solutions.

Kratos differentiates itself through agility, rapid development cycles, and a focus on emerging technologies such as unmanned systems and hypersonic weapons.

Strategic Collaborations and Partnerships

Kratos has engaged in significant collaborations to enhance its market position and technological capabilities:

Prometheus Energetics: A joint venture with RAFAEL Advanced Defense Systems, established in February 2025, to supply solid rocket motors and energetics in the U.S.

Haverstick Consulting, Inc. Acquisition: In 2024, Kratos acquired Haverstick Consulting, Inc., broadening its portfolio in the defense market and enhancing its technical expertise.

Operational Insights

Kratos leverages its agility and focus on emerging technologies to maintain a competitive edge. The company's ability to rapidly develop and deploy cost-effective solutions positions it favorably against larger defense contractors. Kratos' emphasis on unmanned systems.