Kratos Defense & Security Solutions

KTOS

Market cap $14.7B

Kratos announced $1.2 billion in share sales last night. Today, it raised that number as high as $1.4 billion.

Drone maker Kratos Defense announced a major public offering to scale operations, fund acquisitions. Shares fall.

SAN DIEGO, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (“Kratos”) (NASDAQ: KTOS), a Technology, Hardware, Products, System and Software Company addressing the Defense, National Security and Commercial Markets, today announced the pricing of an underwritten offering of 14,285,714 shares of its common stock at a public offering price of $84.00 per share pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The net proceeds to Kratos from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $1,172,999,977. Kratos has also granted the underwriters a 30-day option to purchase up to an additional 2,142,857 shares of common stock. All of the shares in the offering are to be sold by Kratos. The offering is expected to close on March 2, 2026, subject to customary closing conditions.

SAN DIEGO, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (“Kratos”) (NASDAQ: KTOS), a Technology, Hardware, Products, System and Software Company addressing the Defense, National Security and Commercial Markets, today announced that it intends to offer for sale $1,000,000,000 of shares of its common stock in an underwritten offering pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The underwriters will have a 30-day option to purchase up to an additional $150,000,000 of shares of common stock from Kratos. All of the shares in the offering are to be sold by Kratos. The proposed offering is subject to market and other conditions.

Successfully integrated and validated systems across a complex, multi-partner ground architecture Successfully integrated and validated systems across a complex, multi-partner ground architecture

The $61.1 million agreement covers the full-rate production of 70 BQM-177A Subsonic Aerial Targets and underscores the company's expanding influence within the Department of Defense's procurement pipeline.

Here is how Kratos (KTOS) and Woodward (WWD) have performed compared to their sector so far this year.

Rising U.S. defense spending and modernization plans boost prospects for Lockheed Martin and Kratos Defense amid surging demand for advanced military tech.

Kratos Defense & Security's NASDAQ: KTOS stock price is poised for an acceleration, underpinned by its growth, profitability, and analyst sentiment. While the 2026 guidance was mixed, leading share prices to decline following the release, the takeaway was nothing but bullish.

Kratos Defense & Security Solutions remains a high-conviction buy, supported by exceptional positioning in hypersonics, space, microelectronics, and drones. KTOS trades at a significant premium—4x peer group valuation—justified by its exposure to high-growth defense segments and forward-looking earnings potential. Revenue and EBITDA are projected to grow at 19.5% and 28.1% annually, respectively, with margins expected to reach 11% by 2027 and free cash flow turning positive by 2028.