Kratos Defense & Security Solutions Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw revenue and EBITDA exceed guidance, driven by strong organic growth in hypersonics, engines, and defense segments. Full-year growth outlook was raised, with major investments in capacity and new program wins supporting future expansion.
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The meeting approved all board proposals, including director elections, auditor ratification, and key amendments. Strategic updates emphasized investment in defense capacity, international expansion, and strong financial growth, with no dividends or buybacks.
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Q1 revenue and EBITDA exceeded guidance, driven by strong organic growth in Unmanned Systems, Turbine Technologies, and Microwave Products. Record backlog and major contract wins support a robust outlook, with continued investments in capacity and margin expansion expected through 2027.
Fiscal Year 2025
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Q4 2025 saw 20% organic revenue growth, record backlog, and strong performance in hypersonics, microwave, and space. 2026 guidance projects 12.7%-18.5% organic growth, with continued investment in manufacturing and R&D. Major program wins and robust industry demand support a positive outlook.
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Q3 2025 saw strong revenue and EBITDA growth, driven by unmanned systems and hypersonics, with full-year guidance raised and multi-year growth targets set. Major program wins and the Orbit acquisition position the company for continued expansion, despite ongoing margin pressures from investment and contract costs.
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Q2 2025 revenue and EBITDA exceeded guidance, driven by strong growth in defense and C5ISR segments, with a robust pipeline and major program wins like Poseidon. Full-year guidance was raised, and margin expansion is expected as higher-margin programs ramp.
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Q1 2025 revenue and EBITDA exceeded guidance, driven by strong growth in microwave, C5ISR, and rocket support. Hypersonics, engines, and microwave electronics are set to be the main growth drivers, with tactical drones as a potential inflection point.
Fiscal Year 2024
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Delivered 9.1% organic revenue growth in 2024, with strong cash flow and a robust backlog. 2025 guidance projects 10% organic growth, with margin expansion expected from 2026 as new programs ramp and contracts renew at higher rates. Prometheus JV and MACH-TB 2.0 award drive future growth.
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Q3 2024 delivered strong results with most segments exceeding targets, offsetting commercial satellite headwinds. Affirmed 2024 guidance and 10% organic growth for 2025, with major program wins and new facilities poised to drive future upside. Labor and industry disruptions remain key risks.
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Q2 2024 saw revenue and EBITDA exceed guidance, driven by strong growth in unmanned systems, turbine technologies, and C5ISR. Affirmed 2024 guidance, with robust demand and a record $12B pipeline, despite commercial satellite headwinds and ongoing supply chain and labor challenges.