Kratos Defense Reports Strong Q1 Results, Raises FY26 Revenue and EBITDA Guidance
KTOS sits 94% above its 52-week low of $32.85.
Summary
Kratos Defense & Security Solutions reported strong first-quarter 2026 financial results with significant revenue growth and increased profitability, leading the company to raise its full-year 2026 financial guidance.
Key Events · Earnings and Guidance · KTOS
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Strong Q1 2026 Financial Performance
Kratos reported Q1 2026 revenues of $371.0 million, a 22.6% increase (15.8% organic) year-over-year, with GAAP Net Income per share rising to $0.07 from $0.03 and Adjusted EPS to $0.16 from $0.12.
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Increased Fiscal Year 2026 Guidance
The company raised its full-year 2026 revenue forecast to $1.700-$1.760 billion and Adjusted EBITDA forecast to $170.0-$176.0 million, including recent acquisitions.
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Robust Bookings and Backlog Growth
Kratos achieved a consolidated book-to-bill ratio of 1.6 to 1.0 for Q1 2026, with bookings of $605.2 million, driving total backlog to $2.010 billion, up from $1.573 billion at year-end 2025.
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Strategic Investments for Future Growth
The company is making significant investments, including $155-$165 million in capital expenditures for advanced manufacturing, hypersonic facilities, and unmanned systems production, which contributed to negative free cash flow in the quarter but are aimed at supporting long-term growth and national security objectives.
Analysis · KTOS · Manufacturing
Kratos Defense & Security Solutions reported robust first-quarter 2026 financial results, highlighted by 22.6% revenue growth and a substantial increase in net income and Adjusted EBITDA year-over-year. Critically, Kratos raised its full-year 2026 revenue and Adjusted EBITDA guidance, signaling strong confidence in its outlook. The impressive 1.6 to 1.0 book-to-bill ratio and a significant increase in backlog to over $2 billion underscore strong demand for its defense and security solutions. While the company reported negative free cash flow, this is attributed to substantial strategic investments in manufacturing capacity, R&D, and new programs aligned with the U.S. defense industrial base recapitalization, positioning Kratos for sustained long-term growth.
At the time of this filing, KTOS was trading at $63.65 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $11.5B. The 52-week trading range was $32.85 to $134.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.