Kratos-GE Aerospace Engine Wins Military Designation and EMD Contract for JASSM
KTOS sits 50% above its 52-week low of $43.09.
Summary
The GEK800 engine, developed jointly by Kratos and GE Aerospace, received the U.S. Military Engine Type Designation F143-ZZ-100 and an EMD contract from the U.S. Air Force as a second-source propulsion system for the JASSM cruise missile. This is a significant validation of the engine's performance and positions Kratos to capture a share of the JASSM propulsion market, which is a high-volume, long-running program. The award follows a series of recent Kratos wins, including $400M in hypersonic funding and a $156M DOE contract, reinforcing the company's momentum in defense propulsion. The EMD phase will involve further development and testing, with production contracts likely to follow if milestones are met. For GE Aerospace, this expands its defense propulsion portfolio, but the impact is more material for Kratos given its smaller size and strategic focus on low-cost, high-volume engines.
At the time of this announcement, KTOS was trading at $64.62 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $12.1B. The 52-week trading range was $43.09 to $134.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.