Kratos Lifts 2026 Guidance, Sets 2027 Revenue Outlook of $2.1B–$2.2B
KTOS is trading near its 52-week low of $32.5 (2.7% above the low) on elevated volume (2.3× avg).
Summary
Kratos raised its 2026 guidance to revenue of $1.78B–$1.81B and put a first number on 2027: revenue of $2.1B–$2.2B and adjusted EBITDA of $230M–$240M, implying roughly 18%–22% growth off the higher 2026 range. For the fourth quarter it sees revenue of $480M–$510M. The quarter behind it was strong — Q3 revenue of $471.8M rose 35.7% year over year (23.2% organic) and adjusted EPS came in at $0.24 versus $0.14. Bookings of $1.037B produced a 2.2 book-to-bill and pushed consolidated backlog to $2.650B, which is the real support for the 2027 target. The offset is cash: free cash flow was negative $29.4M in the quarter on $30.2M of capex, and GAAP was a $0.2M net loss versus $8.7M of net income a year ago. The 2027 forecast already assumes a continuing resolution hits early next year, so appropriations timing is the swing factor for hitting the range.
At the time of this announcement, KTOS was trading at $33.39 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $6.3B. The 52-week trading range was $32.50 to $134.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.