Kratos Defense & Security Solutions, Inc. (KTOS) Stock

Kratos Defense & Security Solutions, Inc. (KTOS) is a Industrials stock trading at $56.17 (as of 2026-08-20), with a market capitalization of $10.53B and a trailing P/E of 358.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Kratos Defense & Security Solutions, Inc. operates as a government contractor of the U.S. Department of Defense. The company operates through two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products, space and satellite communications, training and cybersecurity/ warfare, C5ISR/ modular systems, turbine technologies, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. It serves national security related agencies, the department of defense, intelligence agencies, and classified agencies, as well as international government agencies and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

Understand Kratos Defense & Security Solutions, Inc.: how it makes money

Kratos Defense & Security Solutions builds and delivers defense and security systems for U.S. national security customers, earning revenue from government contracting work across its two segments, Kratos Government Solutions and Unmanned Systems.

With a high Fixed Price Contract Mix (69 percent), the company’s profit depends on executing delivered work profitably while translating new orders into revenue (Book-to-Bill Ratio 1.6).

Revenue by segment (latest quarter)
Gov Solutions$0.3B
Unmanned Systems$0.1B

Business quality (Mixed): Track record metrics (Book-to-Bill Ratio, pipeline record) suggest demand momentum, but the profit model is exposed to execution risk given the high fixed-price contract mix and thin operating margin reported for the latest period.

Valuation: At 319× earnings, KTOS trades 752% above the Defense average (37×). Note: one-time items can distort reported P/E.

Bull case

  • Order momentum vs revenue: Book-to-Bill Ratio (Consolidated) is 1.6, indicating orders are running ahead of revenue on a consolidated basis.
  • Pipeline strength: Opportunity Pipeline (Record) is 14.0 USD_B, supporting visibility into future contract opportunities.

Bear case

  • Execution pressure under fixed-price work: Fixed Price Contract Mix is 69 percent, which can amplify downside if delivery, labor, or program costs come in higher than expected.
  • Thin profitability: Latest-period operating margin is 1.3 percent, leaving limited room for unfavorable variances.
Valuation — source: SEC EDGAR (first-party)
Price$56.17
Market Cap$10.53B
P/E Ratio358.3
EV / EBITDA121.6
Price / Book3.09
Price / Sales7.44
FCF Yield-1.6%
DCF Value (model)$3.39
DCF Upside vs Price-94.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.35B
Net Margin1.6%
Revenue Growth (YoY)22.6%
EPS Growth (YoY)133.3%
FCF Growth (YoY)-8.7%
Financial Health — source: SEC EDGAR
Altman Z-Score12.87 (safe)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Stock P/E358.3
Sector P/E (Industrials)25.9
Industry P/E (Defense)53.3
vs Sector1283.9%
vs Industry572.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($2.23B)
Institutional Holders Tracked10
Congressional Trades (recent)5
Company
SectorIndustrials
IndustryDefense
CEOEric DeMarco
Employees4,000
CountryUS
IPO Date1999-11-05

Related Companies (Business model: Defense & Aerospace Prime (Defense Primes + Commercial Aerospace OEMs); 8 closest by market cap)

  • Lockheed Martin Corporation (LMT)
  • Rocket Lab USA, Inc. (RKLB)
  • HEICO CORP (HEI)
  • MDA Space Ltd. (MDA)
  • Firefly Aerospace Inc. (FLY)
  • Redwire Corporation (RDW)
  • Voyager Technologies, Inc. (VOYG)
  • York Space Systems, Inc. (YSS)
KTOS earnings history · KTOS institutional & insider holders · KTOS KPIs & operating metrics · KTOS financials · KTOS investor presentations & press releases · KTOS SEC filings · KTOS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.