Update shared on10 Aug 2025
Fair value Increased 21%The upward revision in Kratos Defense & Security Solutions’ price target reflects improved fundamentals, notably a rising net profit margin and stronger revenue growth forecasts, driving the consensus fair value from $57.46 to $64.46.
What's in the News
- Kratos issued Q3 2025 revenue guidance of $315–325 million and operating income of $3–7 million; full-year 2025 revenue expected at $1.29–1.31 billion and operating income $29–34 million.
- Announced partnership with hiSky to deliver satellite-enabled IoT services using Kratos’ OpenSpace software-defined ground system, enhancing IoT connectivity for commercial and government customers.
- Successfully demonstrated an end-to-end 5G-NTN network with Intelsat, validating the integration of Kratos OpenSpace and advancing cloud-native, software-defined satellite ground solutions for 5G connectivity.
- Deployed automated truck platooning technology in collaboration with Champion Tire & Wheel for NASCAR logistics, showcasing defense-derived automation in commercial fleet operations.
- Completed a $500 million follow-on equity offering and was removed from multiple Russell value and small-cap indices, including the Russell 2000 Value Benchmark.
Valuation Changes
Summary of Valuation Changes for Kratos Defense & Security Solutions
- The Consensus Analyst Price Target has significantly risen from $57.46 to $64.46.
- The Net Profit Margin for Kratos Defense & Security Solutions has significantly risen from 4.38% to 5.97%.
- The Consensus Revenue Growth forecasts for Kratos Defense & Security Solutions has significantly risen from 16.0% per annum to 19.0% per annum.
Disclaimer
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