Kratos Defense (KTOS) Adds Major Jerusalem Facility Expansion Is Production Capacity the Key to Long-Term Growth?

• On November 17, 2025, Kratos Defense & Security Solutions announced the relocation of its Microwave Electronics Division's Jerusalem branch to a new 60,000 square foot purpose-built facility, including 20,000 square feet of clean-room space, in the Gav Yam Group high-tech complex near the Hebrew University of Jerusalem.
• This infrastructure expansion underscores Kratos’ long-term commitment to microwave and RF technology development for defense and commercial applications amid rising international demand.
• We’ll explore how this substantial investment in production capacity could reinforce Kratos’ investment narrative and its multi-year growth outlook.

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Kratos Defense & Security Solutions Investment Narrative Recap

To be a shareholder of Kratos Defense & Security Solutions, an investor needs to have confidence in the company's ability to meet increasing global defense demand and deliver on a multi-year pipeline of advanced technologies. The recent major expansion of Kratos’ Microwave Electronics facility in Jerusalem supports the execution of current contracts and anticipated program ramps; however, it does not materially change the short-term catalyst of securing new contract awards or the financial risk tied to heavy capital investment ahead of confirmed orders. One of the most relevant announcements to this facility opening is Kratos’ recent acquisition of Israeli satellite specialist Orbit Technologies, intended to boost the Microwave Electronics Division’s capabilities. This move aligns closely with the company’s push to scale production for advanced RF and satellite communications, which remains central to Kratos’ efforts to capitalize on new business wins, though meaningful improvement in near-term cash generation still depends on the timing of large-scale program transitions. In contrast, investors should be aware that significant facility and contract investments come with the risk of...

Read the full narrative on Kratos Defense & Security Solutions (it's free!)

Kratos Defense & Security Solutions’ narrative projects $1.9 billion in revenue and $101.6 million in earnings by 2028. This requires 17.0% yearly revenue growth and a $87.1 million increase in earnings from the current $14.5 million.

Uncover how Kratos Defense & Security Solutions' forecasts yield a $99.80 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community have set fair value estimates for Kratos Defense & Security Solutions ranging from US$4.22 to US$100.56 per share. Even with such a broad spectrum of views, many are paying close attention to Kratos’ rising capital expenditure requirements as a central issue affecting future profitability and cash flow.

Explore 14 other fair value estimates on Kratos Defense & Security Solutions - why the stock might be worth less than half the current price!

Build Your Own Kratos Defense & Security Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kratos Defense & Security Solutions research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Kratos Defense & Security Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kratos Defense & Security Solutions' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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