Overview

* Kratos Q3 2025 revenue up 26% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 2025 beats consensus

* Company raises full-year 2026 organic revenue growth forecast to 15%-20% above 2025

Outlook

* Kratos raises full-year 2025 revenue guidance to $1.320 mln - $1.330 mln

* Company forecasts 2026 organic revenue growth of 15% to 20% over 2025

* Kratos targets 2027 organic revenue growth of 18% to 23% over 2026

Result Drivers

* UNMANNED SYSTEMS GROWTH - Driven by tactical Valkyrie shipments to an international customer, Unmanned Systems segment revenue rose 35.8%

* GOVERNMENT SOLUTIONS GROWTH - KGS segment revenue increased 20% with strong performance in Defense Rocket Systems and Space, Training and Cyber businesses

* BOOK-TO-BILL RATIO - Consolidated book-to-bill ratio of 1.2 to 1 indicates strong demand and future growth potential

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $347.60 $322.27

Revenue mln mln (15

Analysts

)

Q3 Beat $0.14 $0.12

Adjusted (14

EPS Analysts

)

Q3 EPS $0.05

Q3 Net $8.70

Income mln

Q3 Beat $30.80 $28.27

Adjusted mln mln (14

EBITDA Analysts

)

Q3 $7.10

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Kratos Defense and Security Solutions Inc ( KTOS ) is $101.00, about 9.8% above its November 3 closing price of $91.10

* The stock recently traded at 127 times the next 12-month earnings vs. a P/E of 95 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)