Kratos Boosts Engine Output, Signaling Shift in Defense Manufacturing

AUBURN HILLS, MI – November 13, 2025 – Kratos Defense & Security Solutions has officially opened a 22,500-square-foot engine manufacturing facility in Auburn Hills, Michigan, marking a significant investment in high-rate production of its Spartan line of turbojet engines. The move signals a growing trend in the defense industry – a focus on affordability and scalability, particularly as demand surges for unmanned aerial systems and expendable technologies.

Rethinking Defense Manufacturing: The ‘Affordable Mass’ Revolution

For decades, the defense industry has prioritized performance and technological sophistication, often at a substantial cost. Kratos is disrupting that model. The company’s strategy centers on delivering “affordable mass,” prioritizing high-volume production and cost-effectiveness without sacrificing essential capabilities. “The traditional approach simply isn’t sustainable in the face of evolving threats and budgetary constraints,” explains one industry analyst. “Kratos is responding to a clear need for systems that can be deployed at scale without breaking the bank.”

This shift isn’t simply about cutting costs; it’s about enabling a different kind of warfare. “We're moving towards a future where attritable platforms – systems designed to be expendable – will play a much larger role,” says a source within the defense sector. “That requires a different manufacturing mindset, one that embraces high-volume production and lower unit costs.” The Auburn Hills facility is designed to facilitate that mindset, incorporating streamlined production lines and modular testing capabilities.

Fueling the Rise of Unmanned Systems

The Spartan engine line is specifically tailored for unmanned aerial vehicles (UAVs), tactical missiles, and loitering munitions. Offering a thrust range from 30 to over 200 pounds, these engines are powering a new generation of autonomous systems. Kratos has seen rapid growth in its Unmanned Systems segment, with revenues up 35.8% organically in the most recent quarter. This surge in demand is directly correlated with the increasing reliance on UAVs in both military and commercial applications.

“The applications are expanding rapidly,” states a source familiar with Kratos’ strategy. “Beyond traditional reconnaissance and surveillance, we’re seeing increased demand for UAVs in areas like electronic warfare, cargo delivery, and even aerial refueling.” The Spartan engines are enabling these diverse applications by providing a reliable and cost-effective power source. Kratos’ commitment to vertical integration, with in-house engine manufacturing, ensures greater control over the supply chain and responsiveness to customer needs. The company secured a $54 million task order in 2022 for the Air Force Research Laboratory's Attritable Cost Optimized Limited Life Engine Technologies program, further demonstrating the Pentagon's commitment to this approach.

Michigan’s Growing Defense Industrial Base

The decision to locate the new facility in Auburn Hills, Michigan, is no accident. The state has a rich history in automotive manufacturing and a skilled workforce, making it an ideal location for advanced manufacturing operations. “Michigan is actively working to diversify its economy and attract high-tech industries,” says a representative from the Michigan Economic Development Corporation. “Kratos’ investment is a testament to the state’s growing capabilities in the defense sector.”

The facility is expected to create numerous jobs in the region, contributing to the local economy and strengthening Michigan’s position as a key player in the defense industrial base. While the exact number of jobs created hasn’t been publicly disclosed, the investment in infrastructure, personnel, and equipment signals a long-term commitment to the state. Beyond the direct economic impact, Kratos’ presence is also attracting other high-tech companies to the region, creating a ripple effect of innovation and economic growth. Kratos' recent financial performance, with revenues up 26% year-over-year, confirms the company’s strong growth trajectory and its ability to deliver on its commitments.

The company also entered a partnership with GE Aerospace, jointly developing high-thrust turbofan propulsion systems and establishing a 50,000-square-foot manufacturing facility in Oklahoma, with plans for further expansion. This highlights the growing trend of collaboration between established defense primes and innovative companies like Kratos, leveraging each other's strengths to deliver cutting-edge technologies.

Kratos’ expansion in Michigan underscores a broader shift in the defense industry – a move away from bespoke, high-cost systems towards more affordable, scalable solutions. This trend is being driven by the increasing demand for unmanned systems, the need to counter emerging threats, and the growing recognition that affordability is no longer a luxury, but a necessity.