Kratos Secures $30M in Critical National Security Hardware Contracts

SAN DIEGO, CA – December 29, 2025 – Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) today announced it has been awarded approximately $30 million in new contracts for the production of critical national security hardware. The awards focus on components for advanced Air Defense and C5ISR systems, reinforcing the company's integral position within the U.S. defense industrial base.

According to the announcement, the work will involve the large-scale production of military-grade custom hardware for a range of complex applications. While specific details of the programs remain confidential, Kratos is a known leader in providing essential systems for missile defense, radar, counter-unmanned aerial systems (C-UAS), hypersonics, and satellite communications. All production related to these contracts will be carried out in secure Kratos manufacturing facilities.

This series of contract awards highlights a growing reliance on specialized technology firms like Kratos that can rapidly design, engineer, and manufacture sophisticated hardware at scale. The announcement underscores the company's role not just as a component supplier, but as a collaborative partner involved from the early stages of system design.

The Backbone of Modern Warfare: C5ISR and Air Defense

The contracts specifically call out hardware for C5ISR and Air Defense, two of the most critical areas in modern military strategy. C5ISR—which stands for Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance—forms the digital nervous system of the armed forces. It enables commanders to gather battlefield data, communicate securely, coordinate complex operations, and make informed decisions faster than the adversary. The hardware Kratos produces is foundational to these interconnected systems, ensuring reliable data flow and operational command across domains.

Simultaneously, the emphasis on air defense reflects a direct response to evolving global threats. The proliferation of advanced drones, cruise missiles, and emerging hypersonic weapons has created an urgent need for more capable and layered defense systems. Kratos manufactures key electronic and hardware components that are integrated into the larger systems designed to detect, track, and intercept these high-speed, complex threats. The ability to produce this hardware at scale is vital for maintaining a credible defensive posture.

Tom Mills, President of Kratos’ C5ISR Division, commented on the customer confidence reflected in the awards. “Our entire team is honored to have our customers’ confidence in our ability to engage early in the systems’ design phase to collaborate with our customers on system-level engineering and design, provide highly engineered custom systems and solutions, large-scale manufacturing, at an affordable cost, for these urgent, relevant, and mission critical systems,” he stated.

A Differentiator in a Demanding Market

In the high-stakes world of defense manufacturing, reliability and timeliness are paramount. Eric DeMarco, President and CEO of Kratos, emphasized that the company's proven performance is a key competitive advantage. “Delivering relevant, military-grade hardware on time, on schedule, and that works every time is hard, and Kratos’ demonstrated capability to continuously do so is a differentiator for our Company to our customers and partners,” DeMarco said.

This philosophy is central to the Kratos business model, which champions the idea that “affordability is a technology.” The company focuses on leveraging proven, leading-edge technologies rather than unproven “bleeding-edge” concepts to minimize risk, cost, and development schedules. This approach allows it to act as a disruptive force in the industry, capable of rapid, large-quantity production—a valuable asset for both government customers and the large prime system integrators Kratos often partners with.

DeMarco further noted that the company is already in “high volume, mass production on multiple hypersonic, counter-UAS, missile, radar and other systems.” This new infusion of $30 million in contracts will expand that production, feeding a defense supply chain hungry for hardware that can meet the technical demands of next-generation warfare. The focus on affordability and speed makes Kratos a go-to partner for urgent national security requirements.

Broad Portfolio for a Complex Battlefield

While the recent contracts focus on Air Defense and C5ISR, they represent just one facet of Kratos' extensive portfolio. The company has strategically positioned itself across a wide array of high-growth defense sectors. Its primary business areas include everything from virtualized ground systems for satellites to the development and production of jet-powered unmanned aerial drone systems, a field where Kratos is known for its innovative, low-cost tactical platforms.

Furthermore, the company is deeply involved in propulsion systems for a variety of applications, including drones, missiles, loitering munitions, and supersonic vehicles. Its expertise also extends to microwave electronic products that are essential for the functionality of missile guidance, radar, electronic warfare, and directed energy systems. By spanning these diverse but interconnected technology areas, Kratos has built a resilient business that can support multifaceted defense programs from the ground to space.

The sensitive nature of the work necessitates a high degree of confidentiality. The press release explicitly stated that “Due to competitive, security related and other considerations, no additional information will be provided.” This secrecy is standard for programs tied directly to warfighter capabilities and strategic deterrence, indicating the critical importance of the hardware being produced under these contracts.