$61M Navy Contract Boosts Kratos’ Aerial Target Production
Event summary
- Kratos awarded $61.1M contract modification for full-rate production of 70 BQM-177A Subsonic Aerial Targets.
- Contract includes 70 Rocket-Assisted Takeoff (RATO) kits and associated equipment.
- Work to be performed across multiple U.S. locations, with completion expected by August 2028.
- Total contract value reaches $238.8M after this modification.
The big picture
This contract reflects the Navy’s growing reliance on advanced unmanned systems for training and testing, positioning Kratos as a critical player in subsonic aerial targets. The $61M modification underscores the strategic importance of scalable, cost-effective drone technology in modern military operations.
What we're watching
- Production Capacity
- Whether Kratos can sustain current production efficiency improvements amid rising demand.
- Contract Pipeline
- The pace at which additional full-rate production contracts materialize for the BQM-177A.
- Competitive Positioning
- How this contract solidifies Kratos’ role as a key supplier in the aerial target market.