Kratos Secures $75M Boeing Contract for JDAM LR Engine Supply
Event summary
- Kratos will supply Spartan J85 engines for Boeing’s JDAM LR production under a $75M U.S. Air Force contract.
- The JDAM LR is a precision-guided munition with a 300+ nautical mile range and 500-pound payload.
- Kratos’ Auburn Hills facility is fully operational for high-rate production of the engines.
- The company has initiated long-lead component procurement to support a large 2027 production run.
- Kratos is executing a three-phase manufacturing infrastructure plan to expand production capacity.
The big picture
Kratos’ involvement in the JDAM LR program underscores the growing emphasis on affordable, mass-produced precision-strike capabilities in the defense sector. The contract aligns with broader U.S. efforts to bolster the defense industrial base and ensure resilient, domestic supply chains. Kratos’ proactive investments in production capacity position it as a key player in the evolving landscape of military propulsion systems.
What we're watching
- Production Scaling
- Whether Kratos can sustain high-rate production of Spartan engines to meet growing defense demand.
- Supply Chain Dynamics
- The pace at which Kratos can secure and stabilize long-lead components for engine production.
- Market Positioning
- How Kratos’ domestically sourced propulsion solutions will compete with traditional prime system integrators.