Kratos Defense Awarded $3.4 Million U.S. Navy Contract for BQM-177A Aerial Target System Support

Kratos Defense received a $3.4 million contract from the U.S. Navy for logistics support of the BQM-177A system.

Quiver AI Summary

Kratos Defense & Security Solutions, Inc. has been awarded a $3,399,506 contract from the U.S. Navy for Contractor Logistics Support and Engineering Services for the BQM-177A aerial target system. This contract highlights the Navy's commitment to operational readiness, as mentioned by Steve Fendley, President of Kratos Unmanned Systems Division. If all four optional years of the contract are executed, its total value could reach $19,118,645, with work primarily conducted at Kratos facilities in Sacramento and Point Mugu, California. Kratos emphasizes its role as an innovative leader in the defense technology sector, focusing on rapid development and cost-effective solutions for various military and commercial applications.

Potential Positives

• Kratos Defense & Security Solutions was awarded a $3.4 million contract from the U.S. Navy, highlighting its role in supporting defense operations and enhancing military readiness.
• The contract has a potential total value of approximately $19.1 million if all option years are exercised, indicating strong future revenue potential for Kratos.
• This award emphasizes Kratos' capabilities in Contractor Logistics Support and Engineering Services, reinforcing its position as a leader in the unmanned aerial systems market.
• The work will be primarily conducted in Kratos facilities, which is positive for local employment and the company's operational presence in California.

Potential Negatives

• The press release emphasizes the risks and uncertainties associated with forward-looking statements, indicating potential volatility in the company's performance and outcomes.
• The mention of "investment required by Kratos is within our capital resource comfort level" may suggest financial constraints or limitations in pursuing potentially lucrative opportunities.
• The overall reliance on government contracts, such as the awarded $3.4 million contract, raises concerns about dependency on public sector funding and the associated risks of government budget fluctuations.

FAQ

What recent contract did Kratos Defense secure from the U.S. Navy?

Kratos Defense was awarded a $3,399,506 contract for Contractor Logistics Support and Engineering Services for the BQM-177A aerial target system.

What is the total potential value of the contract if all options are exercised?

If all four option years are exercised, the contract could reach a total value of $19,118,645.

What is the role of the BQM-177A aerial target system?

The BQM-177A system is critical for supporting Navy missions and enhancing operational readiness.

Where will the work for this contract primarily take place?

The work will be conducted mainly at Kratos facilities in Sacramento and Point Mugu, CA.

What areas does Kratos specialize in within the defense sector?

Kratos focuses on unmanned aerial systems, hypersonic vehicles, satellite systems, and advanced propulsion technologies among others.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$KTOS Insider Trading Activity

$KTOS insiders have traded $KTOS stock on the open market 51 times in the past 6 months. Of those trades, 1 have been purchases and 50 have been sales.

Here’s a breakdown of recent trading of $KTOS stock by insiders over the last 6 months:

• STEVEN S. FENDLEY (President, US Division) has made 0 purchases and 6 sales selling 42,000 shares for an estimated $1,103,308.
• PHILLIP D CARRAI (President, STC Division) has made 0 purchases and 6 sales selling 40,000 shares for an estimated $1,035,755.
• DEANNA H LUND (EVP & CFO) has made 0 purchases and 6 sales selling 36,000 shares for an estimated $955,425.
• THOMAS E IV MILLS (President, C5ISR Division) has made 0 purchases and 5 sales selling 29,756 shares for an estimated $802,814.
• STACEY G ROCK (President, KTT Division) has made 0 purchases and 9 sales selling 24,000 shares for an estimated $646,885.
• DAVID M CARTER (President, DRSS Division) has made 0 purchases and 6 sales selling 24,000 shares for an estimated $636,931.
• DE BURGREEN MARIA CERVANTES (VP & Corp. Controller) has made 0 purchases and 2 sales selling 19,528 shares for an estimated $585,840.
• MARIE MENDOZA (SVP & General Counsel) has made 0 purchases and 8 sales selling 10,517 shares for an estimated $279,506.
• ERIC M DEMARCO (President & CEO) purchased 9,500 shares for an estimated $250,322
• BENJAMIN M. GOODWIN (SVP Corp. Dev. & Gov. Affairs) has made 0 purchases and 2 sales selling 5,000 shares for an estimated $138,541.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$KTOS Hedge Fund Activity

We have seen 176 institutional investors add shares of $KTOS stock to their portfolio, and 176 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• ROVIDA ADVISORS INC. removed 1,773,655 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $46,789,018
• LORD, ABBETT & CO. LLC added 934,455 shares (+140.5%) to their portfolio in Q4 2024, for an estimated $24,650,922
• VOYA INVESTMENT MANAGEMENT LLC added 767,345 shares (+435.3%) to their portfolio in Q4 2024, for an estimated $20,242,561
• HOOD RIVER CAPITAL MANAGEMENT LLC removed 739,821 shares (-23.8%) from their portfolio in Q4 2024, for an estimated $19,516,477
• VANGUARD GROUP INC added 701,216 shares (+5.0%) to their portfolio in Q4 2024, for an estimated $18,498,078
• ARTISAN PARTNERS LIMITED PARTNERSHIP added 592,521 shares (+inf%) to their portfolio in Q4 2024, for an estimated $15,630,703
• TIMESSQUARE CAPITAL MANAGEMENT, LLC added 591,990 shares (+inf%) to their portfolio in Q4 2024, for an estimated $15,616,696

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$KTOS Price Targets

Multiple analysts have issued price targets for $KTOS recently. We have seen 3 analysts offer price targets for $KTOS in the last 6 months, with a median target of $27.0.

Here are some recent targets:

• Ken Herbert from RBC Capital set a target price of $27.0 on 01/06/2025
• Mike Crawford from B.Riley Financial set a target price of $26.0 on 10/30/2024
• Peter Arment from Robert W. Baird set a target price of $35.0 on 09/23/2024

Full Release

SAN DIEGO, March 17, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a technology company in the defense, national security and global markets, and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today that Kratos was awarded $3,399,506 from the U.S. Navy for the base year of its next Contractor Logistics Support and Engineering Services contract supporting BQM-177A aerial target system operations.

BQM-177A Subsonic Aerial Target System

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/095b7d6b-55d5-4d17-aaf4-c3d33254ebfc

Steve Fendley, President of Kratos Unmanned Systems Division,

said, “Often underestimated, logistics represents the behind-the-scenes enabler to system readiness. This contract illustrates the Navy’s commitment to readiness, and we’re equally committed to delivering readiness of the BQM-177A system and the critical capability it provides to the Navy for missions throughout each year.”

If all four option years awarded under this contract are exercised, this contract has a potential value of $19,118,645 with work conducted primarily in Kratos facilities in Sacramento and at Point Mugu, CA.

About Kratos Defense & Security Solutions



Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit

www.KratosDefense.com

.

Notice Regarding Forward-Looking Statements



Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:



Claire Burghoff


claire.burghoff@kratosdefense.com

Investor Information:



877-934-4687


investor@kratosdefense.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.