Kratos Awarded Hypersonics Contract by Department of Defense
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy KTOS?
Kratos Defense & Security Solutions announced that it has been awarded a contract through the Department of War's Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles. For this program, Kratos will leverage expertise in hypersonics to analyze various missions and flight environments to understand appropriate testing conditions. Kratos will establish standard test conditions and techniques to accelerate materials development and can be used as a baseline for other similar aerothermal test facilities.
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Analyst Views on KTOS
Wall Street analysts forecast KTOS stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 97.210
Low
80.00
Averages
108.69
High
150.00
Current: 97.210
Low
80.00
Averages
108.69
High
150.00
About KTOS
Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Sentiment Shift: He remarked that the cryptocurrency market is experiencing a “slaughter,” indicating a significant downturn in sentiment towards Bitcoin and other cryptocurrencies, which may affect short-term investment decisions.
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- Dark Eagle Deployment: The U.S. Army has begun fielding the Dark Eagle, the nation's first operational ground-launched hypersonic weapon, with delivery expected to complete in early 2026, marking a critical advancement in the U.S. hypersonic weapons program.
- Commercial-Aerospace Defense Intersection: Companies like Starfighters Space are gaining attention at the intersection of commercial aerospace and defense testing, with Starfighters recently completing wind tunnel tests for STARLAUNCH 1, validating its air-launched system design and strengthening its position in the hypersonic market.
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- Weapon Deployment: The U.S. Army has begun fielding the Dark Eagle hypersonic weapon, with deliveries expected to complete in early 2026, marking the first operational use of ground-launched hypersonic weapons in the U.S., which could transform future battlefield dynamics.
- Commercial and Defense Synergy: Companies like Starfighters Space are positioned at the intersection of commercial aerospace and defense testing, attracting substantial private capital to enhance production capacity and flight cadence, reflecting strong market demand for rapidly advancing hypersonic technologies.
- Testing Progress: Starfighters Space recently completed wind tunnel testing for STARLAUNCH 1, validating separation behavior at Mach 0.85 and Mach 1.3, with results showing strong alignment with computational fluid dynamics predictions, laying a solid foundation for subsequent flight testing.
See More
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- Carrier Deployment: A second aircraft carrier equipped with attack and electronic warfare jets has been deployed, further enhancing U.S. military presence in the region and indicating high vigilance towards potential conflicts.
- Command and Control Capability: Command-and-control aircraft are en route to the Middle East, essential for coordinating large-scale air operations, indicating U.S. readiness for a sustained air campaign.
- Strategic Decision Uncertainty: Despite President Trump being briefed on military options, he has shown a preference for negotiations, leaving the authorization for strikes against Iran uncertain, reflecting the complex geopolitical landscape.
See More
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- Earnings Forecast Discrepancy: Although UBS's FY 2028 EBITDA margin estimate for AVAV is 100 bps below consensus, the average analyst price target of $387 implies a forward EBITDA multiple of 44x, indicating optimistic market expectations for future growth.
- KTOS Growth Outlook: For Kratos Defense (KTOS), Parsons expressed optimism, with the UBS model projecting revenue and EBITDA to double and triple, respectively, by 2030, despite his 2027 EBITDA estimate being 9% below consensus.
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See More
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