Kratos Reports Q3 2026 Revenue of $471.8 Million and Adjusted EPS of $0.24

Kratos reported third-quarter 2026 revenue of $471.8 million, up 35.7% year over year, and an adjusted diluted EPS of $0.24. The company posted a GAAP net loss of $0.2 million and Adjusted EBITDA of $50.9 million. Kratos raised its 2026 guidance and issued an initial 2027 forecast.

Financial Highlights

• Revenue was $471.8 million, compared with $347.6 million in the third quarter of 2025.
• Gross profit was $106.0 million, compared with $77.1 million a year earlier.
• Operating loss was $4.9 million; the prior-year quarter reported operating income of $7.1 million.
• Net loss was $0.2 million, compared with net income of $8.7 million in the third quarter of 2025.
• Adjusted diluted EPS was $0.24, compared with $0.14 a year earlier; Adjusted EBITDA was $50.9 million.

Business Highlights

• Kratos Government Solutions reported 35.8% organic revenue growth. Notable organic growth came from Defense and Rocket Support, Turbine Technologies, Microwave Products, and Space, Training and Cyber.
• Unmanned Systems’ year-over-year revenue decline reflected the prior-year quarter’s international Valkyrie shipment. The segment recorded a 0.8-to-1 quarterly book-to-bill ratio and ended the quarter with $357.4 million in backlog.
• Consolidated bookings were $1.037 billion for the quarter, with a 2.2-to-1 book-to-bill ratio. Backlog reached $2.650 billion, including $2.067 billion funded, and the bid and proposal pipeline was $15.5 billion.
• The company expects to increase turbojet engine production capacity to as many as 3,000 engines in 2027 and potentially 5,000 additional engines in 2028; its forecast assumes sales of approximately 1,500 engines in 2027, primarily in the second half.
• Kratos expects fiscal 2027’s first quarter to be its lightest quarter because of the continuing resolution, with revenue and Adjusted EBITDA expected to increase later in the year if appropriations are in place.

Original SEC Filing: KRATOS DEFENSE & SECURITY SOLUTIONS, INC. [ KTOS ] - 8-K - Nov. 05, 2026