Kratos Q2 2026 revenue hits $458.8 million, raises full-year guidance

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Kratos Defense & Security Solutions reported second-quarter 2026 revenue of $458.8 million, representing 30.5% total growth and 19.1% organic growth compared to the second quarter of 2025. Adjusted earnings per share rose to $0.21 from $0.11 a year earlier, and adjusted EBITDA of $38.2 million exceeded the company's estimated range of $30 million to $35 million. The company raised its full-year 2026 revenue guidance to $1.750 billion to $1.810 billion, reflecting an increase in forecasted organic growth to 18% to 23%, and set adjusted EBITDA guidance at $173 million to $176 million. Kratos' total backlog stood at $2.084 billion, and its bid and proposal pipeline increased to $15 billion from $14.3 billion at the end of the first quarter. The Kratos Government Solutions segment posted $379.7 million in revenue with 22% organic growth, driven by a 50.2% organic increase in defense rocket support and a 43.3% organic increase in turbine technologies, while the Unmanned Systems segment generated $79.1 million in revenue with 8.1% organic growth, primarily from Valkyrie-related activities. Management highlighted a hypersonic revenue forecast of $400 million for 2026, rising to at least $700 million in 2027, and disclosed plans to order components for 3,000 Spartan turbojet engines for 2027 delivery and 5,000 units for 2028, with an average selling price of $50,000. The company also announced a $160 million initial award for a directed energy counter unmanned aircraft system program with the Department of Energy and a $100 million initial award for a space domain awareness production program.

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