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Tuesday, May 30, 2023

Revenue Up 24% at Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Inc., the defense contractor and electronics maker based in Scripps Ranch, reported net income of $3.9 million, or 4 cents per share, on revenue of $187.9 million during its second quarter, which ended June 30.

One year ago, Kratos (Nasdaq: KTOS) reported a net loss of $7.7 million, or 7 cents per share, on revenue of $151.2 million.

The defense contractor made its financial results public on July 31.

Total revenue in the recently ended quarter grew 24.3% over the second quarter of 2018. Part of that growth — some $17.2 million worth — was due to the recent acquisition of Florida Turbine Technologies, a small jet engine manufacturer. Separating out that impact, organic growth year-over-year came to 12.9%.

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Bookings in the recently ended quarter were $188.1 million, and the company reported a backlog of $620.3 million on June 30.

“As we look forward, we have increasing visibility and confidence in the expected long term growth trajectory of the business,” CEO Eric DeMarco said. “Our bid pipeline remains at all time high levels, including a number of new large opportunities we are pursuing in our unmanned systems, missile defense and hypersonic systems areas, where if successful, could be significant catalysts and additional growth drivers for our company.”

Unmanned Business Grows 19%

The business said its unmanned systems division generated $42.5 million in revenue, an increase of $6.9 million (or 19.4%) over the $35.6 million in revenue in the same quarter one year ago.

Some $5.8 million in capital expenditures during the second quarter included funds spent on the company’s drone manufacturing facility in Oklahoma City. Kratos plans to produce its XQ-58 Valkyrie aircraft there. Kratos expects elevated capital expenditures in the second half of the year as it pays for manufacturing equipment at the Oklahoma City factory, equipment for a second secured facility and the production of company-owned drones.

Separately, on July 17, Kratos reported receiving a $15 million task order to continue training of the Royal Saudi Naval Forces. The Naval Air Warfare Center Training Systems Division made the award under a foreign military sales contract.


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