Kratos Defense secures a $68.3 million contract to develop a hypersonic materials testing facility under Project Helios.
Quiver AI Summary
Kratos Defense & Security Solutions, Inc. announced the award of a $68.3 million contract from the Department of War to design and build an advanced facility for hypersonic materials evaluation, known as Project Helios. This facility will enhance the U.S. Defense Industrial Base by providing crucial testing infrastructure for thermal protection systems used in hypersonic vehicles, addressing existing gaps in national testing capabilities. It will combine a mid-tier arc jet capability with a fiber laser system to improve material evaluation for hypersonic technology, thereby supporting national defense needs while reducing program costs. Kratos aims to advance hypersonic technology and alleviate testing bottlenecks, emphasizing its commitment to affordability and innovation in defense solutions.
Potential Positives
- Kratos has been awarded a significant contract worth $68.3 million through the Department of War's Industrial Base Analysis and Sustainment Program, indicating strong governmental support and trust in their capabilities.
- The new facility, Project Helios, will enhance testing infrastructure for hypersonic materials, addressing current critical gaps in the U.S. Defense Industrial Base and supporting all branches of the U.S. Armed Forces.
- This investment demonstrates Kratos' commitment to innovation and meets high-priority defense requirements, positioning the company as a key player in advancing national defense technologies.
- The facility is expected to increase material evaluation throughput while significantly reducing overall program costs, benefiting both Kratos and its defense sector partners.
Potential Negatives
- The press release heavily emphasizes forward-looking statements, which come with inherent risks and uncertainties, potentially making it difficult for investors to rely on the company's projections.
- The company's dependency on government contracts, as highlighted by the announcement of a single contract worth $68.3 million, raises concerns about revenue diversification and long-term stability.
- The focus on addressing "critical gaps" in U.S. Defense Industrial Base capabilities could imply that the company is currently underperforming or lacking in certain essential areas.
FAQ
What is Project Helios at Kratos Defense?
Project Helios is a contract to design and build a facility for hypersonic materials evaluation, valued at $68.3 million.
How does the new facility enhance defense capabilities?
The facility will provide essential testing infrastructure for thermal protection systems used in hypersonic vehicles, addressing key gaps in capabilities.
What are the expected benefits of the new testing facility?
Benefits include increased material development efficiency, cost reduction, and enhanced national defense through advanced testing capabilities.
Who will the facility support within the military?
The facility will support all branches of the U.S. Armed Forces and the Department of War with critical testing infrastructure.
What technologies does Kratos specialize in?
Kratos specializes in defense technologies, system and software development, hypersonic vehicles, and innovative solutions for national security.
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 80 times in the past 6 months. Of those trades, 1 have been purchases and 79 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 13 sales selling 67,000 shares for an estimated $3,203,797.
- PHILLIP D CARRAI (President, STC Division) has made 0 purchases and 13 sales selling 36,000 shares for an estimated $2,164,825.
- JONAH ADELMAN (President, ME Division) sold 40,000 shares for an estimated $1,350,340
- STACEY G ROCK (President, KTT Division) has made 0 purchases and 12 sales selling 23,846 shares for an estimated $1,301,006.
- DEANNA H LUND (EVP & CFO) has made 0 purchases and 11 sales selling 22,567 shares for an estimated $1,237,034.
- DAVID M CARTER (President, DRSS Division) has made 0 purchases and 9 sales selling 16,000 shares for an estimated $972,674.
- MARIE MENDOZA (SVP & General Counsel) has made 0 purchases and 9 sales selling 9,267 shares for an estimated $577,542.
- THOMAS E IV MILLS (President, C5ISR Division) has made 0 purchases and 5 sales selling 11,544 shares for an estimated $568,972.
- DE BURGREEN MARIA CERVANTES (VP & Corp. Controller) has made 0 purchases and 4 sales selling 6,264 shares for an estimated $437,202.
- ERIC M DEMARCO (President & CEO) purchased 7,455 shares for an estimated $250,378
- BOBBI DOORENBOS sold 5,000 shares for an estimated $175,018
- BRADLEY L BOYD sold 3,800 shares for an estimated $132,544
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$KTOS Hedge Fund Activity
We have seen 304 institutional investors add shares of $KTOS stock to their portfolio, and 183 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,817,931 shares (+inf%) to their portfolio in Q2 2025, for an estimated $84,442,894
- ROVIDA ADVISORS INC. added 1,773,655 shares (+inf%) to their portfolio in Q2 2025, for an estimated $82,386,274
- WESTWOOD HOLDINGS GROUP INC removed 1,675,325 shares (-76.9%) from their portfolio in Q2 2025, for an estimated $77,818,846
- VANGUARD GROUP INC added 1,530,198 shares (+9.3%) to their portfolio in Q2 2025, for an estimated $71,077,697
- FMR LLC removed 1,324,108 shares (-35.4%) from their portfolio in Q2 2025, for an estimated $61,504,816
- STEPHENS INVESTMENT MANAGEMENT GROUP LLC removed 1,280,958 shares (-33.2%) from their portfolio in Q2 2025, for an estimated $59,500,499
- CITADEL ADVISORS LLC added 1,280,055 shares (+564.6%) to their portfolio in Q2 2025, for an estimated $59,458,554
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$KTOS Analyst Ratings
Wall Street analysts have issued reports on $KTOS in the last several months. We have seen 10 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Truist Securities issued a "Buy" rating on 10/15/2025
- Canaccord Genuity issued a "Buy" rating on 10/09/2025
- JMP Securities issued a "Market Outperform" rating on 10/02/2025
- Baird issued a "Outperform" rating on 09/26/2025
- BTIG issued a "Buy" rating on 08/14/2025
- B. Riley Securities issued a "Buy" rating on 08/11/2025
- RBC Capital issued a "Outperform" rating on 08/08/2025
To track analyst ratings and price targets for $KTOS, check out Quiver Quantitative's $KTOS forecast page.
$KTOS Price Targets
Multiple analysts have issued price targets for $KTOS recently. We have seen 13 analysts offer price targets for $KTOS in the last 6 months, with a median target of $80.0.
Here are some recent targets:
- Michael Ciarmoli from Truist Securities set a target price of $125.0 on 10/15/2025
- Jonathan Siegmann from Stifel set a target price of $112.0 on 10/15/2025
- Austin Moeller from Canaccord Genuity set a target price of $120.0 on 10/09/2025
- Mike Crawford from B. Riley Securities set a target price of $105.0 on 10/08/2025
- Trevor Walsh from JMP Securities set a target price of $105.0 on 10/02/2025
- Peter Arment from Baird set a target price of $87.0 on 09/26/2025
- Andre Madrid from BTIG set a target price of $80.0 on 08/14/2025
Full Release
SAN DIEGO, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security, and global markets, announced today that it has been awarded a contract through the Department of War’s Industrial Base Analysis and Sustainment Program to design and build a state-of-the-art mid-tier arc jet and coupled fiber laser facility for hypersonic materials evaluation. Known internally to Kratos as Project Helios, the contract to Kratos for the leading technology facility has a total projected value of $68.3 million.
Kratos Helios
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/889d1af5-3429-4469-8e96-38ceae43283d
Once complete, the facility will address current critical gaps in U.S. Defense Industrial Base capabilities by providing essential testing infrastructure for thermal protection systems used in hypersonic vehicles. This capability will complement and enhance the national testing infrastructure, supporting all branches of the U.S. Armed Forces and Department of War and bridging the gap between low-fidelity screening solutions available across both industry and academia and the exquisite, large-scale arc jet facilities at government testing sites. Combining a 20-25 MW arc jet capability with a 200 kW fiber laser system, this innovative facility is expected to dramatically increase opportunities for material evaluation in support of both hypersonic and strategic national defense efforts.
“This new facility will provide a vital capability for advancing hypersonic technology development while alleviating the current testing bottleneck at existing facilities,” said Eric DeMarco, President and CEO of Kratos . “Once the facility is complete, Kratos will offer more cost-effective and readily available testing options, with Kratos also helping accelerate the development of critical defense technologies. Project Helios is a recent example of Kratos’ strategy to make the internal investment and rapidly bring a mission critical capability to the warfighter, while generating multi- year, long term value for all of our stakeholders. The demand for these unique testing capabilities is expected to continue for decades with the need for developing and advancing hypersonic related materials.”
“We are excited to initiate the development of this cutting-edge facility that bridges current testing infrastructure gaps across the nation,” said Dave Carter, President of Kratos Defense and Rocket Support Services Division . “Kratos continues to serve as a cornerstone of affordability, low cost, innovation and readiness in the national defense community. This facility underscores our dedication to proactively address high-priority defense requirements and meeting the technology development needs of each program.”
“The team at Kratos SRE has a history of evaluating high-temperature materials that spans over 80 years,” said Ben Dempsey, Kratos SRE Vice President of Programs . “Our experienced materials experts are excited to collaborate with the highly skilled facility design teams at North Wind and New Horizon 5 to make this new capability available to the defense sector for the evaluation and development of materials in extreme environments.”
Key benefits include:
- Material Development: Serve as a natural bridge for material development, transitioning materials from laboratory experiments to fielded system applications more efficiently.
- Advancement of National Defense: Support critical needs for national defense through a comprehensive testing infrastructure.
- Cost Reduction: Increase throughput while significantly reducing overall program costs.
- Collaboration & Innovation: Demonstrates Kratos’ commitment to addressing high-priority defense requirements and providing long-term value.
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 Cantrell
[email protected]
Investor Information:
877-934-4687
[email protected]