What's Going On With Kratos Defense & Security Solutions Stock Monday?

Kratos Defense & Security Solutions Inc KTOS shares are trading higher. The company on Monday announced it received a new hypersonic system program award with a total value of up to $100 million.

What Happened: Kratos on Monday said it received a $100 million total potential value hypersonic system program award under which the company will provide engineering, systems and hardware. Work related to the program will be performed at Kratos fabrication, manufacturing and system integration facilities.

Kratos noted that it has already received approximately $15 million of funding and expects significant increased funding in the second half of fiscal year 2025.

“At Kratos, it’s products today, not PowerPoints of a hoped for, maybe someday system, at an unknown cost. Kratos warfighter and mission focused customers understand that “better is the enemy of good enough and ready to field today”, while reducing development cost and saving money in today’s increasing fiscally challenging environment,” said Eric DeMarco, president and CEO of Kratos.

The news comes about a week after Kratos was awarded a five-year government contract worth up to $1.45 billion for the Multi-Service Advanced Capability Hypersonic Test Bed 2.0 under Task Area 1.

MACH-TB 2.0 aims to provide an affordable bridge between hypersonic ground tests and system level flight tests, reducing overall hypersonic development risks and time.

Kratos said the contract includes integrated subscale, full-scale and air launch services to increase hypersonic flight test cadence. The company will lead a team of subcontractors that will provide systems engineering, assembly, integration, test mission planning and execution and launch services.

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KTOS Price Action: Kratos shares were up 5.52% at $30.99 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Kratos Defense.