Kratos Defense & Security Stock (NASDAQ: KTOS)

Kratos Defense & Security (NASDAQ:KTOS) Stock

Kratos Defense & Security

Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.

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Kratos Defense &amp; Security Solutions Inc (NASDAQ: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&#39;s Going On With Kratos Defense &amp; Security Solutions Stock Monday?

Kratos Defense & Security Solutions, Inc. - Common Stock

Kratos Defense & Security Solutions Inc

In the current market session, Kratos Defense &amp; Security Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) share price is at $33.05, after a 1.82% increase. Moreover, over the past month, the stock fell by 0.67%, but in the past year, increased by 82.82%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1739209508_0.png" alt="Past Year Chart" />

<h3>How Does Kratos Defense &amp; Security P/E Compare to Other Companies?</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Compared to the aggregate P/E ratio of 90.56 in the Aerospace &amp; Defense industry, Kratos Defense &amp; Security Inc. has a higher P/E ratio of 324.6. Shareholders might be inclined to think that Kratos Defense &amp; Security Inc. might perform better than its industry group. It's also possible that the stock is overvalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1739209508_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

Markets

A Look Into Kratos Defense & Security Inc's Price Over Earnings

JMP Securities analyst Trevor Walsh maintains Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Market Outperform and raises the price target from $30 to $40.

Price Target

Analyst Ratings

JMP Securities Maintains Market Outperform on Kratos Defense & Security, Raises Price Target to $40

<figure class="wp-block-image aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="589" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111705/The-Sixteen-Trillion-Dollar-Question-1024x589.jpg" alt="" class="wp-image-4952" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111705/The-Sixteen-Trillion-Dollar-Question-1024x589.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111705/The-Sixteen-Trillion-Dollar-Question-300x173.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111705/The-Sixteen-Trillion-Dollar-Question-768x442.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111705/The-Sixteen-Trillion-Dollar-Question.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Cover Image Made With AI
<h2 class="wp-block-heading">The $16 Trillion Question </h2>
As of January 24, 2025, the combined market capitalization of&nbsp;Nvidia, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and the other major AI infrastructure companies was nearly $16 trillion.
<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="902" height="462" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111811/Market-Caps.jpg" alt="" class="wp-image-4953" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111811/Market-Caps.jpg 902w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111811/Market-Caps-300x154.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25111811/Market-Caps-768x393.jpg 768w" sizes="(max-width: 902px) 100vw, 902px" /></figure>
That market cap is based on expected demand for hardware to fuel the AI boom. But what if all of that hardware won&#8217;t be needed? What if we can have AI without most of it? That&#8217;s the $16 trillion dollar question raised by the emergence of a Chinese AI startup called&nbsp;<a href="https://www.deepseek.com/">DeepSeek</a>. They released their AI model this week, reportedly built with only $6 million in funding, and American tech luminaries like Marc Andreessen were blown away by it.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen — and as open source, a profound gift to the world. &#x1f916;&#x1fae1;
&mdash; Marc Andreessen &#x1f1fa;&#x1f1f8; (@pmarca) <a href="https://twitter.com/pmarca/status/1882719769851474108?ref_src=twsrc%5Etfw">January 24, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h2 class="wp-block-heading">Two Possibilities Here</h2>
There are two possibilities here:&nbsp;
<ol>
<li>DeepSeek really did manage to essentially replicate what Open AI has done with ChatGPT, without a $100 million or more worth of expensive equipment by companies like Nvidia.&nbsp;</li>
<li>DeepSeek secretly is using that equipment, but can&#8217;t disclose it due to export restrictions.&nbsp;</li>
</ol>
If the answer is 2. than Friday&#8217;s price action will have been a mild hiccup in our tech bull market; if the answer is 1., then that bull market is over. Investors will begin to radically reprice Nvidia and other AI infrastructure companies, after dramatically lowering their capex expectations.&nbsp;
<h2 class="wp-block-heading">Investment Implications&nbsp;</h2>
If you are at all risk-averse, you should probably hedge. Here are a couple of inexpensive ways you can hedge Nvidia against a >20% drop. 
If you are an aggressive investor or trader, you might consider betting against Nvidia. We did that on Friday morning, and exited half of our position for a 200% gain later in the day. That was one of our two successful trade exits this week. 
<ol>
<li>Puts on Nvidia ( <a href="https://admin.substack.com/discover/stocks/NVDA" target="_blank" rel="noreferrer noopener">NVDA -0.09%↓</a> ). Bought for $0.75 on 1/24/2025; sold (half) on the same day for $2.25. Profit: 200%.</li>
<li>Calls on Kratos Defense and Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>). Bought for $1.25 on12/12/2024; sold (final two thirds) at $5.65, on 1/22/2025. Profit: 352%.</li>
</ol>
If you&#8217;d like a heads up when we place our next trade, you can subscribe to our trading Substack/occasional email list below. 
You can scan for optimal hedges for individual securities, find our current top ten names, and&nbsp;create hedged portfolios&nbsp;on&nbsp;<a href="https://portfolioarmor.com/">our website</a>.&nbsp;You can also follow Portfolio Armor on X&nbsp;<a href="https://twitter.com/portfolioarmor">here</a>, or become a free subscriber to our trading Substack using the link below (we&#8217;re using that for our occasional emails now).
<figure class="wp-block-image aligncenter size-full"><a href="https://portfolioarmor.substack.com/"><img loading="lazy" decoding="async" width="602" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25112953/Widget-8.jpg" alt="" class="wp-image-4955" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25112953/Widget-8.jpg 602w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/25112953/Widget-8-300x208.jpg 300w" sizes="(max-width: 602px) 100vw, 602px" /></a></figure>

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Shares of defense companies are trading higher following Trump's inauguration as investors assess the new administration's economic policies.

Kratos Receives $34.8M Award Modification To Previously Awarded Contract From US Marine Corps

Ark Invest CEO Cathie Wood has been a proponent of space industry growth and she may have found her new <a href="https://www.benzinga.com/topic/space-stocks">favorite stock.</a>
What Happened: Two Ark Invest ETFs added small positions in Intuitive Machines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) to their portfolios on Wednesday, as the space stock soared over the past year and could gain more support with recent <a href="https://www.benzinga.com/general/sports/24/12/42647377/intuitive-machines-stock-is-moving-higher-monday-whats-going-on">NASA contract wins.</a>
The stock was added to the Ark Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) with 267,642 shares <a href="https://www.ark-funds.com/">purchased</a>. This represents 0.52% of the ETF and the 35th largest position at the time of writing.
To make way for the addition, Ark sold shares of Rocket Lab USA Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>), another high-performing 2024 space stock. Rocket Lab is currently the fourth-largest position in the ETF at 5.59% of assets, trailing only Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), 15.44%; Kratos Defense &amp; Security Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>), 10.07% and Teradyne Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>), 9.03%.
The stock was also added to the Ark Space Exploration &amp; Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#BATS">ARKX</a>) with 160,178 shares purchased. This represents 1.04% of the ETF and the 27th largest position at the time of writing.
To make way for this addition, Ark sold shares of Kratos and Rocket Lab. Kratos is the largest holding in the ETF at 10.20% followed by Rocket Lab at 8.99%.
Both of the purchases, which were reported in overnight trading activity emails, are the total amount of shares owned as of Thursday. This means these were the first purchases by both ETFs. Investors will be closely following to see if Wood adds to the Intuitive Machines positions.
Read Also: <a href="https://www.benzinga.com/markets/penny-stocks/23/08/34102486/exclusive-cathie-wood-tells-benzinga-why-tesla-should-trade-as-a-tech-stock">EXCLUSIVE: Cathie Wood Tells Benzinga Why Tesla Should Trade As A Tech Stock</a>
Why It's Important: Intuitive Machines stock is up over 600% in the past year. The company had one of the biggest headlines in February 2024 as Intuitive Machines had the<a href="https://www.benzinga.com/24/02/37276634/intuitive-machines-built-odysseus-achieves-first-us-soft-landing-on-moon-since-1972-nasa-chief-says"> first private spacecraft</a> land on the moon and the first U.S. soft landing on the surface since 1972.
Optimism for space stocks like Intuitive Machines carries into 2025 with the company announcing several NASA contract awards in December.
Intuitive Machines is also preparing to head back to the moon with a launch targeted for late February.
A recent <a href="https://www.benzinga.com/general/space/25/01/42828631/exclusive-rocket-lab-intuitive-machines-redwire-or-ast-spacemobile-33-of-readers-pick-this-space-stock-for-2025">Benzinga reader poll </a>asked which space stock they would most likely invest in for 2025. Rocket Lab won the poll with 33%. Intuitive Machines ranked second among the four stocks at 24%, while 26% said they wouldn't invest in space stocks in 2025.
The other item to watch is how high up the top holdings list Intuitive Machines is for the Ark Space Exploration ETF.
The Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) has been holding the stock for some time and Intuitive Machines is currently the top holding at 7.81%.
LUNR Price Action: Intuitive Machines trades at $19.06 at market close Thursday versus a 52-week trading range of $2.48 to $22.32.
Photo: Courtesy of Intuitive Machines

Baird analyst Peter Arment maintains Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Outperform and raises the price target from $35 to $40.

Baird Maintains Outperform on Kratos Defense & Security, Raises Price Target to $40

Kratos Defense & Security shares are trading higher after Truist Securities raised its price target on the stock from $27 to $32.

Truist Securities analyst Michael Ciarmoli maintains Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Buy and raises the price target from $27 to $32.

Truist Securities Maintains Buy on Kratos Defense & Security, Raises Price Target to $32

Kratos Defense &amp; Security Solutions Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) shares are trading higher. The company on Monday announced it received a new hypersonic system program award with a total value of <a href="https://www.benzinga.com/pressreleases/25/01/g42942706/kratos-receives-new-hypersonic-system-program-award-with-total-potential-value-of-approximately-10">up to $100 million</a>.
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. 
&#8220;At Kratos, it&#8217;s products today, not PowerPoints of a hoped for, maybe someday system, at an unknown cost. Kratos warfighter and mission focused customers understand that &#8220;better is the enemy of good enough and ready to field today&#8221;, while reducing development cost and saving money in today&#8217;s increasing fiscally challenging environment,&#8221; said Eric DeMarco, president and CEO of Kratos.
The news comes about a week after Kratos was awarded a five-year government&nbsp;<a href="https://www.benzinga.com/quote/KTOS" target="_blank" rel="noreferrer noopener">contract worth up to $1.45 billion</a> 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.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42944474/donald-trump-jr-joins-kalshi-prediction-market-as-strategic-advisor">Donald Trump Jr. Joins Kalshi Prediction Market As Strategic Advisor</a>
KTOS Price Action: <a href="http://benzinga.com/quote/ktos">Kratos shares</a> were up 5.52% at $30.99 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: courtesy of Kratos Defense.

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

Kratos shares are trading higher after the company received a new hypersonic system program award with a total value of up to $100 million.

Kratos Defense &amp; Security Solutions, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>), a technology company in Defense, National Security and Global Markets, announced today that it has recently received an approximate $100 million total potential value hypersonic system program award.&nbsp;Approximately $15 million of funding has been received by Kratos at contract award, with significant increased funding expected in the second half of Kratos fiscal year 2025. Under the new program contract award, Kratos will provide engineering, systems and hardware. Work related to the program will be performed at secure Kratos fabrication, manufacturing and system integration facilities.&nbsp;Due to competitive,&nbsp;security related and other considerations, no additional information will be provided.

Kratos Receives New Hypersonic System Program Award With Total Potential Value Of ~$100M

Kratos Defense &amp; Security's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NYSE">KTOS</a>) short percent of float has risen 3.0% since its last report. The company recently reported that it has 3.54 million shares sold short, which is 2.4% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.99 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Kratos Defense &amp; Security Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1736453720_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Kratos Defense &amp; Security has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Kratos Defense &amp; Security's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kratos Defense &amp; Security's peer group average for short interest as a percentage of float is 7.25%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Kratos Defense & Security's Recent Short Interest

Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>), a technology company in the defense, national security and global markets, announced that it was awarded a Geolocation Global Support Services (GGSS) contract in the amount of $48 million.

Kratos Awarded $48M Contract For Geolocation Global Support Services

Rocket Lab USA, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) ("Rocket Lab" or "the Company"), a global leader in launch services and space systems, today announced it has been selected to be a member of the team, led by Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) ("Kratos"), awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1. The total potential value of the MACH-TB 2.0 Contract Award over a five-year period is $1.45 billion. The Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&amp;E)) Test Resource Management Center (TRMC) established MACH-TB to support OUSD's National Hypersonic Initiative 2.0 by creating an affordable flight test bed to rapidly increase hypersonic flight test capacity. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests.
Kratos was awarded the prime role in Task Area 1 Systems Engineering, Integration, and Testing (SEIT), to include integrated subscale, full-scale, and air launch services to address the need to affordably increase hypersonic flight test cadence. Rocket Lab will join the Kratos-led team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&amp;T), mission planning and execution, and launch services.
Rocket Lab has already served the MACH-TB program, delivering multiple successful hypersonic test launches with the Company's HASTE (Hypersonic Accelerator Suborbital Test Electron) rocket from Rocket Lab's Launch Complex 2 in Wallops, Virginia. HASTE is a suborbital variant of Rocket Lab's Electron launch vehicle, which is the United States' second most frequently launched orbital rocket annually.
HASTE includes much of the same innovative technology as Electron, including carbon fiber composite structures and 3D printed rocket engines, but has a modified upper Kick Stage tailored for hypersonic technology tests and a larger payload capacity of up to 700 kg / 1,540 lbs. Combined, Rocket Lab's HASTE and Electron launch vehicles have deployed 200+ payloads from its United States and New Zealand launch sites to date.

Rocket Lab Selected By Kratos To Deliver Hypersonic Test Launches For DoD With HASTE Rocket As Part Of $1.45B MACH-TB 2.0 Contract Awarded To Kratos

Rocket Lab USA, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) shares are trading higher Monday following the announcement that the company will play a key role in Kratos Defense &amp; Security Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) $1.45 billion <a href="https://www.benzinga.com/news/contracts/25/01/42816275/kratos-defense-stock-is-rising-monday-whats-going-on">MACH-TB 2.0 contract</a>.
What To Know: Kratos, a defense technology company, on Monday secured a five-year contract for Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0, a project designed to enhance the U.S. hypersonic flight testing infrastructure. 
The initiative, established under the Office of the Under Secretary of Defense for Research and Engineering&#8217;s National Hypersonic Initiative 2.0, aims to bridge the gap between ground testing and full-scale hypersonic system testing, reducing risks and accelerating development.
Kratos will lead Task Area 1 of the MACH-TB 2.0 project, focusing on systems engineering, integration and testing. Rocket Lab will provide air launch services as part of a larger team that includes Leidos, Stratolaunch and other subcontractors. This effort will support the increased frequency of hypersonic flight tests needed for national security objectives.
Check This Out: <a href="https://www.benzinga.com/general/space/25/01/42828631/exclusive-rocket-lab-intuitive-machines-redwire-or-ast-spacemobile-33-of-readers-pick-this-space-stock-for-2025">EXCLUSIVE: Rocket Lab, Intuitive Machines, Redwire Or AST SpaceMobile? 33% Of Readers Pick This Space Stock For 2025</a>
Kratos&#8217; leadership emphasized the importance of the program in advancing affordable hypersonic technologies and highlighted the contract as the largest in the company&#8217;s history. The MACH-TB 2.0 program is expected to be a significant driver of future growth for Kratos, which also cited its existing hypersonic capabilities as a key factor in securing the contract.
"With the recent successes of our low-cost Erinyes Hypersonic Flyer and Zeus Solid Rocket Motors, Kratos is a leader in the testing and fielding of hypersonic systems. We are very excited to bring this unmatched expertise to the MACH-TB 2.0 program,&#8221; said Dave Carter, President of Kratos Defense and Rocket Support Services Division.
Rocket Lab shares are up nearly 200% over the past three months. The company reported better-than-expected financial results in mid-November and announced a multi-launch agreement with a confidential customer.
Rocket Lab guided for fourth-quarter revenue in the range of $125 million to $135 million. Rocket Lab is expected to report fourth-quarter earnings in February. Analysts currently expect the company to report a loss of 10 cents per share on revenue of $130.57 million, according to estimates from <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
RKLB Price Action: Rocket Lab shares were up 1.03% at $29.02 at the time of writing, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a>
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Rocket Lab Shares Are On The Rise Today: What's Going On?

Kratos Defense &amp; Security Solutions Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) shares are trading higher Monday after the company was awarded a five-year government <a href="https://www.benzinga.com/quote/KTOS">contract worth up to $1.45 billion</a>.
What Happened: Kratos said it was&nbsp;awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed 2.0 under Task Area 1.&nbsp;If all options are exercised over a five-year period, the contract has a total value of&nbsp;$1.45 billion.
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.
The Office of the Under Secretary of Defense for Research and Engineering Test Resource Management Center established MACH-TB to support the Under Secretary of Defense&#8217;s National Hypersonic Initiative 2.0 by creating an affordable flight test bed to increase hypersonic flight test capacity.
&#8220;Kratos is honored to receive the largest contract award in our company&#8217;s history, a testament of the value Kratos&#8217; employees and team bring both to our Company and United States National Security,&#8221; said Eric DeMarco, president and CEO of Kratos Defense.
&#8220;This programmatic milestone underscores our unwavering commitment to making upfront investments for rapidly developing, and being first to market with affordable, mission-critical solutions that meet the evolving needs of the warfighter.&#8221;
Check This Out: <a href="https://www.benzinga.com/25/01/42812603/uber-cfo-highlights-undervalued-stock-while-accelerating-buyback-efforts-through-15-billion-asr-deal">Uber CFO Says Stock Undervalued, Initiates $1.5 Billion Accelerated Stock Buyback</a>
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.
Kratos noted that it will work with several companies including Leidos, Rocket Lab, Koda Technologies, Corvid Technologies, Northwind, JRC, Stratolaunch, CFD Research and PAR Systems.
KTOS Price Action: <a href="http://benzinga.com/quote/ktos">Kratos shares</a> were up 5.68% at $29.04 at the time of publication Monday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: courtesy of Kratos Defense.

Kratos Defense Stock Is Rising Monday: What's Going On?

Kratos Defense shares are trading higher after the company was awarded a 5-year OTA contract worth $1.45 billion for the multi-service advanced capability hypersonic test bed 2.0.

Kratos Defense &amp; Security Solutions, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>), a technology company in Defense, National Security and Global Markets, announced today that it has been awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1. The total value of this award, if all options are exercised over the five-year period, is $1.45B. The Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&amp;E)) Test Resource Management Center (TRMC) established MACH-TB to support OUSD's National Hypersonic Initiative 2.0 by creating an affordable flight test bed to rapidly increase hypersonic flight test capacity. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests. This will reduce overall hypersonic development risks and time and provide rapid transition of innovative hypersonic technologies to the warfighter.

Kratos Defense Awarded A 5-Year OTA Contract For The Multi-Service Advanced Capability Hypersonic Test Bed 2.0 Under Task Area 1. The Total Value Of This Award Is $1.45B

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