Kratos, GE Aerospace Expand Small Engine Portfolio With New Propulsion Systems

Kratos Defense & Security Solutions, Inc. KTOS and GE Aerospace GE announced on Tuesday a formal agreement to develop propulsion technologies for next-generation unmanned aerial systems (UAS) and Collaborative Combat Aircraft (CCA) platforms.

Building on last year’s memorandum of understanding, the partnership focuses on designing and producing affordable, high-performance engines such as the GEK800 and the more powerful GEK1500, aimed at enhancing U.S. defense capabilities.

Kratos offers over 20 years of experience developing small, cost-effective engines for drones and missiles, while GE Aerospace contributes extensive propulsion expertise and manufacturing scale. Together, they aim to deliver scalable propulsion solutions that meet critical national security needs.

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Kratos CEO Eric DeMarco stressed affordability and rapid capability delivery as key benefits of the partnership. GE Aerospace Defense President Amy Gowder highlighted the move as a step toward providing adaptable, high-performance propulsion for various unmanned platforms.

The GEK800 engine is currently under development, with work also progressing on the GEK1500. These engines target unmanned and collaborative combat aircraft, offering cost-efficient propulsion for diverse defense missions.

Investors may watch stocks like Lockheed Martin Corp. LMT and Northrop Grumman Corp. NOC, as well as ETFs such as the iShares U.S. Aerospace & Defense ETF ITA and SPDR S&P Aerospace & Defense ETF XAR.

Price Action: GE shares are trading lower by 0.44% to $246.40, and KTOS stock is up 2.06% at $38.83 at last check Tuesday.

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