Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) shares are moving higher Monday after the company announced it was awarded a contract with the U.S. Navy.
What To Know: Kratos was selected for a Phase 1 contract to begin developing an organic sustainment capability for the U.S. Navy’s AN/SPY-1 radar systems. The single-award agreement has an initial total projected ceiling of $175 million across multiple phases.
Under Phase 1, Kratos will establish the foundation for the Indiana Radar Integration Complex, Develop repair, overhaul and modernization processes for the AN/SPY-1 transmitter and advance digital engineering, AI–enabled data management and prototype sustainment technologies.
“This strategic award validates Kratos’ proven approach of making significant internal investments in national security-focused infrastructure and capabilities to generate significant value for all Kratos stakeholders, including the United States,” said Eric DeMarco, president and CEO of Kratos.
“The AN/SPY-1 program and our new IRIC represent the intersection of Kratos’ core philosophies: rapidly developing affordable, real-world solutions for critical defense needs, while providing true long-term value to our government customers, the U.S. taxpayer, and our entire stakeholder community.”
The contract will be executed in multiple phases, with additional work authorized as milestones are achieved. Kratos noted that it expects the program to generate “multi-decade value for the company and the U.S. Navy. The company’s 155,000-square-foot IRIC facility is expected to be operational in 2027.
KTOS Price Action: Kratos Defense shares were up 5.53% at $101.62 at the time of publication on Monday, according to Benzinga Pro.
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