Kratos Defense & Security Solutions

Kratos Defense reported Q2 2026 revenues of $458.8 million, up 30.5% year-over-year ($107.3 million increase); organic growth was 19.1%. Government Solutions (KGS) revenue grew 36.4% to $379.7 million with 22% organic growth driven by Defense Rocket Systems (+50.2%), Turbine Technologies (+43.3%), Microwave Products (+29.5%), and Space/Training/Cyber (+8.7%). Unmanned Systems (KUS) revenue rose 8.1% organically to $79.1 million, primarily from Valkyrie activity. GAAP operating loss was $1.6 million (vs. $3.7M income YoY), though net income was $4.4 million ($0.02 EPS). Adjusted EBITDA was $38.2 million. Consolidated book-to-bill was 1.1x for Q2 and 1.3x for last twelve months on $1.99 billion in bookings; backlog grew to $2.084 billion. Kratos raised full-year 2026 guidance to $1.75–1.81 billion revenue (18–23% organic growth), with operating income of $16–22 million and Adjusted EBITDA of $173–176 million. Management expects Q3 organic growth of 19–25% and Q4 organic growth of 19–31%, citing strong demand from U.S. defense priorities and government funding.