Demand and volumepositive · 4 filings
“Backlog is typically subject to large 33 variations from quarter-to-quarter as existing contracts are renewed or new contracts are awarded.”10-Q · May 6, 2026 ↗
Kratos Defense & Security Solutions, Inc.
KTOS
Market read
Kratos Defense & Security Solutions, Inc.'s move is spreading beyond its market group.
KTOS accounts for 8.0% of the group's measured movement across 7.7 effective names. raw member direction is mixed; 8 of 12 SPY-adjusted paths align to the upside. Capital-flow agreement is 13%, so confirmation is not yet clean. No verified headline preceded the measured group move.
MOVE ANATOMY
SPY-adjusted 5m pathsIs this move genuinely shared?
Role in the moveAligned contributor#6 of 12 by movement share
Group movement share8.0%Absolute path energy—not portfolio weight
Relative path+0.73%aligned
Effective breadth7.7 / 12broad
Relative alignment8/12upside path · 4 counter-moving
Capital-flow agreement13%not yet clean
SEQUENCE READ
HII moved materially before KTOS. KTOS crossed its material path threshold at 10:25 ET, 35 minutes after the first measured mover. GD, LHX, NOC followed.
What changed
- Revenue increased 22.6% versus the comparable filing period.
- Operating margin fell 0.9 percentage points.
EVIDENCE COVERAGE
5 of 12 members in Aerospace & Defense are active. 0 of 8 disclosed connections are confirming.
What would change this read
Watch this read- At least 8 of 12 durable members become active together.
- Capital-flow agreement rises above 55%.
- KBR remains aligned with the group in the next market snapshot.
Invalidation: The live read weakens if participation falls to 4 of 12 members or fewer.
Research brief
The story so far
KTOS accounts for 8.0% of the group's measured movement across 7.7 effective names. raw member direction is mixed; 8 of 12 SPY-adjusted paths align to the upside. Capital-flow agreement is 13%, so confirmation is not yet clean. No verified headline preceded the measured group move.
Evidence that supports
- Revenue increased 22.6% versus the comparable filing period.
- Net income increased 164.4% versus the comparable filing period.
Evidence that challenges
- Operating margin fell 0.9 percentage points.
- Operating cash flow covered only -2.30x net income.
What would clarify the read
- At least 8 of 12 durable members become active together.
- Capital-flow agreement rises above 55%.
- KBR remains aligned with the group in the next market snapshot.
Company research
Understand the business, not just the ticker
Business model and earnings drivers
Use the company’s filings to identify the few operating, demand, cost, capital and regulatory variables that determine its earnings power.
Key research questions
- Which operating variable is changing?
- Is that change durable, cyclical or one-off?
- What evidence would disprove the current interpretation?
Annual periods9
Price observations327
Usable filing statements101
Verified relationships8
Evidence supporting the case
- Latest annual revenue changed +18.5% year over year.
- Demand and volume has repeated favorable evidence across 4 filings.
- Supply chain and availability has repeated favorable evidence across 4 filings.
- Restructuring and cost reductions has repeated favorable evidence across 3 filings.
Evidence challenging the case
- Diluted shares increased 9.5% in the latest annual period.
- Operating cash flow was only -1.914x net income in the latest annual period.
Questions before a position
- P/E is 1329% above the available filing-peer median; determine whether growth and quality justify the difference.
- EV/sales is 93% above the available filing-peer median; determine whether growth and quality justify the difference.
Longer-term price context
Price as of Sep 10, 2026
46.966m-47.2%12m-27.3%24m—
Annual trajectory
Reported annual revenue and per-share history. This is accounting history, not a forecast.
PeriodRevenueYoYDiluted EPSShare change
2021-12-26$811.5M+8.5%$-0.02+7.8%
2022-12-25$898.3M+10.7%$-0.29-1.0%
2023-12-31$1.0B+15.5%$-0.07+2.9%
2024-12-29$1.1B+9.6%$0.11+15.7%
2025-12-28$1.3B+18.5%$0.13+9.5%
What management says matters
Persistent and emerging business drivers
Supply chain and availabilitypositive · 4 filings
“These financing requirements have increased and have recently negatively impacted our operating cash flows due to actions we have taken to advance inventory purchases in an attempt to mitigate supply chain disruptions and to bolster our inventory levels.”10-Q · May 6, 2026 ↗
Credit and interest ratesmixed · 3 filings
“These proceeds were partially offset by $7.5 million of principal payments on the Term Loan A under our credit Agreement, a $45.0 million payment (partially offset by a $10.0 million draw) on the Revolving Credit Facility under our Credit Agreement, payroll w…”10-K · Feb 23, 2026 ↗
Product pipeline and R&Dmixed · 3 filings
“The increase in other income (expense), net, of $10.9 million was primarily related to the reduction of interest expense from the payoff of the Term Loan A under our Credit Agreement on July 2, 2025, an increase in interest income on cash balances which incre…”10-K · Feb 23, 2026 ↗
Valuation discipline
Descriptive valuation snapshot
Price/sales 5.8× · EV/sales 5.3×. Comparisons use only industry-matched filing peers.
Scenario scaffold
Mechanical 2.0-year scenarios are available as editable assumptions, not consensus.
Price action
How the market is pricing the story
46.96+0.5% today
Jodie does not have enough daily observations to draw a useful short-term chart for this asset. The latest quoted price was checked 10 Sept, 15:55 GMT-4; this is a coverage limitation, not a flat-price conclusion.
Developments
No sourced recent-development timeline yet
Jodie has not returned a relevant primary source or news item for KTOS. This is an evidence-coverage gap, not a conclusion that nothing material happened.
Business and financial condition
Reported financial figures are not available yet
Jodie has not returned structured SEC XBRL fundamentals for this asset. This is a coverage limitation, not an assessment of the business or its financial health.
Latest filing assessment · baseline
The latest filing presents a mixed picture
10-Q filed 2026-05-06 against the comparable filing from 2025-05-07.
OperationsconstructiveEvidence score +2
liquiditycautiousEvidence score -1
valuationdiscount
What improved
- Revenue increased 22.6% versus the comparable filing period.
- Net income increased 164.4% versus the comparable filing period.
What weakened
- Operating margin fell 0.9 percentage points.
- Operating cash flow covered only -2.30x net income.
Filing receipts
“Revenues in our KGS segment increased $48.9 million primarily due to increased revenues in our Defense Rocket Support business driven by our hypersonic systems business, as well as growth in our microwave products businesses and turbine technologies businesses, and the contribution of $7.3 million in revenue from the recent acquisition of Nomad Global Communication Solutions, and $13.3 million in revenue from the recent acquisition of Orbit Technologies.”
“Contract liabilities increased $ 34.7 million during the three months ended March 29, 2026, primarily due to revenue recognized in excess of payments received on these performance obligations, including the impact of the recent acquisitions of Nomad and Orbit.”
“14 Contract Estimates Due to the nature of the work required to be performed on many performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables, and requires significant judgment.”
Retrospective baseline calibration. It was generated after the filing date and is not part of Jodie's live track record.
Business ecosystem
The relationships behind KTOS
Customers, suppliers, partners and competitors named in company filings—not inferred from headlines.
Depends on
RFLFiling-linked namepartnerMay 6, 2026 ▾
“Investments related to the Company’s Prometheus venture with RAFAEL Advanced Defense Systems, Ltd and the new turbofan production facility in Oklahoma related to our arrangement with GE Aerospace are expected to ramp up in 2026 and 2027.”
BAThe Boeing CompanypartnerFeb 23, 2026 ▾
“Government contractors, newer defense technology companies including Anduril, XBow, Shield AI, Castelion, Ursa Major, Bee Hive, and others, and system integrators such as Northrop Grumman, Lockheed Martin, General Dynamics, Raytheon Technologies, BAE Systems,…”
Depended on by
RKLB10.0% of RKLBcustomerMay 7, 2026 ▾
“Concentration of Credit Risk and Significant Customers As of March 31, 2026, the Company’s customer that accounted for 10% or more of the total accounts receivable, net, was as follows: March 31, 2026 Kratos SRE, Inc.”
Filing peers
Companies whose filings use similar operating language.
Open the three relationships above to see Jodie’s filing proof. Pro unlocks 8 more links, every receipt, and alerts when connected names begin moving. Unlock the full network →
What is moving around it
Live connections
KTOS is currently a Follower in the organic co-movement group Aerospace & Defense. This group is discovered from market behaviour rather than assigned from an industry taxonomy. 3 filing-linked names are in the relationship map; none is currently confirmed as moving with the group.
Context history
Theme membership history
No durable theme membership has been observed for this name yet.