TacticScaleWhat Kratos Defense and Security Solutions Does & How It Makes Money (KTOS)
Updated October 2026 · reflects Kratos Defense and Security Solutions's latest reported financials
Defense technology company making drones, satellite ground systems, and propulsion. Kratos makes money by selling hardware, systems, software, and related services, mostly to the U.S.
How Kratos Defense and Security Solutions makes money
Kratos makes money by selling hardware, systems, software, and related services, mostly to the U.S. Department of Defense, intelligence agencies, and other national security customers, with some sales to international governments and commercial customers. It reports through two segments: Kratos Government Solutions and Unmanned Systems.
What Kratos Defense and Security Solutions does
Kratos Defense & Security Solutions is a San Diego-based technology company, incorporated in 1994, that serves the defense, national security, and commercial markets. It reports through two segments, Kratos Government Solutions and Unmanned Systems. Its portfolio covers jet-powered unmanned drones, hypersonic vehicles and rocket systems, propulsion for drones, missiles, loitering munitions and spacecraft, and virtualized ground systems that command, track, and control satellites. Kratos also supplies microwave electronics for missiles, radar, missile defense, and space, along with counter-drone, directed energy, communications, and virtual/augmented reality training systems. Its main customers are the U.S. Department of Defense, intelligence and classified agencies, and other national security bodies, followed by international governments and commercial customers. That makes its revenue closely tied to U.S. defense spending priorities.
Products & services
- Jet-powered unmanned aerial drone systems
- Hypersonic vehicles and rocket systems
- Propulsion systems for drones, missiles and spacecraft
- Virtualized satellite ground systems and command-and-control software
- Microwave electronics for missile, radar and space
- Counter-drone, directed energy and VR/AR training systems
What is Kratos Defense and Security Solutions worth?
On an owner-earnings DCF, Kratos Defense and Security Solutions's most-likely value is about $12 versus a recent price near $42 (72% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$2) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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