Kratos Defense & Security Solutions (KTOS)

Kratos is a defense technology company focused on affordable, attritable systems: unmanned aerial vehicles (drones), satellite communications, microwave electronics, and AI-driven command-and-control software. The Valkyrie XQ-58A is Kratos' flagship drone — a high-performance, low-cost jet-powered unmanned combat aircraft designed to operate alongside manned fighters in contested airspace. At roughly $3–5 million per unit versus $100M+ for an F-35, Valkyrie represents a fundamental shift in how the US military is approaching air combat.

The US Air Force's Collaborative Combat Aircraft (CCA) program — which Kratos is competing for alongside Anduril and General Atomics — could be the largest drone procurement in US history, with orders potentially reaching hundreds of aircraft. Kratos reported FY2025 revenue of $1.347 billion and guided 2026 revenue to $1.595–$1.675 billion (+18–24% YoY). The order backlog of $1.573 billion and a book-to-bill ratio of 1.3 signal demand running ahead of production capacity. Long-term company targets reach $2.5–$3.0 billion in revenue by 2028.