Kratos Defense's Segment Strengthens Role in Critical Defense Domain

Kratos Defense & Security Solutions, Inc. (KTOS) is steadily growing its presence in the defense technologies space through its Kratos Government Solutions (KGS) segment. KGS provides a wide range of advanced systems like C5ISR solutions, satellite communications, microwave products, space and cyber systems, turbine technologies and defense rocket support services, which support U.S. and allied military missions.KGS also delivers secure, reliable communication networks and advanced satellite ground systems. These are critical for ensuring uninterrupted intelligence, surveillance and reconnaissance operations. The segment also develops hypersonic-related technologies and is a prime contractor for the MACH TB (Multi-Service Advanced Capability Hypersonic Test Bed) program.As global security challenges rise and defense modernization speeds up, KGS’ products and services are expected to gain more traction. Moreover, the recent acquisition of certain assets from Norden Millimeter, Inc. has further improved KGS’s microwave and Radio Frequency Capabilities, allowing it to offer even stronger defense solutions.In the second quarter of 2025, KGS revenues rose 29.9% from the previous year to $278.3 million, supported by growth across all business areas and benefits from the Norden acquisition. This result highlights KGS’ solid performance and should play a key role in Kratos Defense’s long-term growth story.Peers Warranting a LookAs defense priorities include secure communications, advanced missile and electronic support, other defense contractors like Lockheed Martin Corporation (LMT) and RTX Corporation (RTX) also warrant a look.Lockheed Martin provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains. RTX focuses on providing integrated defense systems, radar and missile warning systems that improve situational awareness and threat detection. Its Intelligence, Surveillance and Reconnaissance systems and multi-mission sensors are critical to both U.S. and international defense operations.KTOS’ Price Performance, Valuation and EstimatesShares of KTOS have gained 229.7% in the past year compared with the industry’s 45.8% growth.Image Source: Zacks Investment ResearchThe company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 7.12X compared with its industry’s average of 10.13X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for KTOS’ third-quarter 2025 earnings has moved south in the past 60 days, while the same for the fourth quarter has remained unchanged.Image Source: Zacks Investment ResearchKTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks