Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) reported financial results for the fourth quarter after the market close on Monday. Here’s what you need to know from the report.
- Kratos Defense & Security shares are experiencing downward pressure. Why is KTOS stock trading lower?
Kratos Exceeds Analyst Expectations In Q4
- Q4 Revenue: $345.1 million, versus estimates of $327.79 million
- Q4 Adjusted EPS: 18 cents, versus estimates of 16 cents
Total revenue was up 21.9% on a year-over-year basis. The company said it generated $12.1 million of cash flow from operations during the quarter.
Kratos reported a record backlog of $1.57 billion and a record opportunity pipeline of $13.7 billion at quarter’s end. The company ended the period with $560.6 million in total cash and cash equivalents.
“Kratos is positioned to achieve our previously communicated 2026 and 2027 financial targets, and similar to 2025, for 2026 we expect our business to accelerate throughout the year, with increasing Revenue volume and Adjusted EBITDA margins, as several new programs, contracts and initiatives begin, ramp and expand,” said Eric DeMarco, president and CEO of Kratos.
Kratos Issues Forward Guidance
Kratos expects first-quarter revenue to be in the range of $335 million to $345 million versus Benzinga Pro estimates of $347.64 million. The company expects full-year 2026 revenue to be in the range of approximately $1.60 billion to $1.68 billion versus estimates of $1.60 billion.
Kratos said it continues to expect 2027 revenue growth of 18% to 23% in its base case outlook.
Kratos Defense executives will further discuss the quarter on an earnings call scheduled for 5 p.m. ET.
KTOS Stock Down After Q4 Earnings
KTOS Price Action: Kratos Defense shares were down 4.15% in after-hours Monday, trading at $90.40 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
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