Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares are trading higher Tuesday after the company announced it has received approximately $400 million in new funding from the Department of Defense for hypersonic system and other national security programs.
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Kratos Receives $400 Million In New Funding
Kratos said the funding is tied to certain hypersonic system and other national security related programs. The company noted that the pace of funding from the Department of Defense increased and accelerated from June into July.
Kratos said the funding is expected to accelerate its organic growth rate, increase operating cash receipts and reduce customer receivables, inventory and assets where Kratos had previously “leaned forward” to meet customer schedule expectations. Work under the programs will be performed at secure Kratos facilities and government locations. Due to security and competitive considerations, no additional details were disclosed.
“Kratos’ new Nemesis and Kraken initiatives are recent examples of Kratos’ industry leading vision in the high speed systems area, and we are expecting additional important hypersonic related awards in the coming months,” said Dave Carter, president of the Rocket Support Services Division at Kratos.
Kratos is the only company delivering both propulsion and flyer systems, including its low-cost Erinyes Hypersonic Flyer, Dark Fury and Zeus and Oriole solid rocket motors. The company said its rapid design, engineering, development, flight and fielding capabilities of systems that can be mass produced at low-cost points are “clear differentiators” for Kratos.
Kratos Shares Edge Higher
KTOS Price Action: At the time of writing, Kratos shares are trading 3.60% higher at $48.65, according to data from Benzinga Pro.
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