Kratos Stock Falls After Q3 Results, Orbit Technologies Deal Announced

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares are trading lower after the company reported third quarter financial results and issued fourth quarter sales guidance below estimates.

KTOS shares are sliding on disappointing news. Track the latest developments here.

What To Know: Kratos reported adjusted earnings per share of 14 cents, beating the consensus estimate of 12 cents. In addition, the company reported sales of $347.60 million, beating the consensus estimate of $322.86 million.

The company posted 26% year-over-year revenue growth, with organic growth of 23.7% compared to the third quarter of 2024. Unmanned Systems revenue rose 35.8% to $87.2 million, while Government Solutions revenue increased 20% to $260.4 million.

Kratos also announced plans to acquire Orbit Technologies Ltd. for $356.3 million in cash. Orbit is a global provider of satellite-based communication systems for unmanned aerial, seaborne and land systems, with customers across the U.S., Israel, Europe and the Pacific. The deal is expected to close by the end of March 2026 and be immediately accretive to Kratos' financial metrics.

Q4 Outlook: The company sees sales from $320.00 million to $330 million, versus the consensus estimate of $334.54 million.

FY25 Outlook: Kratos raised its sales guidance from between $1.29 billion and $1.31 billion to between $1.32 billion and $1.33 billion, versus the consensus estimate of $1.31 billion.

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KTOS Price Action: At the time of writing, Kratos shares are trading 13.43% lower at $78.10, according to data from Benzinga Pro.

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