Drivers of the quarter
- Segment growth - Organic revenue growth in Government Solutions (22%) and Unmanned Systems (8.1%) segments drove overall results
- Program demand - Defense Rocket Systems, Turbine Technologies, Microwave Products, and Space, Training and Cyber businesses saw notable growth
- Valkyrie activity - Increased Valkyrie-related activity boosted Unmanned Systems revenue
Updated outlook for 2026
- Kratos raises full-year 2026 revenue guidance to $1.75-$1.81 bln
- Company expects third-quarter organic revenue growth of 19%-25%
- Kratos forecasts expanding Adjusted EBITDA margins in second half 2026 and into 2027
Quarterly results beat expectations
- US defense technology firm's Q2 revenue grew 30.5%, beating analyst expectations
- Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations
- Company raised full-year 2026 revenue guidance, forecasting 18%-23% organic growth
- Shares of the company were up about 9% in extended trading
Key financial details and analyst view