Kratos Joins $1.1 B Drone Dominance Competition with $150 M Prototype Order

KTOSKTOS

Kratos Defense is one of 25 vendors vying for the War Department’s $1.1 billion Drone Dominance Program, with a Phase 1 evaluation—Gauntlet I—kicking off February 18 at Fort Benning. Phase 1 winners will secure roughly $150 million in prototype delivery orders by early March and field drones within five months.

1. Program Overview

The War Department’s Drone Dominance Program spans four phases and a total acquisition value of $1.1 billion, aimed at accelerating procurement of low-cost, unmanned one-way attack drones. Secretary of War Pete Hegseth has prioritized rapid procurement without traditional delays to bolster battlefield capabilities.

2. Evaluation Details

Phase 1, called Gauntlet I, starts February 18 at Fort Benning where military operators will directly assess systems from Kratos SRE, Red Cat’s Teal Drones and 23 other manufacturers. Successful vendors will receive about $150 million in prototype delivery orders once Gauntlet I concludes in early March.

3. Financial Implications

Phase 1 awards of $150 million represent an immediate boost to Kratos’s near-term contract backlog, with fielding slated within five months marking a shift from multi-year development to rapid deployment. The multi-phase program anticipates unit price reductions and volume increases through 2027, supporting sustained revenue growth.

Sources

ZF