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Kratos Awarded $25 Million Task Order for U.S. Space Force’s Evolved Strategic SATCOM

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Kratos Defense & Security Solutions (NASDAQ: KTOS) has secured a $25 million task order from the U.S. Space Force's Space Systems Command for the Evolved Strategic SATCOM (ESS) program. The 34-month contract, running from March 2025 to November 2027, is part of the larger C-SAR IDIQ contract valued at $579 million. The project will utilize Kratos' OpenSpace Platform to support Nuclear Command, Control, and Communications missions. The scope includes developing infrastructure for ESS telemetry and command capabilities, linking ground system solutions, creating roadmaps for Mission Unique Software, and implementing CCS-C micro-services. The system will enhance military satellite communications across Wideband and Strategic systems, supporting various satellite programs including DSCS, Milstar, WGS, and AEHF satellites.
Kratos Defense & Security Solutions (NASDAQ: KTOS) ha ottenuto un ordine di lavoro da 25 milioni di dollari dal Space Systems Command della U.S. Space Force per il programma Evolved Strategic SATCOM (ESS). Il contratto, della durata di 34 mesi da marzo 2025 a novembre 2027, fa parte del più ampio contratto C-SAR IDIQ del valore di 579 milioni di dollari. Il progetto utilizzerà la piattaforma OpenSpace di Kratos per supportare le missioni di Comando, Controllo e Comunicazioni Nucleari. L'ambito include lo sviluppo dell'infrastruttura per le capacità di telemetria e comando ESS, il collegamento delle soluzioni dei sistemi terrestri, la creazione di roadmap per il Mission Unique Software e l'implementazione dei micro-servizi CCS-C. Il sistema migliorerà le comunicazioni satellitari militari su sistemi Wideband e Strategic, supportando vari programmi satellitari tra cui DSCS, Milstar, WGS e AEHF.
Kratos Defense & Security Solutions (NASDAQ: KTOS) ha asegurado una orden de trabajo por 25 millones de dólares del Space Systems Command de la U.S. Space Force para el programa Evolved Strategic SATCOM (ESS). El contrato de 34 meses, que va de marzo de 2025 a noviembre de 2027, forma parte del contrato C-SAR IDIQ más amplio valorado en 579 millones de dólares. El proyecto utilizará la plataforma OpenSpace de Kratos para apoyar las misiones de Comando, Control y Comunicaciones Nucleares. El alcance incluye el desarrollo de infraestructura para capacidades de telemetría y comando ESS, la conexión de soluciones de sistemas terrestres, la creación de hojas de ruta para el Mission Unique Software y la implementación de microservicios CCS-C. El sistema mejorará las comunicaciones satelitales militares en sistemas Wideband y Strategic, apoyando varios programas satelitales, incluidos los satélites DSCS, Milstar, WGS y AEHF.
Kratos Defense & Security Solutions(NASDAQ: KTOS)는 미국 우주군 우주 시스템 사령부로부터 Evolved Strategic SATCOM(ESS) 프로그램을 위한 2,500만 달러 규모의 작업 지시를 확보했습니다. 2025년 3월부터 2027년 11월까지 34개월간 진행되는 이 계약은 총 5억 7,900만 달러 규모의 C-SAR IDIQ 계약의 일부입니다. 이 프로젝트는 Kratos의 OpenSpace 플랫폼을 활용하여 핵 지휘, 통제 및 통신 임무를 지원할 예정입니다. 범위에는 ESS 원격 측정 및 명령 기능을 위한 인프라 개발, 지상 시스템 솔루션 연결, Mission Unique Software를 위한 로드맵 작성, CCS-C 마이크로서비스 구현이 포함됩니다. 이 시스템은 DSCS, Milstar, WGS, AEHF 위성을 포함한 다양한 위성 프로그램을 지원하며, 광대역 및 전략적 군사 위성 통신을 향상시킬 것입니다.
Kratos Defense & Security Solutions (NASDAQ : KTOS) a obtenu un ordre de mission de 25 millions de dollars auprès du Space Systems Command de l'U.S. Space Force pour le programme Evolved Strategic SATCOM (ESS). Le contrat de 34 mois, s'étendant de mars 2025 à novembre 2027, fait partie du contrat plus large C-SAR IDIQ d'une valeur de 579 millions de dollars. Le projet utilisera la plateforme OpenSpace de Kratos pour soutenir les missions de Commandement, Contrôle et Communications Nucléaires. Le périmètre comprend le développement d'infrastructures pour les capacités de télémétrie et de commande ESS, la liaison des solutions des systèmes terrestres, la création de feuilles de route pour le Mission Unique Software et la mise en œuvre de micro-services CCS-C. Le système améliorera les communications satellitaires militaires sur les systèmes Wideband et Strategic, en supportant divers programmes satellitaires, notamment les satellites DSCS, Milstar, WGS et AEHF.
Kratos Defense & Security Solutions (NASDAQ: KTOS) hat einen Auftrag im Wert von 25 Millionen US-Dollar vom Space Systems Command der U.S. Space Force für das Evolved Strategic SATCOM (ESS) Programm erhalten. Der 34-monatige Vertrag, der von März 2025 bis November 2027 läuft, ist Teil des größeren C-SAR IDIQ-Vertrags im Wert von 579 Millionen US-Dollar. Das Projekt wird die OpenSpace-Plattform von Kratos nutzen, um Missionen im Bereich Nukleare Führung, Kontrolle und Kommunikation zu unterstützen. Der Umfang umfasst die Entwicklung der Infrastruktur für ESS-Telemetrie- und Befehlsfunktionen, die Vernetzung von Bodensystemlösungen, die Erstellung von Fahrplänen für Mission Unique Software sowie die Implementierung von CCS-C-Mikroservices. Das System wird die militärische Satellitenkommunikation über Wideband- und Strategische Systeme verbessern und verschiedene Satellitenprogramme, darunter DSCS, Milstar, WGS und AEHF, unterstützen.
Positive
  • Secured new $25 million task order from U.S. Space Force
  • Part of larger $579 million C-SAR IDIQ contract potential
  • 34-month contract provides steady revenue stream through November 2027
  • Strategic positioning in critical military satellite communications infrastructure
Negative
  • None.

Insights

Kratos secures $25M defense contract enhancing strategic nuclear communications infrastructure, strengthening its position in critical space systems.

Kratos has secured a $25 million task order from the U.S. Space Force to support ground system capabilities for Evolved Strategic SATCOM (ESS), a critical system providing survivable communications for Nuclear Command, Control, and Communications (NC3). This represents significant new revenue generation within their Space division with a clear 34-month timeline (March 2025 to November 2027).

The contract scope includes four key components: establishing CCS-C infrastructure for ESS telemetry and command capability, creating infrastructure linking ground system solutions, developing implementation roadmaps for mission-unique software, and facilitating prototyping for new enterprise architecture. What's particularly notable is this task order falls under Kratos' broader C-SAR IDIQ contract, which has a maximum potential value of $579 million - suggesting additional revenue opportunities beyond this initial award.

Strategically, this positions Kratos to embed their OpenSpace Platform technology within critical defense infrastructure. The platform's containerized architecture allows the Space Force to select specific capabilities as missions evolve, creating a long-term dependency that extends beyond the initial contract period. This represents the defense sector's continuing shift toward flexible, software-defined systems rather than traditional hardware-centric approaches.

For context, this contract strengthens Kratos' already established position in military satellite communications, as CCS-C currently supports multiple critical satellite systems including Defense Satellite Communications System, Milstar, Wideband Global SATCOM, and Advanced Extremely High Frequency satellites. The new ESS system will provide enhanced communications capability for nuclear command and control - arguably the most mission-critical communications infrastructure in existence.

Kratos’ OpenSpace® Platform will be employed to support capabilities for Nuclear Command, Control, and Communication

SAN DIEGO, June 11, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in defense, national security and global markets, announced today that it was awarded a task order under the Command and Control System-Consolidated (CCS-C) Sustainment and Resiliency (C-SAR) contract with the U.S. Space Force (USSF) Space Systems Command (SSC) to support ground system capabilities for Evolved Strategic Satellite Communications (SATCOM) (ESS). The ESS system will provide the survivable and endurable satellite communications capability for the Nuclear Command, Control, and Communications (NC3) mission in all operational environments.

First, the task order will begin to lay the CCS-C infrastructure groundwork to eventually support an out-of-band (OOB) ESS telemetry, tracking, and command capability as part of the larger SSC Military Communications & Positioning, Navigation and Timing Program Executive Office (PEO) mission. Second, it will create the necessary infrastructure to link the ground system solutions as required for operations. Third, through a pair of study efforts, it will facilitate the development of a road map for implementation of ESS Mission Unique Software and CCS-C micro-services implementation. Finally, the effort will facilitate a prototyping effort to allow CCS-C users to utilize new enterprise architecture.

The task order has a contract value of $25 million with a 34-month period of performance, beginning 14 March 2025 and concluding on 30 November 2027. This was accomplished under the C-SAR single-award indefinite delivery/indefinite quantity (IDIQ) contract awarded to Kratos on 15 November 2023. The C-SAR IDIQ contract has a maximum value of $579 million to cover task/delivery orders to support operations, sustainment, enhancements, and constellation capacity.

The C-SAR contract supports sustainment and operations of CCS-C which provides secure and integrated communications for Military SATCOM (MILSATCOM) requirements across Wideband and Strategic systems. CCS-C delivers OOB command and control (C2) for MILSATCOM systems currently including the Defense Satellite Communications System (DSCS), Milstar, Wideband Global SATCOM (WGS), and Advanced Extremely High Frequency (AEHF) satellites. CCS-C may eventually play a pivotal role in OOB C2 for the ESS constellation.

According to Phil Carrai, President of Kratos’ Space, Training & Cybersecurity Division, “One of the primary CCS-C infrastructure changes associated with this task order is the implementation of Kratos’ OpenSpace Platform to support the specified needs of the program. OpenSpace employs a modern, containerized and orchestrated architecture enabling the Space Force to select only the OpenSpace capabilities needed as missions evolve, providing a pathway for enterprise ground services for MILSATCOM constellations to effectively scale for future space vehicles while improving availability and resiliency.”

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. The family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals. For more information about the OpenSpace family visit www.KratosDefense.com/OpenSpace.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com


FAQ

What is the value and duration of Kratos' (KTOS) new Space Force contract?

The task order is valued at $25 million with a 34-month period of performance from March 2025 to November 2027

What is the purpose of Kratos' (KTOS) ESS system for Space Force?

The ESS system will provide survivable and endurable satellite communications capability for Nuclear Command, Control, and Communications (NC3) mission in all operational environments

What is the total potential value of Kratos' (KTOS) C-SAR IDIQ contract?

The C-SAR IDIQ contract has a maximum value of $579 million for task/delivery orders supporting operations, sustainment, enhancements, and constellation capacity

What technology will Kratos (KTOS) use for the Space Force ESS program?

Kratos will implement their OpenSpace Platform, which uses a modern, containerized and orchestrated architecture enabling selective capability deployment and scalability

Which satellite systems does Kratos' (KTOS) CCS-C currently support?

CCS-C provides command and control for DSCS, Milstar, Wideband Global SATCOM (WGS), and Advanced Extremely High Frequency (AEHF) satellites
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