Kratos Awarded $6.5 Million Contract to Provide Flight Testing for Hypersonic Research to Support Future Weapon Systems from DARPA

Rhea-AI Summary

Kratos Defense & Security Solutions (KTOS) has secured a $6.5 million contract from DARPA for hypersonic research flight testing. The two-year contract, which began in August 2023, focuses on developing and validating critical hypersonic components for future weapon systems.

Kratos will utilize its flight-proven hypersonic test beds and sounding rocket-based launch vehicles to conduct flight experiments and validate modeling tools. The company has made significant investments in hypersonic systems, including the Erinyes hypersonic flyer, Zeus solid rocket motor series, and Dark Fury.

Positive

• Secured new $6.5 million DARPA contract for hypersonic research
• Contract leverages existing company infrastructure and investments
• Strengthens position in high-growth hypersonic defense sector
• Demonstrates successful commercialization of prior R&D investments

Negative

• None.

Insights

Defense Technology Analyst

This $6.5 million DARPA contract represents a strategic win for Kratos in the critical hypersonic testing space. The company's investments in key platforms like Erinyes, Zeus and Dark Fury position it well to capitalize on the growing demand for hypersonic testing capabilities. The contract's focus on technology maturation and risk reduction is particularly valuable, as it could lead to larger production contracts in the future.

The two-year timeline suggests a comprehensive testing program that will strengthen Kratos' expertise in hypersonic systems. Their ability to provide affordable testing solutions addresses a important need in the defense sector, where cost-effective validation of hypersonic technologies is essential for rapid deployment. The company's integrated approach, combining flight-proven test beds with simulation tools, enhances their competitive advantage in this high-growth market segment.

Financial Analyst

While the $6.5 million contract value is relatively modest compared to Kratos' market cap of $4.28 billion, its strategic importance shouldn't be underestimated. The contract validates Kratos' investment strategy in hypersonic systems and positions them for potentially larger future contracts in this growing defense sector. The company's focus on affordable solutions aligns well with DoD's cost-consciousness while maintaining technological advancement.

The contract's award by DARPA, a prestigious defense research agency, enhances Kratos' credibility in the hypersonic domain and could attract additional contracts from other defense agencies. The company's diverse portfolio of operational systems, including Erinyes, Zeus, Valkyrie and OpenSpace software, demonstrates strong revenue diversification and technological capabilities.

SAN DIEGO, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, was awarded a $6.5 million, single award contract by the Defense Advanced Research Projects Agency (DARPA) to provide flight testing for hypersonic research supporting future weapon systems. The two-year contract which began in August 2023 includes flight tests to develop, characterize, and validate critical hypersonic components for technology maturation and risk reduction.

The contract was awarded by the DARPA Defense Sciences Office (DSO) and supports their mission of creating the next generation of scientific discoveries and fueling innovation by leaning forward to expand the art of the possible. During program execution, Kratos is leveraging flight proven, affordable hypersonic test beds and sounding rocket-based launch vehicles to fulfill various flight experiment requirements and validate modeling and simulation (M&S) tools rapidly and affordably for future hypersonic flight testing.

Kratos is a leading provider of innovative products and solutions supporting ballistic missile targets, hypersonic systems, sub-orbital research, sounding rockets, unmanned drone systems, turbine technologies, directed energy and laser program systems. In recent years, Kratos has made significant investments in launch vehicle and hypersonic systems and technologies, including a focus on enabling affordable, rapid high-speed testing for the DoD and agencies including DARPA. Among the investments made by Kratos are the Erinyes hypersonic flyer, the Zeus solid rocket motor series and Dark Fury.

Dave Carter, President of Kratos’ Defense & Rocket Systems Division, said “Kratos’ investments in affordable and relevant hypersonic flight systems continue to pay off for our stakeholders and our customers. We are committed to helping our partners and customers, including DARPA, develop new technologies and execute test regimes and programs that push science towards its fundamental limits. We are excited and look forward to working with DARPA and supporting their mission.”

Eric DeMarco, President and CEO of Kratos said, “Our entire organization is laser focused on working with our government and industry partners and customers to rapidly deliver relevant, affordable systems and capabilities for United States National Security. Kratos’ in production and operational Erinyes and Zeus hypersonic systems, Valkyrie, Thanatos and entire family of affordable tactical jet UCAVs, Spartan family of low-cost turbojet engines for drones and cruise missiles and OpenSpace software-based TT&C and C2 systems for satellite communications are representative of the value Kratos delivers to each of our stakeholders.”

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 31, 2023, 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 KTOS's new DARPA contract?

The contract is valued at $6.5 million and runs for two years, starting from August 2023.

What hypersonic systems has KTOS developed for defense applications?

KTOS has developed the Erinyes hypersonic flyer, Zeus solid rocket motor series, and Dark Fury systems.

What is the purpose of KTOS's DARPA hypersonic testing contract?

The contract aims to develop, characterize, and validate critical hypersonic components for technology maturation and risk reduction in future weapon systems.

How will KTOS execute the DARPA hypersonic testing program?

KTOS will use its flight-proven hypersonic test beds and sounding rocket-based launch vehicles to conduct flight experiments and validate modeling and simulation tools.