Kratos Receives Contract Award to Support Northrop Grumman in U.S. Air Force Ground Based Strategic Deterrent (GBSD) Program

Rhea-AI Summary

Kratos Defense & Security Solutions (NASDAQ: KTOS) has been awarded a contract for the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) program, led by Northrop Grumman. The 8.5-year contract includes engineering services and production of missile transporters. This follows a successful technology maturation phase. The project aims for initial operational capability by 2029 and will be executed at Kratos’ York, Pennsylvania facility. Kratos' C5ISR division specializes in systems for national security and has demonstrated effectiveness in design review milestones.

Positive

• Awarded a contract for the U.S. Air Force’s GBSD program, enhancing national security offerings.
• 8.5-year duration of the contract provides long-term revenue potential.
• Successful completion of prior technology maturation phase indicates strong capabilities.
• Work will be performed at Kratos’ secure production facility in Pennsylvania, supporting local operations.

Negative

• None.

SAN DIEGO, Sept. 08, 2020 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a leading National Security Solutions provider, announced today that its Command, Control, Communications, Computing, Combat & Intelligence, Surveillance and Reconnaissance (C5ISR) Division has been awarded a contract to support the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) program as part of the team led by Northrop Grumman.

Northrop Grumman was selected by the U.S. Air Force to modernize the nation’s aging intercontinental ballistic missile (ICBM) system under a contract awarded today for the engineering and manufacturing development (EMD) phase of the GBSD program. For the program, Kratos will provide engineering services, the manufacture and production of specialized ground support systems, including highly complex missile transporters and payload transporters.

Tom Mills, President of Kratos C5ISR Division, said, “We have been preparing for over a year and are ready to deliver on our commitments to our partner Northrop Grumman and the U.S. Air Force for a successful EMD phase. The entire Kratos team is proud to have a critical role in this national security program.”

The Air Force Nuclear Weapons Center announced that the effort will span 8.5 years and include weapon system design, qualification, test and evaluation and nuclear certification. Upon successful completion of EMD, the Northrop Grumman team will begin producing and delivering a modern and fully integrated weapon system to meet the Air Force schedule of initial operational capability by 2029.

The EMD award follows a highly successful three-year technology maturation and risk reduction (TMRR) phase-one effort under the GBSD competition. The Northrop Grumman team, which includes Kratos and other defense contractors, has demonstrated innovation and agility by applying a digital engineering approach and has achieved all TMRR design review milestones on time and on cost.

Kratos C5ISR Division is a leading provider of products, hardware, systems and subsystems in support of unmanned aerial vehicle, high powered directed energy, missiles, missile defense, radar, surface combatant and other combat and weapon systems and programs. Work under this recent contract award will be performed at Kratos’ secure production facility in York, Pennsylvania.

About Kratos Defense & Security Solutions, Inc.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information, please 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, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

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

FAQ

What recent contract did Kratos Defense & Security Solutions secure for KTOS?

Kratos secured a contract to support the U.S. Air Force's Ground Based Strategic Deterrent program under Northrop Grumman.

What is the duration of the contract awarded to Kratos for the GBSD program?

The contract duration is 8.5 years.

When is the initial operational capability expected for the GBSD program?

The initial operational capability is anticipated by 2029.

What services will Kratos provide under the GBSD contract?

Kratos will provide engineering services and production of specialized ground support systems, including missile transporters.

What was accomplished during the technology maturation phase for the GBSD?

The Northrop Grumman team, including Kratos, achieved all design review milestones on time and within budget.