Kratos’ Zeus Rocket Motors Achieve 100% of First Flight Performance Objectives

Rhea-AI Summary

Kratos Defense & Security Solutions (KTOS) announced the successful first flight of its Zeus 1 and Zeus 2 Solid Rocket Motors (SRMs) on October 24, 2024, at NASA Wallops Flight Facility. The test achieved 100% of performance objectives, qualifying the motors for Department of Defense, Foreign Allies, NASA, and commercial launch programs. L3Harris Technologies will begin delivering production motors in Q1 2025. The 32.5-inch diameter SRMs offer improved performance over legacy rockets and are designed for rapid integration with existing payloads and infrastructure, enabling more frequent, faster, and cost-effective launches.

Positive

• Successfully completed first flight test of Zeus rocket motors with 100% performance objectives met
• Production motors ready for delivery in Q1 2025
• Strategic partnership with L3Harris Technologies for manufacturing
• Motors designed for compatibility with existing infrastructure, reducing integration costs
• Product expansion strengthens company's market position in hypersonic testing segment

Negative

• Internal funding of development may impact short-term financials

Insights

Defense Technology Analyst

The successful test flight of Zeus solid rocket motors represents a significant milestone in Kratos' strategic positioning within the defense sector. The Zeus 1 and Zeus 2 motors are now qualified for critical defense applications, opening up revenue streams from the DoD, foreign allies, NASA and commercial customers. Production readiness by Q1 2025 indicates imminent commercialization.

The 32.5-inch diameter motors offer substantial performance improvements over legacy systems while maintaining compatibility with existing infrastructure. This strategic advantage, combined with Kratos' unique position as a provider of both launcher and flyer systems, strengthens their competitive moat in the hypersonic testing market. The internal funding approach demonstrates strong financial commitment and potential for higher margins once production begins.

Market Research Analyst

This product launch strategically positions Kratos in the rapidly growing hypersonic testing market. The successful qualification of Zeus motors creates multiple revenue channels across defense, government and commercial sectors. Key differentiators include:

• Cost efficiency through fewer required stages
• Rapid integration capabilities with existing systems
• Versatile applications from missile testing to scientific research

The partnership with L3Harris for production ensures reliable manufacturing capacity, while internal funding of development suggests strong potential for improved profit margins. The timing aligns well with increased defense spending on hypersonic capabilities globally.

New Zeus Motors are in Production and Ready for Use

SAN DIEGO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, today announced that its Zeus 1 and Zeus 2 Solid Rocket Motors (SRMs) completed their first successful flight on October 24, 2024, from the NASA Wallops Flight Facility in Virginia. This milestone launch provides the qualifications necessary to transition the Zeus SRMs to test programs supporting the U.S. Department of Defense, Foreign Allies, NASA, and commercial launch sponsors.

Kratos Zeus Solid Rocket Motors Complete Successful First Flight at Wallops

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/be014809-090a-41a1-8cc5-e1c999c67dfd

The flight test featured a Kratos two-stage Zeus 1 – Zeus 2 suborbital launch vehicle and provided substantial data to support rocket motor evaluation for use by future customers and sponsors who have baselined the Zeus rocket motors as part of their future test plans. Kratos expects to have production motors ready in the first quarter of 2025.

Kratos developed the Zeus family of SRMs in direct response to the need for affordable commercial launch vehicle stages for hypersonic test, ballistic missile targets, scientific research, sounding rocket and special customer missions. Kratos applied its significant rocket launch experience to establish the Zeus 1 and Zeus 2 motor specifications in close coordination with respective customer and user communities. Kratos internally funded development of the Zeus SRMs which are designed and manufactured to Kratos’ specifications by key merchant supplier and partner, L3Harris Technologies. L3Harris is on contract to begin delivering production motors to Kratos in the first quarter of 2025.

George Rumford, Director of the Department of Defense Test Resource Management Center, said, “Advancements in solid rocket motor development are critical to achieving rapid, affordable hypersonic testing.”

Dave Carter, President of Kratos’ Defense & Rocket Support Services Division, said, “I couldn’t be prouder of our whole team. They met the challenge to deliver these robust motors to market as fast as possible and meet the growing demand for rapid, reliable testing. The motors performed exceptionally well against predictions and are ready for immediate use by the broader test and research community.”

The Zeus 1 and Zeus 2 are high-performance, 32.5-inch diameter SRMs providing substantial performance improvements over similar legacy rockets. They are purposely designed to be fully compatible with existing payloads and launch infrastructure to enable rapid integration of new technologies and advanced payloads, including those currently under development by Kratos. These and other key attributes will provide Kratos and our customers with opportunities to fly more often, faster and farther, using fewer stages, and at a substantially reduced cost.

The Zeus SRM family is designed with versatility and affordability in mind as a complement to Kratos’ other internally funded investments such as the Erinyes hypersonic test “flyer” that debuted in June of this year. Kratos’ investments in the hypersonic and other relevant areas create a versatile family of test and evaluation products that offer complete systems. With the Zeus SRMs, the Erinyes, and other Kratos front end systems, Kratos is one of the only companies boasting both launcher and flyer systems within one organization, providing unmatched innovation, disruptive capabilities, mission responsiveness and affordability to the customer.

Eric DeMarco, President & CEO of Kratos Defense & Security Solutions, Inc., said, “Kratos is laser focused on supporting the Department of Defense, U.S. National Security requirements and working with our government partners to reinvigorate our country’s defense industrial base. Zeus’ successful mission is representative of the value Kratos’ strategy delivers to our stakeholders, with Kratos’ internally funded investments allowing us to rapidly develop and be first to market with affordable relevant systems for our partners and customers.”

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

When did Kratos (KTOS) complete the first flight test of Zeus rocket motors?

Kratos completed the first successful flight test of Zeus 1 and Zeus 2 Solid Rocket Motors on October 24, 2024, at NASA Wallops Flight Facility in Virginia.

What are the specifications of Kratos (KTOS) Zeus rocket motors?

The Zeus 1 and Zeus 2 are 32.5-inch diameter Solid Rocket Motors designed to be compatible with existing payloads and launch infrastructure, offering improved performance over legacy rockets.

When will Kratos (KTOS) begin production delivery of Zeus rocket motors?

L3Harris Technologies will begin delivering production Zeus rocket motors to Kratos in the first quarter of 2025.

What markets will Kratos (KTOS) Zeus rocket motors serve?

Zeus rocket motors will serve the U.S. Department of Defense, Foreign Allies, NASA, and commercial launch sponsors for hypersonic testing, ballistic missile targets, and scientific research missions.