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Kratos Defense & Security Solutions (KTOS) guidance and outlook
Kratos Defense & Security Solutions (KTOS) raised its guidance on Nov 5, 2026: EBITDA $50.9M for Q3 2027; EBITDA +10.8% for Q3 2027; EBITDA $230M–$240M for FY2026; EBITDA +18% to +22% for FY2026. Kratos Defense & Security Solutions' 10-Q filed Nov 5, 2026 makes 30 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| EBITDA | Q3 2027 | $50.9M | new |
| EBITDA | Q3 2027 | +10.8% | new |
| Revenue | FY2027 | $2.1B–$2.2B | initiated |
| EBITDA | FY2026 | $230M–$240M | raised |
| EBITDA | FY2026 | +18% to +22% | initiated |
From the earnings release filed Nov 5, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 5, 2026
- Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe our probability of win 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 or other defense technology companies when our assessment of probability of win is greater or required investment is beyond Kratos comfort level.
- Investments related to the Company’s Prometheus venture with RAFAEL Advanced Defense Systems, Ltd and the new turbofan production facility in Oklahoma related to our arrangement with GE Aerospace are expected to ramp up in 2026 and 2027.
- The FY 2027 defense budget proposal and the 2026 supplemental funding request are subject to Congressional approval, and it is not assured when or if they will be enacted at the levels proposed or that increases in funding will result in increased orders for either the industry or our programs.
- fiscal year 2027 appropriations bills has been enacted, and we expect the continuing resolution to be extended beyond December 11, 2026.
- We believe continued budget and deficit funding pressures (which are expected), CRs (which are expected), future Federal Government debt ceiling issues (which are expected), and potential Federal Government shutdowns or disruptions could have serious negative consequences for the security of our country and the defense industrial base, including the Company and related customers, employees, suppliers, investors,…
- Such a dynamic and challenging federal, DoW and National Security related budgetary environment may negatively impact our customers, partners, suppliers, business and programs, and could have a material adverse effect on our forecasts, estimates, financial position, results of operations and/or cash flows.
- To mitigate the impact of certain delays, we have implemented advanced and larger lot purchases of certain materials and parts where we can and practical, which has resulted in an increased use of our working capital, which is expected to continue.
- In addition, inflation and the related increased costs of inputs needed to execute our business, including materials, parts, supplies, consultants, subcontractors, vendors, etc., have significantly increased our business costs and have adversely impacted our operations, profit margins and financial forecasts.
- For the three months ended September 27, 2026 and September 28, 2025, the Company utilized the annual effective tax rate method based on the forecasted information provided.
- For the nine months ended September 27, 2026 and September 28, 2025, the Company utilized the annual effective tax rate method based on the forecasted information provided.
- We expect to recognize approximately 16% of the remaining total backlog as revenue in fiscal year 2026, an additional 50% in fiscal year 2027 and the balance thereafter.
Kratos Defense & Security Solutions' latest quarter
Kratos Defense & Security Solutions, Q3 2026: revenue $472M (+36% year over year), operating margin -1.0%, net loss $200K, operating cash flow −$5.2M. The chart follows the revenue to costs, profit and cash.
Questions
Did Kratos Defense & Security Solutions raise or lower its guidance?
Kratos Defense & Security Solutions (KTOS) raised its guidance on Nov 5, 2026: EBITDA $50.9M for Q3 2027; EBITDA +10.8% for Q3 2027; EBITDA $230M–$240M for FY2026; EBITDA +18% to +22% for FY2026.
What does Kratos Defense & Security Solutions expect?
Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe our probability of win 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 or other defense technology companies when our assessment of probability of win is greater or required investment is beyond Kratos comfort level. Investments related to the Company’s Prometheus venture with RAFAEL Advanced Defense Systems, Ltd and the new turbofan production facility in Oklahoma relate
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.