Kratos Defense & Security Solutions

Kratos Defense & Security Solutions is a specialized technology company providing mission-critical systems and services primarily to U.S. Department of Defense, intelligence agencies, and commercial aerospace entities. The company focuses on areas including unmanned systems, satellite communications, cyber warfare, electronic warfare, and missile defense testing. It operates as a prime contractor and technology integrator, leveraging rapid development and lower-cost platforms to address evolving national security threats.

History

The company was founded in 1994 by Eric M. DeMarco and initially operated as a wireless communications service provider. Its strategic pivot toward the defense and security sector began in the early 2000s, marked by the acquisition of Haas Corporation in 2002, which provided engineering services for NASA and the U.S. Air Force. A significant transformation occurred following the 2005 acquisition of Integrated Defense Technologies, a major supplier of electronic and missile defense systems, which fundamentally reshaped its business portfolio. The company adopted the Kratos name in 2007, reflecting its new focus on national security markets. Throughout the late 2000s and 2010s, it expanded through a series of strategic acquisitions, including businesses from Lockheed Martin, Northrop Grumman, and DynCorp, solidifying its role in C4ISR, unmanned systems, and training and simulation.

Products and services

Kratos develops and fields a range of high-performance, attritable systems, most notably its family of unmanned aerial systems like the UTAP-22 Mako and the XQ-58A Valkyrie, developed in partnership with the U.S. Air Force Research Laboratory for the Loyal Wingman program. Its Space, Satellite and Cyber division provides satellite ground systems, command and control software for military satellite communications, and payloads for Space Development Agency programs. The company's Defense & Rocket Support Services segment offers technical services for missile defense programs, including targets for testing the Aegis Ballistic Missile Defense system and the Ground-based Midcourse Defense network. Additional offerings include electronic warfare training systems, cyber security solutions for critical infrastructure, and live, virtual, and constructive training and simulation services for the U.S. Navy and U.S. Army.

Acquisitions

The company's growth has been heavily driven by an aggressive acquisition strategy to build technological capabilities and market access. Key transactions include the 2005 purchase of Integrated Defense Technologies and the 2012 acquisition of the Herley Industries microwave and simulation businesses. In 2014, it acquired portions of DynCorp's technical services business. Significant deals in the unmanned and C4ISR sectors followed, including the 2015 purchase of Composite Engineering Inc., maker of the BQM-167A target drone, and the 2017 acquisition of 5-D Systems, a provider of software for U.S. Special Operations Command. The 2019 acquisition of CTI(Custom Technical Services) expanded its engineering footprint in Huntsville, Alabama, a hub for missile defense work with the U.S. Army Space and Missile Defense Command.

Government contracts

As a significant contractor, it holds numerous contracts with major defense and space agencies. It is a prime contractor on the U.S. Air Force's Skyborg Vanguard program and has contracts with the U.S. Space Force for satellite ground control systems. The Missile Defense Agency awards it contracts for target vehicles and technical services for systems like THAAD and Aegis Ballistic Missile Defense. Other key customers include the U.S. Navy for training systems, the National Reconnaissance Office for satellite support, and the Defense Advanced Research Projects Agency (DARPA) for advanced technology demonstrations. Its work often supports major programs of record for prime contractors like Raytheon Technologies, Lockheed Martin, and Boeing.

Corporate affairs

The company is headquartered in San Diego, California, and is publicly traded on the NASDAQ under the ticker symbol KTOS. Eric M. DeMarco has served as President and Chief Executive Officer since its founding. Its operations are organized into two primary reporting segments: Kratos Government Solutions and Unmanned Systems Division. The company emphasizes a "technology-forcing" culture focused on rapid prototyping and development to deliver capabilities at a lower cost structure than traditional defense primes. It maintains facilities and offices across the United States, with significant operations in Orlando, Florida, Sacramento, California, Oklahoma City, Oklahoma, and Huntsville, Alabama.

Category:Defense companies of the United States Category:Companies based in San Diego Category:Aerospace companies of the United States Category:Companies listed on NASDAQ