Kratos Defense & Security Solutions, Inc. (KTOS): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the powerhouse behind some of the most innovative defense and security solutions? Kratos Defense & Security Solutions, Inc. (KTOS) stands out as a key player in the defense, national security, and commercial markets, reporting a substantial $1.136 billion in revenues for the full year 2024. But how did this company evolve, who owns it, what's its mission, and, crucially, how does it generate revenue? Keep reading to discover the inner workings of this influential technology company.

Kratos Defense & Security Solutions, Inc. (KTOS) History

Kratos Defense & Security Solutions, Inc. Founding Timeline

Year established

The company was originally established in 1994.

Original location

The original location of the company was San Diego, California.

Founding team members

Although specific names of the original founding team members are not widely publicized, the company was formed by a group of entrepreneurs with backgrounds in engineering and defense technology.

Initial capital/funding

Details regarding the initial capital and funding sources for the company's formation are not readily available in public records.

Kratos Defense & Security Solutions, Inc. Evolution Milestones

Kratos Defense & Security Solutions, Inc. Transformative Moments

Several strategic decisions and key moments have shaped Kratos Defense & Security Solutions, Inc. into the company it is today:

• Strategic Shift to Defense: The company's pivotal decision to move from telecommunications infrastructure to defense and security solutions marked a transformative moment. This transition allowed Kratos to capitalize on the growing demand for advanced defense technologies and services.
• Focus on Unmanned Systems: Kratos recognized the increasing importance of unmanned systems in modern warfare and invested heavily in developing cutting-edge drone technology. This strategic focus has positioned Kratos as a leader in the rapidly expanding UAS market.
• Acquisition Strategy: Through strategic acquisitions, Kratos has expanded its technological capabilities and market presence. These acquisitions have enabled the company to offer a comprehensive suite of solutions to its customers and to compete more effectively in the defense industry.
• Development of the XQ-58 Valkyrie: The development and testing of the XQ-58 Valkyrie low-cost, high-performance drone was a transformative project, showcasing Kratos's innovation and ability to deliver advanced technology solutions.

To gain more insights into the investors and the reasons behind their investment decisions, check out: Exploring Kratos Defense & Security Solutions, Inc. (KTOS) Investor Profile: Who’s Buying and Why?

Kratos Defense & Security Solutions, Inc. (KTOS) Ownership Structure

The ownership structure of Kratos Defense & Security Solutions, Inc. features a mix of institutional, retail, and insider holdings, shaping its governance and strategic direction.

Kratos Defense & Security Solutions, Inc.'s Current Status

Kratos Defense & Security Solutions, Inc. is a publicly traded company, meaning its shares are available for purchase on stock exchanges by the general public. This allows for a broad base of ownership and provides the company with access to capital markets for funding its operations and growth initiatives.

Kratos Defense & Security Solutions, Inc.'s Ownership Breakdown

The following table provides a snapshot of the ownership distribution of Kratos Defense & Security Solutions, Inc. as of April 2025:

Kratos Defense & Security Solutions, Inc.'s Leadership

The leadership team plays a crucial role in guiding Kratos Defense & Security Solutions, Inc.'s strategic direction and operational execution. As of April 2025, the key figures at the helm include:

• Eric M. DeMarco: Serves as the President and Chief Executive Officer.
• Deanna H. Lund: Holds the position of Executive Vice President and Chief Financial Officer.
• Marie Mendoza: Functions as the Executive Vice President, General Counsel, and Secretary.

These individuals, along with other members of the executive team, are responsible for setting the company's strategic priorities, overseeing its financial performance, and ensuring its compliance with legal and regulatory requirements. For more insights into the company's values and objectives, explore the Mission Statement, Vision, & Core Values of Kratos Defense & Security Solutions, Inc. (KTOS).

Kratos Defense & Security Solutions, Inc. (KTOS) Mission and Values

Kratos Defense & Security Solutions aims to deliver innovative, affordable technology and solutions that address national security needs, guided by its core values of customer focus, innovation, and integrity.

Kratos' Core Purpose

Official mission statement

While Kratos does not have a single, publicly declared mission statement, their focus is clear through their actions and statements:

• Providing transformative, affordable technology for national security.
• Developing and fielding systems and solutions that address the changing needs of defense and security clients.
• Remaining agile and responsive to evolving threats and opportunities.

Vision statement

Kratos' vision is reflected in its strategic goals and operational priorities:

• To be a leader in directed energy, C5ISR, unmanned systems, satellite communication, and training systems.
• To drive innovation and deliver disruptive technologies that provide a competitive advantage to their clients.
• Achieving sustained growth and creating value for shareholders through strategic investments and operational excellence.

Company slogan/tagline

Kratos employs various messaging strategies that highlight its key strengths and offerings:

• 'Affordable Technology, National Security.' This emphasizes the company's commitment to providing cost-effective solutions for critical defense needs.
• Focus on being a 'disruptive technology' provider. This underlines their approach to innovation and challenging traditional defense industry norms.

To gain more in-depth insights into Kratos' financial stability and strategic positioning, explore Breaking Down Kratos Defense & Security Solutions, Inc. (KTOS) Financial Health: Key Insights for Investors.

Kratos Defense & Security Solutions, Inc. (KTOS) How It Works

Kratos Defense & Security Solutions, Inc. operates by providing technology, products, and solutions primarily to the U.S. National Security market, along with specialized offerings for commercial enterprises.

Kratos Defense & Security Solutions, Inc.'s Product/Service Portfolio

Kratos Defense & Security Solutions, Inc.'s Operational Framework

Kratos operates through two main segments:

• Kratos Government Solutions (KGS): This segment delivers professional services and products, focusing on microwave electronics, satellite communication systems, and training solutions.
• Unmanned Systems (UMS): This segment designs, develops, and produces unmanned aerial, ground, and surface systems, along with command and control systems.

Key operational aspects include:

• Contract-Based Revenue: Kratos secures revenues primarily through contracts with the U.S. government and its allies.
• Technology Development: A significant portion of Kratos' operations involves continuous research and development to enhance its technology offerings.
• Manufacturing and Integration: Kratos manufactures and integrates its products, ensuring quality control and customization for specific client needs.

Kratos Defense & Security Solutions, Inc.'s Strategic Advantages

• Specialized Technology Portfolio: Kratos has a diverse range of specialized technologies that cater to niche areas within the defense and security sectors.
• Strong Government Relationships: The company benefits from long-standing relationships with the U.S. Department of Defense and other government agencies.
• Innovation Focus: Kratos emphasizes innovation, allowing it to stay ahead of technological advancements and meet emerging security challenges.
• Agile Business Model: Kratos uses an agile business model which allows it to adapt to changing market conditions and customer requirements more effectively than larger, more bureaucratic organizations.

For more insights into the investors behind Kratos, check out: Exploring Kratos Defense & Security Solutions, Inc. (KTOS) Investor Profile: Who’s Buying and Why?

Kratos Defense & Security Solutions, Inc. (KTOS) How It Makes Money

Kratos Defense & Security Solutions, Inc. primarily generates revenue by providing technology, products, and solutions for the U.S. National Security priorities. These include areas such as unmanned systems, satellite communications, microwave electronics, and cyber security.

Kratos Defense & Security Solutions, Inc. Revenue Breakdown

Kratos Defense & Security Solutions, Inc. Business Economics

The business economics of Kratos Defense & Security Solutions are influenced by several factors:

• Government contracts: A significant portion of Kratos' revenue comes from contracts with the U.S. government and its allies. The size and terms of these contracts greatly affect the company's financial performance.
• Technological innovation: Kratos invests heavily in research and development to stay ahead of the curve in its key technology areas. Successful innovation can lead to new contracts and increased revenue.
• Market demand: The demand for Kratos' products and services is driven by geopolitical factors, defense spending, and the evolving needs of its customers.
• Pricing strategies: Kratos employs various pricing strategies depending on the product, service, and customer. These strategies may include cost-plus pricing, fixed-price contracts, and value-based pricing.

Kratos Defense & Security Solutions, Inc. Financial Performance

Key aspects of Kratos Defense & Security Solutions, Inc.'s financial performance include:

• Revenue Growth: Kratos has demonstrated substantial revenue growth in recent years, driven by increased demand for its products and services. For example, the company reported revenue of $1.07 billion for the year 2024, representing a 14.3% increase from 2023.
• Profitability: While Kratos has been focused on growth, it has also made progress in improving its profitability. The company's gross margin for 2024 was 28.7%.
• Backlog: Kratos' backlog, which represents the value of future revenue under contract, stood at $1.2 billion at the end of 2024. This provides visibility into the company's future revenue stream.
• Strategic Investments: Kratos continues to invest in strategic acquisitions and partnerships to expand its capabilities and market reach.

To gain more insight into the company's core values and objectives, explore Mission Statement, Vision, & Core Values of Kratos Defense & Security Solutions, Inc. (KTOS).

Kratos Defense & Security Solutions, Inc. (KTOS) Market Position & Future Outlook

The company holds a strong position in the defense and security market, particularly known for its innovative technology and solutions. The company is strategically positioned to capitalize on emerging opportunities in areas such as unmanned systems, satellite communications, and directed energy. However, it also faces challenges related to competition, technological advancements, and economic factors.

Competitive Landscape

Opportunities & Challenges

Industry Position

The company operates as a mid-tier player within the defense and security industry, known for its specialization in advanced technology solutions. The company focuses on niche markets where it can leverage its expertise and innovation to gain a competitive edge.

• The company's key strengths lie in its ability to develop and deploy cutting-edge technologies in areas such as unmanned aerial systems (UAS), satellite communications, and microwave electronics.
• The company has a strong presence in the space and satellite communication market, providing solutions for government and commercial customers.
• The company is actively involved in the development of directed energy weapons, positioning itself at the forefront of emerging defense technologies.

To gain more in-depth knowledge about the company's core values and strategic direction, explore: Mission Statement, Vision, & Core Values of Kratos Defense & Security Solutions, Inc. (KTOS).