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Aerospace & defence · Industrials · Fiscal year ends Dec 27
Kratos Defense & Security Solutions reported revenue of $1.3B in the fiscal year ended Dec 2025, up 18.5% from the year before. Operating income was $26M, an operating margin of 1.9%, and net income was $22M. Operating cash flow of −$42M less capital expenditure of $95M left free cash flow of −$137M. It held more cash than debt (net cash $561M).
Ranks among the 30 aerospace & defence companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | 812 | 898 | 1,037 | 1,136 | 1,347 |
| Cost of revenue | 586 | 672 | 769 | 849 | 1,039 |
| Gross profit | 225 | 226 | 269 | 287 | 308 |
| Research & development | 35.2 | 38.6 | 38.4 | 40.3 | 40.0 |
| Selling, general & admin | 160 | 183 | 199 | 217 | 240 |
| Operating income | 27.9 | −2.9 | 31.1 | 29.0 | 25.6 |
| Interest expense | 23.7 | 18.3 | 21.7 | 15.2 | 9.6 |
| Pre-tax income | 4.4 | −33.0 | 11.1 | 26.5 | 34.0 |
| Income tax | 3.9 | 0.2 | 8.7 | 10.2 | 12.0 |
| Net income | −2.0 | −36.9 | −8.9 | 16.3 | 22.0 |
| Diluted EPS | −0.02 | −0.29 | −0.07 | 0.11 | 0.13 |
| Diluted shares | 128 | 127 | 130 | 151 | 165 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | 349 | 81.3 | 72.8 | 329 | 561 |
| Receivables | 93.9 | 106 | 129 | 118 | 165 |
| Inventory | 4.7 | 1.1 | 5.3 | 4.3 | 6.9 |
| Current assets | 758 | 583 | 594 | 872 | 1,263 |
| Net PP&E | 168 | 213 | 244 | 288 | 362 |
| Goodwill | 494 | 558 | 569 | 569 | 596 |
| Total assets | 1,590 | 1,552 | 1,633 | 1,951 | 2,467 |
| Payables | 50.4 | 57.3 | 63.1 | 82.0 | 69.6 |
| Deferred revenue | 58.1 | 62.1 | 102 | 76.3 | 73.4 |
| Current liabilities | 221 | 234 | 293 | 297 | 311 |
| Long-term debt | 297 | 250 | 219 | 175 | 0.0 |
| Total liabilities | 629 | 604 | 634 | 598 | 471 |
| Shareholders' equity | 945 | 936 | 976 | 1,353 | 1,996 |
| Backlog (remaining obligations) | 954 | 1,112 | 1,244 | 1,445 | 1,573 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | 35.3 | −25.7 | 65.2 | 49.7 | −42.1 |
| Capital expenditure | 46.5 | 45.4 | 52.4 | 58.2 | 95.3 |
| Free cash flow | −11.2 | −71.1 | 12.8 | −8.5 | −137 |
| Depreciation & amortisation | 25.7 | 30.5 | 33.2 | 40.3 | 47.1 |
| Stock-based compensation | 25.8 | 26.3 | 25.3 | 29.8 | 35.5 |
| Acquisitions | 12.3 | 132 | −0.3 | 11.5 | 0.0 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 10.7% | 15.5% | 9.6% | 18.5% |
| Operating income growth (YoY) | – | −110.4% | – | −6.8% | −11.7% |
| EPS growth (YoY) | – | – | – | – | 18.2% |
| Gross margin | 27.7% | 25.2% | 25.9% | 25.3% | 22.9% |
| Operating margin | 3.4% | −0.3% | 3.0% | 2.6% | 1.9% |
| Net margin | −0.2% | −4.1% | −0.9% | 1.4% | 1.6% |
| Return on equityBlank when equity is negative | −0.2% | −3.9% | −0.9% | 1.2% | 1.1% |
| ROCEEBIT ÷ (assets − current liabilities) | 2.0% | −0.2% | 2.3% | 1.8% | 1.2% |
| Free cash flow margin | −1.4% | −7.9% | 1.2% | −0.7% | −10.2% |
| Cash conversion (CFO ÷ net income) | −17.6x | 0.70x | −7.33x | 3.05x | −1.91x |
| Receivable days | 42 | 43 | 45 | 38 | 45 |
| Inventory days | 3 | 1 | 3 | 2 | 2 |
| Payable days | 31 | 31 | 30 | 35 | 24 |
| Interest cover | 1.18x | −0.16x | 1.43x | 1.91x | 2.67x |
| Debt ÷ equity | 0.31x | 0.27x | 0.22x | 0.13x | 0.00x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | −52.7 | 169 | 147 | −155 | −561 |
| Current ratio | 3.43x | 2.49x | 2.03x | 2.94x | 4.06x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.