Kratos Defense & Security Solutions

KTOS Q2 2025 Earnings

Reported Aug 7, 2025 at 4:20 PM ET · SEC Source

Q2 25 EPS

$0.11

BEAT +17.77%

Est. $0.09

Q2 25 Revenue

$351.5M

BEAT +14.93%

Est. $305.8M

vs S&P Since Q2 25

-6.3%

TRAILING MARKET

KTOS +6.8% vs S&P +13.1%

Market Reaction

Did KTOS Beat Earnings? Q2 2025 Results

Kratos Defense & Security Solutions posted a decisive beat in the second quarter of fiscal 2025, reporting adjusted EPS of $0.11 against a consensus estimate of $0.09, a 17.77% beat, while revenue of $351.50 million topped expectations of $305.83 mil… Read more Kratos Defense & Security Solutions posted a decisive beat in the second quarter of fiscal 2025, reporting adjusted EPS of $0.11 against a consensus estimate of $0.09, a 17.77% beat, while revenue of $351.50 million topped expectations of $305.83 million by 14.93% and climbed 17.1% year-over-year. The headline driver was an explosive quarter within the Kratos Government Solutions segment, where Defense Rocket Systems revenue surged 116.6% on hypersonic mission timing and C5ISR grew 25.4%, pushing KGS to 27.1% organic growth. Those gains more than offset weakness in the Unmanned Systems segment, which saw revenue fall to $73.20 million from $85.80 million as a large prior-year international drone shipment did not repeat. For investors watching defense contractors, management's raised full-year guidance, revenue of $1.29 billion to $1.31 billion and Adjusted EBITDA of $114 million to $120 million, alongside a record $13.00 billion bid pipeline and the pending $750 million Poseidon contract, underscores the company's momentum heading into 2026.

Key Takeaways

  • Defense Rocket Systems business organic revenue growth of 116.6% driven by timing of hypersonic missions
  • C5ISR business organic revenue growth of 25.4%
  • KGS segment 27.1% organic growth across all businesses
  • Generational recapitalization of strategic weapon systems with increasing global defense budgets
24/7 Wall St

KTOS YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

KTOS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“A generational recapitalization of strategic weapon systems is underway, with significant global funding being committed by the U.S. and its allies, including as represented by a planned U.S. 2026 National Security spend exceeding $1 trillion, NATO committing 5% of member GDP to defense, and Asian allies looking to do the same.”

— Eric DeMarco, Q2 2025 Earnings Press Release