KTOS Q3 2025 Earnings
Reported Nov 4, 2025 at 4:19 PM ET · SEC Source
Q3 25 EPS
$0.14
BEAT +12.36%
Est. $0.12
Q3 25 Revenue
$347.6M
BEAT +7.88%
Est. $322.2M
vs S&P Since Q3 25
-28.8%
TRAILING MARKET
KTOS -22.4% vs S&P +6.4%
Market Reaction
Did KTOS Beat Earnings? Q3 2025 Results
Kratos Defense & Security Solutions delivered a convincing beat across the board in its fiscal third quarter of 2025, with revenue climbing 26.0% year-over-year to $347.60 million against a consensus estimate of $322.22 million, a 7.88% upside surpri… Read more Kratos Defense & Security Solutions delivered a convincing beat across the board in its fiscal third quarter of 2025, with revenue climbing 26.0% year-over-year to $347.60 million against a consensus estimate of $322.22 million, a 7.88% upside surprise, while adjusted EPS of $0.14 topped the $0.12 consensus by 12.36%. The standout driver was the Unmanned Systems segment, which posted 35.8% organic revenue growth on the back of tactical Valkyrie drone shipments to an international customer, underscoring why defense contractors are attracting intense investor attention heading into 2026. A book-to-bill ratio of 1.2x and a $13.50 billion bid pipeline signal sustained momentum, and management backed that confidence with a guidance raise, lifting full-year FY2025 revenue expectations to $1.32–$1.33 billion while projecting 15%–20% organic revenue growth in FY2026, stepping up further to 18%–23% in FY2027, each year paired with approximately 100 basis points of EBITDA margin expansion.
Key Takeaways
- • 26.0% total revenue growth and 23.7% organic revenue growth year-over-year
- • Unmanned Systems segment grew 35.8% organically driven by tactical Valkyrie shipments to an international customer
- • KGS Defense Rocket Systems business grew 47.2% organically
- • KGS Space, Training and Cyber businesses grew 21.2% organically
- • Consolidated book-to-bill ratio of 1.2x with $414.1 million in Q3 bookings
- • Consolidated backlog of $1.480 billion, up from $1.414 billion in Q2
KTOS YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
KTOS Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our Q3 financial results are representative of the increasing demand for Kratos' military grade hardware, systems and software to support U.S. National Security and its allies. Also reflective of this demand, we are once again increasing our full year 2025 revenue guidance, and we are increasing our full year 2026 organic revenue growth forecast up to 15 percent to 20 percent above our expected increased annual 2025 revenue. Additionally, we are providing a preliminary 2027 organic revenue growth target of 18 percent to 23 percent above this increased 2026 estimated revenue range. We are also expecting EBITDA margin expansion for both 2026 and 2027, as we scale the business and transition to more profitable contracts, with EBITDA margins expected to increase even as we continue to make significant bid, proposal and other new opportunity related investments as we have in 2025, as we pursue multiple large new program opportunities.”
— Eric DeMarco, Q3 2025 Earnings Press Release
KTOS Earnings Trends
KTOS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KTOS EPS Trend
Earnings per share: estimate vs actual
KTOS Revenue Trend
Quarterly revenue: estimate vs actual
KTOS Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 BEAT FY | $0.13 | $0.18 | +34.63% | $345.1M | +2.15% |
| FY Full Year | — | $0.55 | — | $1.35B | — |
| Q3 25 BEAT | $0.12 | $0.14 | +12.36% | $347.6M | +7.88% |
| Q2 25 BEAT | $0.09 | $0.11 | +17.77% | $351.5M | +14.93% |
| Q1 25 | — | $0.12 | — | $302.6M | — |