Kratos Defense & Security Solutions Inc

Kratos Defense & Security Solutions is a defense technology contractor whose core business is developing and manufacturing specialized products for military applications. The company is a government contractor at the forefront of the U.S. Department of Defense's recapitalization of strategic weapon systems. Its product lines include target drone systems, like the BQM-177A used for weapons system testing, directed energy weapon platforms, and autonomous defense systems. Industry analyses consistently categorize Kratos alongside prime defense contractors such as Lockheed Martin, Raytheon, and L3Harris in markets for military training, autonomous platforms, and directed energy weapons.

The company's operations are material to the defense sector. In December 2025, it announced a proposed public offering of $1 billion in common stock. Kratos has secured significant contracts for militarily specific equipment, including a $61.1 million U.S. Navy contract modification for its BQM-177A target drones. Its business model involves contracting directly with defense agencies, as evidenced by a 2015 settlement in which a Sacramento-based Kratos division paid $2 million to resolve allegations of inflating costs on a federal contract.