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Kratos Defense Continues to Sharpen Its Edge in Hypersonic Tech
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Key Takeaways
{\"0\":\"KTOS advances hypersonic tech with new systems like Zeus, Oriole, Erinyes and Dark Fury.\",\"1\":\"Kratos Defense formed Prometheus Energetics LLC JV with RAFAEL to supply solid rocket motors in the US.\",\"2\":\"KTOS is building a $50M Hypersonic Payload Integration Facility to boost testing and integration.\"}
Kratos Defense & Security Solutions, Inc. ((KTOS - Free Report) ) is making strategic moves to enhance its hold in the hypersonic weapons space, a critical area of focus for the U.S. defense sector. Rising military conflicts, terrorism and border disputes have pushed nations to strengthen their national security systems, with hypersonic technologies having emerged as a key growth catalyst for maintaining military superiority and deterrence.
Being a prominent contributor in hypersonic technology, Kratos Defense has been developing new rocket motor systems, like Zeus and Oriole, and related hypersonic flight vehicle systems, including Erinyes and Dark Fury. In February 2025, the company announced the second successful flight of its Erinyes Hypersonic flight system.
In the same month, KTOS entered into a joint venture with RAFAEL Advanced Defense Systems to form Prometheus Energetics LLC, a U.S.-based supplier of solid rocket motors and other energetics.
The company is also actively involved in the Multi-Service Advanced Capabilities Hypersonic Testbed program, which aims to bridge the gap between ground and flight tests for hypersonic technologies, accelerating their development and transition to operational use.
To further expand its support in this space, Kratos Defense broke ground on a 68,000-square-foot Hypersonic System Payload Integration Facility in Crane, IN, this March. The facility, involving $50 million of investment, will focus on payload activities, integration and testing. Such initiatives and recent developments should help Kratos Defense make smooth progress in the hypersonic technology industry.
Peers Advancing in Hypersonics
As nations continue to integrate hypersonic technologies in their advanced defense capabilities, other defense contractors like Lockheed Martin Corporation ((LMT - Free Report) ) and Northrop Grumman Corporation ((NOC - Free Report) ) are also ramping up their hypersonic programs.
Lockheed Martin has more than six decades of experience working with hypersonic technology. The company focuses on developing and implementing cutting-edge hypersonic systems critical for national defense, supported by its expertise in missile technology, advanced materials and integrated deterrence strategies.
On the other hand, Northrop Grumman has been working on hypersonic technology for more than eight decades. The company has years of experience in designing, building and assembling rocket motors for the Pentagon and its allies. They have also developed advanced propellant formulas, making them a key player in hypersonic innovation.
KTOS’ Price Performance, Valuation and Estimates
Shares of KTOS have gained 180.1% in the past year compared with the industry’s 58.1% growth.
Image Source: Zacks Investment Research
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 6.20X compared with its industry’s average of 10.33X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KTOS’ near-term earnings has moved south in the past 60 days.
Image: Bigstock
Kratos Defense Continues to Sharpen Its Edge in Hypersonic Tech
Key Takeaways
Kratos Defense & Security Solutions, Inc. ((KTOS - Free Report) ) is making strategic moves to enhance its hold in the hypersonic weapons space, a critical area of focus for the U.S. defense sector. Rising military conflicts, terrorism and border disputes have pushed nations to strengthen their national security systems, with hypersonic technologies having emerged as a key growth catalyst for maintaining military superiority and deterrence.
Being a prominent contributor in hypersonic technology, Kratos Defense has been developing new rocket motor systems, like Zeus and Oriole, and related hypersonic flight vehicle systems, including Erinyes and Dark Fury. In February 2025, the company announced the second successful flight of its Erinyes Hypersonic flight system.
In the same month, KTOS entered into a joint venture with RAFAEL Advanced Defense Systems to form Prometheus Energetics LLC, a U.S.-based supplier of solid rocket motors and other energetics.
The company is also actively involved in the Multi-Service Advanced Capabilities Hypersonic Testbed program, which aims to bridge the gap between ground and flight tests for hypersonic technologies, accelerating their development and transition to operational use.
To further expand its support in this space, Kratos Defense broke ground on a 68,000-square-foot Hypersonic System Payload Integration Facility in Crane, IN, this March. The facility, involving $50 million of investment, will focus on payload activities, integration and testing. Such initiatives and recent developments should help Kratos Defense make smooth progress in the hypersonic technology industry.
Peers Advancing in Hypersonics
As nations continue to integrate hypersonic technologies in their advanced defense capabilities, other defense contractors like Lockheed Martin Corporation ((LMT - Free Report) ) and Northrop Grumman Corporation ((NOC - Free Report) ) are also ramping up their hypersonic programs.
Lockheed Martin has more than six decades of experience working with hypersonic technology. The company focuses on developing and implementing cutting-edge hypersonic systems critical for national defense, supported by its expertise in missile technology, advanced materials and integrated deterrence strategies.
On the other hand, Northrop Grumman has been working on hypersonic technology for more than eight decades. The company has years of experience in designing, building and assembling rocket motors for the Pentagon and its allies. They have also developed advanced propellant formulas, making them a key player in hypersonic innovation.
KTOS’ Price Performance, Valuation and Estimates
Shares of KTOS have gained 180.1% in the past year compared with the industry’s 58.1% growth.
Image Source: Zacks Investment Research
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 6.20X compared with its industry’s average of 10.33X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KTOS’ near-term earnings has moved south in the past 60 days.
Image Source: Zacks Investment Research
KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.