SOLE-SOURCE AWARD REFLECTS AIR DEFENCE DEMAND GROWTH

Kratos Defense & Security Solutions (Nasdaq: KTOS) has announced the receipt of an approximate $36 million sole-source contract award for a new air defence missile system. The award was made without competitive tender, reflecting Kratos’s established position as a recognised specialist in the rapid engineering, development and production of affordable military-grade hardware, including for air defence, hypersonic, missile, radar, directed energy, counter-UAS and other national security applications.

Tom Mills, President of Kratos’s C5ISR Division, said building military-grade hardware on schedule and on budget — hardware that must work every time — was demanding, and represented a clear differentiating capability for Kratos. He said the entire C5ISR team was proud to have been selected for the programme, which he described as critical to national security.

CEO CITES SUSTAINED AIR DEFENCE DEMAND

Eric DeMarco, President and Chief Executive of Kratos, said the company’s air defence hardware, products and systems business — both in the United States and internationally — was currently seeing increased demand from numerous customers across multiple systems, platforms and technologies. He said Kratos had made significant investments in property, plant, equipment and facilities over several years, and was continuing to do so, focused on supporting the United States Department of Defense and the rebuild and recapitalisation of the nation’s defence industrial base.

Work under the contract will be performed at a secure Kratos manufacturing facility. Due to security, competitive and other considerations, no additional programmatic detail has been disclosed. Kratos describes its approach as centred on designing products and systems for successful rapid, large-quantity and low-cost future manufacturing — a model it positions as a value-adding competitive differentiator for both government customers and large prime system integrator partners.