Kratos Secures $49.2M Contract to Supply Navy Rocket Systems
Kratos Defense & Security Solutions (Nasdaq: KTOS) has secured a contract with a potential value of $49.2 million from the U.S. Navy. Announced on March 26, 2026, the award from the Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD) is for the production and delivery of the company's Oriole™ solid rocket motors and Thrust Vector Control (TVC) systems. The contract is structured with a funded base award and options that, if fully exercised, bring the total value for up to 36 solid rocket motors to $39.1 million, with an additional $10.1 million option for three TVC production kits.
These systems are integral to the Navy's critical suborbital target and experimental hypersonic test programs. The Oriole rocket system provides an affordable and mission-relevant solution, enabling the military to maintain robust test and evaluation schedules for emerging national security requirements. This award continues a long-standing partnership between Kratos and the NSWC PHD.
Award Reinforces Kratos's "Affordable Tech" Growth Strategy
The contract highlights the success of Kratos's core business model, which focuses on internal investment to develop and rapidly field proven, cost-effective defense technology. By prioritizing affordability and speed, Kratos positions itself as a key partner for government agencies needing to address urgent challenges without the long timelines and high costs of unproven systems. This approach distinguishes the company within the defense industry and supports its long-term growth objectives.
Our approach-making internal investments to deliver affordable, first-to-market national security hardware-remains central to our growth and our commitment to our customers’ evolving needs.
— Eric DeMarco, President and CEO of Kratos Defense & Security Solutions.
For investors, this award reinforces Kratos's ability to win significant government contracts and expand its role in high-priority areas like ballistic missile defense and hypersonic research. The consistent delivery of key hardware components strengthens the company's revenue backlog and solidifies its reputation as a reliable and innovative defense contractor.
