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Dec 28, 2025
Kratos Q4 2025 Earnings Report
Kratos reported strong fourth quarter 2025 results with double-digit organic revenue growth and improved profitability.
Key Takeaways
Kratos delivered 21.90% revenue growth in Q4 2025, driven by strong organic expansion across both segments, with improved operating income and a book-to-bill ratio of 1.30.
Revenue increased 21.90% year-over-year with 20.00% organic growth.
Operating income improved to 8200000 from 3000000 in the prior year period.
Book-to-bill ratio was 1.30 with consolidated bookings of 438300000.
Unmanned Systems returned to operating profit from a prior year loss.
Revenue by Segment
Forward Guidance
Management guided for continued revenue growth and margin expansion in 2026, with stronger performance expected in the second half of the year.
Positive Outlook
- FY26 revenue guidance of 1595000000 to 1675000000.
- FY26 adjusted EBITDA guidance of 157000000 to 167000000.
- Expected acceleration in revenue and adjusted EBITDA in second half of 2026.
- Projected organic revenue growth of approximately 15% to 20% in FY26.
- Adjusted EBITDA margin expected to expand by approximately 100 basis points in FY26.
Challenges Ahead
- First quarter 2026 expected to be lowest in revenue and adjusted EBITDA.
- Continued significant investments impacting near-term margins.
- Elevated capital expenditures planned for FY26.
- Working capital investments required for rocket and unmanned systems inventory.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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