Adelman Jonah sold $1.8M of KTOS

Kratos Defense & Security Solutions (KTOS) won a $33.6M contract from NASA to design and build a power system for the Space Reactor-1 Freedom spacecraft, launching in 2028. Kratos will work as a subcontractor to Sierra Lobo under NASA’s SpaceDOC III contract, providing a power conversion system for the mission to Mars. The spacecraft aims to demonstrate nuclear electric propulsion technology. According to the company, the contract is a significant milestone in advancing space nuclear propulsion.

Macquarie Research initiated coverage on six US aerospace & defense companies with Outperform ratings, citing a multi-year investment cycle. Target prices: AeroVironment $210 (59.7% upside), CACI $780 (27.0%), FTAI $305 (84.3%), Intuitive Machines $25 (94.4%), Karman $65 (103.9%), Kratos $70 (68.2%). The sector is supported by increased defense spending and technological innovation.

Macquarie analyst Lysaght highlights AeroVironment (AV) and Kratos Defense (KTOS) as strong defense stocks. AV, with a $210 price target (72% upside), focuses on drone tech and secured a $99.8M Air Force contract. KTOS, with a $70 target (73% upside), advances in unmanned systems and hypersonics. Both reported recent revenue beats.

Kratos, a California-based defense company, announced the first European flight test of its U740 Valkyrie combat drone, developed with Airbus for German and European forces. The drone met all test goals, including takeoff, maneuvers, and in-flight adjustments. Kratos also tested its TDI-J85 engine for various applications, with plans to scale production to 10,000 engines annually by 2029.

Kratos Defense & Security Solutions (KTOS) reported successful flight tests of its J85 turbojet engine in various configurations. The company ordered components for 3,000 engines, with production slated for 2027. The Spartan engine facility can produce up to 10,000 engines annually by 2029. The J85 engine is designed for defense applications, including cruise missiles and unmanned aerial systems.

Kratos Defense & Security Solutions (KTOS) announced successful flight tests of its J85 turbojet engine, which is now production-ready. The company has a 3,000-engine component order for 2027 and aims to produce 10,000+ engines annually by 2029. The J85 is designed for use in low-cost cruise missiles, decoys, and unmanned aerial systems, with high reliability and efficiency. Kratos is scaling up production to meet rising defense demand, with a fully operational manufacturing facility.