Airbus and Kratos Complete First European U740-Valkyrie Flight, Target Combat Readiness 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.

Barclays launched coverage of 20 aerospace and defense companies, rating Boeing (BA) and RTX (RTX) Overweight. Analyst Anthony Valentini expects Boeing to return to normalized growth and RTX to benefit from new aircraft content and missile exposure. Other Overweight picks include Rocket Lab (RKLB), CAE (CAE), DPC (DDPC), Kratos (KTOS), Karman (KRMN), Archer Aviation (ACHR), Beta Technologies (BETA), SpaceX (SPCX), and Palantir (PLTR).

Ondas (ONDS) shares fell 5% to $6.86, despite $270M in new defense orders and recent acquisitions. AeroVironment (AVAV) dropped 1%, while Kratos (KTOS) rose 0.4%. The Defiance Drone ETF (JEDI) declined 3%. Ondas' growth relies on acquisitions and order conversions, raising concerns about execution and production scaling.

Redburn initiated coverage of U.S. defense stocks, rating Lockheed Martin (LMT), Northrop Grumman (NOC), and Kratos (KTOS) as 'buy' with price targets of $650, $680, and $70, respectively. AeroVironment (AVAV) was rated 'neutral'. The brokerage cited a proposed $1.5 trillion U.S. military budget for fiscal 2027 as a potential demand driver. Redburn forecasts significant revenue and earnings growth for these companies through 2030.

Kratos Defense & Security Solutions (KTOS) secured over $100M in contracts for space intelligence and cyber capabilities, supporting military operations in RF signal collection, intelligence gathering, and electronic warfare.